President-Elect Trump’s designated Treasury Secretary Steven Mnuchin has proposed capping the Mortgage Interest Rate Deduction as well as reforming Fannie Mae and Freddie Mac in a recent CNBC interview.
On the Mortgage Interest Rate Deduction, President-Elect Trump’s tax plan, while not mentioning the mortgage deduction specifically, calls for a cap on all itemized deductions. Mnuchin’s comments have met opposition from the National Association of Realtors as well as groups like the Mortgage Bankers Association. Some affordable housing advocates have stated in the past that they would support reducing the deduction if the savings were redirected to affordable housing programs.
Regarding GSE reform, it is anticipated that Financial Services Committee Chairman Jeb Hensarling (R-Tex.) will propose a bill similar to that of 2013 legislation aimed at GSE reform but with Republicans having a small majority in the Senate, the legislation may fail to gain traction.
