Updated: Friday, December 02, 2016 @ 1:51 PM
Published: Friday, December 02, 2016 @ 6:28 AM
By: JOSH BOAK, JEFF HORWTIZ - Associated Press
When Donald Trump named his Treasury secretary, Teena Colebrook felt her heart sink.
She had voted for the president-elect 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 Great Recession, 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 on thousands of others in the aftermath of the housing crisis caused by subprime mortgages.
For Mnuchin, the fundamental problem stems from the Great 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 percent 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 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.
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 One West 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 totaled $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."