President Obama has submitted his budget plan to Congress for fiscal year 2010 (Oct. 1, 2009, through Sept. 30, 2010). The approximately $3.6 trillion budget provides the first glimpse of the relative priorities of the administration's objectives for the fiscal year ahead.
The Mortgage Bankers Association (MBA) expressed its support for certain provisions detailed in the budget, including increasing funding to the Federal Bureau of Investigation for investigating and prosecuting mortgage fraud and expanding the budget for the Hope for Homeowners program from $225 million to almost $1.4 billion during fiscal year 2010.
The administration is also planning to review all Department of Housing and Urban Development (HUD) programs in order to consolidate or eliminate those that are redundant or inefficient. The budget specifically targets the MBA-supported American Dream Downpayment Initiative for elimination. MBA says it will work with the administration and Congress to retain important programs that support affordable home purchases and the development of rental housing. HUD's budget would increase by 18% to $47.5 billion from $40.1 billion for fiscal year 2010.
As a preliminary measure to bolster the oversight of securities and other investments dealers, the budget calls for a 44% increase in the budgets of the Securities and Exchange Commission and the Commodities Futures Trading Commission. MBA supports efforts to provide a robust, consistent and transparent framework for financial services regulatory oversight.
The MBA also noted its opposition to other plans presented in the budget. For instance, a proposed new limit on itemized tax deductions would reduce the benefits of various housing-related tax deductions, such as the home mortgage interest, residential real estate taxes and mortgage insurance deductions, the group says. The MBA will also oppose the administration's budget request to increase carried interest taxation to the ordinary income tax rate (a maximum of 35%).Â
The full budget and supporting documents are available at the Office of Management and Budget's Web site: www.whitehouse.gov/OMB/. Further comment from the MBA is available at www.mortgagebankers.org.
SOURCE: Mortgage Bankers Association