B-221103: Sep 19, 1986

BASED ON HUD'S ADVICE THAT A 1 PERCENT LOAN ORIGINATION FEE WAS CUSTOMARY IN THE LOCALITY OF THE EMPLOYEE'S NEW RESIDENCE AT THE TIME OF THE PURCHASE. 2 PERCENT LOAN ORIGINATION FEE WAS TYPICAL. SINCE THE LOCAL HUD OFFICE NOW STATES THAT A 2 PERCENT LOAN ORIGINATION FEE IS CUSTOMARY FOR THE LOCALITY. WE FIND THAT 2 PERCENT IS THE CUSTOMARY RATE FOR A LOAN ORIGINATION FEE IN THAT LOCALITY AND THAT...

B-221103: Sep 19, 1986

The Department of Agriculture (USDA) requested a decision regarding a transferred employee's claim for a full 4-percent loan origination fee. The employee purchased a residence at his new duty station and paid a 4-percent loan origination fee. USDA allowed the employee a 1-percent loan origination fee, based on the Department of Housing and Urban Development's (HUD) advice; however, HUD subsequent...