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TH E M R EP O RT | 57 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 THE LATEST GOVERNMENT NAR Fights For Homeowners They already shoulder a disproportionate tax burden and shouldn't be shackled with more, Committee Chair Iona Harrison contends. T he National Associa- tion of Realtors' (NAR) Iona Harrison, Chair of NAR's Federal Taxa- tion Committee, testified before the Senate Finance Committee last month during a hearing titled "Individual Housing Reform." Recent proposals for tax reform eliminate such benefits as the state and local tax deduction, which, according to the press release, would essentially nullify benefits of the mortgage interest deduction and caps to the MID. Though Realtors have previously warned that doing away with these incentives would raise taxes for millions of middle- class homeowners, critics say the deductions only benefit a small number of wealthy individuals. However, "70 percent of the value of real property tax deductions in 2014 went to taxpayers with incomes less than $200,000; 53 percent of individuals claiming the itemized deduction for real estate taxes in 2014 earned less than $100,000; 32.7 million tax filers claimed a deduction for mortgage interest in 2015; [and] half of taxpayers with mortgages over $500,000 have AGI below $200,000," according to research conducted for NAR. The last time Congress implemented a major tax reform was in 1986, and it either eliminated or significantly changed a significant number of tax revisions, such as major real estate provisions, to lower rates. However, according to Harrison, in 1991, they increased the rates again. Harrison said despite the voicing of their concerns, Realtors do support tax reform—they just want to bring to Congress' attention that homeowners already pay 83 percent of all federal income taxes, and reforms raising those taxes would be a failed effort. "NAR supports the goals of simplification and structural improvements for the tax system, and individual tax rates should be as low as possible while still providing for a balanced fiscal policy," Harrison said. "We simply believe that to achieve these goals, Congress should commit first to doing no harm to the common interest that homeownership provides." Industry Reacts to Patenaude Confirmation Equipped with years of experience, the new Deputy Secretary will helm disaster relief efforts, among other duties. And that's a good thing, her many supporters say. T he U.S. Senate has offi- cially confirmed Pamela Patenaude to serve as Deputy Secretary of the U.S. Department of Housing and Urban Development (HUD). According to a press release issued by HUD September 14, Patenaude will head up the Disaster Management Group, as well as coordinate 16 programs aimed at long-term recovery and relief, including but not limited to the Offices of Public and Indian Housing, Community Planning and Development, and Policy Development and Research. She will also assist the Federal Housing Administration. Patenaude's confirmation has been long awaited, with multiple organizations in the housing industry calling for Congress to vote on her nomination. Her hearing in front of the Senate Committee on Banking, Housing, and Urban Affairs was held at the beginning of June, to favorable bipartisan results. "At this moment when so many of our citizens are suffering, Pam will bring strong leadership when we need her most," said U.S. Secretary Dr. Ben Carson. "Pam's extensive housing and community development experience will be invaluable as we embark upon the long road to recovery for communities hard-hit by disaster, and I'm grateful the Senate confirmed her nomination." Patenaude is certainly qualified to head up relief efforts. Her role as Deputy Secretary will be the second time she's served a pivotal role in the agency's work. Under the administration of George W. Bush, she held the title of Assistant Secretary of Field Policy Management, where she oversaw the long-term goals of HUD, as well as managed relief efforts in the wake of both Hurricane Katrina and Hurricane Rita. The Senate's confirmation of Pamela Patenaude as Deputy Secretary of the U.S. Department of Housing and Urban Development fills a vital role in the agency and comes at a critical time as the department faces the challenges ahead," said Ed Delgado, President and CEO of the Five Star Institute. "Patenaude's distinguished career in the housing industry and previous tenure at HUD makes her an unequivocally qualified addition." As Deputy Secretary, Patenaude's responsibilities won't be limited to disaster relief. The housing industry still faces issues with affordable housing, rising home prices, and tightening inventory. "Patenaude has a big task ahead. Home prices continue to rise in an environment of ever-tightening mortgage credit, which means buyers are struggling to keep pace," said William E. Brown, President of the National Association of Realtors. "That's a combination that's tough not only on young and first-time buyers but also on current homeowners looking to sell so they can move up to a property that better fits their needs." Lindsey Johnson, President and Executive Director of U.S. Mortgage Insurers, also applauded Patenaude's confirmation. "Deputy Secretary Patenaude's extensive background in housing finance will allow her to immediately begin work on the most important issues facing the housing finance system. Importantly, Deputy Secretary Patenaude's leadership in these efforts will ensure that Americans have greater access to mortgage finance credit, promote a greater role for increased private capital in mortgage finance, and reduce taxpayer risk exposure," Johnson said.