I don't think the mortgage deduction will be eliminated. I do thing there will be some limitation put on it. Perhaps it will be eliminated for second homes. It's also possible that there will be a cap on it.
You are right of course ... but CNBC and the pundit headline-seeking rats out there will pump this scare until the real facts come out. Just like most other tax deductions and credits ... if the mortgage deduction is even touched at all a REDUCTION will be gradually phased in and probably only effect those with discretionary income .. like those with second homes.