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B-226876 1 (1988-08-22)

handle is hein.gao/gaobadneo0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 Decision Matterof: Abbas M. Shakir - Loan Origination Fee File: B-226876 Date: August 22, 1988 DIGEST A transferred employee who purchased a residence at his new duty station under a conventional loan claims reimbursement for a 3.25 percent loan origination fee. Absent evidence that the customary charge in the area was greater, our decisions have limited reimbursement of 1 percent. Since the employee has not submitted sufficient evidence to satisfy this requirement, his claim must be limited to 1 percent. DECISION This decision is in response to a request by Ms. Evelyn J. Chester, Authorized Certifying Officer, Department of Energy (DOE), concerning the claim of Mr. Abbas M. Shakir, an employee of DOE, for reimbursement of a loan origination fee of 3.25 percent ($2,401.75). The fee was incurred in connection with Mr. Shakir's change of official station to Columbus, Ohio, in August 1986 and his purchase of a residence under a conventional mortgage loan agreement. The local office of the Department of Housing and Urban Development (HUD) has reported that, as to FHA-insured loans, 1 percent is the customary and reasonable rate paid for a loan origination fee in Columbus, Ohio. Therefore, DOE reimbursed Mr. Shakir for a 1 percent fee rather than a 3.25 percent fee based on this information received from HUD. Mr. Shakir contends that the advice given by HUD is limited to FHA-insured loans and does not apply to his conventional mortgage loan. We informally contacted the local office of HUD, and that office cited a range of rates from 2 to 4 percent but was unable to advise us whether the customary rates for loan origination fees on conventional mortgage loans exceeded 1 percent. o~-\3c~

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