FHFA vs Illinois | FHFA Strikes Back – Sues Clerk of Courts’, Dept of Revenue to End Real Estate Transfer Taxes on Fannie and Freddie

The Federal Housing Finance Agency filed a lawsuit against the state of Illinois and several county clerks to shield Fannie Mae and Freddie Mac from real estate transfer taxes.

The Illinois Department of Revenue and six clerk of courts in counties around the state will impose the taxes on real estate transferred to and from the government-sponsored enterprises. (See letter below)

These include charges for foreclosed properties the GSEs both repossess and resell.

Statement by Federal Housing Finance Agency

“The Federal Housing Finance Agency recognizes the difficulties faced by local officials that are struggling with shrinking tax bases. However, FHFA must resist when local governments impose unlawful tax-raising programs on Fannie Mae and Freddie Mac that, in turn, create a cost for taxpayers across the country.

“Longstanding federal statutes and Supreme Court rulings preclude states, counties and municipalities from imposing real estate transfer taxes on Fannie Mae and Freddie Mac, yet, several counties in Illinois are requiring or threatening to require them to pay such taxes. Federal law does provide for Fannie Mae and Freddie Mac to pay real estate taxes on the value of properties they hold, but does not sanction taxes tied to the transfer of properties.

“As conservator of Fannie Mae and Freddie Mac, FHFA must protect taxpayers from local taxation that clearly runs counter to long-established federal law. This lawsuit asserts that Fannie Mae and Freddie Mac are exempt from the Illinois transfer taxes and asks the court to block this improper taxation.”

From the Clerk of Courts’ Letter…

 

FHFA complaint below…

Looks like things are about to get interesting…

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4closureFraud.org

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FHFA vs Illinois w/Exhibits

Comments
8 Responses to “FHFA vs Illinois | FHFA Strikes Back – Sues Clerk of Courts’, Dept of Revenue to End Real Estate Transfer Taxes on Fannie and Freddie”
  1. ChrisYAHanWatcher4YAH says:

    Last time we checked: There IS NO: statute of limitations on FRAUD; and limits on: 18 U.S.C. 1961 et al. Racketeering: Two or more persons involved in a common scheme and design; to obtain money good/s or: “other Value”, by artifice schemes devices or instruments to concoct FRAUDS!

  2. Barbra Orr says:

    I would love to know how they are still in operation? They are in the same status as BOA- idiots in suits.

  3. Sharon says:

    Does anyone know if the Qui Tam lawsuits against Freddie and Fannie for non-payment of transfer taxes were dismissed? This is unbelievable.

    The timing of this lawsuit is suspect. I wonder if they waited until the Qui Tam lawsuits were dismissed before they did this. This would be one reason they would be emboldened to file their own lawsuit. This is wrong.

  4. Tim Bryant says:

    If they now claim that Fannie and Freddie are “agencies of the government”, than they cannot purchase RMBS on private homes without violating the Takings Clause. They also, could NEVER, pursue a non-judicial foreclosure.

    They are “government SPONSORED entities” (GSEs), not government agencies.

    If this goes through, homeowners who had their homes taken by Power of Sale, from the GSEs, could take them to court for Constitutional violations (Takings clause).

    Is that what FHFA really wants? ….morons!!!

  5. Hell NO! No More Bankster Bailouts! says:

    So if Fannie and Freddie are government-sponsored, then my brother who was ripped off when he was guided into buying stock in Fannie shortly before it’s stock lost all value, should be compensated by the government.

    I never had heard of any ‘government entity’ that has stock outstanding (the stock still exists, just has no real value).

  6. neidermeyer says:

    CELEBRITY DEATHMATCH! Put me on the Jury , I’m an Illinois landowner..

  7. John says:

    That’s what you want, jury trial!

    Got to have someone with some sense making these decisions.
    Nothing like 12 normal people.

  8. Ken Hansen says:

    Agency is out of control, no need to guess who or why.

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