Posts Categorized Banking

• Fannie Mae and Freddie Mac Cite Possible “Negative Implications” to Side with Big Banks

  January 2, 2013
  By: Kyle P. Konwinski

  In a lawsuit alleging that several banks violated Michigan's County Real Estate Transfer Tax Act by improperly claiming exemptions involving the sale of foreclosed properties, Judge Bell allowed Fannie Mae, Freddie Mac and the Federal Housing Finance Agency to intervene as defendants and thus side with the banks.

  Read More »

• Fraudulent Joinder:  Court Finds Diversity Jurisdiction With Non-Diverse Defendants

  October 15, 2012
  By: Kyle P. Konwinski

  In Hertel v. Mortgage Electronic Registration Systems, Inc., Case. No. 1:12-cv-174,  Judge Bell found that diversity jurisdiction exists even though the plaintiffs sued several non-diverse defendants – that is, defendants who were from the same state as the plaintiffs.  The complaint alleges that several entities, including Fannie Mae, Freddie Mac, JPMorgan Chase, and Bank of America, did not pay Michigan's State Real Estate Transfer tax arising from the sale of foreclosed upon homes.  Judge Bell agreed with JPMorgan Chase and Bank of America that the non-diverse entities had been fraudulently joined.

  Read More »

• Are Fannie and Freddie Exempt from Michigan Transfer Tax?

  September 21, 2012
  By: Kyle P. Konwinski

  Counties throughout the state of Michigan seek to hold Fannie Mae and Freddie Mac liable for failing to pay the Michigan real estate transfer tax.  Two counties, Oakland County and Genesee County, who have sued the same institutions in the Eastern District of Michigan, filed amicus curie briefs in Hertel, Jr. v. Bank of America NA, Case No. 1:11-cv-757 (W.D. Mich),  asking Judge Bell to abstain, allowing the Eastern District of Michigan to decide first whether Fannie Mae and Freddie Mac are exempt from paying the tax.  Judge Bell denied the Counties' request.

  Read More »