Claim for Relocation Expenses Involving a Mortgage Prepayment Penalty

B-194298: Aug 10, 1979

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The issue involved in this decision was whether an employee on a permanent change of station was entitled to reimbursement for a mortgage prepayment penalty and interest on the mortgage in connection with the sale of his residence at the old duty station. Since the evidence supplied by the employee was sufficient to establish that a mortgage prepayment had been made by him, reimbursement for this relocation expense was allowed. However, since the interest sum appeared to be the normal fee paid as interest charged by the mortgage company for carrying the loan, this amount was not reimbursable as a relocation expense claim. Accordingly, the claim was allowed in part and disallowed in part.

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