Mnuchin's OneWest subsidiary agrees to $89M settlement for reverse mortgage violations

Date Published: 
May 17, 2017
News Type: 
News
Program Area(s): 
Federal Housing Administration (FHA), Single Family Loan Programs

Source: www.housingwire.com)  During the confirmation process for Department of the Treasury Secretary Steven Mnuchin, Congressional Democrats attempted to use the mortgage practices that took place at OneWest Bank during Mnuchin’s time as chairman against him, claiming that Mnuchin oversaw a “foreclosure machine” during his time at OneWest.

One of the Democrats’ weapons of choice was the alleged practices of Financial Freedom, a reverse mortgage servicer owned by OneWest, which Mnuchin sold in 2015.

The Democrats claimed that Financial Freedom was responsible for a “disproportionately high” foreclosure rate on reverse mortgages from April 2009 through April 2016 and nicknamed Mnuchin the “foreclosure king.”

Now, Mnuchin has left OneWest and Financial Freedom behind and is leading the Treasury, but it appears that another section of the government is not done with Financial Freedom quite yet – the Department of Justice.

The Department of Justice announced Tuesday that Financial Freedom agreed to an $89 million settlement over reverse mortgage allegations, some of which allegedly took place while Mnuchin was chairman at OneWest...