Legislative History
- Mortgage cancellation relief legislation was introduced in 1999 as H.R. 1690 (Andrews, D-NJ and Foley, R-FL) and in 2000 as S. 2555 (Hatch, R-UT). Andrews, Foley and Hatch introduced the bill again in 2001 (107th Congress). Andrews and Foley introduced a bill in the 108th Congress (H.R. 666), but no companion Senate bill was introduced. The legislation was introduced in the 109th Congress as H.R. 3458.
The bill’s provisions were included in 1999 in the House versions of minimum wage and small business tax relief that were assembled as H.R. 3081 and passed the House in 1999. In 2000, the Senate Finance Committee reported its version of H.R. 3081. It included the mortgage cancellation relief. H.R. 3081 was placed on the Senate calendar in 2000 but was never debated. In 2000, the provision was also included in the Senate Finance Committee version of S. 3152, the Community Renewal and New Markets Act of 2000. Again, the provision was not enacted.
A final tax bill in late 2000 was limited to some extenders and the new markets tax credit.
- More recently, legislation introduced in 2007 by Rob Andrews (D-NJ) Ron Lewis (R-KY) again brought this issue to the fore. House Ways and Means Chairman Rangel (D-NY) modified that bill and the Committee ordered the new version, H.R. 3648, reported in September 2007. The Chairman’s modifications restricted the relief to principal residences only and also imposed a cap of $2 million on the amount of debt that would benefit from the relief provision.
H.R. 3648 passed the House October 4, 2007 on a vote of 386 – 27.
H.R. 3648 - Public Law 110-142 was signed into law on December 20, 2007.
In 2008, Congress extended the relief through Dec 31, 2012 as part of the Emergency Economic Stabilization Act.
Revenue Estimate:
In the 106th and 107th Congress the provision was estimated to lose $27 million over 5 years and $64 million over 10 years. No revenue estimate was sought in the 108th or 109th Congress.
The revenue score for H.R. 3648 was $1.3 billion over 10 years. This significantly higher number reflects the turmoil in the 2007 housing markets and the harsh impact of the so-called subprime meltdown.
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Consumer Financial Protection Agency in the Works (Oct. 22, 2009)
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