Request for Reimbursement of Loan Origination Fee

A financing officer requested a decision on the propriety of paying a voucher for a loan origination fee when the employee had not provided an itemization of the fee to show which portions, if any, are reimbursable. The employee had incurred a charge for a loan origination fee upon purchasing a residence at his new duty station. The amount of the loan origination fee was disallowed by the agency on the basis that GAO had ruled that loan origination fees may not be reimbursed since they represent finance charges. The employee was advised that if he would itemize the separate items of the fee, the agency would reconsider his voucher to determine if any of the items were reimbursable. Instead of providing an itemization, the employee argued that the fee did not represent a finance charge but was a charge to defray the administrative cost of making the loan. He also argued that GAO decisions regarding loan origination fees did not reflect current financial conditions and alleged that the Federal regulations applicable to this matter are internally inconsistent. GAO believed it was clear that the loan origination fee paid by the employee was a finance charge. GAO has no authority to waive Federal Travel Regulations, these are the responsibility of the General Services Administration (GSA). Since the employee's argument lies in policy rather than the application of the law, he should address his arguments to GSA, and questions concerning inconsistencies in the Code of Federal Regulations to the Board of Governors of the Federal Reserve System.