Trump Treasury pick gets support from ex-mortgage assistance leader

President-elect Donald Trump’s transition team announced Tuesday that Treasury Secretary designate Steven Mnuchin has the support of a former leader of Hope Now, an alliance of mortgage companies, nonprofit counseling agencies and trade associations that work to help at-risk homeowners avoid foreclosure. 

“To me, OneWest’s consistent adoption of new home retention innovations spoke volumes about the company’s commitment in this important area,” former Hope Now Executive Director Faith Schawrtz wrote in a letter to Senate Finance Committee Chairman Orrin Hatch (R-Utah) and ranking member Ron Wyden (D-Ore.). 

She praised the bank that Mnuchin led, OneWest Bank, for being committed to avoiding foreclosures.

Schwartz’s support for Mnuchin comes ahead of the nominee’s hearing before the Finance Committee on Thursday.

Democrats have been attacking Mnuchin over his tenure leading OneWest Bank, which foreclosed on thousands of homeowners in the wake of the financial crisis. Sen. Elizabeth Warren (D-Mass.) on Wednesday is hosting a forum where people whose homes were foreclosed on by OneWest will speak.

Schwartz said that OneWest joined Hope Now early and “took an active and leading role in rolling out homeowner assistance programs to its borrowers.”

“In fact, OneWest was an early adopter of numerous voluntary loan modification programs, reflecting both the company’s cultural commitment to home retention and Mr. Mnuchin’s personal commitment to the [Federal Deposit Insurance Corporation] to vigorously pursue foreclosure avoidance options wherever possible,” she said.

Schwartz acknowledged that OneWest foreclosed on some homes but said that the bank “had far fewer foreclosures than solutions it offered to homeowners.” She pointed to a government report that found that OneWest very rarely made mistakes in the loan-modification process.

Mnuchin said he was pleased to have Schwartz’s support.

“I am immensely grateful for the support of Faith Schwartz, a leading voice for homeowners during the housing crisis,” he said in a news release. “If confirmed, I look forward to listening to the concerns of the American people and working to make sure families never face another crisis like they did in 2008.”