[Question Concerning Claim for Real Estate Expenses]

A Veterans Administration (VA) employee claimed reimbursement for certain real estate expenses incurred incident to his transfer. VA allowed the claimant a 1-percent loan origination fee based on the customary fee in the area to which the employee transferred. The employee claimed reimbursement for tax report and service fees and a 2-percent loan origination fee. GAO held that: (1) a statement from the claimant's lending institution was insufficient to establish that 2 percent was the customary rate for loan origination fees in the area; (2) VA reasonably determined that 1 percent was the customary rate; and (3) the tax report and service fees constituted finance charges, which are not reimbursable under applicable regulations. Accordingly, the claim was denied.