FEDERAL HOUSING FINANCE AGENCY

Statement by Federal Housing Finance Agency on FHFA
Lawsuit Against Illinois Tax Officials

For Immediate Release

Contact: Corinne Russell (202) 649-3032
Stefanie Johnson (202) 649-3030

June 22, 2012

“The Federal Housing Finance Agency recognizes the difficulties faced by local officials that are
struggling with shrinking tax bases. However, FHFA must resist when local governments
impose unlawful tax-raising programs on Fannie Mae and Freddie Mac that, in turn, create a
cost for taxpayers across the country.

“Longstanding federal statutes and Supreme Court rulings preclude states, counties and
municipalities from imposing real estate transfer taxes on Fannie Mae and Freddie Mac, yet,
several counties in Illinois are requiring or threatening to require them to pay such taxes.
Federal law does provide for Fannie Mae and Freddie Mac to pay real estate taxes on the value
of properties they hold, but does not sanction taxes tied to the transfer of properties.

“As conservator of Fannie Mae and Freddie Mac, FHFA must protect taxpayers from local
taxation that clearly runs counter to long-established federal law. This lawsuit asserts that
Fannie Mae and Freddie Mac are exempt from the Illinois transfer taxes and asks the court to
block this improper taxation.”

IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
WESTERN DIVISION

THE FEDERAL NATIONAL MORTGAGE
ASSOCIATION (“FANNIE MAE”); THE
FEDERAL HOME LOAN MORTGAGE
CORPORATION (“FREDDIE MAC”); and,
THE FEDERAL HOUSING FINANCE
AGENCY, in its capacity as an agency of the
federal government and in its capacity as
Conservator of Fannie Mae and Freddie Mac,
Plaintiffs,

v.

BRIAN HAMER, in his official capacity as
Director of the Illinois Department of Revenue;
JOHN J. ACARDO, in his official capacity as
DeKalb County Clerk and Recorder; KAREN
A. STUKEL, in her official capacity as Will
County Recorder; NANCY MCPHERSON, in
her official capacity as Winnebago County
Recorder; DAWN YOUNG, in her official
capacity as Whiteside County Recorder;
DEBBIE GILLETTE, in her official capacity as
Kendall County Recorder; SANDY WEGMAN,
in her official capacity as Kane County
Recorder,
Defendants.

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