About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-209691 1 (1983-05-09)

handle is hein.gao/gaobadlbi0001 and id is 1 raw text is: ,\j -)%f 'I THE COMPTROLLER GENSRAL DECISION Ifa,.) OF THE UNITED STATES W ASH IN GT 0N, 0. C. 20548 FILE: B-209691 DATE: May 9, 1983 MATTER OF: William R. Pierson DIGEST: Loan closing costs charged as a lump-sum fee in the purchase of a residence are considered finance charges under 12 C.F.R. S 226.4(a), despite a contrary characterization by the lending institution on the loan documents. Therefore, under Federal Travel Regulations, para. 2-6.2d (1981), an employee transferred to a new duty station may not recover loan closing costs incurred in purchasing a residence at the new duty station where the fee is charged as a lump-sum with no breakdown of what part, if any, may be reimbursed under 12 C.F.R. S 226.4(e). The issue in this case is whether Mr. William R. Pierson, an employee of the Department of the Interior's Bureau of Reclamation, is entitled to be reimbursed for loan closing costs he incurred when purchasing a new residence in Ord, Nebraska, after being transferred from a position in Salida, Colorado, to one in Ord. Because our decisions and the applicable regulations characterize a lump-sum loan closing fee as a nonreimbursable finance charge, Mr. Pierson is not entitled to reimbursement for any part of the fee. In purchasing his new residence in Nebraska, Mr. Pierson incurred loan closing costs of $3,150. This fee was paid in cash at the time of the purchase and was listed as a cost not included in the finance charge on the Federal Truth-in-Lending Disclosure Statement. Nevertheless, Mr. Pierson's initial claim was denied by an authorized certifying officer of the Bureau because, apparently, the loan closing fee was deemed to be a nonreimbursable finance charge. Mr. Pierson contests this decision and characterization. In an attempt to clear up the matter, the certifying officer solicited an explanation of the charge from the financial institutions involved in the transaction. The

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most