Skip to main content

California Signs on to $470M HSBC Settlement

Feb 05, 2016

California Attorney General Kamala D. Harris has announced that her state will join with two federal agencies—the U.S. Departments of Justice (DOJ) and Housing & Urban Development (HUD)—and 48 other states in approving a $470 million settlement with HSBC that resolves charges that the company engaged in faulty mortgage origination and servicing practices.

According to a statement issued by Harris’ office, California borrowers are eligible for approximately 10 percent of the settlement’s $59.3 million fund for payments to foreclosed borrowers. Approximately 7,526 eligible California borrowers whose loans were serviced by HSBC and who either encountered servicing abuse or lost their home to foreclosure from Jan. 1, 2008 through Dec. 31, 2012, will be eligible to receive funds from this settlement.

“California homeowners worked hard and played by the rules to stay in their homes during the housing crisis, but for too many, their struggle and sacrifice was met by abusive mortgage servicing practices,” said Harris. “This settlement holds HSBC accountable for its abusive practices that manipulated people fighting to stay in their homes. I encourage eligible borrowers who receive a claim form and feel they were a victim of HSBC’s practices to file a claim immediately.”

HSBC, which has not been required to admit criminal wrongdoing as part of the settlement, will also pay $40.5 million to the federal government and provide $370 million in consumer relief outreach.

About the author
Published
Feb 05, 2016
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024