A Bureau of Land Management employee filed a claim for reimbursement of a mortgage insurance premium required by a lender in connection with the purchase of a residence. The claimant purchased a residence at his new duty station and was required to pay a mortgage insurance premium to protect the lender against a possible default on the mortgage. The employee appealed the initial disallowance of the claim, contending that recent amendments to applicable regulations permit reimbursement of mortgage insurance. GAO noted that: (1) applicable regulations permit reimbursement of certain miscellaneous expenses in connection with an employee's sale or purchase of a residence; however, mortgage insurance is not reimbursable; and (2) the applicable regulation specifically disallowed costs of mortgage insurance and prohibited reimbursement of any expense determined to be a finance charge. Accordingly, GAO sustained the agency's initial disallowance of the claim.
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