Sign in to follow this  
Followers 0
Stonesipher

Trump hires another fox to guard the hen house

Rate this topic

20 posts in this topic

Anyone here think this is good for everyday Americans?

Donald Trump’s Pick For Key Bank Regulator Is A Foreclosure Kingpin, Of Course

Joseph Otting signed legal papers admitting the bank he ran forged documents to push Americans out of their homes. He also bought a mansion.

By Paul Blumenthal

X

 

WASHINGTON ― President Donald Trump’s choice to lead a key bank regulation agency spent the first half of this decade running a bank that illegally foreclosed on hundreds of thousands of Americans, often using forged and fraudulent documents.

In 2013, halfway through Joseph Otting’s time running OneWest Bank, Otting purchased a Las Vegas “resort lifestyle home” with a “heated pool,” “double doors forged of wrought iron and glass,” “professional-grade theater,” and “far-reaching views of both the golf course and the mountains” for more than $2 million. Today, as he awaits confirmation to lead the Office of the Comptroller of the Currency, the house stands as a monument to the money he made from pushing people out of their homes.

During his tenure, Otting and OneWest Chairman Steve Mnuchin, who is now the Treasury secretary, signed a legal agreement in 2011 with a federal oversight body now under the control of the Office of the Comptroller of the Currency declaring that, under their leadership, OneWest used “robosigning” practices that led to inaccurate documents being used to push hundreds of thousands of American homeowners into foreclosure and out of their homes. As Otting and Mnuchin have both stated, they did not agree with or acknowledge the findings of that legal agreement when they signed it.

In March, a subsidiary of OneWest agreed to an $89 million settlement with the Department of Justice for defrauding the government out of insurance payments from the Federal Housing Administration. The bank, which is now owned by CIT Group, is also accused of racial discrimination in a complaint to the Department of Housing and Urban Development and remains under investigation by the attorney general of New York.

In the years after the 2009 financial crisis, nearly every major bank in the U.S. was found to have engaged in illegal practices as they foreclosed on millions of American families. But “OneWest stood out,” among all of the banks defrauding their customers, journalist David Dayen wrote in his 2016 book Chain of Title, which details the foreclosure fraud scandal.

OneWest itself was a product of the collapse: When the housing bubble burst in 2009, Mnuchin purchased the failed lender IndyMac, changed the name to OneWest and sought to turn a big profit. At the time, this was all but assured thanks to Federal Deposit Insurance Corp. guarantees on the failed bank’s home loan defaults. Homeowners with loans from OneWest were at the mercy of the bank, as it could decide to offer them loan modifications or foreclose on them.

OneWest routinely pushed homeowners into foreclosure instead of pursuing modifications. It did so sometimes with fraudulent documents and implemented robosigning practices whereby those charged with reviewing the foreclosures did not actually review them prior to approval. Activist groups supporting those kicked out of their homes by OneWest labeled the bank a “foreclosure machine.”

Otting defended himself during a July 27 confirmation hearing before the Senate banking committee by calling his bank’s history a “false narrative.” He defended the bank by stating that it followed all the necessary legal processes and that there were only “errors from time to time.”

A 2011 consent order Otting signed with the Office of Thrift Supervision, however, stated that OneWest approved foreclosure documents without reviewing them or without reviewing them properly. Otting claimed during the hearing, “We did not confirm or deny the accusations.” A former OneWest vice president additionally said in a 2009 sworn deposition that the arm of the bank reviewing documents approved 6,000 foreclosures per week without following the proper legal review process to guarantee the documents were accurate.

By claiming that OneWest followed all proper legal procedures in his testimony, Otting is lying under oath, Dayen argued in The Nation. “So Otting just out-and-out lied to Congress, as revealed by what a vice president of the bank he ran said eight years ago,” Dayen wrote.

As the head of the Office of the Comptroller of the Currency, Otting would be in charge of regulating the nation’s approximately 1,000 banks and bank subsidiaries. The office already has a history of lax enforcement standards and was chided for failing to step in during the foreclosure crisis to prevent the kinds of abuses engaged in by banks like OneWest.

“Under Mr. Otting’s management, OneWest robosigned thousands of documents while foreclosing on families in Ohio alone,” Sen. Sherrod Brown (D-Ohio), the ranking Democrat on the Senate banking committee, said in a statement. “Mr. Otting and his Wall Street allies in Washington support an agenda that weakens or eliminates important safeguards that protect families across the country. I am concerned that if he is confirmed as the Comptroller of the Currency protecting families won’t be his top priority.”

The Treasury Department did not immediately respond to a request for comment.

Otting, who would be the first former bank executive to lead the office in nearly a century, hinted in his confirmation hearing that he would lean toward more deregulation of banking and insurance if confirmed.

