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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 66 J O U R N A L July 2023 SENS. REINTRODUCE MIDDLE CLASS MORTGAGE INSURANCE PREMIUM ACT U .S. Senators Maggie Hassan of New Hampshire and Thom Tillis of North Carolina have reintroduced a bipartisan bill, the Middle Class Mortgage Insurance Premium Act, that would cut taxes for middle-class homeowners by restoring and permanently extending an expired tax deduction for middle-class homebuyers with mortgage insurance (MI), as well as expand- ing the number of families who can qualify for the tax deduction. "Homeownership is increasingly out of reach for many families in the Granite State and across the country. This bipartisan bill would cut taxes for middle-class families, helping them to buy a house and afford their mortgage," Sen. Hassan said. "I will continue working to address the housing crisis in New Hampshire." Most homebuyers who cannot make a 20% down payment are required to buy MI. Between 2007 and 2021, homeowners could take a tax deduction for premiums paid on MI. In 2020, middle-class homebuyers got an average mortgage insurance deduction of $2,100 according to IRS data, but this tax cut expired in 2021. The bipartisan Middle Class Mortgage Insurance Premium Act would restore and permanently extend the MI tax deduction and expand the deduction to more taxpayers by increasing the income limit from $100,000 to $200,000 per family. "With housing prices at record highs and rising interest rates to combat inflation, homeownership has become more unafford- able than ever," Sen. Tillis said. "I am proud to co-sponsor this bill to provide tax relief for middle-class families so more Americans have an opportunity to own a home." The Middle-Class Mortgage Insurance Premium Act was originally introduced in February of 2022 by Sen. Hassan and Roy Blunt of Missouri. "We thank Sens. Hassan and Tillis for reintroducing legislation that will make permanent and enhance the ability of mid- dle-class homeowners to deduct private and government MI premiums on their individ- ual federal income tax returns," said Seth Ap- pleton, President of U.S. Mortgage Insurers (USMI). "This targeted tax cut helps make homeownership more affordable, which is especially important in today's low inventory, higher interest rate housing market. Millions of homeowners have benefited from this deduction since 2007, resulting in critical tax relief for first-time, low- to moderate-income, and minority homeowners. USMI urges swift passage of this bipartisan legislation." Last November, USMI joined a coalition of housing finance organizations, including the American Bankers Association (ABA), Mortgage Bankers Association (MBA), Na- tional Association of Home Builders (NAHB), and National Association of Realtors (NAR) in sending a letter to the Senate Finance Committee Chairman Ron Wyden urging his Committee to support existing homeowners and prospective homebuyers by modifying current law to make the MI premium tax de- duction permanent and increase its income phaseout. According to USMI, data through tax year 2020 shows that an average of 3.3 million homeowners claimed the deduction annually and received an average deduction of $1,427. In aggregate, the MI tax deduction has been claimed 43.2 million times, totaling $61.6 billion of tax relief for American fami- lies between 2007 and 2020. HUD ISSUES FINAL STANDARDS FOR ASSISTED AND INSURED HOUSING T he U.S. Department of Housing and Urban Development (HUD) announced the pending publication of the Final Inspection Standards Notice for the National Standards for the Physical Inspection of Real Estate (NSPIRE) in the Federal Register. The notice details inspectable items at HUD-assisted and multifamily-insured properties. This includes a classification of which conditions are considered life-threat- ening, severe, moderate, or low-risk by item and inspectable area. Additionally, the Notice commits HUD to review standards at least every three years. "These strengthened standards show HUD places the health and safety of resi- dents first and foremost," HUD Secretary Marcia L. Fudge said. "As we put their needs first, we are not only doing the right thing, we're also innovating and becoming more responsive in our Department's practices across the board." "The NSPIRE standards do two things re- ally well. They bring consistency across pro- grams, which is important for housers, and they bring much-needed focus to the areas where residents spend most of their time and conditions that most directly affect their well- being," Office of Public and Indian Housing Principal Deputy Assistant Secretary Richard J. Monocchio said. "I'm incredibly proud of the team and the Department for the clarity and purpose represented by the Final Inspec- tion Standards Notice." NSPIRE improves HUD's oversight by aligning and consolidating inspection regu- lations used to evaluate HUD housing across multiple programs. NSPIRE strengthens HUD's physical condition standards, former- ly known as the Uniform Physical Condition Standard (UPCS) and the Housing Quality Standards (HQS). The new three-year notice review cycle allows HUD to be more responsive to evolv- ing industry standards and the changing needs of the public housing portfolio. This also creates the opportunity for the public to comment and propose changes at regular intervals. The NSPIRE Standards were tested during the NSPIRE Demonstration and were opened for public comment on June 17, 2022. The final standards were published with changes considering feedback HUD received and additional testing in the field during the NSPIRE Demonstration. Major changes include: » Addressing life-threatening and severe deficiencies within 24 hours. All other defi- ciencies must be addressed within 60 days or a reasonable period » Making the Smoke Alarm Standard con-