United States v. Stanley S. Neustadt and Rose-Barbara Y. Neustadt

SOPER, Circuit Judge.

The question in this case is whether the purchaser of a single residence property covered by a mortgage under § 203 (a) of the National Housing Act as amended, 12 U.S.C.A. § 1709(a), is entitled under the Federal Tort Claims Act, 28 U.S.C. § 2671 et seq., to recover damages occasioned by the negligence of an agent of the Federal Housing Commissioner in making an appraisal of the property under the provisions of the statute and the regulations issued pursuant thereto. See 12 U.S.C.A. § 1709(b) (2) and 24 C.F.R. § 200.4(b). The United States does not deny that the appraisal…