Prospects Brighter for Mortgage Cancellation Relief

As Congress reconvened following Labor Day, President Bush announced a package of proposals intended to provide consumers assistance with subprime loans and related mortgage problems. The sole tax proposal in the package was a recommendation that Congress enact mortgage cancellation tax relief. Staff has held several conversations with senior Ways and Means and Senate Finance Committee staff. These senior attorneys are favorably disposed toward the legislation, but there is no plan yet in place for attaching it to a larger bill in order to hasten its enactment. A tax package may come together in the late autumn. NAR will make every effort to attach the legislation to a tax bill and to assure that the relief will be available for mortgage cancellations that have occurred since the beginning of the year. Further, President Bush proposed only a temporary relief provision. NAR seeks a permanent rule.