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B-189396 1 (1978-03-23)

handle is hein.gao/gaobadfuo0001 and id is 1 raw text is: I THE COMPTR1DLLEFI GENERAL DECIE!ON . OF THE UNITED STATES WASHINGTON. D.C. 20540 FILE: B-189396 DATE: March 23, 1978 MATTER OF: Douglas E. Clowers - Real E3tate Expenses - Finance Charges DIGEST: Disallowance of reimbursement for loan origination fee incurred by Federal employee incident 'o sale of rtsidence upon tcansfer of official dul; station is sustained. Loan origination fee is finance charge within meanin' of that te:m as defined by Regulation Z issuLd by Board of Governers of Fdertl Reserve System and, thus, is not reimburs- able inder Federal Travel Regulations, FPMR 101-7, para 2-6.2d (May 1973). For same reason, even if fee :s classified as loan discount fee, it is not reimbursable. This action is a response to an appeal by Douglas Clowers cf our Claims Division Settlement Certificate No. Z-2621419, dated August 5, 1976, disallowing his claim for reimbursement of real estate expenses incurred in connection with the sL of his res- idence in Middletown, Maryland, in September 1975, upon change of his official duty station from Washington, D.C., to Montgomery, Alabama. The real estate expenses, which were disallowed, represent the loan origination fee paid by Mr. Clowers in connection with the sale of !is resideneg. The fee of $2,195 (5 percent of the sales price of $43,900) was paid to the lending company that financed the purchase for the buyer. We note that on the settle- ment sheet which was prepared at the time the house was sold, this charge is referred to as a loan discount fee. In a letter dated November 13, 1975, from Mr. Jack E. Bloomquist, the attcrr.ey who conducted the settlement, it is stated that this fee was actually a loan origination fee and was characterized as a loan discount fee at the insistence of the mortgage lender. Mr. Clowers points out that 28 days after arriving in Montgomery he was notified by the Air Force that the project to which he was assigned was being disbanded and, as an Army civilian, he would have to find another position. Within 24 hours of this notification, Mr. Clowers was transferred back to Washington for a permanent change of station. Mr. Clowers moved back to his former school district in the Middletown Lrea in Oetober 1975 thereby custaining two permanent change of statio' moves in less than 2 months. i ___ 1 I I

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