Mortgage deduction in the crosshairs

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  • mcdugall Murray, UT
    Oct. 12, 2013 8:18 a.m.

    @RBB - Your over generalization neglects to mention the true agents who carried out the housing crisis. Realtors, Brokers, Investment Bankers (and undereducated home buyers) all colluded to increase all of their bottom lines at the expensive of the general public. Also, the Federal Reserve, is not a government entity, it is actually a private organization, so in fact if your reasoning is that the Federal Government caused the housing bubble due to keeping rates artificially low, you can in fact thank a private company not the government.

  • Liberal Ted Salt Lake City, UT
    Oct. 11, 2013 6:14 a.m.

    The solution is simple. But as quoted from Hillarys organization they want to give high risk loans to people who can't afford them.

    Here's the solution. Instead of requiring 3% down payment and a warm body. You require 10-20% down payment and an income that can support the home they're purchasing.

    That will prevent people from leveraging their money when they can afford a $500,000 home and leverage that money to buy a $1,000,0000 home. That will prevent people that can afford a $120,000 home from purchasing a $240,000 home.

    The other issue is offering arm loans to people. Many people are poor, because they are not financially smart. They just see that right now they can afford their dream home at a young age with zero savings and low income. Then interest rates rise and they were already extended and can no longer make the monthly payment. I would argue that people in that situation are very financially stupid.

    Perhaps on top of people needing a bigger down payment, is to have people go through a class and educate them on the risk. After taking the class the government is no longer responsible for them.

  • Hamath Omaha, NE
    Oct. 11, 2013 5:12 a.m.

    Child Tax Credits and Mortgage Deductions and all deductions for that matter are entitlements. Getting something for nothing. That is entitlement. They are just the more Republican ways of stealing as compared to the more Democratic way of stealing in the form of welfare and medicare/medicaid.

    Not paying your full tax is an entitlement. You pay less tax and thus have more money for doing nothing that doesn't already majorly help you.
    Getting $ from others because you have children is an entitlement.... Child Tax Credits and the like.
    Getting $ for food from others is an entitlement.
    Getting your health care paid for from others is an entitlement.

  • RBB Sandy, UT
    Oct. 11, 2013 2:13 a.m.

    A major cause of the housing crisis was that the government kept interest rates artificially low. House prices went up, up , up because everyone looked at whether they could afford the mortgage payment rather than the actual price of the house. Then, when a recession hit, housing prices started falling to more realistic levels and everyone was upside down.

    The more the government gets involved, the more likely the disaster will be repeated.

  • lost in DC West Jordan, UT
    Oct. 10, 2013 12:20 p.m.

    Who writes your summaries? Nowhere in the article is there ANY mention of doing away with the mortgage deduction. And you incorrectly label the deduction an “entitlement”. Entitlements involve the government paying something out or giving a credit – that does not happen with a mortgage deduction.

    And Fannie and Freddie were significantly privatized under Reagan – though not totally. There was no legal obligation for the feds to take them over. Since slick willy and barney frank essentially forced them to buy bad mortgages, there may have been a moral obligation to do so, and the housing market would have tanked even worse had they ceased to exist, perhaps it was best for the feds to take them over, but barney never should have exposed them to undue, artificial influence in the first place.

  • dave4197 Redding, CA
    Oct. 10, 2013 12:05 p.m.

    Question for the headline writer, where is the story about a mortgage deduction? It's not in the article let alone any crosshairs.

    I'm aware of Simpson - Bowles and talking reducing the mortgage interest deduction on sched A, which idea would be a very good leveler if the mortgage interest deduction would be capped at say the amount paid yearly on an average cost house. Not to reward mcmansion buyers. But to reward middle class home owners who are the rock of our economy and our neighborhoods. mcmansion buyers can fend for themselves with their wealth very well without we taxpayers helping them.

    So back to the headline, the article is missing the content you advertised. The article is an interesting discussion about how the taxpayers can avoid holding the bag, again, for risky real estate financing ventures. Let's pursue that, letting investors hold their bag.