Open/Close Menu
Your Rental Housing Solution
Home · Property Management · Financing : Obama`s Budget Nips Mortgage Interest Deduction

Thumbs downThe National Association of Realtors, which has supported the Obama administrations housing and stimulus plans, is opposed to the budget proposal that would reduce the mortgage interest deduction for thousands of families.

In a letter sent today to President Obama, NAR President Charles McMillan said, There is never a good time to propose something that undermines the basic foundation of homeownership, but given our current housing crisis, this has to be the worst possible time.
Any changes to the current mortgage deduction would have repercussions far beyond the homeowners directly impacted. The tax deduction of interest paid on mortgages is both a powerful incentive for homeownership and one of the simplest provisions in the tax code. It should not be targeted for change, McMillan said.

According to NARs analysis, changing the mortgage interest deduction will not only negatively impact the 2 percent of families who own homes targeted by the proposal, but also will impact home prices and values across the board. The middle class would see their home values reduced even further by such action, and NAR cautioned the Obama administration that any further pressure on home prices will hamper the economic recovery, raise foreclosures and hurt banks abilities to lend.

Bank balance sheets will bleed as collateral value of their mortgage-backed securities falls even farther. We cant afford another credit crisis before we resolve the current one, said McMillan. He also stated that, with the current problems in the economy and the housing market, economic stability must be the focus. Changes that affect the housing industry and the financial arena have to be carefully thought out and balanced, he said.

As the leading advocate for homeowners and the real estate industry, NAR pledged to continue to address issues facing Americans who are trying to purchase a home, protect their current home or preserve investment opportunities in residential and commercial properties. NAR and our members look forward to working with the president to once again bring stability, prosperity and community to Americas families, McMillan said.

See our feature A Cure for Foreclosures?

American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.
To subscribe to our blog, click here

  • I thought Obama was supposed to be helping the working middle class? By reducing the mortgage and interest deduction, Obama will also be taking spending power out of the hands of thousands of hard working Americans who have always counted on those funds. This just doesn’t make any sense.

  • Tom

    What the H-LL is his real agenda? I think he is trying to bring down the country. This guy is not an American and he has too many ties to people who do not have our best interests at heart……or else, he knows nothing about economics and is listening to all of the special interest groups who do not care about the middle class, but will save the trees.

  • JERRY BAILEY

    OBAMA IS IN BED WITH THE WRONG PEOPLE. HE IS ON THE ROAD TO TRUE SOCIALISM. WE HAVE BEEN TRYING TO PURCHASE A CONDO IN SOUTH EAST FLORIDA FOR RETIREMENT BUT ALL BANKS / LOANS ARE FROZEN. EVEN WITH EXCELLENT CREDIT & SOME CASH DOWN – WE CAN NOT GET A MORTGAGE LOAN. ALL THE CONDO UNITS ARE BEING PURCHASED BY CASH BUYERS FROM OTHER COUNTRIES. OBAMA IS NOT STIMULATING OUR ECONOMY- HE IS KILLING IT. WE NEED TAX CUTS……
    WHEN ARE THE CITIZENS /PEOPLE GOING TO TAKE TO THE STREETS IN REVOLT ??? THIS WILL BE INTERESTING ! !
    WE ARE TRULY SCARED OF WHAT IS GOING ON WITH THIS NEW OBAMA ADMINISTRATION. !!! WHAT SAY YOU ?????
    JERRY & DEBBI

  • senko

    Are You really worried about 2% of filthy rich who robed whole country like recent CEOs who paid bonus themselves what most of us will never make in our lifetimes?

  • jon

    What is this? He gives a credit if you purchase a house, then takes it away when you can’t deduct the mortgage interest???? It’s like taking troops out of Iraq to save money only to turn around and relocate them in Afghanistan! If he keeps this up, he won’t be hangin out on the White House porch too long.

  • Smeado

    Obviously, he’s not talking about all homeowners. I wish the article would have talked more about the specifics of the plan. They left those details out because it probably only applies to the very wealthy.

  • Making mortgages more expensive during this time of unprecedented economic turmoil will not help stimulate the housing market.

    Commercial Mortgage Loans; Online

  • Pingback: AAOA Blog Reporting That National Association of Realtors (NAR) Gives Thumbs Down to Obama’s Plan to Curtail Mortgage Interest Deduction « Commercial Mortgage Loan Blog()

  • sergio

    The housing crisis is a mess because more and more people are unemployed. This in turn affects all the other businesses as well, from financials to retail.
    This will continue and all this tax cuts and tampering with mortgage interests deductions, stimulus packages, bailing out major co’s is only a temporary fix. On the long run, we’ll be back to square one again, that’s where we are now.
    I believe what we need to fix is to bring jobs back to US. All those imports that we buy simply provides jobs overseas not in US, and the majority of the money goes either to China (for imports) or to Saudi arabia for gas. Eventualy, if this isn’t corrected, we’re all going to be unemployed, i.e. in the private sector. Govnt. jobs will still be o.k. i.e. military, state, local, & fed jobs are secure.
    So, what we’re going to see is a major depression and Im hoping that it will be a little better than the one in 1930’s. Looking beyond that, we’ll probably have a socialist system. The rest of the world will follow our steps.

Copyright © 2004 - 2016 AAOA.com. All Rights Reserved.