HSBC to Pay $249 Million to Settle Foreclosure-Abuse Case
HSBC has reached an agreement with the Federal Reserve and the Office of the Comptroller of the Currency to settle allegations of improper conduct regarding its foreclosure practices. The bank will pay $249 million in cash and other forms of compensation to eligible borrowers. Of that amount, $96 million will be paid directly to those individuals, while $153 million will go toward other forms of assistance such as loan modifications.
The agreement covers over 112,000 borrowers whose homes were foreclosed by HSBC or affiliated companies in 2009-2010.
The agreement is the latest in a series of deals between banks and regulators over such practices. Several days before the HSBC settlement was announced, the Fed reached a nearly $560 million foreclosure accord with Goldman Sachs and Morgan Stanley.
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