An employee of the Department of Housing and Urban Development (HUD) submitted a claim for reimbursement of a loan assumption fee which he incurred because of a transfer within HUD. Both HUD and the Claims Group disallowed reimbursement on the basis that the loan assumption fee was a finance charge not reimbursable under a Federal regulation. GAO stated that certain items in connection with real estate financing can be properly reimbursed to the extent that they are bona fide, reasonable in amount, and not for the purpose of circumventing the regulation; however, the claimant must submit evidence of the specific amount of the loan assumption fee chargeable to any reimbursable item. Since the employee did not submit such evidence, GAO sustained the Claims Group's disallowance of reimbursement.
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