Computation of Claim of Government-Insured Lender When Value of Collateral Cannot Be Determined as Required by Regulation

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Highlights

A savings and loan association's claim on a defaulted Government-insured mobile home loan was questioned. Since the lender complied with regulations and consistently acted to protect the Government's interest, it may be paid based on the sale price of the mobile home because, through no fault of the lender, the appraised value cannot be ascertained.