The Mortgage Bankers Association (MBA) has signaled its support for the work being done on comprehensive tax reform, writing to key lawmakers that this was a “once in a generation opportunity” to overhaul the tax code.

The letter from MBA President and CEO David Stevens to the Big Six – congressmen Paul Ryan, Mitch McConnell, Orrin Hatch and Kevin Brady, along with Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn – highlighted MBA’s support of the recently released framework, which keeps the mortgage interest deduction and low-income housing tax credit.

However, Stevens said the potential elimination of 1031 like-kind exchanges raised “significant concerns.”

MBA strongly believes the elimination or modification of 1031 exchanges would adversely affect commercial real estate transactions, he wrote.

“The current utilization of Section 1031 provides benefits that help to promote ongoing investment patterns within local real estate markets, which, in turn, is a boon to continued economic growth,” Stevens wrote. “Regardless of whether full and immediate expensing (or some variation thereof) becomes part of a reformed tax code, MBA will continue to support provisions that retain Section 1031 treatment for the value of investment real estate.”

Another area of concern for MBA, Stevens wrote, is business interest deductibility.

“MBA is also concerned that an elimination or limiting of business interest deductibility would have far-reaching and damaging impact on many industries – including real estate finance – as changes of this sort will inevitably increase the cost of financing, make debt more expensive (for all businesses), and, in turn, limit real estate activity,” he wrote. “We strongly advocate that the provision of current law that allows businesses to deduct interest payments be preserved in its entirety.”

Stevens closed by saying MBA was ready to work with legislators and their staff on the process.

“Our members would be quite interested in offering their perspectives on appropriate phase-ins and other treatments that would accomplish the ultimate goals of pro-growth tax reform while not causing near term market disruptions,” he wrote.