[Request for Decision Concerning USDA Employee's Claim for Reimbursement of Loan Origination Fee]

The Department of Agriculture (USDA) requested a decision regarding a transferred employee's claim for a full 4-percent loan origination fee. The employee purchased a residence at his new duty station and paid a 4-percent loan origination fee. USDA allowed the employee a 1-percent loan origination fee, based on the Department of Housing and Urban Development's (HUD) advice; however, HUD subsequently advised that a 2-percent loan origination fee was customary during that period. The employee contended that a 4-percent loan origination fee was customary at the time he obtained his mortgage and requested interest on any funds he was entitled to as the result of the claim. GAO found no statutory authority allowing the payment of interest on claims for real estate expenses and held that, since the survey showed that more local institutions charged a 2-percent loan origination fee, USDA should limit reimbursement to a 2-percent fee. Accordingly, the claim was denied.