WASHINGTON — Industry groups and consumer advocates have joined forces to urge lawmakers to extend the Mortgage Forgiveness Debt Relief Act, warning that expiration of the 2007 law could hamper the housing recovery.

The Financial Services Roundtable, the Housing Policy Council and the Center for Responsible Lending wrote to leaders of the Senate Finance and House Ways and Means committees in a letter Wednesday asking that the law be extended before the end of the year. The law exempts homeowners from paying taxes on short sales, principal reductions and other forms of mortgage debt forgiveness.

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