Taxation: Residential Real Estate Finance: National Flood Insurance

Changes to the longstanding tax treatment of real estate could do further harm to the real estate
market and severely impact the budgets of current homeowners:
 The Mortgage Interest Deduction, which currently covers interest paid on both first and second
homes for taxpayers of all incomes, should be preserved in its current state. It is a remarkably
effective tool that facilitates home ownership among middle and lower income families.
 NAR opposes any changes to the current capital gains exclusions of $250,000/$500,000 on the
sale of a principal residence or reductions to the current property tax exclusion.
 Congress should extend the current tax forgiveness for mortgage debt discharged under
foreclosure, short sale or loan modification It expires this year.
Residential Real Estate Finance:
Realtors® want qualified borrowers to have access to safe, affordable mortgage financing:
 Fannie Mae and Freddie Mac should be restructured or reformed, but not completely eliminated
to preserve the availability of mortgage financing to qualified buyers.
 The Short Sales approval process should be made more efficient and lenders should shorten
response times to purchasers, which will help avoid foreclosures.
 The mortgage lending market should offer a wide variety of mortgage and refinancing options to
qualified homebuyers, rather than a one-size-fits-all model.
 The FHA program should not be harmed by proposals that unfairly burden homebuyers, such as
strict condominium investor rules, large downpayments or increased mortgage premiums.
National Flood Insurance Program:
The National Flood Insurance Program (NFIP) must be extended to ensure access to affordable
flood insurance.
 The Senate must take up and approve a 5-year reauthorization measure and end the uncertainty
of extensions and shutdowns.
 Another shutdown risks 1,300 more sales each day and would lead to more uninsured properties
needing government assistance when disaster strikes.
Commercial Lending:
Immediate action is needed to bolster liquidity in the commercial and multifamily real estate market
to avoid stalling our nation’s economic recovery.
 Credit Union lending opportunities should be expanded beyond current lending caps.
 The creation of a covered bond market in the U.S. will be essential to address ongoing
commercial real estate refinance challenges.