Small businesses which form the back bone of the economy will definitely cheer the cut on tax rates from 35% to 20% as proposed by President Trump but the proposal to reduce the deductions to simplify tax code will definitely come as a jolt to people at least in the initial stage before the reduced complexity benefits get to be seen by the public at large.
The cut in corporate tax cut will impact the GSE's financial stability as it will affect their deferred tax assets (DTA) - and will have them go back to the central banks for liquidity. This was declared in the Q3 financial statement when news of the possible rate cuts was announced.
The impact on the larger mortgage market is to be seen. When liquidity gets impacted, originations can be impacted as well. Anyway, we at Peoples Privo Processing are ready to process your files any time !
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