A federal judge ruled in favor of Oakland County in the first lawsuit in the nation filed to recover millions in unpaid real estate transfer taxes from Fannie Mae and Freddie Mac, who had argued that they were exempt from paying transfer tax upon the sale of real estate owned by them, as quasi-government entities.
US District judge Victoria Roberts ruled that Fannie and Freddie are essentially a privately owned mortgage banker and that a transfer tax is an excise tax, rather than a tax on real property. This ruling could open the door to all other Michigan counties to file suit. Oakland county damages are between $3-4 million and are $11-12 million across the state.
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