Skip to main content
Advertising

Originally published May 5, 2014 at 10:32 AM | Page modified May 5, 2014 at 10:58 AM

  • Share:
           
  • Comments (0)
  • Print

Court rules for gov't in mortgage fraud case

The Supreme Court has clarified how restitution must be computed in mortgage fraud cases.


advertising

WASHINGTON —

The Supreme Court has clarified how restitution must be computed in mortgage fraud cases.

The justices in a unanimous decision Monday said that restitution to a bank that has been defrauded must be calculated based on the value of property when it is actually sold, and not the earlier date on which the bank forecloses on the property.

The case involved a fraudulent loan application for the purchase of two houses in Wisconsin for $470,000. The two banks foreclosed on the mortgages in 2006, but only sold the homes later for $280,000 after the real estate market collapsed.

The high court ruled that the amount of restitution is offset by the sale price the banks received, and not the higher price they were worth when the banks foreclosed.



Want unlimited access to seattletimes.com? Subscribe now!

News where, when and how you want it

Email Icon

Get ready for 2015

Get ready for 2015

The Seattle Times 12-month wall calendar features hand-picked photos of life in the Pacific Northwest. Order while supplies last!

Advertising

Advertising

The Seattle Times photographs

Seattle space needle and mountains

Purchase The Seattle Times images


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►