130 Banking L.J. 316 (2013)
Restitution for Federal Crimes: Will Mortgage Criminals Pay for the Real Estate Bubble

handle is hein.journals/blj130 and id is 326 raw text is: RESTITUTION FOR FEDERAL CRIMES:
WILL MORTGAGE CRIMINALS PAY FOR THE
REAL ESTATE BUBBLE?
MORGAN CLEMONS
The author explores a circuit split with respect to the amount payable under the
Mandatory Victims Restitution Act to victims of mortgage fraud.
hould lenders bear the risk of the mortgage crisis? Should lenders bear
the risk of mortgage fraud? According to the Seventh Circuit, the ques-
tion is one in the same as the mortgage crisis was caused by mortgage
fraud.' As a result, criminals and mortgage fraud perpetrators must bear the
risk by paying the resulting losses.2 On September 14, 2012, the Seventh
Circuit issued its opinion in United States v. Robers, which dealt with the
Mandatory Victims Restitution Act.3 Robers was a straw buyer in real estate
transactions in which he misrepresented his income as well as his intention to
occupy (more than one) property as a primary residence.4 The two property
loans extended to Robers went into default and caused losses to both lenders
and mortgage insurers.5
The Mandatory Victims Restitution Act (MVRA) calls for mandatory
restitution to victims of crimes against property.6 The MVRA requires a res-
titution amount equal to the value of the property on the date of the loss less
the value (as of the date the property is returned) of any part of the property
Morgan Clemons is the non-depository financial institutions attorney at the
Georgia Department of Banking and Finance. Her work focuses on regulating
large lenders, brokers, and money service businesses. She previously worked
as a staff attorney for the 11 th Circuit Court of Appeals. Ms. Clemons may be
reached at mclemons@dbf.state.ga.us.

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