HSBC Agrees to $470M Settlement of Mortgage Abuse Allegations


HSBC North America Holdings has agreed to pay $470 million to settle allegations it engaged in abusive practices in its mortgage foreclosure, origination and servicing operations.

HSBC will pay $100 million in cash to federal and state parties and $370 million in customer relief. HSBC will also be subject to national mortgage servicing standards applied in settlements with other mortgage servicers.

The claims had been brought against HSBC by the Justice Department, Consumer Financial Protection Bureau, Department of Housing and Urban Development and attorneys general from 49 states and the District of Columbia.

Also, the Federal Reserve fined HSBC $131 million related to its April 2011 consent order.

HSBC does not plan to record any additional charges to cover for the cost of the settlements.

Source: http://www.americanbanker.com
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