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Oakland County Prevails in Fannie Mae/Freddie Mac Lawsuit

Public Date: 3/23/2012 12:00 AM
Contact: Bill Mullan, Media and Communications Officer
Phone Number: 248-858-1048

Order Granting Plaintiffs' Motion for Summary Judgment and Denying Defendants' Motion for Summary Judgment

Pontiac, Michigan -- U.S. District Court Judge Victoria A. Roberts granted Oakland County summary judgment in its lawsuit against the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) because the two lenders failed to pay the transfer tax on deeds recorded by the Register of Deeds Office, as required by Michigan law.

In her order release today, Judge Roberts stated: "In the end, this case turns on a single question: whether a statutory exemption from 'all taxation' includes excise taxes such as the Michigan Transfer Taxes. Wells Fargo dictates that it does not. Accordingly, the Enterprises are liable for the Transfer Taxes."
 
Oakland County Executive L. Brooks Patterson applauded the decision.
 
"Judge Roberts' decision is a victory for Oakland County taxpayers," Patterson said. "We contended from the beginning that Fannie Mae and Freddie Mac are private corporations, not government entities. Judge Roberts affirmed that today."

Oakland County taxpayers stand to recover as much as $1.5 million.

For media inquiries only, please contact Bill Mullan, Media and Communications Officer, at (248) 858-1048.