Resolution Trust Corp. v. Urban Redevelopment Authority

WIEAND, Judge:

May the corporate insurer of a mortgage rescind its contract of guaranty after it has been determined that a material misrepresentation was made by the borrower and repeated by the lender in its application for insurance coverage? The trial court held that such a misrepresentation did not constitute a defense to the lender’s claim and entered partial summary judgment against the insurer of the debt. For the reasons which follow, we reverse.

In order to help alleviate economic blight and promote economic development in the City of Pittsburgh, the Urban Redevelopment Authority of…