Senate Democrats requested Friday that homeowners foreclosed on by President-elect Trump’s treasury nominee testify at his confirmation hearing, sharpening their top line of attack against the former banker.
In a letter sent Friday to Sen. Orrin Hatch, the Republican chairman of the Senate Finance Committee, 25 Senate Democrats noted that the bank owned by Steven Mnuchin foreclosed on thousands of families during his tenure there. The committee, senators wrote, “should hear from some of these families and other Americans who have had first-hand experience with Mr. Mnuchin or the businesses he has led.”
Democrats have focused on Mnuchin’s ownership of the Southern California bank OneWest to try to discredit him. Mnuchin, with other investors, bought the bank from regulators after it failed during the financial crisis. Democrats have charged that he turned the bank into a “foreclosure machine,” throwing people out of their homes abruptly.
Previously, Senate Democrats solicited stories about problems with the bank’s foreclosure process and other services from customers, setting up a website to receive tips.
But they have steered clear, including in Friday’s letter, of bringing up a case that the bank violated foreclosure laws in a number of circumstances. That case was drawn up by prosecutors in California’s attorney general’s office, but the attorney general decided against enforcement action. That attorney general, Kamala Harris, was just sworn in as a Democratic senator for California, placing the conference in an awkward position if they decide to revisit the merits of the case against Mnuchin and his bank.
The Trump transition accused the senators of political gamesmanship. “The Democrats are playing politics with the confirmation process to grab headlines. Treasury Nominee Steven Mnuchin was a loan modification machine not a foreclosure machine,” said Tara Bradshaw, a representative for Mnuchin. “He tirelessly worked to help families stay in their homes. Mr. Mnuchin looks forward to discussing his record with the committee during his hearing.”
The transition, in response to Democratic criticims of the bank’s foreclosure regime, has noted that federal regulators didn’t flag major issues.
The timing for Mnuchin’s hearing has not been set. Hatch said this week that his paperwork needed to be completed before a hearing could be called.
