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B-185621 1 (1976-04-27)

handle is hein.gao/gaobaddon0001 and id is 1 raw text is: '2~ ST HE C DorT L!F P i Q I 0 I= T E4LE UNIT ED S T_4rES V ASHINGTON, [D.C. 20548 APR 2 7 1976 FILE: B-185621 DATE: MATTER OF: Charles A. Oravetz - Loan origination fee [DIGEST: The fact that transferred employee may have been incorrectly advised by lending in.stitution that the 1-1/2 percent service charge or loan origination fee paid by him to secure mortgage for purchase of residence was not a finance charge provides no basis for reimbursement of fee since such payment is ex- pressly precluded by Federal Travel Regulations (FPMR 101-7) para. 2-6.2d (Nay 1973). This action involves the claim of M1r. Charles A. Oravetz, a National Oceanic and Atmospheric Administration employee, for reimbursement of the $570 loan origination fee paid by him to secure a mortgage for the purchase of a residence in St. Peters- burg, Florida. The purchase was made incident to a transfer from his former duty station in Little -ock, Arkansas, to his new of- ficial station in St. Petersburz. Hr. Oravetz' claim for reim- bursement of the $570 amount is not predicated solely upon the authority contained at 5 U.S.C. § 5724a(a)(4) (1970) for reim- bursement of real estate transaction exocnsas inciecnt to transfer. It is based in part on the failure of the mortgage bankers from whom he secured financing, to correctly advisc him that their $570 fee constituted a finance charge. The certifying officer who for-warded M4r. Oravetz' claim to .this Office for an advance decision states that he advised the employee that a loan origtination fee constitutes z finance charge for which reiaourseent as a real e tta transaction erpenee is precluded by the fol1lo-ing langue of Federal Travel Regulations (1772 101-7) parn. 2-6.2d (May 1973): d. Hiscellaneoup e nses. * ' Interest on loans, points, and mortg;ge discounts are not reimbursable. Notwithstanding the above, no fee, cost, charge, or expense is reimburable which is determined to be a part of the finance charge under the Truth in Lending Act, Title I, Public Law 90-321, and Rcrulation Z issued pursuant thereto by the Board of Governors of the Federl Reserve System. f * W

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