[Request for Decision Regarding USDA Employee's Entitlement to Reimbursement for Real Estate Expenses]

B-221529: Jul 1, 1986

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The Department of Agriculture (USDA) requested a decision on an employee's claim for the full amount of a loan origination fee she incurred in purchasing a residence after her transfer to a new duty station. USDA disallowed the claim because the lending institution described the fee as containing commitment and origination-point fees. GAO found that the Department of Housing and Urban Development stated that a 1-percent loan origination fee was customary for the area. Accordingly, the employee may be reimbursed for the 1-percent loan origination fee only.

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