Tag Archives: IndyMac

Mnuchin Again Denies Robo-Signing, Despite Yet More Evidence He Is Lying

The Intercept:

This is the very definition of robo-signing. OneWest signed and agreed to the consent order, though it never admitted or denied the activity

However, in a Florida foreclosure case, a OneWest employee plainly admitted to robo-signing. On July 9, 2009 – four months after OneWest took over operations from IndyMac, with Mnuchin as CEO – Erica Johnson-Seck, a vice president with OneWest, gave a deposition in which she admitted to being one of eight employees who signed approximately 750 foreclosure-related documents per week.

“How long do you spend executing each document?” Johnson-Seck was asked. “I have changed my signature considerably,” Johnson-Seck replied. “It’s just an E now. So not more than 30 seconds.”

Johnson-Seck also admitted to not reading the affidavits before signing them, not knowing who inputted the information on the documents, and not being aware of how the records were generated. And she acknowledged not signing in the presence of a notary. This resulted in false affidavits being submitted in court cases that attempted to take borrowers’ homes away.

Treasury Pick Steve Mnuchin Denies It, But Victims Describe His Bank as a Foreclosure Machine

TREASURY SECRETARY NOMINEE Steve Mnuchin kicked off his confirmation hearing Thursday with a defiant opening statement, mostly defending his record as CEO of OneWest Bank. He cast himself as a tireless savior for homeowners after scooping up failed lender IndyMac. “It has been said that I ran a ‘foreclosure machine,’” he said. “I ran a loan modification machine.”

But in stark contrast to his fuzzy statistics about attempted loan modifications, the victims of OneWest’s foreclosure practices have been real and ubiquitous.

A TV advertising campaign that’s been running in Nevada, Arizona, and Iowafeatures Lisa Fraser, a widow who says OneWest “lied to us and took our home” of 25 years, right after her husband’s funeral.

Read on.

Steven Mnuchin, Treasury Nominee, Failed to Disclose $100 Million in Assets

WASHINGTON — Steven T. Mnuchin, President-elect Donald J. Trump’spick to be Treasury secretary, failed to disclose nearly $100 million of his assets on Senate Finance Committee disclosure documents and forgot to mention his role as a director of an investment fund located in a tax haven, an omission that Democrats said made him unfit to serve in one of the government’s most important positions.

The revelation came hours before Mr. Mnuchin, a former Goldman Sachs banker, began testifying on Thursday before the Senate Finance Committee, which has historically been bipartisan in its demands for transparency from nominees. Mr. Mnuchin was ready to outline his vision for the economy and defend himself against claims that he headed a bank that ran a “foreclosure machine” during the financial crisis.

Read on.

Trump’s finance chair specialized in fraudulent foreclosures during the heart of the 2008 US economic collapse


And now, the New Republicreports, he’s named a national finance chairman who made a ton of money running a bank that, per TNR, repeatedly committed fraud in the course offoreclosing on struggling homeowners during the housing crisis. That individual is Steve Mnuchin, former chairman and primary owner of OneWest Bank. Here’s a fact about that institution’s business practices:

Erica Johnson-Seck, a vice president of foreclosure and bankruptcy for OneWest, explained in a July 2009 deposition that she “robo-signed” 6,000 foreclosure-related documents per week, spending just 30 seconds on each sworn affidavit that attested to the veracity of all relevant information in the case. Johnson-Seck admitted to not reading the documents before signing them, to not knowing how the records were generated, and to not signing in the presence of a notary, all of which made the affidavits she signed false evidence in court.

On a side note: OneWest Bank was acquired by CIT Group in 2014. Steve Mnuchin, now Trump’s finance chair, stepped down from those duties March 31, though he remains on the board of directors. Mnuchin received a $10.9 million severance package from CIT for less than one year’s work as vice chair.


Trump’s Finance Chair Made Billions Off The 2008 Financial Crash

International Business Times:

Days after Trump’s decisive primary win in Indiana, his campaign indicated that it was growing. Team Trump has added a finance chair: Steven Mnuchin, the founder of a private equity firm that received a government-funded jackpot after the 2008 housing collapse.

Mnuchin, a former partner at Goldman Sachs, heads up Dune Capital. The investment firm put together a holding company in 2008  — attracting investors like J.C. Flowers, a George Soros investment fund and Paulson & Co. — that then bought up $32 billion worth of IndyMac bank assets for the cut-rate price of $13.9 billion. Renaming the bank OneWest, Mnuchin’s consortium invested $1.3 billion and got the Federal Deposit Insurance Corporation to assume responsibility for the majority of future losses. The FDIC lost an estimated $8.5 billion to $9.4 billion in the deal — while the holding company made money with the taxpayer-subsidized set-up.

