[Entitlement to Reimbursement for Loan Closing Costs]

GAO considered whether a Bureau of Reclamation employee was entitled to reimbursement for loan closing costs he incurred when purchasing a new residence upon his transfer to a new duty station. The employee's initial claim was denied by the Bureau because the loan closing fee was deemed to be a nonreimbursable finance charge. The Bureau obtained an explanation of the charge from the financial institutions involved so as to clarify its reasoning. GAO noted that a lending institution's statement cannot be accepted as the final characterization of a payment and that the payment must be examined in light of applicable regulations. According to applicable guidelines, the loan closing fee was not a reimbursable finance charge, contrary to the lending institution's characterization of such a charge. Accordingly, the reclaim voucher may not be certified for payment.