A bank executive testified Monday that he had concerns about Paul Manafort application for two mortgages totaling $16 million because he didn’t disclose two existing mortgages and they were unable to verify the former Trump campaign manager’s income.
Despite the warning signs, James Brennan, a vice president at The Federal Savings Bank, said the loans were approved by the institution’s CEO Stephen Calk, who sought a position in the Trump administration.
“It closed because Mr. Calk wanted it closed,” Mr. Brennan said.
On Friday, another Federal Savings Bank executive, Dennis Raico, told a similar story. Mr. Raico said the bank’s loan committee was concerned about Mr. Manafort’s application but Mr. Calk pushed the deals through.
In exchange for the loan approval, Mr. Calk asked to be named Secretary of the Treasury or Housing and Urban Development, Mr. Raico said.
During Monday’s testimony, Mr. Brennan said that Mr. Manafort had omitted that two of the properties he wanted to mortgage already had existing mortgages. He said the banks learned of the older loans during the due diligence process.
Mr. Brennan also said that Mr. Manafort claimed his salary was more that $4 million, but the bank was unable to verify that amount. Instead, he testified, the bank found he had no income and debts of more than $630,000.
He said the undisclosed loans raised “red flags” that normally would cause a borrower to be rejected.
Mr. Brennan said omitting the loans “would go to the character of the borrower, which would raise a red flag.”
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