B-167924, OCT. 14, 1969

B-167924: Oct 14, 1969

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DISALLOWANCE OF EMPLOYEE'S CLAIM FOR REIMBURSEMENT OF ORIGINATION FEE IS SUSTAINED. SIMILAR FEES AND CHARGES ARE REIMBURSABLE TO EXTENT SUCH COSTS ARE CUSTOMARILY PAID BY SELLER AT LOCATION OF OLD OFFICIAL STATION. SINCE SUBJECT FEE IS CUSTOMARILY PAID BY REAL ESTATE PURCHASER. NO BASIS FOR REIMBURSING EMPLOYEE IS FOUND. 800 ($168) WAS ADMINISTRATIVELY DISALLOWED. GARLAND WAS AUTHORIZED A PERMANENT CHANGE OF STATION (WICHITA FALLS. WE NOTE THAT YOU HAVE BEEN ADVISED BY THE FEDERAL HOUSING ADMINISTRATION OFFICE. THAT SUCH FEE IS NOT CUSTOMARILY PAID BY THE SELLER BUT IS A USUAL FEE PAID BY THE PURCHASER. THE RECORD FURTHER SHOWS THAT SETTLEMENT ON THE SALE OF THE RESIDENCE WAS MADE ON JUNE 4.

B-167924, OCT. 14, 1969

OFFICERS AND EMPLOYEES--TRANSFERS--RELOCATION EXPENSES--HOUSE SALE-- PURCHASER'S LOAN CHARGE WHERE EMPLOYEE INCIDENT TO PERMANENT CHANGE OF STATION SOLD RESIDENCE AT OLD DUTY STATION AND AGREED TO PAY 1 PERCENT LOAN ORIGINATION FEE, CUSTOMARILY PAID BY PURCHASER, DISALLOWANCE OF EMPLOYEE'S CLAIM FOR REIMBURSEMENT OF ORIGINATION FEE IS SUSTAINED, BECAUSE BUREAU OF BUDGET CIR. NO. A-56, IN EFFECT AT TIME OF SALE, PROVIDES THAT FEES FOR LOAN APPLICATIONS, LENDER'S LOAN ORIGINATION, AND SIMILAR FEES AND CHARGES ARE REIMBURSABLE TO EXTENT SUCH COSTS ARE CUSTOMARILY PAID BY SELLER AT LOCATION OF OLD OFFICIAL STATION, AND SINCE SUBJECT FEE IS CUSTOMARILY PAID BY REAL ESTATE PURCHASER, NO BASIS FOR REIMBURSING EMPLOYEE IS FOUND.

TO MRS. JEANNETTE B. WILBANKS:

YOUR LETTER OF SEPTEMBER 16, 1969, ENCLOSES A RECLAIM VOUCHER SIGNED BY MR. THOMAS M. GARLAND IN THE AMOUNT OF $180 REPRESENTING A 1 PERCENT ORIGINATION FEE ON $18,000 TOGETHER WITH OTHER PAPERS SHOWING THAT HIS ORIGINAL CLAIM FOR SUCH FEE ON A LOAN AMOUNT OF $16,800 ($168) WAS ADMINISTRATIVELY DISALLOWED. YOU ASK WHETHER THE CLAIMANT MAY BE REIMBURSED SUCH FEE UNDER THE FACTS AND CIRCUMSTANCES HEREINAFTER RELATED.

MR. GARLAND WAS AUTHORIZED A PERMANENT CHANGE OF STATION (WICHITA FALLS, TEXAS, TO DALLAS, TEXAS) AND REPORTED TO HIS NEW DUTY STATION ON JUNE 30, 1969. HE SOLD HIS RESIDENCE AT HIS OLD DUTY STATION AND YOU POINT OUT THAT MR. GARLAND AGREED TO PAY THE ORIGINATION FEE OF 1 PERCENT. FURTHER, WE NOTE THAT YOU HAVE BEEN ADVISED BY THE FEDERAL HOUSING ADMINISTRATION OFFICE, FORT WORTH, TEXAS, THAT SUCH FEE IS NOT CUSTOMARILY PAID BY THE SELLER BUT IS A USUAL FEE PAID BY THE PURCHASER. THE RECORD FURTHER SHOWS THAT SETTLEMENT ON THE SALE OF THE RESIDENCE WAS MADE ON JUNE 4, 1969.

THE APPLICABLE PROVISION OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966, IN FORCE AND EFFECT AT THE TIME OF THE SETTLEMENT HERE INVOLVED, READS, IN PERTINENT PART, AS FOLLOWS:

"SECTION 4.2D. FINANCING COSTS. * * * FEES FOR LOAN APPLICATIONS, LENDER'S LOAN ORIGINATION * * * AND SIMILAR FEES AND CHARGES, ARE REIMBURSABLE TO THE EXTENT SUCH COSTS ARE CUSTOMARILY PAID BY THE SELLER AT THE LOCATION OF THE OLD OFFICIAL STATION * * *"

IN VIEW OF THE ABOVE-QUOTED LANGUAGE AND SINCE AS INDICATED ABOVE A LOAN ORIGINATION FEE IS CUSTOMARILY PAID BY THE PURCHASER OF REAL ESTATE RATHER THAN THE SELLER, WE FIND NO BASIS FOR REIMBURSEMENT OF SUCH FEE TO MR. GARLAND.

THE VOUCHER, WITH ATTACHMENTS, IS RETURNED HEREWITH AND MAY NOT BE CERTIFIED FOR PAYMENT.