The Mortgage Bankers Association warned that one provision in the Senate tax reform bill may have "severe, unintended consequences."
The legislation, in its current form, requires mortgage servicing rights to be recognized for tax purposes. But that may force servicers to exit the business, according to the group. Borrowers will consequently suffer higher costs and less access to credit, it added.
The association urged lawmakers to address the provision before the bill moves to the Senate floor.