Wednesday, January 04, 2017

Trump's Treasury Pick: A Chief Bankster For Outfit That Used 'Scorched Earth' Approach In Targeting Elderly Homeowners w/ Reverse Mortgages For Foreclosure

Investigative reporters Paul Kiel and Jesse Eisinger write in ProPublica:
  • In 2015, OneWest Bank moved to foreclose on John Yang, an 80-year-old Korean immigrant living in Orange Park, Florida, a small suburb of Jacksonville. The bank believed he wasn’t living in his home, violating the terms of its loan. It dispatched an agent to give him legal notification of the foreclosure.

    Where did the bank find him? At the same single-story home the bank had said in court papers he did not occupy.

    Still OneWest pressed on, forcing Yang, a former Christian missionary, to seek help from legal aid attorneys. This year, during a deposition, an employee of OneWest’s servicing division was asked the obvious question: Why would the bank pursue a foreclosure that seemed so clearly unjustified by the facts?

    The employee’s response was blunt: “You’re trying to make logic out of an illogical situation.”

    Yang was lucky. The bank eventually dropped its efforts against him. But others were not so fortunate. In recent years, OneWest has foreclosed on at least 50,000 people, often in circumstances that consumer advocates say run counter to federal rules and, as in Yang’s case, common sense.

    President-elect Donald Trump’s nomination of Steven Mnuchin as Treasury Secretary has prompted new scrutiny of OneWest’s foreclosure practices. Mnuchin was the lead investor and chairman of the company during the years it ramped up its foreclosure efforts. Representatives from the company and the Trump transition team did not respond to requests for comment.

    Records show the attempt to push Mr. Yang out of his home was not an unusual one for OneWest’s Financial Freedom unit, which focused on controversial home loans known as reverse mortgages. Regulators and consumer advocates have long worried that these loans, popular during the height of the housing bubble, exploit elderly homeowners.
    ***
    ProPublica found numerous examples where Financial Freedom had foreclosed for legally questionable reasons. The company served several other homeowners at their homes to let them know they were being sued for not occupying their homes. In Florida, a shortfall of only $0.27 led to a foreclosure attempt. In Atlanta, the company sought to foreclose on a widow after her husband’s death, but backed down when a legal aid attorney sued, citing federal law that allowed the surviving spouse to remain in the home.

    It appears their business approach is scorched earth, in a way that doesn’t serve communities, homeowners or the taxpayer,” said Alys Cohen, a staff attorney for the National Consumer Law Center in Washington D.C.
For more, see Trump’s Treasury Pick Excelled at Kicking Elderly People Out of Their Homes (When Steven Mnuchin ran OneWest, the bank aggressively and in some cases, wrongly, foreclosed on elderly homeowners with reverse mortgages. The bank had a disproportionate share of such foreclosures).

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