[Request for Decision on Entitlement to Reimbursement]

B-213741: Jul 23, 1984

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The Department of Agriculture (USDA) requested a decision regarding claims submitted by two USDA employees for similar real estate expenses. The first employee was transferred, assumed a mortgage, and was charged a loan assumption fee amounting to about 1.5 percent of the balance of the loan. The second employee was transferred, assumed a mortgage, and was charged a service fee amounting to about 1 percent of the balance of the loan. GAO held that, since the fees were similar to loan origination fees and appeared to be intended to offset administrative expenses incurred by the lending institutions, the fees were allowable. Accordingly, the claims were allowed.