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B-260724 1 (1995-09-21)

handle is hein.gao/gaocrptacaj0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Pamela L. Swires File: B-260724 Date: September 21, 1995 DIGEST 1. A transferred employee may not be reimbursed a loan origination fee in excess of 1 percent of the loan amount unless the lender's administrative charges are itemized and are shown by clear and convincing evidence not to include prepaid interest, points, or a mortgage discount. 41 C.F.R. § 302-6.2(d)(1)(ii) (1994). Where a lender's letter merely states that the fee does not contain any charges for prepaid interest, points, or mortgage discount, but cannot be further itemized, it does not meet the requirements of the Federal Travel Regulation and the employee cannot be reimbursed any amount in excess of the 1 percent loan origination fee already paid. 2. A tax service fee charged a transferred employee by a lender in connection with a purchase mortgage loan is considered to be a finance charge incident to the extension of credit and is therefore not reimbursable. George C. Souders, B-248457, Sept. 29, 1992. 3. A transferred employee was charged a flood certification fee in connection with the purchase of a residence. Since the certification was required by law as a precondition to the granting of the mortgage loan, such expense may be reimbursed. 41 C.F.R. § 302-6.2(f) (1994). 4. A transferred employee was charged a closing coordination fee incident to the purchase of a residence, a service similar to that performed by a settlement or closing agent, involving the preparation of legal documents after the loan has been approved and the review of all final documents for accuracy. Therefore, since the amount charged does not exceed the customary charge for such service in the area of the residence, it may be reimbursed under 41 C.F.R. § 302-6.2(c) (1994). 838921

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