Plaintiffs Eye Fast Appeal to D.C. Circuit As Judge Rules for FHFA on Tax Exposure

A federal judge in Washington Aug. 9 granted a motion to dismiss claims that Fannie Mae and Freddie Mac were required to pay a District of Columbia recording tax on transfers of property, holding federal law exempts the two government-sponsored enterprises from “all taxation” (Hager v. Federal National Mortgage Association).

The 10-page ruling by Judge John D. Bates of the U.S. District Court for the District of Columbia gives Freddie and Fannie’s conservator, the Federal Housing Finance Agency (FHFA), much-needed ammunition to fight a fast-growing class of lawsuits that say Fannie and Freddie are liable for many millions ...