The mortgage industry can breath a sigh of relief with the final fiscal cliff deal bringing back a popular tax break on mortgage insurance premiums and debt forgiveness for borrowers who go through a short-sale or some other type of debt reduction.
A topic that is still up for discussion and likely to surface later in the year is whether the popular mortgage interest tax deduction will be part of a long-term deficit reduction plan.
Still, the deal passed by the Senate and House on Jan. 1 is one that leaves room for hope in the housing market.
The American Taxpayer Relief Act of 2012 apparently extends a law that expired at the end of 2011, which allowed for the deductibility of mortgage insurance premiums, according to a research report from Isaac Boltansky with Compass Point Research & Trading. The law now applies to fiscal years 2012 and 2013.
“The law dictates that eligible borrowers who itemize their federal tax returns and have an adjusted gross income (AGI) of less than $100,000 per year can deduct 100% of their annual mortgage insurance premiums,” Compass Point said.
“Certain borrowers with AGIs above $100,000 may benefit from the deductibility as well but are subject to a sliding scale. The tax break covers private mortgage insurance as well as mortgage insurance provided by the FHA, the VA, and the Rural Housing Service. In 2009, about 3.6 million taxpayers claimed the mortgage insurance deduction,” the research firm added.
One of the more watched provisions of the fiscal cliff was the Mortgage Forgiveness Debt Relief Act of 2007, which was set to expire on Dec. 31.
The fiscal cliff deal extends it for another year, meaning homeowners who experience a debt reduction through mortgage principal forgiveness or a short sale are exempt from being taxed on the forgiven amount.
“The amount extends up to $2 million of debt forgiven on the homeowner’s principal residence,” Compass Point Research & Trading said. “For homeowner’s to qualify, their debt must have been used to ‘buy, build, or substantially improve’ their principal residence and be secured by that residence. The law, which was passed in 2007 with a 5-year sunset provision, will now be in effect until Jan. 1, 2014.”
Another minor win for housing is a provision tied to the government’s plan to increase the capital gains tax rate from 15% to 20% for individuals who earn more than $400,000. While in theory, this is harder on higher-income homeowners, Compass Point sees a silver lining through an exclusion.
Compass Point notes the law “states that only gains of more than $250,000 for individuals ($500k for households) are subject to taxes on the excess portion of capital gains. Point being, in order for an individual homeowner to be impacted by the increased capital gains tax rate they would need to have an adjusted gross income above $400,000 and gain more than $250,000 from the sale of the property. Since this exclusion threshold remained intact, the impact of the capital gains tax increase is limited.”
Posted via email from Title Insurance EPIC Real Estate Solutions – Pittsburgh, PA EPIC is a growing national provider of title insurance, escrow and valuation services. We strive to provide the highest level of customer service to national banks, mortgage companies, credit unions and government agencies. Our executive management team has over 20+ years of industry experience. We are a certified woman owned business and pride ourselves on building a great team that allows for career advancement and growth. Our culture at EPIC is dedicated to providing unparalled service to our client but at the same time, making sure our staff have a great place to work. We offer tele-commuting options, flex-time hours, full medical, dental and vision benefits and 401k. Come join our team and start enjoying work. About the Position The primary duties of the Title and Closing Customer Service Representative are to service our clients and handle files from the curative process through the preparation of the HUD. Job Description 1. Review of Title Commitment for clearance. Position Requirements: Must have 1 to 3 Years Prior Experience in Title and Closing Industry 1. Ability to resolve and identify conflict issues effectively. Please review all application instructions before applying. Investors Title Company – Harrisburg, PA
Continuing Ed for Title Agents
Title and Closing Coordinator
About EPIC Real Estate Solutions
2. Prepare HUD settlement statements.
3. Confirm closing dates, location, documentation, and funds due at closing with borrowers.
4. Secure lender approval of loan closing documents.
5. Responsible for closing documents in accordance with state requirements and client instructions.
6. Review Work In Progress report to ensure completion.
7. Address inquiries from clients, borrowers, agents and internal staff professionally and in a timely manner.
8. Maintain open communication with clients, team members and team leader.
9. All other duties assigned by management.
2. Ability to read title and closing notes with clear understanding.
3. Ability to work independently and in a team environment.
4. Ability to meet timeframes of task assignments by customer.
5. Sense of urgency and communicating closing requirements and timelines to multi-state facilities closing teams and Brokers.
6. Ability to work in a paperless environment and maintain detailed tracking information in workflow.
7. Effective Communication Skills both verbally and through correspondence.
8. Attention to detail Underwriter/Settlement Processor needed
UNDERWRITER / SETTLEMENT PROCESSOR BANKERS SETTLEMENT SERVICES – CAPITAL REGION (Harrisburg, Pennsylvania) Position Objective: To perform underwriting and settlement duties and customer service as directed by Operations Officer. Position Responsibilities: Customer Service Communicate in a professional, courteous, pleasant and personal manner with clients and other employees on the telephone and in personal interactions. Receive and respond to customer inquiries received via phone, fax or email requesting status, rate quotes, title defects, clearing exceptions or general information. Underwriting/Production Understand and comply with ITIC’s underwriting principles and guidelines for all transactions. Keep abreast of changes to ITIC’s underwriting guidelines and apply to daily work. Type acceptable number of policies and endorsements according to agency production and quality goal. Ensure all information and documentation for file is assembled, accurate and forwarded to proper party. Learn and understand ITIC’s Title Policy System. Ensure critical title information is entered accurately and timely. Workflow Administration (if applicable) Receive order for title insurance via fax, email or phone. Order and track title and tax search from abstractor/examiner for all title requests (if applicable). Schedule closings and closers, verify places and times of closing, order continue/update (if applicable). Maintain information on clients, providers and lenders to ensure proper processing of title orders. Produce daily and monthly reports as indicated by Operations Officer. Maintain inventory of policy jackets, forms and promotional items. Maintenance of account receivables and pending files General Office Support (if applicable) Sort all incoming mail and faxes. Complete daily deposit of receivables in processing system and at bank in compliance with ITMS accounting standards. File all incoming mail with appropriate file. Order office supplies as needed. Closing (if applicable) Understand and comply with ITIC’s settlement and accounting guidelines for all transactions. Coordinate all aspects of the closing function and attend closings as needed. Prepare and edit settlement statements when needed. Process and coordinate closing files with the assistance and direction of the Operations Officer. Balance file with lenders and prepare necessary closing documents. Ensure timely processing of checks/disbursements for closings. Perform all post closing functions. Tear down closing files following closing, which includes shipping lender packet, making payoffs and recording documents. Document Recording (if applicable) Coordinate with closing attorney or appropriate personnel for document recording Verify checks payable to recording office are correct Deposit funds and cut checks where needed for recording Follow up with recording office or attorney for status of recorded documents as necessary. Other Duties Communicate regularly with Operations Officer regarding work volumes, customer issues and obstacles impacting production and quality. Special projects assigned by Operations Officer. Position Qualifications: High school graduate or equivalent with three years of clerical or underwriting experience related to title insurance, mortgage lending, legal support or loan processing. General knowledge of title insurance, legal instruments and terminology relative to conveying or encumbering property. Considerable ability to perform tasks relating to title insurance underwriting and administrative duties with minimum of supervision. Type with reasonable speed and accuracy. Analytical ability sufficient to analyze documents recorded in connection with a routine real estate transaction. Ability to work well under pressure, meet deadlines, organize workload and maintain accurate files. Ability to communicate effectively both orally and in writing, in person and by telephone.
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