Pankow Construction Co. v. Advance Mortgage Corp‪.‬

This is an action against a mortgage lender (Advance), brought by a general contractor (Pankow) to recover the balance allegedly due under a contract between Pankow and a construction project developer (Pacheco). The district court denied recovery. We affirm. In the spring of 1972, Pacheco embarked upon a plan to build a residential apartment complex in Novato, California. After obtaining a commitment from HUD to insure the mortgage loan under section 221(d)(4) of the National Housing Act, 12 U.S.C. § 1715l (d)(4), Pacheco entered into a Building Loan Agreement with Advance and a Construction Contract with Pankow.