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B-219076, B-219123, NOV 25, 1985

B-219076,B-219123 Nov 25, 1985
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Highlights

DIGEST: TWO TRANSFERRED EMPLOYEES WHO INCURRED LOAN ORIGINATION FEES OF 1.5 PERCENT ARE NOT ENTITLED TO REIMBURSEMENT FOR MORE THAN THE 1 PERCENT FEE ALLOWED BY THE VETERANS ADMINISTRATION. KENTUCKY AREA INDICATING THAT 73 PERCENT CHARGE LOAN ORIGINATION FEES EQUAL TO 1 PERCENT OF THE LOAN AMOUNT CONFIRMS THE VETERANS ADMINISTRATION'S DETERMINATION THAT 1 PERCENT IS THE CUSTOMARY LOAN ORIGINATION FEE. TWO EMPLOYEES OF THE VETERANS ADMINISTRATION (VA) CLAIM REIMBURSEMENT FOR THE 1.5 PERCENT LOAN ORIGINATION FEE EACH PAID TO OBTAIN A CONVENTIONAL MORTGAGE. /1/ WE HOLD THAT REIMBURSEMENT IS LIMITED TO THE 1 PERCENT FEE ALLOWED BY THE VA SINCE THE SURVEY CONFIRMS THAT THE PREDOMINANT RATE CHARGED FOR LOAN ORIGINATION IN THE AREA WAS 1 PERCENT OF THE LOAN AMOUNT.

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