MBA Advocates Expanded Home Buyer Tax Credit

age Bankers Association Chair David G. Kittle released a statement Monday saying the trade group is in favor of increasing the size and scope of the home buyer tax credit. There are several pieces of legislation floating in Congress that seek to turn the credit, which is currently $8,000 for first-time buyers, into a $15,000 tax credit that would be available to all buyers. Sen. Johnny Isakson, R-Ga., recently introduced The Homebuyer Tax Credit Act of 2009 (S.1230), while Rep. Howard Coble, R-N.C., has [link=][u]authored[/u][/link] The Home Ownership Moves the Economy Act (H.R.2801). Both bills extend the tax credit beyond its current sunset date of Dec. 31, 2009. In a letter to Isakson, Kittle wrote that the MBA supports the bulk of S.1230, although the group has two further suggestions. "MBA believes S.1230 could provide down-payment assistance if the bill was revised by monetizing the credit so that the funds are available to the home buyer at the closing table," the letter reads. Late last month, the Federal Housing Administration (FHA) [link=][u]agreed[/u][/link] to let home buyers using FHA-approved lenders to apply the tax credit to their down payment. Additionally, Kittle asked Isakson to consider removing the proposed tax credit limitation that is based upon regular tax liability. "As this bipartisan proposal moves forward, we hope that policy-makers will make the tax credit refundable as a tax refund if the person's tax liability is less than the amount of the credit, so borrowers can take full advantage of this benefit," Kittle said in his statement. SOUR


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