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Information for Single-Family Lending and Real Estate Professionals
 
Program Announcement

November 28, 2017
Contact your Borrowers: MCC Program Eliminated in Federal Tax Reform

Under the tax legislation currently being considered in Congress, the MCC program would be eliminated after December 31, 2017.

We need your help to reach out to your borrowers who hold Mortgage Credit Certificates (MCCs).

We also encourage you to act now if any borrower with an MCC is thinking of refinancing.

Why is This Happening?

The U.S. House of Representatives has passed a tax-reform package that eliminates the Mortgage Credit Certificate (MCC) program after Dec. 31, 2017. The Senate is considering its version of the tax bill, and if it passes this week, the two chambers will reconcile their different versions into a final tax-reform bill.

How Does this Affect My Borrrowers?

As it currently stands, the Washington State Housing Finance Commission will be unable to reissue any existing MCCs for homeowners who refinance their homes after Dec. 31, 2017. (Currently, an MCC is in effect for the life of the home loan, but must be reissued if the loan is refinanced.

Which Borrowers Are Affected?

Borrowers who have an MCC and are considering refinancing: We strongly urge them to refinance before December 31, 2017, if possible. Until further notice, the MCC program will not be available for mortgages refinanced after December 31, 2017.

Borrowers who have an MCC AND have refinanced within the last 12 months: If they have not yet requested the reissuance of their original MCC, they should do so as soon as possible. The fee for reissuance is $375. See our checklist for reissuance criteria and steps.

Borrowers who have an MCC and have no plans to refinance: The MCC will remain in effect even if MCCs are eliminated as part of tax reform. However, as it stands now, if they do refinance after December 31, 2017, the MCC will be revoked and the Commission will be unable to reissue it.

How Can I Help?

Please contact any of your borrowers who closed with an MCC and let them know their tax benefit may be at risk.

For more information, see our MCC page.

If you have questions, please email Corinna.Obar@wshfc.org

Thank you for your assistance in spreading the word.

                            

 
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