Inside Trump Treasury nominee’s past life as ‘foreclosure king’ of California
Inside Trump Treasury nominee’s past life as ‘foreclosure king’ of California
Posted by John P. Bradford // December 3, 2016
Steve Mnuchin was once CEO of OneWest bank, which has been accused of lending dubious mortgages to the elderly and evicting thousands in the state
Lights flashing, three police cars showed up to Bill Montes-Packs quiet suburban street on the morning of 15 December 2015. The Benicia, California, man had stayed up all night waiting for the sheriffs office to evict him from the house his grandparents had owned since 1971.
It was really, really traumatic, Montes-Pack recalled one year later. Standing outside the locked front door, the 49-year-old peered into the empty living room that holds his earliest Christmas memories and surveyed the overgrown ivy damaging the houses facade.
The foreclosure which he said was based on a predatory loan and improper paperwork originated with lender OneWest Bank, at the time run by chairman and CEO Steven Mnuchin. The veteran Wall Street financiers foreclosure practices are receiving fresh scrutiny this week after president-elect Donald Trump announced him as the nominee for US Treasury secretary.
Rather than shaking up Wall Street, he installs the very person that was part of the financial mess, said Montes-Pack, who has effectively been homeless since the foreclosure. Im just thoroughly disgusted.
Its elder financial abuse
Mnuchin, who is also a Hollywood movie producer, earned the nickname foreclosure king after he purchased distressed mortgages during the financial crisis and evicted thousands of homeowners.
The former Goldman Sachs banker, worth an estimated $40m, has no government experience, and critics worry that, as Treasury secretary, his policies could benefit the wealthiest people and roll back critical bank regulations.