Home Owners' Loan Corp. v. Collins

The defendant Newman moves to strike the bill of complaint on the ground that it discloses no cause of action against him. This is the case made by the bill:

Collins and wife applied in writing to complainant for a loan and agreed to furnish as security a first lien on their home in Bayonne. The application stated that the encumbrances on the property, besides taxes, were a first mortgage of $5,000, a second mortgage of $2,025.88, both held by Stillwell; and a third mortgage of $1,000 held by Newman. The application was approved by complainant in the sum of $6,200. Before closing the loan,…