Not only did it fail, it it beat a hard working mother out of hundreds of thousands of dollars.
On June 8, 2005, Trump Mortgage, LLC was formed as a limited liability company in the State of New York. According to the Washington Post, Donald Trump “hosted a glitzy event at Trump Tower to introduce Trump Mortgage LLC, a new firm that specialized in selling residential and commercial real estate loans. He devoted a floor of the Trump Organization headquarters at 40 Wall Street to the new business. And his picture appeared atop the company website with the instruction: ‘Talk to My Mortgage Professionals now!’”
The Post also reported that Trump told CNBC, “I think it’s a great time to start a mortgage company,” in April 2006, because “the real estate market is going to be very strong for a long time to come.”
According to Time Magazine, “the Donald” asked a CNBC reporter, “Who knows more about financing than me?”
Jennifer McGovern, an experienced, hard working, middle class mother, residing on Long Island with her husband and three children, landed a job with Trump Mortgage, LLC as a Loan Originator. In February 2006, McGovern originated negotiations with Montauk Financial Group regarding a potential real estate deal with Investment Properties of America in excess of twenty-six million dollars ($26,500,000.00). If the deal closed, it would entitle McGovern to a commission of 45 percent commission. The deal closed. Trump Mortgage, LLC collected its commission of $530,000. Trump Mortgage, LLC owed McGovern $238,000. Trump Mortgage, LLC never honored its obligation to pay this commission. Trump Mortgage, LLC beat its own employee, Jennifer McGovern, out of hundreds of thousands of dollars. Through McGovern’s efforts, Trump Mortgage, LLC collected $530,000, while refusing to pay 45% to McGovern, as it was obligated to pay, to a hard working mother, with three children.
McGovern stood up for herself and filed a complaint in the New York State Supreme Court. After Justice Martin Shulman heard testimony, he awarded McGovern her earned commission of $238,000, plus costs and interest. A judgment was entered against Trump Mortgage on February 27, 2009 in the amount of $298,274.41 plus interest.
To date, the judgment remains unsatisfied.
As of January 1, 2016, the judgment, with interest, totals more than $380,000.
Trump Mortgage, LLC failed Jennifer McGovern.
Attributions: 40 Wall Street Photo by Gryffindoor,
Business Loan Photo by nyphotographic.com