[Decision Concerning Army Employee's Claim for Reimbursement for Loan Origination Fee]

The Army requested an advance decision concerning a transferred employee's claim for reimbursement of a loan origination fee he paid in purchasing his new residence. The Army noted that it reimbursed the claimant based on information regarding the customary charges in the claimant's new residence area. The claimant contended that he was entitled to reimbursement of the entire loan origination fee. GAO held that the employee was: (1) entitled to reimbursement for only the 1-percent fee customarily charged in the area; and (2) not entitled to full reimbursement, since the loan origination fee included points and mortgage discounts. Accordingly, the claim was allowed in part and denied in part.