[Claim for Relocation Expenses Including Loan Origination Fee and VA Funding Fee]

An advance decision was requested concerning the propriety of reimbursing a Department of the Interior employee for a loan origination fee and a Veterans Administration (VA) funding fee incurred in connection with his permanent change of station. Reimbursement for both of these fees was denied because they were finance charges and, therefore, not reimbursable under Federal Travel Regulations. The employee had noted a change in the regulations which would allow reimbursement of the loan origination fee. However, since the revision was effective only for employees who transferred after the date of the claimant's transfer, the revision was not applicable to this claim. In addition, reimbursement of the VA funding fee was prohibited by Federal Travel Regulations as a finance charge. Accordingly, GAO found that both fees constituted nonreimbursable real estate expenses.