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B-221787 1 (1986-12-17)

handle is hein.gao/gaobadmoj0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 uDecision Matterof- Thomas 0. Hobbs - Loan Origination Fee File: B-221787 Date: December 17, 1986 DIGEST Transferred employee claimed 3 percent loan origination fee but agency limited reimbursement to 1 percent, based on HUD's advice that a 1 percent loan origination fee was customary in the locality of the employee's new residence at the time of the purchase. The information provided by HUD creates a rebuttable presumption as to the prevailing fee in the area, and the employee has not submitted evidence to rebut this presumption. Accordingly, the employee may not be reimbursed for the additional 2 percent fee. DECISION Mr. Donald L. Sondag, an authorized certifying officer of the United States Department of Interior (Interior), requests our decision concerning the reclaim of Mr. Thomas 0. Hobbs, Superintendent, Isle Royale National Park, Houghton, Michiqan, for reimbursement of a loan oriaination fee. Since the reouested reimbursement exceeds the customary rate for the locality of his new residence, as established by the Department of Housing and Urban Development (HUD), we hold that Mr. Hobbs may not be reimbursed for his reclaim, absent evidence that the rate customarily charged for loan origination fees in that locality is hiqher. Effective July 23, 1985, Mr. Hobbs was transferred from Yellowstone, Wyoming, to Houghton, Michigan. Interior allowed Mr. Hobbs reimbursement for a 1 percent loan origina- tion fee ($565) in connection with his purchase of a new residence, and denied the additional 2 percent ($1,130). Interior's denial of the additional 2 percent was based on information received from HUD that 1 percent is the rate customarily charged for loan origination fees in that locality. HUD also speculated that the remaining 2 percent was probably some form of prepaid interest which is not reimbursable. Mr. Hobbs has reclaimed the additional 2 percent. He has submitted a letter from Detroit & Northern Savings which

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