June 08, 2011
Oregon Real Estate
REALTORS Meet With Colorado Legislators In Washington, D.C. To Discuss Industry issues
On Wednesday, May 9th, REALTORS from all over Colorado met with Senator Michael Bennet, Senator Mark Udall, and Representatives Jared Polis, Scott Tipton, Ed Perlmutter, Cory Gardner, and Doug Lamborn. The meetings were put together by the Colorado Association of REALTORS. The annual visit to D.C. was filled with a great sense of urgency and apprehension this year as several issues that could affect the real estate industry are being discussed. These issues include:
Reduction/elimination of the Mortgage Interest Deduction (MID)
Congress is considering an elimination or reduction of the Mortgage Interest Deduction(MID) for primary and secondary homes. The current proposal being floated would be to eliminate the second home mortgage interest deduction, and reduce the primary deduction from its current cap of $1 million to $500,000 and completely eliminate the second home mortgage deduction. NAR estimates show that if this happens, home values could decrease as much as 15% from this elimination. A resolution in the House of Representatives would preserve, protect and defend the MID. Nearly 100 House members have signed on to the letter, but in Colorado, only Rep. Scott Tipton and Ed Perlmutter have signed on to the non-binding resolution. Senator Bennet and Rep Polis are waiting to see the entire deficit reduction package and what it includes. Both legislators said if the MID is included in a good deficit reduction package, they would be willing to give up the MID. Jared Polis, however, said he is a supporter of the MID and would not like to reduce the deduction.