B-170571, NOV. 9, 1970
Highlights
A PREMIUM PAID BY A TRANSFERRED EMPLOYEE FOR MORTGAGE GUARANTY INSURANCE ON A HOME PURCHASED AT THE NEW STATION TO PROTECT THE MORTGAGE AGAINST LOSS IN EVENT OF FORECLOSURE IS NOT A REIMBURSABLE ITEM OF EXPENSE UNDER SEC. 4.2D OF BOB CIRCULAR NO. AN EMPLOYEE WHO WAS REIMBURSED OF SUCH COST IS LIABLE FOR SUCH OVERPAYMENT. EXON: FURTHER REFERENCE IS MADE TO YOUR LETTER OF JUNE 17. THE SOLE QUESTION INVOLVED IS WHETHER MORTGAGE GUARANTY INSURANCE IS REIMBURSABLE UNDER SECTION 4.2D OF BUREAU OF THE BUDGET CIRCULAR NO. WHICH READS IN PART AS FOLLOWS: " *** THE COST OF A MORTGAGE TITLE POLICY ON THE DWELLING PURCHASED BY THE EMPLOYEE IS ALSO REIMBURSABLE. INSURANCE AGAINST DAMAGE OR LOSS OF PROPERTY ARE NOT REIMBURSABLE. *** " WE ENCLOSE COPIES OF OUR DECISIONS B-162673.
B-170571, NOV. 9, 1970
TRANSFERRED EMPLOYEE - MORTGAGE GUARANTY INSURANCE SUSTAINING COLLECTION OF OVERPAYMENT REPRESENTING COST OF INSURANCE PREMIUM PAID BY V.A. EMPLOYEE, INCIDENT TO PURCHASE OF RESIDENCE AT NEW PERMANENT STATION IN TOPEKA, KANSAS. A PREMIUM PAID BY A TRANSFERRED EMPLOYEE FOR MORTGAGE GUARANTY INSURANCE ON A HOME PURCHASED AT THE NEW STATION TO PROTECT THE MORTGAGE AGAINST LOSS IN EVENT OF FORECLOSURE IS NOT A REIMBURSABLE ITEM OF EXPENSE UNDER SEC. 4.2D OF BOB CIRCULAR NO. A-56. THEREFORE, AN EMPLOYEE WHO WAS REIMBURSED OF SUCH COST IS LIABLE FOR SUCH OVERPAYMENT.
TO MR. ROBERT A. EXON:
FURTHER REFERENCE IS MADE TO YOUR LETTER OF JUNE 17, 1970, IN WHICH YOU REQUEST REVIEW OF OUR OFFICE SETTLEMENT OF MAY 19, 1970, WHICH SUSTAINED THE COLLECTION OF AN ALLEGED OVERPAYMENT TO YOU OF $476, REPRESENTING THE COST OF MORTGAGE GUARANTY INSURANCE CORPORATION INSURANCE PREMIUM PAID BY YOU INCIDENT TO THE PURCHASE OF A RESIDENCE AT YOUR NEW PERMANENT DUTY STATION IN TOPEKA, KANSAS, PURSUANT TO TRAVEL AUTHORIZATION NO. 677-73 DATED JUNE 5, 1968.
THE SOLE QUESTION INVOLVED IS WHETHER MORTGAGE GUARANTY INSURANCE IS REIMBURSABLE UNDER SECTION 4.2D OF BUREAU OF THE BUDGET CIRCULAR NO. A 56, REVISED OCTOBER 12, 1966, WHICH READS IN PART AS FOLLOWS:
" *** THE COST OF A MORTGAGE TITLE POLICY ON THE DWELLING PURCHASED BY THE EMPLOYEE IS ALSO REIMBURSABLE. COSTS OF OTHER TYPES OF INSURANCE, INCLUDING 'RECORD TITLE' POLICIES, OWNERS' TITLE POLICIES, MORTGAGE INSURANCE, AND INSURANCE AGAINST DAMAGE OR LOSS OF PROPERTY ARE NOT REIMBURSABLE. *** "
WE ENCLOSE COPIES OF OUR DECISIONS B-162673, NOVEMBER 13, 1967, AND B 162673, JUNE 3, 1968. THOSE DECISIONS HOLD THAT MORTGAGE GUARANTY INSURANCE FOR THE PROTECTION OF THE MORTGAGEE AGAINST LOSS IN THE EVENT OF FORECLOSURE IS NOT A TYPE OF INSURANCE FOR WHICH REIMBURSEMENT IS AUTHORIZED UNDER THE AFORE CITED REGULATION. WE POINTED OUT THEREIN THAT OUR DECISION B-161459, JUNE 27, 1967, PUBLISHED AT 46 COMP. GEN. 884, ONLY DECIDED THE QUESTION OF THE PROPRIETY OF REIMBURSING AN EMPLOYEE FOR AMOUNTS PAID FOR AN OWNER'S TITLE INSURANCE POLICY PROCURED BY THE SELLER OF THE PROPERTY FOR THE BENEFIT OF THE PURCHASER AS A MEANS OF ESTABLISHING THAT THE SELLER HAD A MARKETABLE TITLE TO THE PROPERTY AND THAT SAID DECISION HAD NO APPLICATION TO MORTGAGE GUARANTY INSURANCE. SEE ALSO OUR DECISIONS B-164416, JUNE 28, 1968, AND B-163419, FEBRUARY 26, 1968, COPIES ENCLOSED.
IN VIEW OF THE FOREGOING, YOU ARE NOT ENTITLED TO REIMBURSEMENT FOR THE MORTGAGE GUARANTY INSURANCE PREMIUM HEREIN INVOLVED AND OUR OFFICE SETTLEMENT OF MAY 19, 1970, IS AFFIRMED.