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![handle is hein.gao/gaobadnrm0001 and id is 1 raw text is: r (Dr1,,
OO- 0 The Comptroller General
of the United States
Washington, D.C. 20548
Decision
Matterof: Wayne Pfeffer - Relocation Expenses
Loan Origination Fee
]File: B-234288
Date: February 8, 1990
DIGEST
Under a revision to the Federal Travel Regulations, para.
2-6.2d(l)(b) (Supp. 26, effective Oct. 1, 1987), an employee
to be reimbursed for a loan origination fee in excess of
1 percent of the loan amount must show by clear and con-
vincing evidence, including an itemization of the lender's
administrative charges, that the fee does not include
prepaid interest, points or a mortgage discount. In
addition, the employee must show that the fee amount does
not exceed the amount customary in the locality of the
residence.
DECISION
An authorized official of the Veterans Administration asks
whether a transferred employee, Mr. Wayne Pfeffer, has
submitted clear and convincing evidence establishinq his
right to be reimbursed more than 1 percent of his loan
amount for a loan origination fee incurred in connection
with the purchase of a residence at his new duty station.
In regard to loan origination fees and similar charges, the
Federal Travel Regulations (FTR) were revised effective
October 1, 1987, to state that:
An employee may be reimbursed for these fees in
an amount not in excess of 1 percent of the loan
amount without itemization of the lender's
administrative charges. FTR, para. 2-6.2d(l)(b)
(Supp. 26). (Emphasis added.)
Paragraph 2-6.2d(l)(b) further provides that in order for
an employee to be reimbursed more than 1 percent he or she
must provide clear and convincing evidence that the hiqher
rate is customary in the area and does not include a charqe
for prepaid interest, points, or a mortgage discount.](ViewImageLocal?handle=hein.gao/gaobadnrm0001&div=1&collection=&method=preview&ext=.png&size=3)