A draft rule has been issued by the Federal Housing Finance Agency for comment that would create serious problems for Co-op and Condo buyers. The rule would prohibit Fannie Mae from purchasing loans in buildings where there is a Transfer Tax/Flip Tax.
Regulators have recommended such a rule and on August 12th a draft was issued for public comment. The link below will give you the details of the proposed rule. According to Fannie Mae, the primary intent of this proposed rule was not to have this apply to all Co-ops and Condos.
Their primary intent is to stop developers from imposing 99 year covenants on new homes that require seller's to kick back a percentage of the sale price of the home to the developer when the home is sold. They are currently reviewing the concerns of REBNY (Real Estate Board of New York) and hopefully, will revise language that would correct this serious problem.
If their response does not assure REBNY that he rules will be corrected, REBNY will ask it's members to join them in reaching out to the New York congressional delegation.
Link to proposed Rule Change:http://www.fhfa.gov/webfiles/1648/PrivTransFeeGuidance081210.pdf
Regulators have recommended such a rule and on August 12th a draft was issued for public comment. The link below will give you the details of the proposed rule. According to Fannie Mae, the primary intent of this proposed rule was not to have this apply to all Co-ops and Condos.
Their primary intent is to stop developers from imposing 99 year covenants on new homes that require seller's to kick back a percentage of the sale price of the home to the developer when the home is sold. They are currently reviewing the concerns of REBNY (Real Estate Board of New York) and hopefully, will revise language that would correct this serious problem.
If their response does not assure REBNY that he rules will be corrected, REBNY will ask it's members to join them in reaching out to the New York congressional delegation.
Link to proposed Rule Change:http://www.fhfa.gov/webfiles/1648/PrivTransFeeGuidance081210.pdf
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3 Responses to "Fannie Mae Flip Tax Proposed Rule Change"Thanks for the great article on the Flip Tax issue.
I just wanted to tell you about REBNY's Action Center, which can help simplify response to this issue.
From the Action Center you can email your public officials about this issue directly: www.rebnyactioncenter.com/
Together we can help the buyers, sellers and solvency of NYC co-ops and condos.
Amanda Wood
REBNY, Director of New Media
Thanks Amanda,
I have emailed my NY officials through the REBNY Action Center. I hope more real estate professionals and NYC coop and condo owners will do the same.
My pleasure.
Have a great day. Stay dry!
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