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B-265728 1 (1996-06-07)

handle is hein.gao/gaocrptadst0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Douglas Baxter File: B-265728 Date: June 7, 1996 DIGEST A transferred employee was reimbursed a $1,000 loan origination fee (1 percent), but was denied reimbursement for a $700 loan processing fee. The lender provided an itemized breakdown of the loan processing fee with the notation that the term loan origination fee and the term loan processing fee are interchangeable. If the fee represents part of the administrative cost of processing paperwork associated with a loan origination fee, this expense may not be reimbursed because the maximum amount allowable has already been paid as a loan origination fee. If the fee is not part of the loan origination fee, then it is an additional charge by the lender incident to the extension of credit, i.e., a finance charge, and is not reimbursable under 41 C.F.R. § 302-6.2(d)(2)(v) (1995). James A. Fairle , B-258932, Sept. 19, 1995. DECISION This decision responds to a request from an authorized certifying officer, National Finance Center, United States Department of Agriculture (USDA).' The question asked is whether a transferred employee may be reimbursed both a mortgage loan processing fee and a loan origination fee for the same real estate purchase transaction. The mortgage loan processing fee may not be reimbursed for the following reasons. Mr. Douglas Baxter, an employee of the USDA's Rural Development Administration, was transferred from Klamath Falls, Oregon, to Woodland, California. He reported for duty on May 15, 1994. He had a residence constructed near his new duty station and went to settlement on October 7, 1994. Among the real estate expenses charged was a 1 percent loan origination fee ($1,000)2 and a separate processing fee 1Ms. Sandra S. Williams - Reference FSD - 1 RJP. 2The attachment to the Settlement Statement shows that this fee was equally split between two parties, American Savings Bank and All Pacific Mortgage Company. 1001530

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