The Department of Agriculture (USDA) requested a decision regarding an employee's claim for reimbursement for a loan origination fee she incurred when constructing a residence incident to her transfer. GAO noted that: (1) although the claimant incurred a 2.5-percent construction loan origination fee, the Department of Housing and Urban Development approved only a 1-percent loan origination fee since that was the customary local fee; (2) the claimant submitted a reclaim voucher for the remaining 1.5 percent; and (3) the requester questioned whether the claimant was entitled to either the full 2.5-percent fee charged or the 1-percent fee applicable to existing residences. GAO found that: (1) USDA properly reimbursed the claimant for the 1-percent fee; and (2) the claimant was only entitled to reimbursement for the 1-percent fee. Accordingly, the claim was denied.
Skip to Highlights