B-175911, JUN 16, 1972

B-175911: Jun 16, 1972

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REIMBURSEMENT IS PRECLUDED BY SUBSECTION 4.2D OF OMB CIRCULAR NO. FRAASA: REFERENCE IS MADE TO YOUR LETTER OF MAY 3. THE CORRESPONDENCE WHICH YOU HAVE FURNISHED US SHOWS THAT MRS. TODD WAS ASSESSED A LOAN TRANSFER FEE OF $50 IN CONNECTION WITH HER ASSUMPTION OF A REAL ESTATE LOAN MADE BY THE REID AND COMPANY. THE REGULATIONS ISSUED PURSUANT TO THIS AUTHORITY APPLICABLE DURING THE PERIOD HERE INVOLVED ARE FOUND IN OFFICE OF MANAGEMENT AND BUDGET CIRCULAR NO. OR EXPENSE IS REIMBURSABLE WHICH IS DETERMINED TO BE A PART OF THE FINANCE CHARGE UNDER THE TRUTH IN LENDING ACT. TODD IS A CHARGE SIMILAR TO A LOAN FEE OR FINDER'S FEE AND THEREFORE IS NOT REIMBURSABLE BY THE GOVERNMENT. THE VOUCHER WHICH IS RETURNED HEREWITH MAY NOT BE CERTIFIED FOR PAYMENT.

B-175911, JUN 16, 1972

CIVILIAN EMPLOYEE - LOAN TRANSFER FEE - REIMBURSEMENT - TRUTH IN LENDING ACT CONCERNING THE ENTITLEMENT OF DORIS C. TODD TO REIMBURSEMENT OF A LOAN TRANSFER FEE INCURRED INCIDENT TO HER TRANSFER FROM AUSTIN TO DALLAS, TEX; AS AN EMPLOYEE OF THE OFFICE OF ECONOMIC OPPORTUNITY. THE SUBJECT LOAN TRANSFER FEE MUST BE CONSIDERED A "FINANCE CHARGE" UNDER THE TRUTH IN LENDING ACT, TITLE I, PUB. L. 90-321, AND REGULATION Z ISSUED PURSUANT THERETO BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. ACCORDINGLY, REIMBURSEMENT IS PRECLUDED BY SUBSECTION 4.2D OF OMB CIRCULAR NO. A-56.

TO MISS ANNORA F. FRAASA:

REFERENCE IS MADE TO YOUR LETTER OF MAY 3, 1972, WITH ENCLOSURES, REQUESTING A DECISION FROM OUR OFFICE AS TO THE PROPRIETY OF CERTIFYING FOR PAYMENT A VOUCHER IN FAVOR OF MRS. DORIS C. TODD FOR REIMBURSEMENT OF $50 REPRESENTING A LOAN TRANSFER FEE INCURRED BY MRS. TODD AS AN EMPLOYEE OF THE OFFICE OF ECONOMIC OPPORTUNITY. MRS. TODD INCURRED THIS FEE AS A RESULT OF HER TRANSFER FROM AUSTIN, TEXAS, TO DALLAS, TEXAS.

THE CORRESPONDENCE WHICH YOU HAVE FURNISHED US SHOWS THAT MRS. TODD WAS ASSESSED A LOAN TRANSFER FEE OF $50 IN CONNECTION WITH HER ASSUMPTION OF A REAL ESTATE LOAN MADE BY THE REID AND COMPANY, INC; MORTGAGE BANKERS, GRAND PRAIRIE, TEXAS, ON A HOUSE WHICH MRS. TODD PURCHASED IN GRAND PRAIRIE, TEXAS, AS A RESULT OF HER TRANSFER.

TITLE 5, SECTION 5724AA)(4) OF THE U.S.C. PROVIDES THE AUTHORITY FOR GOVERNMENT AGENCIES, UNDER REGULATIONS PRESCRIBED BY THE PRESIDENT, TO REIMBURSE THEIR EMPLOYEES TO THE EXTENT CONSIDERED NECESSARY AND APPROPRIATE FOR ALL OR PART OF THE EXPENSES OF PURCHASING A HOME AT A NEW OFFICIAL DUTY STATION. THE REGULATIONS ISSUED PURSUANT TO THIS AUTHORITY APPLICABLE DURING THE PERIOD HERE INVOLVED ARE FOUND IN OFFICE OF MANAGEMENT AND BUDGET CIRCULAR NO. A-56, REVISED JUNE 26, 1969. SUBSECTION 4.2D STATES IN PART REGARDING MISCELLANEOUS COSTS INCURRED IN THE PURCHASE AND SALE OF RESIDENCES:

" *** NOTWITHSTANDING THE ABOVE, NO FEE, COST, CHARGE, OR EXPENSE IS REIMBURSABLE WHICH IS DETERMINED TO BE A PART OF THE FINANCE CHARGE UNDER THE TRUTH IN LENDING ACT, TITLE I, PUBLIC LAW 90-321, AND REGULATION Z ISSUED PURSUANT THERETO BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. *** "

TITLE I, SECTION 106(A) OF THE TRUTH IN LENDING ACT APPROVED MAY 29, 1968, PUBLIC LAW 90-321, 82 STAT. 148 (15 U.S.C. 1605(A)) AND REGULATION Z OF THE BOARD OF GOVERNORS, FEDERAL RESERVE SYSTEM, ISSUED PURSUANT TO THAT ACT INCLUDE IN THE TERM "FINANCE CHARGE" LOAN FEES, FINDER'S FEES, OR SIMILAR CHARGES. A LOAN TRANSFER FEE SUCH AS THAT INCURRED BY MRS. TODD IS A CHARGE SIMILAR TO A LOAN FEE OR FINDER'S FEE AND THEREFORE IS NOT REIMBURSABLE BY THE GOVERNMENT. SEE DECISIONS B 170787, NOVEMBER 17, 1970, AND B-168359, JANUARY 2, 1970, COPIES ENCLOSED.

ACCORDINGLY, THE VOUCHER WHICH IS RETURNED HEREWITH MAY NOT BE CERTIFIED FOR PAYMENT.