THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: MI2015002
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Bulletin: MI2015002
Dear Associates:
In furtherance of Stewart Bulletin MI2011007, please be advised that the United States Court of Appeals for the 6th Circuit issued an Order filed May 20, 2013, that Freddie Mac and Fannie Mae were not obligated to pay transfer tax under either the Michigan State or County Real Estate Transfer Tax Acts: MCL 207.521, et. seq. and MCL 207.501 et. seq. This decision overturned an Eastern District of Michigan, United States District Court finding that transfer taxes were required to be paid on sales of property by Freddie and Fannie to subsequent purchasers (REO sales). The Court of Appeals’ Order was not subsequently appealed to the United States Supreme Court making it current law.
Thus, on sales of property by Freddie or Fannie to a subsequent purchaser (typically after foreclosure of a mortgage), you are not required to collect transfer taxes on such deeds under either the County or State transfer tax acts.
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References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None