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B-184077 1 (1976-02-03)

handle is hein.gao/gaobaddrf0001 and id is 1 raw text is: 4 DECISION FILE: B-1840 MATTER OF: DIGEST: THE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 1TV~*--- DATE: FEB 3 1976 Kirk -1. McDonald - Relocation Expenses - Loan Origination Fees Employee who reclaimed $860, consisting of a charge he paid for loan origination fee, and whose original claim was disallowed by the qq / 5 administrative agency may not be reimbursed any part of that charge since it is a finance charge under the Truth in Lending Act and Regulation Z. See also para. 2-6. 2d of the Federal Travel Regulations (FPMR 101-7) (May 1973). This action is taken pursuant to a request by a certifying officer as to the propriety of certifying for payment the reclaim voucher in the amount of $860 representing a loan origination fee paid by Mr. Kirk I. McDonald, an employee of the Department of Agri- culture, upon the transfer of his official duty station authorized on April 23, 1974, from Atlanta, Georgia, to Athens, Georgia. The record shows that the Athens Federal Savings and Loan Association charged Mr. McDonald a loan origination fee in the amount of $860. This amount was disallowed from the original claim by the administrative agency on the ground that it was a part of the finance charge under the Truth in Lending Act, Title I, Public Lw 90-321, 82 Stat. 146-182, and Regulation Z, 12 C. F. R. $ 226 (1972). The employee reauested a reconsideration of his claim and supported his reouest with a letter from the Athens Federal Savings and Loan Association which clearly states that the charge of $860 was for a loan origination fee which is to compensate the Association for current expenses incurred in origination of the loan. Mr. McDonald also states that a neighbor of his who works for the United States Environmental Protection Agency was paid for a similar service charge. We point out, however, that previously the loan origination fee was a reimbursable expense under Bureau of the Budget Circular No. A-56 until June 26, 1969, when that regulation was revised. This revision, which excluded the loan origination fee from allowable ex- penses, was carried over into the succeeding regulation, the Federal Travel Regulations (FPMH 101-7) para. 2-6. 2d (May 1973), which was the applicable regulation when Mr. McDonald's transfer was effected. That regulation provides in pertinent part as follows: 77

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