Donald Trump is an iconic figure in the financial industry on a global scale. While he most recently won the presidential election in 2016, he also notably started numerous financial institutions. One of those firms was Trump Mortgage, which was founded in 2006, but it quickly went under in 2007. With a closer look at what Trump Mortgage offered to its clients, you may gain new insight about this important figure.
The Loans Offered by Trump Mortgage
When Trump Mortgage was established several years ago, the intent of Trump was to provide affordable loans to both residential and commercial customers. The company was licensed to conduct business in many states across the country, and it closed numerous loans. In fact, it notably closed a $26.5 million commercial loan, but it ran into legal trouble when the company failed to provide the originating loan officer with a commission. The loan officer sued Trump Mortgage for almost $300,000, the size of the commission owed to her. She won the lawsuit, but Trump Mortgage still has not paid the outstanding debt to her. Notably, the company also had an IRS tax lien placed on it for unpaid federal taxes, and this debt is still outstanding as well. The company was originally headed up by a friend of Trump’s son, but he was fired after approximately a year when it was disclosed that he had fabricated information on his resume during the hiring process.
If You Closed a Loan With Trump Mortgage
Because Trump Mortgage was only open for a few months, it closed only a handful of loans. However, many of those individuals still have the mortgage that they closed with this firm. Because Trump Mortgage is no longer an active company, it has sold its portfolio of loans to a servicing department. Therefore, while the company closed its doors, the loans it originated remain active. You can continue to pay your mortgage to the loan servicing department as agreed in the terms of your mortgage to remain in good standing.
While Donald Trump’s fame and notoriety has increased by leaps and bounds over the last year or two, his financial reputation did suffer from the short-lived prosperity and ultimate collapse of Trump Mortgage. Today, Trump Mortgage continues to owe debts in the form of tax liens and outstanding judgments, and this is a black mark on Donald Trump’s lengthy list of accomplishments.