The Mortgage Bankers Association was not among the real estate trade groups that took out a full-page advertisement July 22 in USA Today urging President Bush to sign the Revenue Act of 1992 (H.R. 11). In fact. the MBA has penned its own missive to President Bush, asking him to veto the bill.
"The PMSR provision was too much of a hit," explained Michael J. Ferrell, senior staff vice president and legislative counsel for the MBA. It was the inclusion of purchased mortgage servicing rights in a provision of the bill requiring the costs of their acquisition to be amortized over 14 years that caused the MBA to oppose H.R. 11. Servicers insist that the actual life of the average PMSR contract is seven-to-10 years and the tax bill treatment would as much as double the period over which they could deduct their costs.