Real Estate Expenses

An employee of the Bureau of Reclamation filed a claim for reimbursement of a loan closing fee incurred in a real estate purchase incident to his transfer to a new duty station. The agency denied his claim because it was determined that the fee was a finance charge and, thus, not reimbursable under applicable regulations. The employee contended that the fee was not a finance charge. However, the truth in lending statement that was furnished by the lender clearly indicated that the fee was a prepaid finance charge. Reimbursement of any finance charge is prohibited by Federal Travel Regulations. Accordingly, the claim was disallowed.