Mortgage Insurance is Now Deductible?

I read something today saying that Congress passed the bill making mortgage insurance, or private mortgage insurance deductible. I don't know the details yet, though I'm sure there's more information to come.

Mortgage Insurance is a type of insurance that the lender requires when the mortgage loan balance is greater than 80% of the value of the property. In the last few years, borrowers have been skirting this expense by obtaining second mortgages as piggy back mortgages. This made sense since the interest paid on these loans was deductible whereas mortgage insurance was not.

I was aware that the insurance companies were lobbying for a law change to make mortgage insurance deductible. The insurance lobby is very powerful, so it was only of matter of time.

Might create some more stable loans for buyers with lower down payments.