logo
Plus   Neg
Share
Email
Comment

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

Quick Facts

Editors Pick
Athletic footwear giant Nike, Inc. on Thursday announced a new marketing head, in its efforts to boost market share. The company promoted Dirk-Jan "DJ" van Hameren as its VP, Chief Marketing Officer, effective immediately. Van Hameren will succeed Greg Hoffman, who has been appointed VP, Global Brand Creative & Marketing Innovation Amazon.com Inc. (AMZN) said Thursday that it has chosen the 20 metropolitan areas to move to the next phase of the selection process for the company's second headquarters. The company plans to invest over $5 billion and grow the second headquarters to accommodate as many as 50,000 high-paying jobs. Morgan Stanley (MS) reported net income applicable to company of $686 million, or $0.29 per share for the fourth quarter ended December 31, 2017. The results for the current quarter included a net discrete tax provision of $990 million or a loss of $0.55 per share. Excluding net discrete tax items, net...
comments powered by Disqus
Follow RTT