Hennepin County, on behalf of all Minnesota counties, announced a lawsuit Friday against Fannie Mae and Freddie Mac seeking to recover unpaid transfer taxes.
The lawsuit claims Fannie Mae and Freddie Mac wrongfully claimed transfer tax exemptions when they were selling properties. The $10 million lawsuit seeks $5 million from each lending group.
According to the lawsuit, Fannie Mae and Freddie Mac were not exempt from taxes on foreclosed home deed transfers to them, as well as deed transfers from Fannie and Freddie to new homeowners.
Minnesota joins counties from Florida, Georgia, Ohio, West Virginia and other states in lawsuits filed this summer calling for Fannie and Freddie to pay their debts on wrongfully claimed exemptions.Minnesota has a deed tax of $1.65 per $500 financed, and a mortgage registry tax of 23 cents per $100.
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