February 2017 - Making Millennials Move

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TH E M R EP O RT | 45 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T DEPARTMENT ORIGINATION LOCAL EDITION THE LATEST USMI President Urges Lawmakers to Extend PMI Tax Credit LINDSEY JOHNSON SAYS THE CREDIT WOULD ULTIMATELY HELP LOW- AND MIDDLE- INCOME BUYERS. DISTRICT OF COLUMBIA // Since the tax deduction for mortgage insurance premiums paid on qualified residential interest ex - pired on December 31, President of Washington, D.C.-based U.S. Mortgage Insurers Lindsey Johnson petitioned leaders in both the House and the Senate as well as the Treasury Secretary designee, asking them to extend the tax credit for the primary purpose of assisting low- and moderate-income borrowers. Johnson wrote three separate letters, pointing out to the lawmak - ers that private mortgage insurance covered more than $50 billion in claims to the GSEs during the crisis—money that would have otherwise come from taxpayers— and that MI helped almost 828,000 individuals purchase or refinance a mortgage during the 12-month period ending with Q 3 2016, half of whom were first-time buyers. The deduction for mortgage in - surance premiums paid on quali- fied residential interest is aimed at helping make homeownership possible for low- and moderate- income borrowers who may have the sufficient credit rating but lack the resources necessary for a large down payment. "The deduction for mortgage insurance premiums has proven to be an important tool in lower - ing the cost of homeownership for the low- and moderate-income homebuyers to whom the deduc- tion was limited," Johnson wrote. "The provision has resulted in significant savings for families striving to afford a home." Johnson noted that 4.2 million tax returns filed in 2014—the most recent year the IRS data was available—claiming the deduction for mortgage insurance premiums, and all of them were filed by low- and moderate-income taxpayers. More than 80 percent of them had incomes between $30,000 and $100,000, Johnson said. She further noted that mort - gage insurance premiums should receive equitable treatment because they are economically equivalent to mortgage interest. "The Internal Revenue Code should retain the deduction for qualified mortgage insurance premi - ums, and the provision should be extended or made permanent for amounts paid or accrued beyond December 31, 2016," Johnson wrote. "As has been noted above, in the years that the deduction has been in effect, the deduction has proven to be an important tool for making homeownership more affordable for the low- and moderate-income homebuyers to whom it was limited. Furthermore, extension of the mortgage insurance premium deduction also is supported by tax policy considerations." The Mortgage Collaborative Sees $150 Billion in Origination Growth TMC'S PRESIDENT CREDITS NEW HIRES AND PARTNERSHIPS FOR STRIDES. CALIFORNIA // The Mortgage Collaborative, a mortgage co- operative headquartered in San Diego, California, has released its year-end data for 2016. The data revealed there was a progressive amount of growth, and the recent hirings and partnerships resulted in the company's origination vol - ume increasing to $150 billion. "Adding 50 new lender members and 20 new Preferred Partners in 2016 met the aggressive goals established by our Board, and grew our aggregate origina - tion volume to over $150 billion," said David G. Kittle, President of The Mortgage Collaborative. The Mortgage Collaborative has made strides to engage with GSEs Fannie Mae and Freddie Mac as well as organizations geared toward developing real estate professionals like The National Association of Hispanic Real Estate Professionals (NAHREP). Kittle mentioned that the company will build on its confer - ences, which take place during the winter and spring. "We also greatly expanded our educational and peer-to- peer networking platform that offered lender, networking calls on relevant and specific industry issues," he said. "As we move into 2017, TMC will continue to expand on both our Winter and Summer conferences, both of which were resoundingly suc - cessful in 2016." LOCAL EDITION "The deduction for mortgage insurance premiums has proven to be an important tool in lowering the cost of homeownership for the low- and moderate-income homebuyers to whom the deduction was limited." —Lindsey Johnson, U.S. Mortgage Insurers

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