freddie mac

Oakland County officials hope their lawsuit against Fannie Mae and Freddie Mac goes to the U.S. Supreme Court.

The Oakland and Genessee County treasurers are both suing Fannie and Freddie because they didn’t pay millions in so-called “transfer taxes” on a number of real estate deals.

The mortgage giants have claimed that under federal law, they’re exempt from those state and local taxes because they’re government agencies.

A Wayne county man is facing criminal charges for allegedly defrauding federal real estate giants Fannie Mae and Freddie Mac.

Samer Salami, a real estate agent and broker for Fannie and Freddie,
is accused of obtaining properties they owned through Trademark
Assets--a shell company he secretly controlled--for an artificially
low price.

Salami would then turn around and sell the property to an actual,
higher bidder—pocketing the difference between the two sales, plus a
double commission.

Overall, it’s alleged Salami bilked the mortgage giants out of about
$488,000, through 22 such illegal housing sales in Wayne county.

Sarah Hulett / Michigan Radio

Oakland County Treasurer Andrew Meisner filed a lawsuit against federally backed mortgage companies Fannie Mae and Freddie Mac last year.

He claimed they were dodging taxes.

And he won.

The result could mean millions of dollars in revenue - provided the case wins an expected appeal from the mortgage companies.

It's an appeal that's expected since other counties and states around the country are watching this case, and would love to line up and take their share of tax revenue from Fannie Mae and Freddie Mac.

So what taxes are they dodging?

Congressman Gary Peters says Fannie Mae and Freddie Mac must go.  But he says they have to be replaced with something else.

The two quasi-private groups provide a federal guarantee for home mortgages.

Taxpayers had to bail out Fannie and Freddie after the housing sector meltdown.

Some people in Congress don’t want to replace Fannie and Freddie with anything, and just let the free market take over.

But Peters says without a federal guarantee, banks would stop offering 30-year mortgages.

Steve Carmody / Michigan Radio

Michigan Congressman Gary Peters is proposing doing away with the federal home mortgage financing system.   Fannie Mae and Freddie Mac became the backbone of the nation’s mortgage system in the past decade.  Fannie and Freddie played a critical role in the housing market collapse.