Board of Contract Appeals
                    General Services Administration
                         Washington, D.C. 20405
 
 
 
            _______________________________________________
 
                            December 7, 1999
             _____________________________________________
 
 
                            GSBCA 15133-RELO
 
 
                   In the Matter of JAMES A. FAIRLEY
 
 
        James A. Fairley, Brandon, MS, Claimant.
 
        Jeanette  Bushner,  Chief,  Travel  Section,  Department  of
   Veterans  Affairs,   Austin,  TX,  appearing  for  Department  of
   Veterans Affairs.
 
   GOODMAN, Board Judge.
 
        Claimant, James A. Fairley, is an employee of the Department
   of  Veterans  Affairs.    In  January  1999,  he  accomplished  a
   permanent  change of station (PCS) move from Biloxi, Mississippi,
   to Ridgeland, Mississippi.  The agency denied reimbursement  of a
   tax service fee, $75, and underwriting fee, $150, incident to the
   purchase of a  new home at claimant's new  duty station. Claimant
   has  requested  review  of   the  agency  determinations  denying
   reimbursement  of these  expenses. Claimant  is  not entitled  to
   reimbursement of these expenses.
 
        The tax service fee and underwriting fee are closing fees in
   connection with the  mortgage on the  residence purchased at  the
   new duty station. The Federal Travel Regulation provides  that an
   agency cannot reimburse  an employee for any "fee,  cost, charge,
   or expense determined to be part of the finance charge under. . .
   Regulation  Z issued  by the  Board of  Governors of  the Federal
   Reserve  Board."  41  CFR 302-6.2(d)(2)(v)(1998).    Regulation Z
   explains that  a  finance charge  is  one that  is  imposed by  a
   creditor "as  an incident to or  a condition of  the extension of
   credit." 12 CFR 226.4(a).   Claimant states that he  did not have
   any choice as to these two items  being part of the loan closing,
   as they  are considered standard  in the industry.    These items
   for  which claimant  seeks  reimbursement  were  incident  to  an
   extension of credit and are, therefore, finance charges according
   to Regulation Z.  Because the FTR provides that  an agency cannot
   reimburse an employee for a finance charge,  the agency correctly
   determined not to reimburse claimant  for the tax service fee and
   underwriting fee. See Joseph Thompson, GSBCA 15077-RELO (Oct. 14,
   1999);  e.g., S.K. Datta, GSBCA 13888-RELO, 97-1 BCA   28,929;
 
 
        The claim is denied.
 
 
 
                                      ____________________________
                                      ALLAN H. GOODMAN
                                      Board Judge