logo
Share SHARE
FONT-SIZE Plus   Neg

HSBC To Pay $249 Mln To Settle Improper U.S. Foreclosures Claims

HSBC Holdings Plc (HBC,HSBA.L) has agreed to pay $249 million to settle claims of improper U.S. foreclosures, the Federal Reserve Board and Office of the Comptroller of the Currency or OCC said Friday.

Earlier this month, the Federal Reserve and the OCC announced that they had reached agreements in principle with Aurora, Bank of America, Citibank, Goldman Sachs, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. Like the other institutions, HSBC is subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing, the OCC said.

With the addition of HSBC, nearly 4.2 million borrowers will receive a total of $3.6 billion in cash compensation while an additional $5.7 billion will be provided by the servicers for mortgage assistance, the OCC said.

The sums paid by HSBC include $96 million in direct payments to eligible borrowers and $153 million in other assistance, such as loan modifications and forgiveness of deficiency judgments.

More than 112,000 borrowers whose homes were in foreclosure in 2009 and 2010 with HSBC Bank and nonbank subsidiaries of HSBC will receive cash compensation under the agreement in principle. Eligible borrowers are expected to receive compensation ranging from hundreds of dollars up to $125,000, depending on the type of possible servicer error, the OCC noted.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Bank of Nova Scotia or otherwise known as Scotiabank, Friday reported lower net profit for the third quarter, in the absence of a year-ago gain. Earnings per share, however, came in line with the Street view. Further, the company said it raised its quarterly dividend by 2 cents. Non-traditional discount and variety stores operator Big Lots Inc. (BIG) Friday reported a decline in net profit for the second quarter, while net sales grew 1.2 percent from the prior year. Comparable sales for the quarter increased 2.8 percent. Google has rejected the European Union's charges that it abused its market power and the demanded that it change the way it ranks online comparison shopping services in its search results, setting up a potentially long legal battle with the EU regulator empowered to levy billions of euros in fines
comments powered by Disqus
RELATED NEWS
Trade HSBC now with 
Follow RTT