Board of Contract Appeals General Services Administration Washington, D.C. 20405 ________________________________ February 17, 2000 ________________________________ GSBCA 15065-RELO In the Matter of STANLEY H. LEVINE Stanley H. Levine, Alexandria, VA, Claimant. Ray E. York, Deputy Director for Systems and Procedures, Defense Finance and Accounting Service, Indianapolis, IN, and James S. Turkel, Chief, Real Estate Division, U.S. Army Corps of Engineers, Baltimore, MD, appearing for Department of the Army. WILLIAMS, Board Judge. This is the second claim filed by Stanley H. Levine in conjunction with his transfer from Fort Monmouth, New Jersey, to The Pentagon, Washington, D.C., in 1998.[foot #] 1 At issue in this case are three charges claimant incurred in connection with the purchase of a home in Alexandria, Virginia: underwriting fees, tax service charges, and a courier fee. The agency properly denied reimbursement of these charges. Background According to a letter from claimant's lender, the underwriting fee was charged by Home-American Mortgage Corporation and is charged on every loan regardless of the interest rate and points charged. The tax service fee was paid to Transamerica Tax Service Company for its work "in determining the actual amounts of taxes which have been paid and which are still owed at the closing." The courier fee was charged by Premier Title and is the actual cost of items which have been couriered or express mailed. All of these fees are actual charges and according to the lender have no connection with the points charged. Discussion ----------- FOOTNOTE BEGINS --------- [foot #] 1 Claimant's first claim was denied in Stanley H. __________ Levine, GSBCA 14909-RELO, 00-1 BCA 30,603 (1999). ______ ----------- FOOTNOTE ENDS ----------- Neither the underwriting fee nor the tax service fee is recoverable under the Federal Travel Regulation, 41 CFR 302-6.2(d)(2)(v) (1997), which provides that unless specifically authorized elsewhere in the regulation, no fees, charges, costs, or expenses determined to be part of the finance charge under the Truth in Lending Act, 15 U.S.C. 1605 (1994), may be reimbursed. Accord Joint Travel Regulations C14002-A.4.b(5). The Truth in Lending Act provides that the finance charge shall be determined as the sum of all charges imposed directly or indirectly by the creditor as incident to the extension of credit. The Board, following decisions of the General Accounting Office (GAO), has consistently recognized that the underwriting fee paid by the borrower, while not itself a finance charge, is a charge paid incident to and as a prerequisite to the extension of credit. Gerald Fediw, GSBCA 14256-RELO, 98-1 BCA 29,513; Charles A. Peters, GSBCA 13643-RELO, 97-1 BCA 28,689 (1996); Kenneth R. Pedde, B-223797 (Apr. 20, 1987); George J. Wehrstedt, B-192851 (May 11, 1979); see also S. K. Datta, GSBCA 13888-RELO, 97-1 BCA 28,929. Similarly, the tax service fee has been deemed to be a prerequisite to the extension of credit and thus not reimbursable. Laura A. Cushler, GSBCA 14210-RELO, 98-2 BCA 29,792; Richard A. Santillo, GSBCA 14230-RELO, 98-1 BCA 29,526; Fediw; Floyd L. Craft, GSBCA 13698-RELO, 97-2 BCA 29,092; Pamela Swires, B-260724 (Sept. 21, 1995); Sue Wolohan, B-219546 (Jan. 30, 1989); Richard P. Johnson, B-281754 (Sept. 17, 1985).[foot #] 2 Nor is the courier fee charged by Premier Title reimbursable. As explained in Charles A. Peters, courier fees are not listed as reimbursable miscellaneous expenses under applicable regulations, 41 CFR 302-6.2(d)(1), and do not qualify under subsection 302-6.2(d)(1)(vi) as "similar in nature to" those items listed as reimbursable. Although the title company used the courier, there is no indication in the record that the use of a courier was a required service in the residence purchase process. As such, claimant may not recover the $25. Accord Stanley H. Levine, GSBCA 14909-RELO, 00-1 BCA 30,603 (1999). Decision The claim is denied. ________________________________ MARY ELLEN COSTER WILLIAMS Board Judge ----------- FOOTNOTE BEGINS --------- [foot #] 2 The fact that the lending institution does not consider these cost items to be part of the finance charge is not dispositive. Gerald Fediw, 98-1 BCA at 146,396 n.1; John G. ____________ _______ Barry, B-199944 (Apr. 16, 1981). _____