Federal regulators’ efforts to simplify bank capital requirements relating to mortgage servicing rights don’t go far enough, according to industry participants. The institutions that the proposal is aimed at want even less stringent capital requirements, and large banks want to be included in the loosening. In October, federal banking regulators proposed simplified capital treatment for various assets, including mortgage servicing assets. The proposal would largely apply to banks with ...
Although the GOP tax overhaul will dampen use of the once-sacred mortgage interest deduction by consumers, owners of mortgage companies will be able to keep more of the money they earn each year, according to interviews conducted by Inside Mortgage Trends. In particular, firms that have C-corporation status will benefit the most, thanks to a reduction in the corporate tax rate to 21 percent from 35 percent. S-corps, on the other hand, likely will not do as well because ...
Mortgage and commercial real estate investment trusts stand to benefit from a provision in the Tax Cuts and Jobs Act of 2017 that offers individuals a 20 percent deduction for REIT dividends. Analysts at Keefe, Bruyette & Woods said the deduction applies to “qualified business income,” which includes qualified dividends paid by REITs. The tax reform bill was signed into law on Dec. 22, 2017. Previously, non-capital gains dividends from a REIT were taxed as ...
The cryptocurrency Bitcoin recently surged above $19,500 a unit for a short time, briefly surpassing the “tulip mania” of the Netherlands in the 17th century to become the biggest recorded asset bubble in the history of Western civilization. That caused a number of participants in that space to slip into “irrational exuberance” mode, going to such extremes as not only buying Bitcoin with their credit cards but also taking out mortgages to snap up as much of the cryptocurrency as they possibly could ...
And now for the bad news: The lower corporate tax rate will force Fannie and Freddie to write down the value of their deferred tax assets by $15.3 billion…
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