Request for Reimbursement of Loan Origination Fee

GAO was asked for an advance decision concerning payment on a voucher submitted for reimbursement for a loan/discount fee. The loan/discount fee was assessed to a civilian Air Force employee at the time of settlement of his former residence. The record showed that the civilian employee was transferred to a new duty station. In connection with his transfer, the employee sold his residence at his old duty station, and at settlement he paid a loan/discount fee from the proceeds of the sale. The employee claimed that he should be reimbursed the loan fee in lieu of the realtor fees that he saved the Government by acting as his own realtor in selling his residence at the old duty station. GAO held that the loan/discount fee was a finance charge, and Federal Travel Regulations preclude reimbursement for finance charges. Further, there is no authority for an agency to waive the requirements of these regulations and to make reimbursement to an employee other than those authorized by law. Accordingly, the voucher may not be certified for payment.