ONTD Political

Trump voter lost her home to new Treasury secretary

10:44 pm - 12/02/2016
When U.S. president-elect Donald Trump named his Treasury secretary, Teena Colebrook felt her heart sink.

She had voted for the Republican on the belief that he would knock the moneyed elites from their perch in Washington, D.C. And she knew Trump's pick for Treasury — Steven Mnuchin — all too well.

OneWest, a bank formerly owned by a group of investors headed by Mnuchin, had foreclosed on her Los Angeles-area home in the aftermath of the 2008-2009 financial collapse, stripping her of the two units she rented as a primary source of income.

"I just wish that I had not voted," said Colebrook, 59. "I have no faith in our government anymore at all. They all promise you the world at the end of a stick and take it away once they get in."

Less than a month after his presidential win, Trump's populist appeal has started to clash with a cabinet of billionaires and millionaires that he believes can energize economic growth.

The prospect of Mnuchin leading the Treasury Department drew plaudits from many in the financial sector. A former Goldman Sachs executive who pivoted in the early 2000s to hedge fund management and movie production, he seemed an ideal emissary to Wall Street.

When asked on Wednesday about his credentials to be Treasury secretary, Mnuchin emphasized his time running OneWest — which not only foreclosed on Colebrook but also thousands of others in the aftermath of the housing crisis caused by sub-prime mortgages.

"What I've really been focused on is being a regional banker for the last eight years," Mnuchin said. "I know what it takes to make sure that we can make loans to small and mid-market companies, and that's going to be our big focus, making sure we scale back regulation so that we make sure the banks are lending."

But the prospect of Mnuchin leading the Treasury Department prompted Colebrook and other OneWest borrowers who say they unfairly faced foreclosure to contact The Associated Press. Colebrook wishes she could meet with Trump to explain why she feels betrayed by his cabinet selection after believing that his presidency could restore the balance of power to everyday people.

"He doesn't want the truth," she said. "He's now backing his buddies."

The Trump transition team has been sensitive to preserving trust with its voters. Senior adviser Kellyanne Conway publicly warned that supporters would feel "betrayed" if former critic Mitt Romney became the choice for secretary of state, for instance.

For Mnuchin, the fundamental problem stems from the recession. His investor group was the sole bidder to take control
of the troubled bank IndyMac in 2009. The group struck a deal that left the Federal Deposit Insurance Commission responsible for taking as much as 80 per cent of the losses on former IndyMac assets and rebranded the troubled bank as OneWest.

The combination of OneWest's profitability, government guarantees and foreclosure activities drew the ire of activist groups like the California Reinvestment Coalition. It found the bank to be consistently one of the most difficult to work out loan modifications with even though OneWest never drew a major response from government regulators.

By June of 2014, five years after taking over OneWest, Mnuchin sold the bank for $3.4 billion US at a tremendous profit.

Colebrook said she learned the hard way about OneWest's tactics, after the regional bank acquired her home lender, First Federal Bank of California, in late 2009.

In 1998, she bought a triplex for $248,000 in Hawthorne, not far from Los Angeles International Airport.

She rented out two of the units and lived in the third. Colebrook refinanced her mortgage in order to renovate the property and help buy additional homes to generate rental income.

By the time the financial crisis struck in 2008, she had an interest-only mortgage on the triplex known as a "pick-a-payment" loan. Her monthly payments ran as high as $2,000 and only covered the interest on the debt. Then she got ensnared in the economic downturn.

"All my tenants lost their jobs in the crash," Colebrook said. "They couldn't pay. It was a knock-on effect."

Over five years, she tried unsuccessfully to adjust her loan with OneWest through the Treasury Department's Home Affordable Modification Program. But she said that OneWest Bank lost paperwork, provided conflicting statements about ownership of the loan and fees and submitted charges that were unverified and caused her loan balance to balloon.

By the time she lost her home in foreclosure in April 2015, the payoff balance totalled $517,662.

Colebrook said she is still challenging the foreclosure in court.

She now lives with her boyfriend in the small California city of San Luis Obispo. She volunteers at a homeless shelter, knowing that she could just as easily have ended up there.

"I cook at the homeless shelter because there but the grace of God go I."

Source
flyingpigs_live 3rd-Dec-2016 03:53 am (UTC)
idc how horrible this makes me, but i don't feel bad for her at all.
moonshaz 3rd-Dec-2016 06:38 am (UTC)

I'm glad I'm not the only one!

evildevil trumpgrets3rd-Dec-2016 03:59 am (UTC)
https://trumpgrets.tumblr.com/

just wait after a year passes
honorh Re: trumpgrets3rd-Dec-2016 04:44 am (UTC)
For your daily schadenfreude fix!
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lovedforaday 3rd-Dec-2016 04:26 am (UTC)
She had voted for the Republican on the belief that he would knock the moneyed elites from their perch in Washington, D.C.

huh, what? trump is a moneyed elite. just because he is "plain-spoken" and said shit to get his audience to cheer for him doesn't make him less elite.

She now lives with her boyfriend in the small California city of San Luis Obispo.

at least she lives in a state that might provide a little cushion to the damage trump will unleash. just think how much more disenchanted and bitter she would be if she lived in a state controlled by tea partiers.
wuvvumsoc 3rd-Dec-2016 01:49 pm (UTC)
My uncle said that working class people could actually make a difference in politics for once because they elected Trump. I tried to point out that Trump was never working class, he had a leg up in life, how is he even a working class hero when he's always been big money? I just don't get why people act like he's ever been for the working class.
backincharge 3rd-Dec-2016 04:34 am (UTC)
Aww, shouldn't have voted for him. Everyone was warned.
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homicidalslayer 3rd-Dec-2016 05:09 am (UTC)
While I understand the poetic justice arguments, I really can't bring myself to find this funny. My family had to fight off foreclosure for years, it's seriously horrifying.
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invisiblegirlx 3rd-Dec-2016 05:12 am (UTC)
oop.
apinkpanthress 3rd-Dec-2016 09:37 am (UTC)
Ahahah... I know I should not laugh at her misery, but this is too golden!!!

Come on Girl, the Tangerine Man handed you lemons... do something with them...
oudeteron 4th-Dec-2016 01:05 pm (UTC)
I'm sorry, you said lemons and all I could think of was this:

oudeteron 3rd-Dec-2016 04:29 pm (UTC)
The only thing that's sad about this is that this woman genuinely believed Trump would give a shit about her apparent plight, to the point that she like millions of others helped vote in a self-congratulatory abuser. They will all be scammed in the end because Trump is at best a conman.

"They all promise you the world at the end of a stick and take it away once they get in."

Lady, you were warned about exactly this. It's just like the brexit voters: blinded by bigotry and populism, cutting off your nose to spite your face.

Edited at 2016-12-03 04:30 pm (UTC)
moonshaz 4th-Dec-2016 02:11 am (UTC)
The only thing that's sad about this is that this woman genuinely believed Trump would give a shit about her apparent plight, to the point that she like millions of others helped vote in a self-congratulatory abuser. They will all be scammed in the end because Trump is at best a conman.

THIS. Granted, it's not nice to laugh at the misfortunes of others, but I think this deserves at least a good solid eye roll.

My sister, another Trump voter, is up in arms about Sessions and his anti-pot stance. Too damned bad for her.
(no subject) - Anonymous
mimblexwimble 4th-Dec-2016 12:21 am (UTC)
hahaha
betray802 4th-Dec-2016 01:02 pm (UTC)
I bet you anything that before the election, she was sneering at the people in the homeless shelter.
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