SPECIAL REPORT: New Evidence Mnuchin Misled Senate About His Bank’s Use of “Robo-Signing” to Expedite Foreclosures

“This report adds to the growing body of evidence that Steven Mnuchin hasn’t been honest with senators about the robo-signing practices his bank used to expedite foreclosures and push hardworking American families out of their homes.” – Karl Frisch, Allied Progress


WASHINGTON, D.C. – Today, Allied Progress released a damning report that details new evidence revealing Trump Treasury nominee Steven Mnuchin has not been honest with senators about his bank’s use of “robo-signing” to expedite foreclosures on the family homes of thousands of hard-working Americans. In issuing the report, Allied Progress released the following statement:

This report adds to the growing body of evidence that Steven Mnuchin hasn’t been honest with senators about the robo-signing practices his bank used to expedite foreclosures and push hard-working American families out of their homes. Contrary to his repeated denials, it is clear this underhanded tactic was used on Mnuchin’s watch in several states by his foreclosure machine of a bank,” said Karl Frisch, executive director of Allied Progress.

He continued, “Steven Mnuchin has been dishonest with the Senate from the outset of this confirmation process. He started off failing to disclose nearly $100 million in assets and his interest in a corporation conveniently parked overseas in a tax shelter. Mnuchin’s dishonesty should not be rewarded with confirmation. The American people deserve a Treasury Secretary who shoots straight and has their best interests at heart.”

Senate Finance Committee Democrats boycotted Mnuchin’s confirmation markup last week because of his lack of honesty with the committee following reports from both The Columbus Dispatch and The Intercept that revealed Mnuchin willfully misled senators about the foreclosure practices of his former bank: contrary to his repeated denials, OneWest did, in fact, “robo-sign” foreclosure documents.

Since then, Allied Progress has unearthed several additional examples indicating Mnuchin was not honest with senators about OneWest’s history of robo-signing foreclosure documents. The report released today details those findings, including:

  • In addition to Ohio and Texas cases reported by The Columbus Dispatch and The Intercept, OneWest also has been accused of “robo-signing” documents in numerous court cases, including cases in California, Massachusetts, and Rhode Island.
  • OneWest was temporarily barred from foreclosing in New Jersey after its involvement in a “robo-signing scandal.”
  • OneWest’s “‘outsourcing vendor,’” Lender Processing Services (LPS), was entangled in a “‘massive’ robo-signing scheme” in Nevada. OneWest was named in a class action lawsuit in which LPS was accused of robo-signing foreclosure documents.
  • Despite claiming his bank never “robo-signed” mortgages, Mnuchin signed a document in 2011 in which the United States Office of Thrift Supervision found that OneWest had “filed or caused to be filed” potentially false affidavits “not based . . . on personal knowledge or review of relevant books and records.” Mnuchin hired an “independent” consulting firm that wrote a report to support his claim that OneWest had never robo-signed documents, but just 2 percent of OneWest’s relevant mortgages were reviewed for that portion of the report. Furthermore, one of the co-owners of OneWest had a financial stake in the company that did the “independent” analysis.

Karl Frisch is available to speak to members of the media regarding Mnuchin’s confirmation. Contact Mike Czin at 202-286-7654 or mczin@skdknick.com.

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Allied Progress is a nationwide, progressive advocacy organization that uses hard-hitting research and creative campaigns to hold Wall Street and powerful special interests accountable. Since launching in 2015, the organization has led high-profile campaigns on several issues including reforming the payday lending industry and exposing the those working to cripple the Consumer Financial Protection Bureau (CFPB).

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