A federal judge dismissed claims that Fannie Mae and Freddie Mac claimed
false exemptions from recordation taxes in property transfers.
Lead plaintiff Robert Hager, of Nevada, sued the Federal National Mortgage Association and the Federal Loan Mortgage Corporation in a qui tam action which also involved intervening defendants Wells Fargo and the Federal Housing Finance Agency.
"Accepting plaintiffs' argument would lead to near absurdity," U.S. District Judge John Bates wrote in his opinion. "It would leave the statutory provisions, so sweeping their language, virtually meaningless: Fannie Mae and Freddie Mac would be free only from capitations and taxes upon personal property. The entities' day-to-day operations would be subject to the full panoply of taxation."
Hager sued the government-sponsored mortgage underwriters in the District of Columbia and Nevada Federal Courts, challenging their claimed exemption from the recordation tax, a tax levied when a deed that conveys title to real property or a security interest instrument is submitted for recordation.
Read more: http://www.courthousenews.com/2012/08/14/49276.htm
Lead plaintiff Robert Hager, of Nevada, sued the Federal National Mortgage Association and the Federal Loan Mortgage Corporation in a qui tam action which also involved intervening defendants Wells Fargo and the Federal Housing Finance Agency.
"Accepting plaintiffs' argument would lead to near absurdity," U.S. District Judge John Bates wrote in his opinion. "It would leave the statutory provisions, so sweeping their language, virtually meaningless: Fannie Mae and Freddie Mac would be free only from capitations and taxes upon personal property. The entities' day-to-day operations would be subject to the full panoply of taxation."
Hager sued the government-sponsored mortgage underwriters in the District of Columbia and Nevada Federal Courts, challenging their claimed exemption from the recordation tax, a tax levied when a deed that conveys title to real property or a security interest instrument is submitted for recordation.
Read more: http://www.courthousenews.com/2012/08/14/49276.htm
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