Home >> Daily Dose >> Approved Spending Package Good News for Housing Market
Print This Post Print This Post

Approved Spending Package Good News for Housing Market

The House of Representatives passed a spending package that will fund the federal government throughout the fiscal year of 2020. In a recently released report regarding this legislation and its predicted effects, the National Association of Realtors President Vince Malta gave his opinion on the matter, stating that “Confidence and stability are two of the most critical factors impacting America’s housing market and economy. Fortunately, this funding agreement delivers that certainty to NAR’s 1.4 million members and the clients they work hard to serve every day.”

Malta then referred to his organization’s previous endeavors, stating that “The National Association of Realtors fought to eliminate short-term questions surrounding the status of the National Flood Insurance Program, federal terrorism insurance and various tax provisions, all of which will allow our members to plan better, minimize stress for prospective home buyers and sellers and keep our nation’s economy moving forward. While NAR applauds today’s votes, we urge Congress to use the time afforded by this agreement to work toward sustainable, bipartisan solutions to programs like the NFIP, which protect millions of Americans every year.”

The legislation allows the National Flood Insurance Program (NFIP) to continue throughout September 30, gives numerous tax provisions that will be a real boom to real estate markets, and reinstated the Terrorism Risk Insurance Program (TRIP) to be in operation for seven more years. 

The reauthorization of the Terrorism Risk Program was an especially welcome win for NAR, as such insurance is often a non-negotiable requirement needed before countless commercial practitioners nationwide can secure their desired financing. Without such funding that allows this provision of TRIP, many fear a repeat of the debacle of 2001 occurring, a time of turmoil when the rates for terrorism risk insurance were either raised to skyrocketing prices or insurers simply stopped giving hopeful clients coverage whatsoever. In order to avoid this, the NAR took the initiative to be proactive, urging Congress to reauthorize the program before it expired to ensure its continuance through at least 2020. 

Regarding the NFIP, its extension, which will last nine months, will make certain that policies can be properly executed throughout the year. As for the tax provisions, the trio that were particularly of interest to the real estate market were the exclusion of forgiven mortgage debt from gross income, the deductibility of premiums for mortgage insurance, and the deduction of the cost of improvements to commercial buildings that make them energy efficient—all of which had previously expired in 2017.

About Author: Andy Beth Miller

Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad.
x

Check Also

Investing in the Future

A new decade inevitably brings new trends, challenges, and obstacles for the residential investment community to overcome.What is the industry doing to prepare? This feature originally appeared in the March issue of MReport.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.