The "Flip Tax" is a fee charged by the Cooperative, NOT the Lender. Check with your Managing Agent or the By-Laws of the Cooperative. You can also verify this information wtih your Attorney.
Astoria Federal doesn't so much as charge the flip tax as much as disclose it to you and account for the flip tax in the Loan To Value calculations when determining the maximum loan amount. That means your maximum loan they can give you might be lower than you originally applied for due to the flip tax calculation. This is all standard procedure on Cooperative Loans in New York area.
The person at the bank telling you that crazy reason about "not paying the loan" is WRONG.
FYI: Loan Officers working at Depository Institutions are NOT LICENSED. You're not the first consumer to get incorrect information from a LO working at a regular bank. I had a client earlier this year who was told by an LO at a bank that the client was exempt from the NYS Mortgage Tax because he was a Veteran. No such exemption exists. Loan Officers like myself who work for Mortgage Banks are LICENSED. There is a HUGE difference in the quality of service and accruacy of information.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
all the charges should be listed there and you can ask your loan rep to clarify on any of the line items