[Congressional Record Volume 149, Number 43 (Tuesday, March 18, 2003)]
[Extensions of Remarks]
[Page E505]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           MAKING MORTGAGE INSURANCE PREMIUMS TAX-DEDUCTIBLE

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                             HON. PAUL RYAN

                              of wisconsin

                    in the house of representatives

                        Tuesday, March 18, 2003

  Mr. RYAN of Wisconsin. Mr. Speaker, today, together with my 
colleagues on the Ways and Means Committee, Mr Jefferson of Louisiana, 
Mr. Shaw of Florida, Mr. Lewis of Georgia, Mr. English of Pennsylvania, 
Mr. Tanner of Tennessee, Mr. Foley of Florida, Mr. Cantor of Virginia, 
as well as Mr. Ney of Ohio, Mr. Green of Wisconsin and Mr. Hayes of 
North Carolina, Mr. Radanovich of California I am introducing 
legislation that will extend the mortgage interest tax deduction to 
include mortgage insurance premiums, government and private. This is an 
important piece of legislation because making mortgage insurance 
payments tax-deductible will boost homeownership for lower-income, 
minority and veteran borrowers that typically need mortgage insurance 
to purchase a home.
  It is widely recognized that homeownership helps create stable and 
safe communities. Thus, the expansion of homeownership has been a 
longstanding goal of the Federal Government. The Bush Administration 
announced a goal of 5.5 million new homeowners by the year 2010. To 
achieve that goal, groups that have typically been unable to purchase 
homes--young people, low-income, members of minority groups--must be 
able to participate in the housing market.
  Government and private mortgage insurance programs help first-time, 
low-income and veteran borrowers afford to purchase a home. The VA, 
FHA, RHA and PMI programs allow buyers to make a down payment of 3 
percent or less of the appraised value. Mortgage insurance is a 
critical factor in allowing middle-income families and minorities to 
become homeowners. In Wisconsin, approximately 149,000 families held 
mortgages with either FHA or private mortgage insurance at the end of 
2002. Insured mortgages covered nearly 18 percent of home loans 
originated in Wisconsin in 2001. Insurance, however, covered about 30 
percent of the mortgage loans made to Hispanic borrowers in Wisconsin 
and 28 percent of the loans made to African American borrowers.
  In 2001, nationwide, mortgage insurance covered 57 percent of 
mortgage purchase loans made to African American and Hispanic borrowers 
and 54 percent of the loans to borrowers with incomes below the median 
income. The people who use mortgage insurance are policemen, firemen, 
teachers, and veterans who live in every community throughout the 
country. Twelve million American families presently use mortgage 
insurance.
  Presently these borrowers cannot deduct the cost of their mortgage 
insurance payments for Federal tax purposes. If mortgage insurance 
payments were made deductible, the cost of homeownership would be 
further reduced for these borrowers, enabling new buyers to get into a 
home that they might not have been able to afford or to purchase a more 
valuable home. It is estimated that 300,000 more homeowners per year 
would result from making these payments tax-deductible.
  Extending the tax deduction for home mortgage interest payments to 
mortgage insurance payments will significantly contribute to making the 
American dream of owning a home come true for many more of our 
citizens. Mr. Speaker, I urge my colleagues to support this important 
legislation and join me in working towards its enactment this year.

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