Treasury Pick Steven Mnuchin’s Reverse-Mortgage Woes

The transcript discusses Steve Mnuchin's potential role as Treasury Secretary and the scrutiny he faces due to his past management of a bank division called Financial Freedom, which is under investigation by HUD for its handling of reverse mortgages. The bank faced financial mismanagement, leading to a reserve shortfall. Mnuchin left the bank earlier than planned, earning significant profits. His mortgage history is politically contentious, with Democrats likely to focus on it during his confirmation process.

What is the main focus of the HUD investigation into the division Mnuchin ran?

• Whether they followed proper procedures for government reimbursement

• The legality of their mortgage contracts

• The ethical treatment of their employees

• The accuracy of their marketing campaigns

What financial issue did the bank discover during the investigation?

• A surplus of $100 million

• A $230 million shortfall in reserves

• An unaccounted loan of $50 million

• A missing investment of $10 million

Why did Steve Mnuchin leave the bank earlier than expected?

• He wanted to pursue other opportunities

• He was promoted to a higher position

• He was forced out due to the investigation

• He completed his term

What is one of the criticisms Democrats have about Mnuchin's bank ownership?

• It had no government oversight

• It was too lenient with borrowers

• It was too small to be effective

• It was a foreclosure machine

How many people did the bank foreclose on during Mnuchin's tenure?

• 36,000

• 10,000

• 50,000

• 5,000