Armstead v. United States Department of Housing & Urban Development (In Re Armstead)

OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

A. INTRODUCTION

The instant proceeding brings to our court, as a debtor, the same mortgagor who was the plaintiff in a sharply-worded Opinion of the Third Circuit Court of Appeals, reversing a denial of her application for an assignment of her federally-insured mortgage to the United States Department of Housing and Urban Development (hereinafter referred to as “HUD”). Armstead v. U.S. Dep’t of HUD, 815 F.2d 278 (3d Cir.1987). In this sequel to the Court of Appeals’ decision, we conclude that HUD’s denial of the Debtor’s application was arbitrary and…