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B-229443 1 (1988-12-09)

handle is hein.gao/gaobadnig0001 and id is 1 raw text is: 


aThe Comptroller General
        of the United States
        Wshington, D.C. 20548

        Decision



        Matterof: Donald R. Mitchell - Loan Origination Fee

        File:    B-229443
        Date:    December 9, 1988


        DIGEST

        An Air Force employee claimed reimbursement of a loan
        origination fee of 2 percent. The agency's determination to
        limit reimbursement to 1 percent was based on data showing
        that 1 percent was the dominant fee in the area of the
        employee's new duty station. The employee contends that the
        data shows a range of fees from 1 to 3 percent and that the
        2 percent claimed is reasonably within that range. The Air
        Force, however, properly limited reimbursement to 1 percent
        since the law and implementing regulations limit reimburse-
        ment to the customary charge in the area for loan origi-
        nation fees, and the dominant fee represents the customary
        charge.


        DECISION

        This responds to a request for a decision as to whether an
        Air Force civilian employee should be reimbursed the full
        2 percent he claims as a loan origination fee. For the
        following reasons, we conclude that the Air Force properly
        limited reimbursement to 1 percent.l/

        BACKGROUND

        Donald R. Mitchell, who was transferred in June 1986,
        presented a claim for reimbursement of a loan origination
        fee of 2 percent of the amount of a conventional mortgage
        loan he obtained to purchase a residence in the vicinity of
        his new official duty station, Wright-Patterson Air Force


        l/ The request was made by the Chief, Accounting and
        Finance Branch, Headquarters 2750th Air Base Wing (AFLC),
        Wright-Patterson AFB, Ohio. The request was approved by the
        Per Diem, Travel and Transportation Allowance Committee and
        assigned Control No. 87-24.






                                                /377o

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