Skip to Highlights
Highlights

A Federal employee requested reimbursement of a loan closing fee for the purchase of a residence at his new duty station. He contended that the loan closing fee was not a finance charge. However, the Federal Truth-in-Lending Act disclosure statement that he was furnished by the lender characterized the fee as a prepaid finance charge. Federal regulations specifically preclude reimbursement of a finance charge. Since GAO has held that a loan origination fee is a finance charge and, in this case, no evidence was offered to support the conclusion that the fee in question was not a finance charge, the claim was disallowed.

Downloads

GAO Contacts