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Trump Picks Banker Who Made Millions Off Foreclosed Homeowners For Treasury

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Trump Picks Banker Who Made Millions Off Foreclosed Homeowners For Treasury

President-elect Donald Trump wasn’t the only person to profit from the 2008 housing collapse. As the economy recovered from the rubble of failed banks, foreclosed homes and government bailouts, fund manager Steven Mnuchin, whose company foreclosed on a 90-year-old woman after a 27-cent payment error, emerged a winner.

However, that success is coming back to haunt Mnuchin who is Trump’s choice for Treasury secretary.

OneWest, a bank Mnuchin and his partners established during the collapse, has taken steady fire from regulators and consumer advocates over hundreds of questionable dealings ever since.

New York Gov. Andrew Cuomo called out the lender for squeezing superstorm Sandy victims. And just this month, the bank was accused of discriminating against minority borrowers.

According to Politico, Mnuchin became a target of consumer activists in 2009, after he and his partners bought the remains of failed mortgage lender IndyMac. The company had specialized in high-risk loans, including so-called liar loans to borrowers with no money or income, and had become a symbol of the Wall Street recklessness that had sent the country into recession and millions of homeowners into default

And the foreclosures came, 36,000 of them by one estimate. So far, losses under the deal have mounted to $4.6 billion. The FDIC has paid the bank $1.2 billion, according to agency data obtained by Politico.

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