Mortgage Lenders Get Tax Fix by Finding a Glitch in Senate Bill
ByThe last-minute Republican additions to the Senate tax bill include one apparently designed to appease mortgage lenders who worried that the legislation could cost them billions of dollars and drive some small firms out of the business.
A measure offered by South Dakota Republican Mike Rounds was described as “exempting mortgage service rights from new income inclusion rule” in a list of items to be included in the “manager’s amendment” obtained by Bloomberg News. The list was confirmed by two people familiar with the plans, but plans remained fluid Friday afternoon.
Lenders say the rule — if it didn’t exclude the servicing rights — would have required them to pay taxes upfront on income that they might not receive for several years…
Mortgage Lenders Get Tax Fix by Finding a Glitch in Senate Bill
