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B-227503 1 (1987-08-20)

handle is hein.gao/gaobadmut0001 and id is 1 raw text is: SA The Comptroller General of the United States Washington, D.C. 20548 Decision Matterof: Michael S. Kochmanski - Real Estate Expenses - Mortgage Insurance Premium File: B-227503 Date: August 20, 1987 DIGEST A transferred employee claims reimbursement for a mortgage insurance premium required by the lender and paid at settle- ment on purchase of a residence at his new duty station. Reimbursement for mortgage insurance, as distinguished from mortgage title insurance, is specifically precluded by the Federal Travel Regulations (FTR). In addition, mortgage insurance to protect the lender against default is a finance charge which may not be reimbursed under the FTR. DECISION Michael S. Kochmanski requests reconsideration of our Claims Group's disallowance of the expense he incurred for a mortgage insurance premium in connection with the purchase of a residence at his new duty station. In sustaining the adjudication of our Claims Group we conclude that the charge for mortgage insurance to pro- tect the lender against a default by the borrower is not reimbursable under the Federal Travel Regulations (FTR). This type of insurance must be distinguished from mortgage title insurance which protects the lender against defective title and, if required by the lender, may be reimbursed. BACKGROUND On September 19, 1985, the Internal Revenue Service disallowed Mr. Kochmanski's claim for mortgage insurance premium in the amount $1,472.80 as an item of relocation expenses incurred in buying a residence in Woodbury, Minnesota, in connection with his change of official duty station. Mr. Kochmanski asked that his reclaim of reloca- tion expenses be forwarded to the General Accounting Office for a decision on the reimbursement of the mortgage insur- ance premium of $1,472.80. This reclaim was disallowed by our Claims Group in Settlement Certificate No. Z-2864001, February 5, 1987, on the basis that para. 2-6.2d(2) of

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