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B-201061 1 (1981-06-16)

handle is hein.gao/gaobadjls0001 and id is 1 raw text is: DECISION FILE: B-201061 DATE:JUN 1 6 1981 MATTER OF: Ronald S. Taylor - Real Estate Expenses - Finance Charges DIGEST: Employee may not be reimbursed for lump- sum payment to third-party lending in- stitution which prepared financial docu- ments ultimately used by loan originating institution for conditioned purpose of extending credit to finance employee's purchase of home. Since fee paid to third party lending institution was stated as lump-sum payment for expenses and overhead and is finance charge within the meaning of Regulation Z (12 C.F.R. Part 226), reimbursement is precluded absent itemization to show items ex- cluded by 12 C.F.R. § 226.4(e)° from the definition of finance charge. This action is in response to a request from Mr. John Gregg, an a'thorized certifying officer with the General Services Administration (GSA), regarding the pro- priety of certifying for payment an item on a travel voucher for real estate expenses in the amount of $926.50 in favor of Mr. Ronald S. Taylor, a GSA employee who was officially transferred from Atlanta, Georgia, to Washington, D.C., ef- fective October 21, 1979. Pursuant to the analysis which follows, we conclude that the $926.50 amount in question may not be certified for payment since it is a finance charge, and does not qualify as a incidental expense as contended by Mr. Taylor. BACKGROUND Briefly, the agency reports that Mr. Taylor sought mortgage financing from the Metropolitan Mortgage Fund on or about March 12, 1980, in connection with the purchase of his residence at the new official duty station. Around April 21, 1980, he was notified that this loan had been ap- proved. During the interval, the VA mortgage rate ceiling was raised to 12% and then 14%. Due to the high interest rate, Mr. Taylor contacted Guild Mortgage Company which zz C J* 0/7 a 73 THE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. D.C. 20548 1 q,?o '00', 4.

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