Incorrect assumption. The wealthy would move their holdings to corporations and then rent the property back to themselves. This would allow them to deduct the mortgage interest as an expense and then depreciate the realestate. In other words, there would be unintended consequences and the $2 trillion would not materialize.
Renting in general would be a relatively more attractive way to be housed. Most renters wouldn't bother to rent to themselves and would end up sharing the savings with landlords in a competitive market. The housing market would be more rational without the distortion of the tax break.