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Trump's Treasury Pick Has a $230 Million Blemish on His Record

  • OneWest unit being probed by HUD for foreclosure practices
  • CIT discovered $230 million shortfall after buying bank
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Treasury Pick Steven Mnuchin’s Reverse-Mortgage Woes

When Donald Trump announced his choice for Treasury secretary last month, he called Steven Mnuchin a “world-class financier,” citing business successes like his profitable turnaround of a California bank.

But soon after Mnuchin sold OneWest Bank last year, problems emerged that may tarnish his record there. The U.S. Department of Housing and Urban Development opened an investigation into foreclosure practices in a division that handles loans to senior citizens. Accountants determined the unit’s books were a mess. Eventually, the bank’s new owner, CIT Group Inc., discovered a shortfall of more than $230 million.