HSBC Holdings Plc (HBC: Quote,HSBA.L) has now joined 12 other mortgage servicers to settle with U.S. regulators over alleged foreclosure improprieties, agreeing to pay $249 million in cash and other assistance to help mortgage borrowers, regulators said Friday.
Under the agreement reached in principle with the U.S. Federal Reserve and Office of the Comptroller of the Currency, HSBC will make $96 million in direct payments to eligible borrowers and offer $153 million in other assistance, such as loan modifications and forgiveness of deficiency judgments.
The agreement covers more than 112,000 borrowers whose homes were in foreclosure in 2009 and 2010 with HSBC Bank and its nonbank subsidiaries.
Eligible borrowers are expected to receive compensation ranging from hundreds of dollars up to $125,000, depending on the type of possible servicer error. On January 7, ten major U.S. banks – Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo- agreed in principle to pay $8.5 billion in cash and other assistance to borrowers to settle allegations of foreclosure improprieties brought by the Office of the Comptroller of the Currency and the Federal Reserve in 2011.
Goldman Sachs and Morgan Stanley joined the settlement agreement with the Federal Reserve on January 16, agreeing to pay $557 million in cash and other assistance.
Last month, HSBC agreed with the United States authorities to pay $1.921 billion related to its investigations regarding inadequate compliance with anti-money laundering and sanctions laws.
HBC closed Friday’s regular trading session at $55.30, down 6 cents.
HSBA.L closed at 693.90 pence, up 2.80 pence in London.
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.comBusiness News