“Steven is a professional at the highest level with an extensive and very successful financial background,” Trump said in a statement accompanying the announcement. “He brings unprecedented experience and expertise to a fundraising operation that will benefit the Republican Party and ultimately defeat Hillary Clinton.”

Aside from OneWest — which last year made $3.4 billion and has issued $2 billion in dividends to shareholders, according to Mother Jones — Dune is known for its holdings of public pension fund money. Private equity firms have been paid billions in fees from state pensions, and the financial institutions now receive roughly one-third to one-half of their new capital each year from the nation’s public pension system.

And we know back then how much OneWest was a living hell for homeowners after 2008 financial crisis trying to save their homes. From Wikipedia:

In enforcing its rights under the loans purchased from IndyMac, OneWest Bank has taken a much more aggressive approach to foreclosing on properties.

On November 25, 2009, Judge Spinner in Long Island, New York penalized OneWest for their “harsh, repugnant, shocking and repulsive” actions in trying to work out a distressed mortgage, by canceling the debt in favor of the borrower.[5] A year after the New York Judge Spinner wiped away the debt, an appellate panel ruled that the judge had no right to do it. While Judge Spinner ruled that the bank’s practices warranted him erasing the homeowners’ debt, the appellate judges found that he had no authority to render such a judgment—and did not give the bank fair notice that such consequences were even on the table.[6]

On December 8, 2009 OneWest worked with the Hennepin County, Minnesota Sheriff’s department to change the locks on a distressed home despite stating in a Nov. 25 e-mail that they were rescinding both the foreclosure and the sheriffs sale. OneWest Bank said, “You expressed concern that … you and your mother will be evicted from the property. Rest assured, that will not take place …”.[7] Changing the locks was done without any court action which bypasses acknowledged and mandated Due Process on home foreclosures in Minnesota.[7]

Additionally several judges have issued Temporary Restraining Orders and Preliminary Injunctions against OneWest preventing OneWest from foreclosing on properties where the borrower claims OneWest failed to follow proper procedure in foreclosing on the property or otherwise violated the borrower’s rights.[8]

Yeah, trying to throw an 89 year-old widow out on the street, changing the locks on a women trapped in the snow, and engaging in “harsh, repugnant and repulsive” acts, etc., this is the presumptive GOP Presidential nominee’s finance chair man.

High Court Reverses Decision To Hear IndyMac Appeal

Law360, New York (September 29, 2014, 3:38 PM ET) — The Supreme Court on Monday revoked its granting of cert in a dispute over whether a tolling provision should apply to certain securities suits, just days after the litigants said a settlement in the underlying class action wouldn’t impact the appeal.

In a very short order, the high court summarily dismissed its writ of certiorari to the Public Employees’ Retirement System of Mississippi, which was looking to overturn a Second Circuit decision that blocked it and other plaintiffs from intervening in a putative class action accusing…

Source: Law360

Justices Request Settlement Details In IndyMac Appeal

Law360, New York (September 24, 2014, 1:09 PM ET) — The U.S. Supreme Court on Tuesday ordered the parties Public Employees’ Retirement System of Mississippi v. IndyMac MBS Inc. to file additional 10-page briefs by Thursday explaining how the appeal might be impacted by a proposed settlement in the underlying class action.

The high court in March agreed to reconsider a Second Circuit decision that blocked the retirement system and other plaintiffs from intervening in a putative class action accusing several major banks, including IndyMac Bancorp Inc., Morgan Stanley & Co. and Goldman Sachs & Co.,..

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Indy Mac accuse of applying payoff to wrong house and refuse to correct error, couple claims

Indy Mac accuse of applying payoff to wrong house and refuse to correct error, couple claims

 SANTA CRUZ, Calif. – Indymac Mortgage Services applied a loan payoff to the wrong house – to one that was financially under water – and refuses to correct the mistake, a couple claims in Santa Cruz County Court.  


New York Community Bancorp eyes former IndyMac -sources

New York Community Bancorp eyes former IndyMac -sources

NEW YORK, March 7 (Reuters) – OneWest Bank, which emerged from the wreckage of failed lender IndyMac, has held informal discussions with New York Community Bancorp about a possible sale, three sources told Reuters this week.

OneWest’s owners, which include funds managed by billionaire investors John Paulson and George Soros, have been exploring an initial public offering, but could opt to sell if they felt they could get a good price, according to the sources, who declined to be named because they are not allowed to speak to the media.

Pasadena, California-based OneWest has held talks with a handful of banks to gauge buyout interest, the sources said, but New York Community Bancorp was the only ongoing suitor they identified.

FDIC Prevails in Suit Blaming IndyMac Execs for Construction Losses

In the first of the FDIC’s 39 suits against bank executives, it has won a jury verdict declaring two former IndyMac executives breached their fiduciary duties by lending recklessly to home builders during the housing boom.

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