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Montgomery County to Sue Fannie Mae, Freddie Mac

guardianexpressla.com

The Montgomery County Commission is planning a class-action lawsuit against two financial institutions over what the county says are several years of unpaid recording fees.

The Montgomery Advertiser (http://on.mgmadv.com/Qd3WrO ) reports that the commission voted Tuesday to sue Fannie Mae, Freddie Mac and the Federal Housing Finance Authority in federal court in Montgomery. Fannie Mae and Freddie Mac have not paid deed and mortgage recording fees at least since 2007. They say they are exempt as agencies of the federal government or by their charter.

Recording fees are $1 for every $1,000 in assessed property value.

The county's attorney, Jimmy Walter, said similar lawsuits have been filed by counties in Michigan and Georgia. One federal judge ruled the financial institutions must pay, but the other ruled they are exempt.

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Information from: Montgomery Advertiser, http://www.montgomeryadvertiser.com

Copyright 2012 The Associated Press.

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