Home Business HSBC Agrees to Pay $470 Million Settlement for Mortgage Misconduct

HSBC Agrees to Pay $470 Million Settlement for Mortgage Misconduct


HSBC has agreed to pay a $470 million settlement to the US government and states related to dubious mortgage lending and foreclosure practices that contributed to the financial crisis.

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

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

In a statement, HSBC CEO Kathy Madison called the agreement a “positive result.”

Photo Reuters

Photo Reuters

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.

HSBC’s agreement is similar to deals that were given to US banks including JP Morgan and Bank of America in 2012.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.