[Claim for Real Estate Expenses Including Full Loan Origination Fee]

An authorized certifying officer of the Department of Agriculture (USDA) requested a decision concerning an employee's reclaim for reimbursement for the full amount of a 5-percent loan fee he incurred incident to the purchase of a residence at his new duty station. USDA had allowed the employee reimbursement for 1 percent of the loan fee amount, based on advice from the Department of Housing and Urban Development (HUD) that lenders in the area customarily charge a loan origination fee of 1 percent. GAO noted that Federal Travel Regulations expressly preclude reimbursement for interest and mortgage discounts. GAO determined that, in this situation, the greater part of the lender's 5-percent charge represented a mortgage discount and, therefore, the employee could not be reimbursed for the remaining 4 percent of the fee. GAO found that USDA properly allowed the employee reimbursement for 1 percent of the loan amount, based on the HUD advice. Accordingly, the employee's claim for the additional amount as a loan origination fee may not be certified for payment.