DS News

30 MAKING MORTGAGE FORGIVENESS TAX RELIEF PERMANENT United States tax policy has been in the spotlight in recent months, with President Trump signing the Tax Cuts and Jobs Act into law in December, and experts debating what the long-term impact of the bill will be ever since. Representatives from the National Association of Realtors (NAR) recently appeared before the U.S. House Ways and Means Subcommittee on Tax Policy to argue in favor of making a tax exclusion for forgiven mortgage debt permanent. e debate centers around mortgage forgiveness tax relief, a policy first implemented in 2007 and since renewed and extended several times over the years. e exclusion establishes that mortgage debt forgiven by lenders after a foreclosure, short sale, or loan modification is tax deductible. Without the exclusion, NAR explains that borrowers already working to recover from falling behind on their mortgage payments can be hit by the double-whammy of an added tax burden, even as they are trying to do the responsible thing and resolve their financial responsibilities. "e exclusion for mortgage debt cancellation delivers a huge dose of fairness. When the investment in a home goes well, and the owner sells at a gain, the tax code generously waives capital gains up to $500,000," testified Barry Grooms, 2018 VP of Florida Realtors. "But what happens when things go sour, equity is lost, and the family is forced to sell short? Up through last year, the exclusion stepped in and relieved the often-impossible tax burden. If allowed to expire, we are left with a tax policy that rewards good fortune but piles on when the tables are turned. is is neither fair nor smart." Grooms encouraged the subcommittee members to work toward making the forgiven mortgage debt exclusion permanent, so as to not leave borrowers in the lurch at a time when they need all the help they can get. Grooms told the subcommittee members, "Cases of negative home equity will ebb and flow as well, even with a stronger economy. is is why we need a permanent exclusion to minimize the damage to families, neighborhoods, and communities." HELPING THE MORTGAGE INDUSTRY, ONE COURSE AT A TIME Continuous learning is a necessity for professionals in the servicing and mortgage industry. With this in mind, the Five Star Academy (FSA), a Five Star Institute brand, recently launched a learning platform with independent certification programs and courses written by experts from the housing and mortgage industry. "e objective of the Five Star Academy is to provide relevant, timely, and actionable education tailored for professionals of all levels servicing the mortgage industry. We expect these certifications to not only contribute to the careers of those who complete the coursework, but to the overall progress of the industry as a whole," said Ed Delgado, President and CEO of the Five Star Institute, in a recent statement. Covering a wide range of topics from regulatory compliance and legal practice to diversity and inclusion, and distressed asset disposition, these courses cover a wide range of topics in an easy-to-use online format. "FSA provides the latest instruction, presented by subject matter experts, in a manner that allows you to become certified while you simultaneously continue with your profession and with your personal life—it's a no-brainer," said Michelle Gilbert, Managing Partner, Gilbert Garcia Group. According to Clint Welser, VP, Laudan Properties, these courses are an excellent reference point for real estate and lending professionals who want to learn more about legal and regulatory topics. "As the real estate, banking, and servicing industries become increasingly more complex, it's great to have the resources that the Five Star Academy provides at the ready. Certifications such as these, help set professionals apart from their peers about an ever-evolving industry," Welser said. Each program contains eight courses, with each certification equivalent to 20 credit hours of relevant material. Currently, FSA offers three ways in which an individual can pursue a certification. ey include independent coursework where professionals can pick and choose the courses most applicable to their business and then revisit or pursue other coursework as needed; obtaining a certification when they complete all courses within a program; and completing all certification courses to obtain a Master Certification from FSA. "ese courses enable you to learn from top industry professionals about many things that you may need to be sharper on. Often, agents learn the most from other agents. Five Star Academy is a place where the entire industry can learn from each other and make that happen for all of us," said Jim Hastings, Broker/Owner, Hastings Brokerage. Editor's note: e Five Star Institute is the parent company of DS News.

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