B-167469, JUL. 29, 1969

B-167469: Jul 29, 1969

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ALTHOUGH MORTGAGE DISCOUNT WAS CHARGE BORNE BY SELLER. IT IS IMMATERIAL THAT THE COST WAS CUSTOMARILY PAID BY SELLER. PROVIDES THAT "FEES AND CHARGES ARE REIMBURSABLE TO THE EXTENT THAT SUCH COSTS ARE CUSTOMARILY PAID BY THE SELLER AT THE OLD OFFICIAL STATION.'. YOU ALSO TRANSMITTED A LETTER FROM THE JACKSONVILLE REGIONAL OFFICE OF THE FEDERAL HOUSING ADMINISTRATION INDICATING THAT THE MORTGAGE DISCOUNT WAS A CHARGE REQUIRED TO BE BORNE BY THE SELLER IN THE CIRCUMSTANCES OF YOUR CASE. A-56 WHICH WAS IN EFFECT AT THE TIME OF THE SALE OF YOUR RESIDENCE (JULY 10. IS AS FOLLOWS: "MORTGAGE DISCOUNTS (POINTS). PROPERTY TAXES AND OPERATING OR MAINTENANCE COSTS ARE NOT REIMBURSABLE.'. IT IS IMMATERIAL WHETHER SUCH COSTS ARE CUSTOMARILY PAID BY THE SELLER.

B-167469, JUL. 29, 1969

CIVIL PAY - RELOCATION EXPENSES - LOAN CHARGES DECISION SUSTAINING CLAIMS DIVISION SETTLEMENT DISALLOWING EMPLOYEE REIMBURSEMENT FOR 7 PERCENT CHARGE ON PURCHASE OF A LOAN INCIDENT TO SALE OF RESIDENCE INCIDENT TO TRANSFER. ALTHOUGH MORTGAGE DISCOUNT WAS CHARGE BORNE BY SELLER, SECTION 4.2D OF THE BUREAU OF THE BUDGET CIRCULAR NO. A-56 IN EFFECT AT TIME OF SALE (JULY 10, 1968) PROHIBITED REIMBURSEMENT FOR MORTGAGE DISCOUNT AND THEREFORE, IT IS IMMATERIAL THAT THE COST WAS CUSTOMARILY PAID BY SELLER.

TO MRS. HELEN D. MALOY:

WE REFER TO YOUR LETTER OF JUNE 27, 1969, REQUESTING REVIEW OF OFFICE SETTLEMENT OF JUNE 23, 1969, WHICH DISALLOWED YOUR CLAIM FOR $721 REPRESENTING A 7 PERCENT CHARGE ON THE PURCHASE OF A LOAN.

YOU POINT OUT THAT BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966, PROVIDES THAT "FEES AND CHARGES ARE REIMBURSABLE TO THE EXTENT THAT SUCH COSTS ARE CUSTOMARILY PAID BY THE SELLER AT THE OLD OFFICIAL STATION.' YOU ALSO TRANSMITTED A LETTER FROM THE JACKSONVILLE REGIONAL OFFICE OF THE FEDERAL HOUSING ADMINISTRATION INDICATING THAT THE MORTGAGE DISCOUNT WAS A CHARGE REQUIRED TO BE BORNE BY THE SELLER IN THE CIRCUMSTANCES OF YOUR CASE.

THE APPLICABLE PROVISION OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 WHICH WAS IN EFFECT AT THE TIME OF THE SALE OF YOUR RESIDENCE (JULY 10, 1968), IS AS FOLLOWS: "MORTGAGE DISCOUNTS (POINTS), INTEREST ON LOANS AT OLD AND NEW POST OF DUTY, PROPERTY TAXES AND OPERATING OR MAINTENANCE COSTS ARE NOT REIMBURSABLE.' IN VIEW OF THE SPECIFIC PROHIBITION AGAINST REIMBURSEMENT FOR MORTGAGE DISCOUNTS (POINTS), SUCH AS HERE INVOLVED, IT IS IMMATERIAL WHETHER SUCH COSTS ARE CUSTOMARILY PAID BY THE SELLER. ACCORDINGLY, THE SETTLEMENT OF JUNE 23, 1969, IS SUSTAINED.