Clark Investment Company v. United States

The National Housing Act, 12 U.S.C. § 1701 et seq., subch. VI, 12 U.S.C. §§ 1736 -1746a has, as one of its purposes, “to assist in relieving the acute shortage of housing * * * accommodations available to veterans of World War II at prices within their reasonable ability to pay * * 12 U.S.C. § 1738 (a). It authorizes the Federal Housing Administration to insure mortgages given as security for loans made to persons who propose to create such housing. This case involves a loan so secured and insured under 12 U.S.C. § 1743 .

Pocatello Heights Corporation is the mortgagor; First Security Bank of Idaho is the insured mortgagee; the property is located in Idaho. The mortgage insurance was obtained pursuant to detailed regulations promulgated under the authority of the Act, 12 U.S.C. § 1742 . See 24 C.F.R. (1947 Supp.) §§ 580.1-580.37. They were followed here, and the printed forms prescribed by F.H. A. and the regulations were used. The Act gives the mortgagee, if there is a default, the option to assign the mortgage to F.H.A. or to obtain title to the mortgaged property and convey it to F.H.A. 12 U.S.C. § 1743 (c). There was a default here, and the mortgagee bank chose the first…