Statement: U.S. Senate Reintroduction of The Middle Class Mortgage Insurance Premium Act of 2023
WASHINGTON—Seth Appleton, President of U.S. Mortgage Insurers (USMI), released the following statement on the reintroduction of The Middle Class Mortgage Insurance (MI) Premium Act of 2023 sponsored by Senators Maggie Hassan (D-NH) and Thom Tillis (R-NC):
“We thank Senators Hassan and Tillis for reintroducing legislation that will make permanent and enhance the ability of middle class homeowners to deduct private and government MI premiums on their individual federal income tax returns. This targeted tax cut helps make homeownership more affordable, which is especially important in today’s low inventory, higher interest rate housing market. Millions of homeowners have benefited from this deduction since 2007, resulting in critical tax relief for first-time, low- to moderate-income, and minority homeowners. USMI urges swift passage of this bipartisan legislation.”
The Middle Class Mortgage Insurance Premium Act of 2023 is bicameral, with Representatives Vern Buchanan (R-FL) and Jimmy Panetta (D-CA) leading on this critical issue in the U.S. House of Representatives. Borrower-paid MI premiums became tax deductible in 2007, but the deduction expired after tax year 2021. Last November, USMI lead a coalition of housing organizations in sending letters to the House Ways and Means Committee and Senate Finance Committee urging members to make the MI premium tax deduction permanent and expand its eligibility. Data through tax year 2020 shows that an average of 3.3 million homeowners claimed the deduction annually and received an average deduction of $1,427. In aggregate, the MI tax deduction has been claimed 43.2 million times, totaling $61.6 billion of tax relief for American families between 2007 and 2020.
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U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org.
