Crum v. AVCO Financial Services of Indianapolis, Inc.

I concur as to Issues I and III, but must respectfully dissent as to Issue IL.

Prudential Insurance Co. v. Executive States, Inc. (1977), 174 Ind.App. 674, 369 N.E.2d 1117, trans. denied, should control this case. AVCO as mortgagee breached a duty it owed to the Crums, thereby rendering AVCO liable to them for its negligent disbursement of the loan proceeds. In Prudential, this court recognized that the mortgagor- mortgagee relationship requires the mortgagee to protect the mortgagor's interest when the mortgagee controls disposition of the loan proceeds:

"A mortgagee-lender who insists on…