About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-220756 1 (1986-03-28)

handle is hein.gao/gaobadmgc0001 and id is 1 raw text is: THE COMPTNOLLEN GENERAL ONCIDION OP THE UNITED STATES WASHINGTON. 0.C. 20546 FILE: B-220756 OATE: March 28, 1986 MATTER OF: Steven C. Krems - Loan Origination Fee DIGEST: A transferred employee claimed a 3 percent loan origination fee but the agency limited reimbursement to 1 percent, based on HUD's advice that a 1 percent loan origination fee is customary nationwide. However, HUD's advice was limited to FHA-insured loans and did not apply to the employee's conventional mortgage. We hold that the employee is entitled to reimbursement for a 3 percent loan origination fee because he has demonstrated by a Federal Home Loan Bank's survey of local lenders that a 3 percent fee was customary in the local- ity for the particular type of conventional financing involved. Ms. Margaret E. Wenzel, an authorized certifying officer for the Internal Revenue Service (IRS), has requested our decision on Mr. Steven C. Krems' claim for a 3 percent loan origination fee he incurred when purchas- ing a residence at his new duty station. As explained below, we hold that Mr. Krems is entitled to reimburse- ment for a 3 percent loan origination fee because he has submitted evidence demonstrating that a 3 percent fee was customary in the locality for the type of financing involved. FACTS Effective October 1, 1984, Mr. Krems was transferred from Washington, D.C., to Chicago, Illinois. In March 1985, he settled on the purchase of a new residence in Chicago. Mr. Krems financed the purchase of his residence by obtaining a conventional adjustable rate mortgage, and paid a 3 percent loan origination fee in the amount of $1,608. The IRS limited Mr. Krems' reimbursement for a loan origination fee to 1 percent of the loan amount, stating that a 1 percent fee is customary and citing our decision C05 Esc

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most