The OMBA Legislative Committee met on Friday, February 13, to review developments in the 2026 short session.
Yesterday, February 16, marked the first major policy committee deadline. Measures that advanced will move out of committees to floor votes and then be assigned to the opposite chamber (House bills to the Senate and Senate bills to the House) for further committee review, discussion, and potential amendments.
Budget & Mortgage Interest Deduction
The broader budget package remains in play, including discussion surrounding the mortgage interest deduction (MID) and whether Oregon will conform or decouple from certain federal tax provisions referenced under HR 1.
Approximately $700 million in spending is under discussion, including $38 million proposed for first-time homebuyer initiatives. It remains unclear whether this funding is directly connected to MID adjustments.
With respect to second homes, current indications suggest OMBA’s position opposing elimination of deductibility has largely prevailed, though final outcomes remain subject to budget mechanics.
HB 4128 – Institutional Investor Participation
HB 4128 has received a “do pass” recommendation out of House committee and has been printed A-Engrossed. The bill is advancing toward House floor consideration and, if passed, will move to the Senate for further review.
Amendments introducing a private right of action have generated industry concern and are expected to receive additional scrutiny as the bill progresses.
HB 4098 – Insurance / UTPA Expansion
HB 4098 has also advanced out of House committee with a “do pass” recommendation and has been printed A-Engrossed. The measure is moving toward House floor action before potential transmittal to the Senate.
OMBA maintains its opposed position due to concerns regarding potential impacts on property insurance availability and affordability, particularly in certain geographies.
The committee will continue to monitor amendments and coordinate with aligned trade groups as the session progresses toward adjournment on March 8.
Thank you for your continued engagement and support.
Eric Wiley
Vice President
Chair, Legislative Committee
Oregon Mortgage Bankers Association
