Resolution Trust Corp. v. Urban Redevelopment Authority

OPINION

ZAPPALA, Justice.

The sui generis issue with which we are presented is whether a mortgagee financial institution or a mortgage guaranty insurance company should be held responsible for the misrepresentations of a mortgagor. Because the mortgage guaranty insurance company, in the absence of a policy provision, may show through custom in the trade that the mortgagee financial institution is responsible for the misrepresentations of a mortgagor, we now affirm.

In 1982, Appellant, the Urban Redevelopment Authority of Pittsburgh (U.R.A.), and First Federal Savings and Loan Association of…