B-238038, Feb 23, 1990
Highlights
Trusley is a transferred employee who purchased a residence near his new duty station in October 1988. Was charged a 2 percent loan origination fee. Although it was established that the 2 percent fee charged was customary in the area. Mere such itemization is not furnished.
B-238038, Feb 23, 1990
PRECIS-UNVAILABLE
James F. Trusley III:
Mr. Trusley is a transferred employee who purchased a residence near his new duty station in October 1988, and was charged a 2 percent loan origination fee. Although it was established that the 2 percent fee charged was customary in the area, the agency limited reimbursement to 1 percent based on the fact that the lender did not itemize its administrative charges.
In a recent decision, Wayne Pfeffer, B-34288, Feb. 8, 1990, we ruled that under a revision to the Federal Travel Regulations, para. 2 6.2d(1) (b) (Supp. 26, effective October 1, 1987), in order for an employee to be reimbursed for a loan origination fee in excess of 1 percent of the loan amount, he must show by clear and convincing evidence, including an itemization of the lenders's administrative costs, the higher rate does not include prepaid interest, points, or a mortgage discount. addition, the higher rate must be shown to be a rate customarily charged in the locality of the residence.
In this case, Mr. Trusley did not furnish an itemization of the lender's administrative costs which would specify what charges the additional 1 percent fee covered. Mere such itemization is not furnished, the employee may not be reimbursed the additional expense, regardless of the efficacy of any other supporting evidence. Accordingly, we sustain the denial of Mr. Trusley's claim.