Korman v. Federal Housing Administrator

VINSON, Associate Justice.

This is an appeal from a judgment of the District Court confirming an order of a referee in bankruptcy granting preferred status to a claim held-by the Federal Housing Administration.

It appears that the debtor secured a loan from the Riggs National Bank of this city on or about March 19, 1936. The loan was insured by the Federal Housing Administration. Subsequently, the debtor defaulted in his payments and on July 7, 1937, thp Federal Housing Administration paid Riggs National the balance due on the note, receiving at that time an assignment of the same “to the…