Preserving Low-Income Housing

Posted by & filed under Federal tax matters, Regulation.

NYC Mayor De Blasio announced an aggressive goal of producing and preserving 200,000 units of affordable housing over the next ten years. New York City will need to be as creative as possible to achieve this goal and will need to look to all of the resources that it has at its disposal to achieve… Read more »

Tax Incentives for Sustainable Homeownership

Posted by & filed under Federal tax matters.

Harris, Steuerle and Eng have published New Perspectives on Homeownership Tax Incentives in Tax Notes. The report presents three tax reforms designed to promote homeownership that are fundamentally different from earlier proposals. Many of those earlier proposals would convert existing deductions into credits but would mistakenly, in our view, perpetuate flaws in the current system… Read more »

Borden & Reiss on REMIC Failure, in a Big Way

Posted by & filed under REMICs.

Brad and I posted REMIC Tax Enforcement as Financial-Market Regulator to SSRN (as well as to BePress). The article is forthcoming in the University of Pennsylvania Journal of Law and Business and it provides our extended analysis of how the organizers of purported Real Estate Mortgage Investment Conduits (REMICs) failed to abide by the requirements… Read more »

Dirty REMICs, Revisited

Posted by & filed under REMICs.

Brad and I have posted, Dirty REMICs, Revisited (also on BePress).  The abstract reads: We review the differences between two visions for the residential mortgage markets, one driven by the goal of efficiency and the other driven by the goals of efficiency and consumer protection. Both visions advocate for structural reform, but one advocates for… Read more »

REMIC Armageddon on the Horizon?

Posted by & filed under 2013, Bankruptcy litigation, MERS/Bank lacks standing, Note ownership litigation, REMICs, Texas.

Brad Borden and I have warned that an unanticipated tax consequence of the sloppy mortgage origination practices that characterized the boom is that MBS pools may fail to qualify as REMICs.  This would have massively negative tax consequences for MBS investors and should trigger lawsuits against the professionals who structured these transactions. Courts deciding upstream… Read more »

The Mortgage Interest Deduction: A Taxing Expenditure

Posted by & filed under Federal tax matters.

The Congressional Budget Office has issued a report, The Distribution of Major Tax Expenditures in the Individual Income Tax System,  which evaluates the mortgage interest deduction and the state and local tax deduction among other tax expenditures.  It finds (consistent with all previous findings) that they accrue disproportionately — grossly so — to the wealthy. … Read more »