Private Mortgage Insurance "PMI" is a necessary but costly solution to enable most home buyers to obtain financing. A large portion of the home buying population is made up of middle class families with two incomes that make all payments when due and without ever entering into default, but do not have sufficient equity/cash to eliminate the PMI premiums. These two-income families often make more than the threshold for deduction of the PMI premiums.
The Administration should back legislation that would eliminate the deduction phase out/threshold for PMI premiums so that hard working families that meet all of their financial obligations may save hundreds of dollars a year, which savings would likely increase consumer spending and stimulate the economy.