HSBC pays $470m for mortgage misconduct

BBC News reports:

HSBC has reached a $470m [] settlement with the US government and states related to dubious mortgage lending and foreclosure practices that contributed to the financial crisis.

The agreement includes a $100m fine and $370m in consumer relief to borrowers.

Investigations began in 2010 after HSBC was found to be signing off foreclosure documents without proper review.

In a statement, the bank's chief executive Kathy Madison called the agreement a "positive result."

The consumer relief will require the bank to cut the loan amount on mortgages for homeowners close to default. HBSC will also be required to change internal practices like foreclosing on homeowners who are being considered for a loan modification.

"The agreement is part of our ongoing effort to address root causes of the financial crisis," said the head of the Justice Department's Civil Division Benjamin Mizer.

The deal settles claims with 49 states, the District of Columbia and the federal government.

0 thoughts on “HSBC pays $470m for mortgage misconduct

  1. Allison Zieve says:

    I don’t know how the parties intend to trace consumers who have moved. The consent decree, however, specifies that compliance with the agreement will be overseen by an independent monitor named Joseph A. Smith Jr. He is also the monitor for the NMS and SunTrust settlement, and I saw that he set up a website in connection with that settlement that tells consumers how to get in touch. I suggest that you see if he sets up a similar website over the next month or so. If not, you could try contacting him through

  2. Rose Ann George says:

    I am a former HSBC customer up to around 2010. *I have records WHAT do I do,as I
    moved and couldn’t likely be reached to learn about the Settlement group matter…

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