Trump Pressuring Congressional Republicans to Speed Up Tax Reform

After the Senate passed tax reform last week, President Trump has told congressional leaders he would like the final deal to move even faster than the December 22nd goal they had set, according to Politico.

The White House would like to ensure that the lawmakers negotiating a compromise on the House and Senate legislation do not veer off the main differences between the two bills. Specifically, some of the outstanding questions include the best way to handle individual tax brackets and the corporate alternative minimum tax.

One provision in a previous iteration of the Senate's tax bill that has since been resolved would have required companies acquiring mortgage servicing rights (MSRs) to pay taxes for their anticipated servicing income upfront, rather than when the revenues were booked, as part of a broader adjustment to the tax treatment of deferred income. However, according to an article in American Banker, Sen. Mike Rounds (R-SD) introduced an amendment to the bill exempting mortgage servicers from the upfront tax hikes. Had the original version passed, MSR values would have been dramatically depressed, and smaller, independent mortgage bankers would have borne the brunt of the decline.

The House named its conferees on the legislation on Monday, December 4th, with Senate Republicans naming their participants on Wednesday, December 7th (As of this writing, Senate Democrat negotiators have not been named.)

SFIG is following the tax reform debate closely and is weighing in with lawmakers on areas that affect the securitization industry.

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