Last week, the Congress passed a short term “continuing resolution” to fund the government through March 23, 2018. Included in the bill was the Bipartisan Budget Act of 2018, laying the groundwork for a larger budget deal to fund the government for the remainder of fiscal year 2018. As part of this new law, the National Flood Insurance Program (NFIP) is reauthorized on the same track as government spending until March 23.
In addition, the new law includes two tax extender provisions of importance to credit unions. The discharge of mortgage debt forgiveness not treated as income is extended through the end of 2017 so people with forgiven mortgage debt won’t have to pay federal taxes on the forgiven debt from 2017. This provision eliminates the requirement for most financial institutions (including credit unions) to file an IRS Form 1099-C (“Discharge of Indebtedness”) on a mortgage default involving an individual’s primary residence. Should the provision not have been extended, credit unions would have been required to file IRS Form 1099-Cs on certain serviced mortgages, adding to the already high compliance burden on credit unions.
The second tax provision in the law deals with mortgage insurance premiums. Insurance premiums paid in 2017 will be deductible as homeowners file their 2017 tax returns.
Today, the president is expected to send Congress his annual budget submission that outlines the administration’s spending and tax priorities. Many Congressional hearings will be held this week on various aspects of the president’s proposals. However, for the second year in a row, the Treasury Department will not concurrently release what is known as the “Greenbook,” a publication outlining the president’s priorities regarding revenue measures.
CUNA will quickly analyze the president’s budget and blog a summary of provisions that affect credit unions.
ON THE FLOOR:
The House is expected to consider H.R. 3978, the TRID Improvement Act of 2017; H.R. 620, the ADA Education and Reform Act of 2017; and H.R. 3299, the Protecting Consumers’ Access to Credit Act of 2017.
The Senate is expected to consider H.R. 2579, the vehicle to be used for comprehensive immigration legislation.
The Senate Budget Committee will hold a full committee hearing: “Presidents FY 2019 Budget Proposal.”
The House Financial Services Financial Institutions and Consumer Credit Subcommittee will hold a hearing entitled, “Examining the Current Data Security and Breach Notification Regulatory Regime.”
Kim Sponem of Summit Credit Union will testify on behalf of CUNA.
The House Financial Services Capital Markets, Securities, and Investment Subcommittee will hold a hearing entitled, “Legislative Proposals Regarding Derivatives.”
The Senate Finance Committee will hold a full committee hearing: “The President’s Fiscal Year 2019 Budget.”
The House Financial Services Financial Institutions and Consumer Credit Subcommittee will hold a hearing entitled, “Examining De-risking and its Effect on Access to Financial Services.”
The House Financial Services Terrorism and Illicit Finance Subcommittee will hold a hearing entitled, “Exploring the Financial Nexus of Terrorism, Drug Trafficking, and Organized Crime.”
The House Committee on Ways and Means will hold a hearing: “The President’s Fiscal Year 2019 Budget Proposals with U.S. Secretary of the Treasury Steven Mnuchin.”
The Senate Agriculture, Nutrition and Forestry Committee will hold a full committee hearing: “State of the CFTC: Examining Pending Rules, Cryptocurrency Regulation, and Cross-Border Agreements.”
The House Financial Services Monetary Policy and Trade Subcommittee will hold a hearing entitled, “Evaluating CFIUS: Administration Perspectives.”
The House Committee on Energy and Commerce Subcommittee on Communications and Technology will hold a hearing: “Federal Communications Commission: Budget and Oversight.”