[Congressional Record (Bound Edition), Volume 153 (2007), Part 6]
[Extensions of Remarks]
[Pages 8517-8518]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCTON OF LEGISLATION TO MAKE PERMANENT THE DEDUCTION FOR MORTGAGE 
                           INSURANCE PREMIUMS

                                 ______
                                 

                          HON. SANDER M. LEVIN

                              of michigan

                    in the house of representatives

                        Thursday, March 29, 2007

  Mr. LEVIN. Madam Speaker, today I am pleased to introduce legislation 
to make permanent the deduction for mortgage insurance premiums. I want 
to thank my colleague Mr. Ryan, who sponsored this bill in the last 
Congress, for working with me in this matter. I would also like to 
thank Representatives John Lewis, Wally Herger, John Tanner, Dave Camp, 
Rahm Emanuel, Phil English, Shelley Berkley, Jerry Weller, Joe Crowley, 
Ron Lewis, Allyson Schwartz and Eric Cantor who are joining Mr. Ryan 
and myself in introducing this legislation.
  Last year, a version of Mr. Ryan's legislation, H.R. 3098, was 
incorporated into the Tax Relief and Health Care Act. As a result, 
homeowners who purchase mortgage insurance will be able to deduct the 
premiums they pay beginning January 1st of this year. Unfortunately, 
the provision is temporary and expires December 31, 2007. The 
legislation we are introducing today will make this deduction 
permanent.
  Government and private mortgage insurance programs help first-time, 
low- and middle-income, minority and veteran borrowers afford to 
purchase a home. The Federal Housing Administration, Department of 
Veterans Affairs, Rural Housing Service and private mortgage insurance 
programs allow these homebuyers to obtain a mortgage with a 
significantly reduced down payment of 3 percent or less of the 
appraised value, addressing one of the key barriers to homeownership.
  As a result of our legislation, mortgage insurance will be a more 
affordable option for families that want to purchase a home. 
Particularly given the ongoing problems associated with subprime 
lending, it is important that we continue to make premiums on new 
mortgage insurance contracts deductible beyond the end of this year.
  According to the most recent data, more than 388,000 families in my 
home state of Michigan held mortgages with either FHA or private 
mortgage insurance, and insured mortgages comprised 36 percent of home 
purchase loans originated in Michigan from 2000-2005. Mortgage 
insurance covered 40 percent of the mortgage loans made to African 
American or Hispanic borrowers. Borrowers earning less than 120 percent 
of area median income

[[Page 8518]]

comprised 80 percent of the insured home purchase loans originated in 
the state.
  Nationwide, 11.5 million families presently use mortgage insurance. 
The people who use mortgage insurance are our neighbors. They are 
policemen, firemen, teachers, and veterans who live in every community 
in everyone of our districts. This House has a longstanding commitment 
to expanding homeownership and to achieve that goal, we must expand the 
circle of people that are able to participate in the housing market.
  Making the tax deduction for mortgage insurance premium payments 
permanent will help make the American dream of owning a home come true 
for many more of our citizens. Madam Speaker, I urge my colleagues to 
support this important legislation and join us in working towards its 
enactment at the earliest opportunity this year.

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