March 15, 2007


                          CBCA 554-RELO


               In the Matter of SHARON C. THOMPSON


     Sharon C. Thompson, Columbus, OH, Claimant.

     Judy Hughes, Standards and Compliance, Finance Mission Area-Travel Pay, Defense
Finance and Accounting Service, Columbus, OH, appearing for Department of Defense.

DeGRAFF, Board Judge.

     In mid-2006, the Department of Defense (DoD) transferred Sharon C. Thompson
from one permanent duty station to another.  In connection with the transfer, DoD
authorized Ms. Thompson to incur reimbursable real estate purchase transaction expenses. 
Ms. Thompson purchased a house at her new duty station and because she agreed to obtain
her mortgage loan through a lender affiliated with the builder that sold the house, the builder
agreed to pay $9075.50 toward her closing costs.  Ms. Thompson's settlement statement
shows her total closing costs were approximately $13,500.  The statement also shows
$9075.50 in "seller concessions," but does not explain how these funds were used.

     Ms. Thompson submitted a claim to DoD for reimbursement of $1286.32 of her
closing costs.  Although DoD determined that the claimed costs are reimbursable according
to the applicable regulations, DoD decided it could not reimburse Ms. Thompson because
the $9075.50 paid by the builder toward Ms. Thompson's closing costs was more than
sufficient to cover the costs which she asked DoD to reimburse.  Ms. Thompson asked us
to review DoD's decision.  

     After she submitted her claim to us for review, Ms. Thompson contacted her
mortgage company and asked how the $9075.50 had been used.  The mortgage company
told Ms. Thompson the $9075.50 had been used to pay "points."  Ms. Thompson's
settlement statement shows she was charged $3085.66 for discount points paid to her lender. 
In addition, the statement shows she was charged $5989.84 for a loan fee paid to the
mortgage broker.  These two amounts added together equal the $9075.50 of  "seller
concessions."  In other words, the entire $9075.50 was used to pay charges assessed by the
lender and the mortgage broker, and none of it was used to pay any of Ms. Thompson's
other closing costs.  

     The $1286.32 claimed by Ms. Thompson was paid by her, not by the builder, for
closing costs.  As DoD correctly determined, the claimed costs are reimbursable according
to the applicable regulations.  For these reasons, we grant the claim.




                                   __________________________________
                                   MARTHA H. DeGRAFF
                                   Board Judge