Around the Miami Valley
Thu July 26, 2012
Montgomery County Sues Fannie, Freddie Over Taxes
County officials in southwest Ohio have filed a class action lawsuit against two mortgage giants they say owe millions in unpaid taxes.
Montgomery County officials filed a federal lawsuit Wednesday that says Fannie Mae and Freddie Mac wrongfully claimed various exemptions to avoid paying transfer taxes to state counties.
Transfer taxes are owed to a county when a deed is recorded. The lawsuit claims both companies didn't pay transfer taxes on transactions involving banks that foreclosed on homes and transactions from new homeowners. Officials say both companies filed for exemptions as government entities and other inapplicable exemptions for an unspecified time.
The lawsuit involves almost all state counties. Summit County has filed an individual case.
Representatives for both companies could not be immediately reached Wednesday.