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B-186583 1 (1978-03-30)

handle is hein.gao/gaobadfuy0001 and id is 1 raw text is: 




$9
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FILE:  8-186583

MATTER OF:


JATE:


::arch 30, 1978


Donald W. Espeland ** Real Estate Expenses -
Loan Origination Fee


  DIGEST:   Employee may not be reimbursed loan
            origination fee incurred tncident to
            financing a house purchased upon his
            relocation since fee is finance charge
            within the meaning of Regulation Z,
            12 C.F.R. 226.4(a).

     Mr. Donald W. Espeland has requested us to reconsider decision
8-186583, April 11, 1977, in which we denied his claim for reimburse-
ment of a loan origination fee incurred incident to his purchase of
a residence upon the transfer of his official duty station from
Denver, Colorado, to Des Moines, Iowa.

     Mr. Espeland's claim was denied by the Department of Labor on
the basis that the loan origination fee represented a cost incident
to the extension of credit within the purview of Regulation Z,
12 GF.R.  226.4(a), and was thus not reimbursable under the Federal
Travel Regulations (FPMR 101-7) paragraph 2-6.2d (May 1973). The
pertinent part of Regulation Z states:

     A 226.4 Determination of finance charge.

        (a) General rule. Except as other' tse
     provided in this section, the amount  f the
     finance charge in connection with any trans-
     action shall be determined as the sum of all
     charges, payable directly or indirectly by
     the creditor as an incident to or as a con-
     dition of the extension of credit, whether
     paid or payable by the customer, the seller,
     or any other person on behalf of the customer
     to the creditor or to a third party, including
     any of the following types of charges:


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