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B-191035 1 (1978-09-12)

handle is hein.gao/gaobadgis0001 and id is 1 raw text is: I tHE COMPYROLLEA GENERAL DECISIONI .( OF THE UNITED HTATEB WASHINGTON. D.C. 20540 FILE: B-191035 DATE: September 12, 1976 MATTER OF: David L. Kohlhepp - State VA Loan Fee DIGEST: Fee charged by the Department of Veterans' Affairs of the State of Oregon to cover costs of preparing closing documents, appraisal costs, credit checks, and similar services, is not a finance charge within the meaning of Regulation Z. Accordingly, it is reimbursable. 8-174106, October 21,' 1971. This action is in response to a request dated December B, 1977, from H. Larry Jordan, authorized certifying officer, U.S. Depart- ment of Agriculture, for an advance decision concerning a voucher submitted by David L. Kohlhepp for reimbursement of expenses in- cL.red in connection with the purchase of a residence at his new official staticn. The r'ord shows that Mr. Kohlhepp, an employee of the Forest Service of the Department of Agriculture, was transferred from John Day, Oregon, to Portland, Oregon. On January 27, 1976, he submitted a voucher claiming reimbursement for $157 in con- nection with the purchase of a residence at his new officiai station. The $157 is listed as a Loan Fee on the Settlement Statement, and as a Service Fee on the Truth in Lending State- ment. The Department of Veterans' Affairs of the State of Oregon, which financed Mr. Kohlhepp's loan, in a letter dated Novemher 9, 1976, provided the following explanation of the $157 fee: $10 for credit checks, $55 for appraisal fees, and $92 for other closing costs. The certifying officer questions whether the $92 attributable to closing costs is a finance charge under the Truth in Lending Act and, therefore, not reimbursable. As noted, Mr. Kohlbepp financed the purchase of his new residence through the Department of Veterans' Affairs of the State of Oregon, which operates a Veterans Home Loan program similar in certain respects to the program for direct loans to veterans operated by the Federal Government. See generally, chapter 407 of title 33 of the Oregon Revised Statutes and 38 U.S.C. 1811. Pursuant to Oregon Revised Statutes 407.020, the Director of Veterans' Affairs for the State of Oregon has issued ri'gulations requiring loan applicants pay a fee, based generally upon a percentage of the amount of the loan, to cover the costs of preparing closing documents, appraisal costs, credit

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