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Ranieri Says U.S. Should End Deduction on Second Homes

The mortgage-interest deduction for vacation homes and other non-primary residences should be eliminated as part of a U.S. housing-finance overhaul, said Lewis Ranieri, a pioneer of loan securitization.

“We don’t need a deduction on second homes,” the chairman and founding partner of New York-based Ranieri Partners Management LLC said today during a panel discussion at the Milken Institute Global Conference in Beverly Hills, California. The allowance is “nice but not necessary,” and limits on primary-residence deductions should be considered too, he said.