Congress passes mortgage reporting regulations in highway bill

by 31 Jul 2015
Congress has included a measure that would create new mortgage reporting requirements in a highway funding bill.

The measure, included in a short-term highway funding bill passed this week by both houses, is designed to reduce inaccurate reporting and root out fraud related to mortgage interest deductions. It would require banks and servicers to report the origination date of a mortgage, the property address for the collateral and outstanding balance of the loan at the beginning of the tax year.

President Obama is expected to sign the bill. If passed, it would go into effect for tax year 2017 and would raise an estimated $1.8 billion for the government over 10 years.

The bill did eliminate the use of “g-fees,” which are used by Fannie Mae and Freddie Mac to offset costs incurred when foreclosures occur – an omission praised by industry groups like the National Association of Federal Credit Unions.

“We’re gratified that lawmakers have kept g-fees out of highway funding for now, but we’ll be closely monitoring the long-term funding measure that lawmakers are expected to try to resolve in the fall,” said Carrie Hunt, NAFCU senior vice president of government affairs and general counsel.


  • by Bob | 7/31/2015 2:50:45 PM

    I like the statement about how much money will be raised for the government, NOT!

  • by c burns | 7/31/2015 2:55:11 PM

    interesting - so the IRS will be able to match up mortgage interest reported by the lender against the borrower filed returns, yet the irs still has not figured out how to stop the billions of dollars of identity theft for tax refund fraud by matching W-2's filed by employers against a bogus tax return. this should prove to be interesting.

  • by Joan | 7/31/2015 3:15:48 PM

    I have always found the idea that Congress can lump other items in bills that do not pertain to one another very troublesome.....


Is TILA-RESPA a good or bad thing long term?