Cheat sheet: What tax reform would mean for lenders
By Ian McKendry
The Republican’s tax reform blueprint released Wednesday was largely welcomed by the financial services industry, which would like to see a lower corporate tax rate, but battles lie ahead as Congress looks to hammer out the details. …Others say concerns about the impact on housing are overblown. “The mortgage deduction is most important the higher one goes in income,” said Karen Shaw Petrou, co-founder and managing partner at Federal Financial Analytics. She said 2014 tax data shows that low- and moderate-income taxpayers used the mortgage interest deduction roughly 55% of the time while higher income taxpayers used it 82% of the time. She added that the housing interest groups oppose the higher standard deduction because the mortgage interest deduction is a key incentive for buying a home. “What it does do is to some degree enhance what they portray as affordability so borrowers can get more house,” Petrou said.