Board of Contract Appeals

                 General Services Administration

                      Washington, D.C. 20405







                        _________________



                           May 20, 2004

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                         GSBCA 16383-RELO





               In the Matter of C. RICHARD CARLETON





     C. Richard Carleton, Greenwood, LA, Claimant.



     Terry Burton, Chief, Travel Section, Financial Services Center, Department of

Veterans Affairs, Austin, TX, appearing for Department of Veterans Affairs.



GOODMAN, Board Judge.



     Claimant, C. Richard Carleton, is an employee of the Department of Veterans Affairs.

He has requested that this Board review the agency's denial of reimbursement of certain costs

arising from his permanent change of station move.



                        Factual Background



     Claimant purchased a home at his new duty station in September 2003.  The agency

denied reimbursement of $395 charged by the mortgage company as a processing fee for the

loan on the new residence.  Claimant has submitted a letter from the mortgage company

stating that the fee is "a standard closing cost on every loan."  The agency denied

reimbursement as it considered the fee a finance charge.



                           Discussion

                                

     Pursuant to the Federal Travel Regulation (FTR), 41 CFR 302-11.202(g) (2003), an

agency will not reimburse "[a]ny fee, cost, charge, or expense determined to be part of the

finance charge under the Truth in Lending Act . . . and Regulation Z issued by the Board of

Governors of the Federal Reserve System . . . unless specifically authorized in   302-11.200." 

The claimant's mortgage company's letter stating that the processing fee at issue is a

"standard closing cost on every loan" confirms that the processing fee is an element of the

cost of obtaining credit.  We have previously held that charges that are an element of the cost

of obtaining credit are deemed to be part of the finance charge.  Since this is not a charge that

is specifically authorized to be reimbursable, it is not recoverable under the FTR.  See

Jeffrey B. Hicks, GSBCA 15860-RELO, 03-1 BCA   32,083; Michael J. Smith, GSBCA

15672-RELO, 02-1 BCA   31,771; Thomas E. Sullivan, GSBCA 15453-RELO, 01-1 BCA 

 31,339.  The agency properly disallowed this expense.



                             Decision



     The claim is denied.









                                   ____________________________________

                                   ALLAN H. GOODMAN

                                   Board Judge