HSBC Pays $32.5 Million to Settle Claims on Faulty Foreclosures

It is good that there was a finding that HSBC was found to have engaged in “faulty” foreclosure practices. What is not so good is that there is a direct or implied suggestion that HSBC is now operating within the rules and laws protecting borrowers, consumers and homeowners. That simply is not true. It is also not good that the amount they had to pay was so low — a tiny fraction of the windfall HSBC already received and which it is continuing to receive. These settlements are in actuality becoming tedious: the obvious intent is to settle the issues in litigation through public relations. It adds to the misperception that it useless to fight the Banks.

  • Lender fined for failing to meet terms of earlier settlements
  • OCC says bank now in compliance with orders dating from 2011
January 9, 2017, 11:31 AM EST

HSBC Holdings Plc will pay $32.5 million to settle claims that it failed to follow a U.S. regulator’s orders to improve mortgage foreclosure practices that led to borrowers being harmed after the 2008 credit crisis.

The Office of the Comptroller of the Currency levied the fine after concluding that HSBC is now in compliance with the agency’s orders going back to 2011. The London-based bank was one of many big U.S. mortgage servicers that reached agreement with regulators to review problems that led to borrowers facing improper foreclosures.

“We’re pleased with the OCC’s assessment of the enhancements we’ve made to mortgage servicing over the last several years,” Rob Sherman, an HSBC spokesman, said Monday in an e-mailed statement. The bank is now “more compliant and customer-friendly,” he said.

The OCC had accused HSBC in 2015 of failing to meet the demands it had agreed to, and the agency imposed some additional restrictions on the company’s mortgage-servicing abilities until it fixed its shortcomings. The regulator also noted Monday that HSBC failed to properly file documents in bankruptcy cases after the orders, and the bank had to pay $3.5 million in remediation to borrowers.

HSBC was the last of the banks under OCC foreclosure orders. Wells Fargo & Co. paid $70 million in a similar settlement last year, and U.S. Bancorp paid $10 million. A subsidiary of Fidelity National Financial Inc. is in final talks to pay as much as $65 million to resolve its role in improper foreclosures, a person familiar with the talks has said, specifically the involvement of a firm bought by Fidelity National formerly known as Lender Processing Services Inc.

9 Responses

  1. Hey, they gotta show a profit somehow.

  2. Pennies for them and the homeowner’s get zero! In North Carolina the state took most of the money to pay-off a budget shortfall. Where is the outrage?

  3. Government cut, simple percentage-based calculation. [Former] Homeowners have nothing to do with this. O-Bam’s team is trying to get all these zeroed (O’d?) out before 20th.

  4. I know for a fact judges are on the take. the banks can offer as much money as they want we wouldn’t know. but when a trial is set and no discovery was presented. come on. I know someone who almost lost her house to one of these judges very sad that all these settlements and none of the money to the people. during her Gainesville, fl trial the robo witness would present a “discovery” item , her lawyer would say to the judge that this was never received prior to trial so he objects if you read the transcript the judge had his mind made up before this trial this is not right when this is happening not just in florida but all over America. how do we get due process and get them to stop this and be held accountable

  5. Good for these crooks. Now Bank America and Deutsche Bank. What they should do is give back the homes they’ve stolen from my mother and other homeowners with the fraudulent, forged, robo signed documents they used. The judges in some cases as well need to be brought up on charges for allowing these banks to steal homes that didn’t belong to them. They also should be charged for allowing their inexperienced clerks to make judicial decisions as well on these foreclosures. It’s sad and sickening to know that they have stolen so many homes and yet no jail time for any of those crooks.

  6. Could it be that regulators are funding get their organizations with settlements where the only injured party was the homeowner? After everything gets filtered out, what does the injured homeowner receive to be made whole?

  7. So Govt. “gets” any fine payment $$ (or phony baloney paper “assets”) and the American people are still screwed / out cold.

  8. Good information Neil. What happened to nasty old Bank of America???? They are the worst which seems evident with the BILLIONS of dollars paid out already in fines, penalties, and court settlements. Lets hope things continue with full exposure relative to the 10th Circuit Court Ruling in Colorado on the George et al. V. nasty, corrupt Urban Settlement Services acting in cahoots with terrible Bank of America and our own government GSE!!

    I am sure they will do everything possible to get this quickly settled with hungry Steve Berman and his lawfirm who I believe is totally looking out for the lawfirm and not really going after the crooks on behalf of ALL of us victims of this huge RACKETEERING SCAM. I hope to opt out soon with my own lawsuit as I have all the proof in phony, fabricated, forged, and robo signed documents. Semper Fi

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