Federal Housing Administration v. Morris Plan Co. Of California

ORR, Circuit Judge.

Appellant, Federal Housing Administration, hereafter F.H.A., pursuant to authority granted by § 2(a) of the National Housing Act of 1934, 12 U.S.C.A. § 1701 et seq., issued a contract of insurance insuring appellee, Morris Plan Company of California, against losses on property improvement loans made in conformity with the National Housing Act and regulations issued by F.H.A.

In 1948 appellee made F.H.A. Title One Property Improvement loans to a number of individuals who in turn contracted with Los Angeles Perma-Stone Company, hereafter Perma-Stone, to make certain specified…