B-209691: May 9, 1983

DIGEST: LOAN CLOSING COSTS CHARGED AS A LUMP-SUM FEE IN THE PURCHASE OF A RESIDENCE ARE CONSIDERED FINANCE CHARGES UNDER 12 C.F.R. AN EMPLOYEE TRANSFERRED TO A NEW DUTY STATION MAY NOT RECOVER LOAN CLOSING COSTS INCURRED IN PURCHASING A RESIDENCE AT THE NEW DUTY STATION WHERE THE FEE IS CHARGED AS A LUMP-SUM WITH NO BREAKDOWN OF WHAT PART. PIERSON: THE ISSUE IN THIS CASE IS WHETHER MR. IS ENTITLED...

B-209691: May 9, 1983

GAO considered whether a Bureau of Reclamation employee was entitled to reimbursement for loan closing costs he incurred when purchasing a new residence upon his transfer to a new duty station. The employee's initial claim was denied by the Bureau because the loan closing fee was deemed to be a nonreimbursable finance charge. The Bureau obtained an explanation of the charge from the financial inst...