Share this post


Link to post
Share on other sites
2 minutes ago, Maine Guide said:

Do you think the Senate will confirm him?  If he's unqualified, he should not get confirmed by the esteemed Senators.

missing the point I think,

let's focus on why an unqualified person who the Senate should not confirm is being nominated by Trump?

 

Share this post


Link to post
Share on other sites

Who says he's unqualified?  You, SS, CNN?  The Senate is there for a reason.

Mnuchin was involved with a bank that foreclosed on the Octomom right?  

Hint - Don't take out a mortgage you can't afford, and you won't get foreclosed upon.  Or, make your payments, and you won't get foreclosed upon.  Personal responsibility.

Share this post


Link to post
Share on other sites

No surprise. Trump's nominated a number of people who've spent their careers working against the agencies they now work in. That's where the action  has been, since Trump has no legislative accomplishments.

Share this post


Link to post
Share on other sites
9 minutes ago, Maine Guide said:

 Personal responsibility.

that's for the little guy,

big corps and fat cats like Trump are deemed too big to fail, and get bailed out..... by the little guys.

Share this post


Link to post
Share on other sites

I think the alt-right's inability to blame Trump for a single thing is predicated upon a strange hero-worship. Trump grabs the poosy, launders the money, and avoids accountability in ways the average limp-appendaged Alt-righter wishes they could, so they live vicariously through the orange-tinged demagogue. Now, it is Congress' fault Trump continues to bilk the working classes for all he can squeeze them for, while enriching himself and his cronies. Trump wont drain the swamp, but he will drain the coffers. And some will worship him for it.

Share this post


Link to post
Share on other sites
13 minutes ago, Maine Guide said:

Who says he's unqualified?  You, SS, CNN?  The Senate is there for a reason.

Mnuchin was involved with a bank that foreclosed on the Octomom right?  

Hint - Don't take out a mortgage you can't afford, and you won't get foreclosed upon.  Or, make your payments, and you won't get foreclosed upon.  Personal responsibility.

Do you think he is a good pick given that his company and personal history helped to put home owners out of their homes without a fair investigation. Not to mention this....

A 2011 consent order Otting signed with the Office of Thrift Supervision, however, stated that OneWest approved foreclosure documents without reviewing them or without reviewing them properly. Otting claimed during the hearing, “We did not confirm or deny the accusations.” A former OneWest vice president additionally said in a 2009 sworn deposition that the arm of the bank reviewing documents approved 6,000 foreclosures per week without following the proper legal review process to guarantee the documents were accurate.

By claiming that OneWest followed all proper legal procedures in his testimony, Otting is lying under oath, Dayen argued in The Nation. “So Otting just out-and-out lied to Congress, as revealed by what a vice president of the bank he ran said eight years ago,” Dayen wrote.

The thing is what do you think of Rump nominating a guy like this, not what Congress does.

Share this post


Link to post
Share on other sites

I don't know about the man's qualifications.  That's for the Senate to decide whether he is qualified or not.  Not for some Librul "sky is falling" outlet.  No doubt Chief Elizabeth Warren will go "off the Reservation" on this pick for sure.

As for all these foreclosures - if you had a mortgage in those years you know they were sold over and over.  I have no doubt that not all of the original paperwork was available and there was "robo signing" going on.

But, if you are living in a house you cannot afford, and you haven't paid your mortgage for 10 months, you don't belong there.  Get out.  I don't care who has the original paperwork.

And, there is no example of a person being late a month or two and got evicted.  Don't even waste the readers' time with that crap.  I know people who were well over a year and the bank was still trying to work with them.  They just were buying time.

Share this post


Link to post
Share on other sites

I remember Candidate Trump claiming the system was rigged against the little guy,

and it was rigged for the rich and powerful, and he was gonna change that.

 

what happened to that promise?

all he has done is further enhanced the rigged system in favor of the rich and powerful.

Share this post


Link to post
Share on other sites
Just now, fish'nmagician said:

I remember Candidate Trump claiming the system was rigged against the little guy,

and it was rigged for the rich and powerful, and he was gonna change that.

 

what happened to that promise?

all he has done is further enhanced the rigged system in favor of the rich and powerful.

Pretty sad; it is a good message.

Share this post


Link to post
Share on other sites
2 minutes ago, rollincoal said:

Pretty sad; it is a good message.

it was,

just like standing up to China was a good message......

I remember candidate Trump claimed he knew a LOT of really rich guys who pay no federal income tax, and he was gonna fix it,

of course he was also gonna release his tax returns..... and now he's not.

I bet he's not interested in closing those loopholes anymore either.

Edited by fish'nmagician

Share this post


Link to post
Share on other sites

The only hope is that the American people hold our leaders accountable, it would be really helpful if their "supporters" led the way. I wouldn't be to pleased if I was made a fool of by buying into that, not really any different than "hope and change...

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to register here in order to participate.

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0

  • Recently Browsing   0 members

    No registered users viewing this page.