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Mortgage Industry Panics Over Obscure Provision in Senate Tax Bill

Mortgage bankers: Bill changes treatment of mortgage servicing
Group says some small lenders would likely exit mortgages

Bloomberg business news — Friedman, Amey on the Possible Impact of Tax Reform

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November 29, 2017, 2:59 PM UTCUpdated onNovember 29, 2017, 5:30 PM UTC

The mortgage industry is panicking over a provision in the Senate tax bill that some analysts and trade groups say may drive small lenders out of the business.

The Mortgage Bankers Association and other bank and mortgage trade groups scrambled over Thanksgiving weekend after staff members discovered a provision in the bill that would change the time at which lenders pay taxes on the streams of income they earn from managing borrowers’ mortgages.