Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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

RELATED NEWS
Trade HBC now with 

HSBC Holdings Plc (HBC: Quote,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.

Register
To receive FREE breaking news email alerts for HSBC Holdings PLC and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
The Philippine economy grew more-than-expected in the second quarter on strong support from foreign demand, figures from the National Statistical Coordination Board showed Thursday. Gross domestic product for the second quarter advanced 6.4 percent year-on-year, exceeding economists' expectation for 6.1 percent growth. This followed by a revised 5.6 percent rise seen in the first quarter. Hewlett-Packard has recalled the AC power cords for its HP and Compaq notebook computer, citing a tendency to overheat, causing a potential fire and burn hazard. HP requests that consumers stop using the cord immediately and contact them to order a replacement cord free of charge. A UN report describing terrible atrocities carried out by Islamic State militants in Syria says children as young as 10 are being recruited and trained at ISIS camps as fighters. The report, based on 480 interviews and and evidence collected between 20 January and 15 July, chronicles the unimaginable brutality and human cost of the Syrian conflict. The report by the independent international com
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.