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Sunday, May 21st, 2017

Bank previously run by Trump’s treasury secretary pays big fine for defrauding the government

Author:     Bryce Covert
Source:     Think Progress
Publication Date:     May 17 2017
 Link: Bank previously run by Trump’s treasury secretary pays big fine for defrauding the government
Stephan:   I don't know whether you have noticed it, but one of the outstanding hallmarks of the Trump administration, with a few exceptions like General Mattis, is how compromised their resumes all are. Sessions, an identified racist who failed Congressional approval as a judge on that point, and who had a dreadful senatorial record, if wellbeing is your criterion.  Tillerson, head of a carbon corporation that has done unspeakable damage to the biosphere. Scott Pruitt, paid climate change  denialist, Betsy DeVos, and on and on. Never in my memory has such an assemblage come into power, and my calibration is Nixon.  I was in government, knew most of the players, so saw it from the inside. Trump is much much worse, and I cannot imagine what it must be like to work in the White House now.

Treasury Secretary Steve Mnuchin shaking hands with President Donald Trump.
Credit: AP Photo/Alex Brandon

The reverse mortgage subsidiary of OneWest, the bank founded and formerly run by Treasury Secretary Steve Mnuchin that was later bought by CIT Group, agreed to an $89 million settlement with the United States on Tuesday over claims that it defrauded a government program out of money it didn’t qualify for. (emphasis added)

Financial Freedom, the reverse mortgage unit, allegedly got mortgage insurance payments from the Federal Housing Administration between March 2011 and August 2016 despite failing to meet deadlines and other requirements.

Although the settlement doesn’t amount to the unit admitting to wrongdoing, government officials noted that it took financial responsibility. “Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” Department of Housing and Urban Development (HUD) Inspector General David A. […]

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