Although Congress’ and the president’s just-in-time agreement to forestall the fiscal cliff crisis, at least for a while, provided some mortgage market-friendly results, MBS investors still face some challenges in 2013, analysts say. The American Taxpayer Relief Act, H.R. 8, includes a one-year extension through Dec. 31, 2013, of the Mortgage Debt Forgiveness Act that exempts loan amounts forgiven by lenders and foreclosures from taxable income. Deductions on mortgage insurance premiums for borrowers making below $110,000 were extended through 2013 and made retroactive to cover 2012, as well. “The combination of tax relief on mortgage insurance premiums and debt forgiveness should have...