OneWest Bank

OneWest Bank, N.A.

File:OneWest Bank logo.png
Company type	Subsidiary
Industry	Banking
Founded	March 19, 2009 (2009-03-19)
Founders	Steven Mnuchin (via IMB Holdco)
Defunct	Template:End date and age
Headquarters	Pasadena, California, U.S.
Area served	Southern California
Parent	First Citizens BancShares
Website	www.firstcitizens.com

OneWest Bank operated as a regional banking institution in the United States from March 2009 until July 2022, when it was incorporated as a division of First Citizens BancShares. The bank maintained over 60 branches across Southern California and focused on consumer deposit accounts, lending services, small business banking solutions, loan products, and treasury management.

History

In the aftermath of the 2008 financial meltdown, which saw the failure of 465 banks nationwide, a consortium of seven investors led by Steven Mnuchin—including notable figures such as billionaires Christopher Flowers, John Paulson, Michael Dell, and George Soros—purchased the failed Independent National Mortgage Corporation (IndyMac Bank) from the FDIC for $13.65 billion on March 19, 2009. This transaction resulted in the establishment of OneWest Bank, which initially operated 33 branches with $32 billion in assets.

OneWest further expanded its footprint by acquiring two additional failed institutions from the FDIC: First Federal Bank of California in December 2009, which held $6 billion in assets, and La Jolla Bank, FSB in February 2010 with $3.6 billion in assets. In November 2010, OneWest enhanced its commercial real estate lending portfolio by purchasing a $1.4 billion multifamily and commercial real estate loan package from Citibank. By the end of 2014, the FDIC had disbursed over $1 billion to OneWest under shared loss agreements associated with these acquisitions and anticipated an additional payout of $1.4 billion.

The bank attracted criticism for its assertive foreclosure methods; reports revealed foreclosure actions against approximately 137,000 homeowners. In 2009, a judicial ruling condemned OneWest's stringent mortgage workout strategies, although this decision was later overturned on appeal. Additionally, OneWest faced controversy for changing locks on foreclosed properties without obtaining court approval, effectively circumventing due process.

Prior to being acquired by CIT Group, OneWest discontinued issuing new reverse mortgages but continued managing its existing reverse mortgage portfolio. The institution faced allegations regarding harsh foreclosure tactics connected to reverse mortgages. In May 2017, CIT agreed to an $89 million settlement addressing claims related to OneWest's handling of reverse mortgage servicing and improper FHA insurance claims.

In July 2014, OneWest announced plans to merge with CIT Group, which had previously filed for bankruptcy after receiving $2.3 billion through the Troubled Asset Relief Program that remained unpaid. The proposed merger encountered opposition from nonprofit organizations citing concerns over OneWest’s foreclosure history, inadequate small business lending efforts, poor compliance with the Community Reinvestment Act, and risks of discriminatory lending practices (redlining). More than 15,000 signatures were submitted opposing the merger.

The acquisition of OneWest Bank by CIT Group was finalized on August 3, 2015, at a value of $3.4 billion. Subsequently, in January 2022, CIT itself was acquired by First Citizens BancShares, thereby integrating OneWest into its larger financial operations network.