B-171830, MAR 1, 1971

B-171830: Mar 1, 1971

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A-56 CLEARLY PROVIDES THAT MORTGAGE DISCOUNTS ("POINTS") ARE NOT REIMBURSABLE AND $864 MUST THEREFORE BE REFUNDED. IF CLAIMANT CAN SUBMIT ACCEPTABLE EVIDENCE TO SHOW THAT ATTORNEY FEES WERE FOR SERVICES OTHER THAN ADVISORY AND THUS WITHIN THE PURVIEW OF SECTION 4.2C OF CIRCULAR NO. A-56 CLEARLY PROVIDES THAT MORTGAGE DISCOUNTS ("POINTS") ARE NOT REIMBURSABLE. IT IS IMMATERIAL THAT SUCH EXPENSES ARE CUSTOMARILY PAID BY THE SELLER OR THAT THE LOCAL FEDERAL HOUSING ADMINISTRATION OFFICE SAYS THAT THEY ARE REIMBURSABLE. WE HAVE BEEN INFORMALLY ADVISED BY THE FEDERAL HOME LOAN BANK BOARD THAT THIS IS TO PAY FOR THE WORK OF PROCESSING THE LOAN AND THAT 1-1/2 PERCENT IS A REASONABLE CHARGE. PEDERSON IS ENTITLED TO RETAIN THE $334.50.

B-171830, MAR 1, 1971

REAL ESTATE EXPENSES - REIMBURSABLE ITEMS DECISION CONCERNING AMOUNTS TO BE COLLECTED FROM CHRIS L. PEDERSON REPRESENTING OVERPAYMENTS FOR REAL ESTATE EXPENSES INCIDENT TO A CHANGE OF OFFICIAL DUTY STATION. SECTION 4.2D OF BOB CIR. NO. A-56 CLEARLY PROVIDES THAT MORTGAGE DISCOUNTS ("POINTS") ARE NOT REIMBURSABLE AND $864 MUST THEREFORE BE REFUNDED. A REASONABLE SERVICE CHARGE FOR PROCESSING THE LOAN MAY BE ALLOWED, AND IF CLAIMANT CAN SUBMIT ACCEPTABLE EVIDENCE TO SHOW THAT ATTORNEY FEES WERE FOR SERVICES OTHER THAN ADVISORY AND THUS WITHIN THE PURVIEW OF SECTION 4.2C OF CIRCULAR NO. A-56, THESE AMOUNTS MAY BE ALLOWED.

TO MR. VLADIMIR OLEYNIK:

THIS REFERS TO YOUR LETTER OF DECEMBER 4, 1970, REQUESTING OUR DECISION AS TO WHETHER OR NOT MR. CHRIS L. PEDERSON MAY BE RELIEVED OF ALL OR ANY PART OF $1,505.55. THIS AMOUNT REPRESENTS AN OVERPAYMENT FOR SEVERAL ITEMS OF REAL ESTATE EXPENSES INCURRED INCIDENT TO A CHANGE OF OFFICIAL DUTY STATION FROM MINNEAPOLIS, MINNESOTA, TO TAMPA, FLORIDA.

WITH RESPECT TO FIRST ITEM OF $864, "COST OF SECURING MORTGAGE, SALE OF HOME," SECTION 4.2D OF OFFICE OF MANAGEMENT AND BUDGET CIRCULAR NO. A-56 CLEARLY PROVIDES THAT MORTGAGE DISCOUNTS ("POINTS") ARE NOT REIMBURSABLE. THEREFORE, IN VIEW OF THE SPECIFIC PROHIBITION AGAINST SUCH COSTS, IT IS IMMATERIAL THAT SUCH EXPENSES ARE CUSTOMARILY PAID BY THE SELLER OR THAT THE LOCAL FEDERAL HOUSING ADMINISTRATION OFFICE SAYS THAT THEY ARE REIMBURSABLE. THE ITEM SHOULD BE REFUNDED. SEE B 167469, JULY 29, 1969.

IN REGARD TO THE "SERVICE CHARGE" IN THE AMOUNT OF $334.50, WE HAVE BEEN INFORMALLY ADVISED BY THE FEDERAL HOME LOAN BANK BOARD THAT THIS IS TO PAY FOR THE WORK OF PROCESSING THE LOAN AND THAT 1-1/2 PERCENT IS A REASONABLE CHARGE, THEREFORE, MR. PEDERSON IS ENTITLED TO RETAIN THE $334.50.

SINCE THE EMPLOYEE HAS AUTHORIZED PAYROLL DEDUCTIONS FOR THE AMOUNT OF $131.50 (MORTGAGE GUARANTY INS. CORP. - FIRST YEAR PREMIUM AND REVIEW FEE), WE HAVE NO COMMENTS TO MAKE THERETO.

WE NOTE THAT THE EMPLOYEE IS ATTEMPTING TO FURNISH FURTHER INFORMATION ABOUT THE AMOUNTS OF $93.20 AND $35 LISTED AS ATTORNEY FEES FOR SALE AND PURCHASE OF HOMES. OF COURSE, IF HE SHOULD FAIL TO SUBMIT ACCEPTABLE EVIDENCE TO SHOW THAT SUCH FEES WERE FOR SERVICES OTHER THAN ADVISORY AND THUS WITHIN THE PURVIEW OF SECTION 4.2C OF CIRCULAR NO. A 56, THE COLLECTION OF THE TWO FEES WOULD BE REQUIRED.

IN CONNECTION WITH THE $44.60 (INTANGIBLE TAX), OUR DECISION OF FEBRUARY 5, 1968, B-160040, EXPRESSLY STATES THAT SUCH TAX IS NOT LAWFULLY REIMBURSABLE, HENCE, THE EMPLOYEE WAS NOT ENTITLED TO THAT SUM PAID HIM AND COLLECTION THEREOF IS REQUIRED.

MR. PEDERSON WAS ONLY ENTITLED TO BE REIMBURSED FOR RECORDING FEES AT ONLY ONE LOCATION, THUS, $2.75 MUST BE RETURNED BY HIM. SEE B-164117, MAY 16, 1968.