[Request for Decision Concerning Interior Employee's Claim for Reimbursement of Loan Origination Fee]

The Department of the Interior requested a decision concerning an employee's claim for reimbursement of a 3-percent origination fee he incurred incident to his transfer and subsequent purchase of a new residence. GAO held that: (1) the employee was entitled to reimbursement of his loan origination fee, based on the customary charges in the employee's new locality; and (2) since the prevailing rate in the employee's new locality was 1 percent, the employee was not entitled to the additional 2 percent of his loan fee. Accordingly, Interior should reimburse the employee at the prevailing 1-percent rate.