Obscure provision in Senate tax bill seen costing banks billions
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.
That change could cost banks tens of billions of dollars as the value of those income streams drops. The reduction would be enough to drive smaller lenders and non-bank lenders to either exit the mortgage market altogether or restructure their businesses, said MBA president David Stevens.
“It’s a fire drill,” Stevens said. “We’re scrambling to get people on phone calls. It would cause a significant disruption in the industry.”
https://www.msn.com/en-us/money/markets/obscure-provision-in-senate-tax-bill-seen-costing-banks-billions/ar-BBFVg8C?li=BBnb7Kz&ocid=edgsp
The Republicans want to help the Mr. Potters of the world and put the George Bailys out of business.
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