Hernando County clerk files suit against Fannie Mae, Freddie Mac
BROOKSVILLE — Hernando County Circuit Court Clerk Karen Nicolai has filed suit in U.S. District Court against the nation’s two largest federally backed mortgage companies.
The suit is against the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association, commonly called Freddie Mac and Fannie Mae.
The class action suit, filed on behalf of Hernando and the other 66 Florida counties, is over the mortgage company giants’ claims they are exempt from paying the state real estate transfer tax.
In Hernando County, that amounts to at least $75,000, although depending on the judge’s final outcome the damages could be significantly higher.
“It’s not a big money thing for us,” said incoming Circuit Court Clerk Don Barbee. “It’s more the principle of the thing.”
Barbee said when the mortgage companies assume ownership of a home, due to a foreclosure or other reason, the county is owed the transfer tax.
In Florida, the transfer tax is levied at the rate of $.70 per $100 (or $7 per $1,000) in the value of the transfer of real property.
On a $100,000 home, the excise tax would be $700.
Check out the rest here…
Lawsuit will be up as soon as we get it…
Copy of complaint below…
What a missed opportunity for our current clerk of court in PBC…