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B-219545 1 (1986-01-15)

handle is hein.gao/gaobadmdi0001 and id is 1 raw text is: THE COMPTROLLER GlNERAL OECISION OF THE UNITE ETATE WASHINGTON. 0.C. 2O548 4~UNI~ FILE: B-219545 DATE: January 15, 1986 MATTER OF: Mary C. Saucedo - Real Estate Expenses - Loan Origination Fee DIGEST: Transferred employee claimed 3 percent loan origination fee but agency limited reimbursement to 1 percent, based on HUD's advice that a 1 percent loan origination fee was customary in the locality of the employee's new residence at the time of the purchase. The information provided by HUD creates a rebuttable presumption as to the prevailing fee in the area, and the employee has not submitted evidence sufficient to rebut this presumption. Accordingly, the employee may not be reim- bursed for the additional 2 percent fee. Mr. Conrad R. Hoffman, Director of the Office of Budget and Finance (Controller), Veterans Administration (VA), requests our decision concerning Ms. Mary C. Saucedo's claim for the full amount of a 3 percent loan origination fee she incurred when purchasing a residence at her new duty station. For the reasons set forth below, we hold that the VA properly reimbursed Ms. Saucedo for only 1 percent of the 3 percent fee. FACTS Effective September 7, 1984, Ms. Saucedo was trans- ferred from Temple, Texas, to Manchester, New Hampshire. She financed the purchase of a new residence in Manchester by obtaining a conventional mortgage, and incurred a 3 percent loan origination fee of $1,650. The VA allowed Ms. Saucedo reimbursement for a 1 percent loan origination fee, suspending the additional 2 percent based on advice from the Manchester office of the Department of Housing and Urban Development (HUD) that local lending institutions customarily charge a 1 percent fee. While the Manchester office of HUD acknowledged that several local lenders were charging loan origination fees of 2 and 3 percent, it stated that it had contacted these lenders and

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