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B-194974 1 (1981-05-05)

handle is hein.gao/gaobadviv0001 and id is 1 raw text is: i :THE COMPTROLLER GENERAL.. DECISION. . OF TIE UNITED STATES . WA HI NGTO N ' D. 2:O548 •FILE: B-194974 . DATE: IMAY 5., 1981. MATTER OF:00 Loan•-Origination. Fee.. DIGEST: Employee.'s claim for loan origination:fee and amounts placed into .escrow-for future .taxesand -insurance'-is denied..FTRpara.- 2-6.2d does.not:.permit reimbursement of-.. items determined to be finance ,charges under the'Truth in -Lending Act,. property taxes, or insurance. By -a. letter dated- February 13,..1981, Ms. Lena M. Jones, an Authorized CertifyingOfficer.with the Depart- ment of Housing and Urban: Development .(HUD),.requested an advance decision.regarding. the reclaim voucher of Mr. for a loan.origination fee-and for. amounts pl-'ced in..escroW .for taxes and-insurance. For. the reasons -stated 'below we. hold that Mr. .is not. entitled to reimbursement forthese items.. 'The record shows that. Mr. ,-an -employee of-HUD, was 'transferred from Washington, D.C.., to Dallas,•Texas, in 1978. Incident-.to this transfer he purchased..a home in1Carrollton, Texas, in .January 1979, which he financed with a Veterans Administration (.VA):. loan. Mr. has been reimbursed for the expenses of-..apermanent change of- duty station, including the .purchase of--a new residence, under -the provisiois of the Federal Travel.: Regulations (FTR) (FPMR 101-7,0y 1973)..: However, his claim for a. loan origination fee in the :amount . of $584.--and escrow money for future taxes and insurance in the ..amount of. $161.66 was disallowed baccordance with. our decision, Matter of., B-183.972,p. April. 16, 1976.. q, 9) 1 . The ..decision states, 'in part,. that a loan-. origination fee i /a finance charge withinthe meaning of section 106(a)Af the Truth in Lending 'Act which may. not be reimbursed under: the Federal Travel. Regulations. Mr. believes that the disallowance of his. claim. for the loan origination feeon.this basis .is inconsistent with the fact that the. fee is 'not deductible for income tax purposes. He has.provided material from. the Internal Revenue Service which indicates-that a loan origination. fee paid in connection with-a VA loan is not interest,

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