HSBC Reaches $4M Settlement With Massachusetts – NMP Skip to main content

HSBC Reaches $4M Settlement With Massachusetts

Phil Hall
Feb 24, 2016
Massachusetts Attorney General Maura Healey has announced that HSBC will pay $4 million to settle charges relating to force-placed insurance policies that it procured for the state’s at-risk homeowners

Massachusetts Attorney General Maura Healey has announced that HSBC will pay $4 million to settle charges relating to force-placed insurance policies that it procured for the state’s at-risk homeowners.

According to a statement released by Healey’s office, HSBC was accused of receiving compensation from the insurance company Assurant Inc. for the sale of the force-placed insurance policies despite the fact that HSBC’s tied to the force-placed insurance premiums charged to the company’s borrowers, with Healy stated violated state consumer protection laws. This practice ceased in June 2012.

Under the settlement, HSBC will pay $2.675 million in restitution to affected Massachusetts homeowners and $1.4 million directly to the state.

“Mortgage servicers should not enrich themselves through insurance products at the expense of struggling homeowners,” Healey said. “This agreement ensures that HSBC returns the money to Massachusetts consumers it received in violation of state laws.”

Published
Feb 24, 2016
Regulatory Review, Reformatted

The progress made to date with NMLS modernization

Regulation and Compliance
Dec 01, 2021
November Surprise: Fed May Accelerate Tapering

Chairman Powell tells Congress of concerns about inflation, COVID-19 variant’s effect on recovery.

Regulation and Compliance
Dec 01, 2021
FHFA's 2022 Conforming Loan Limit Maxes Out At Nearly $1M

Baseline limit for Fannie, Freddie increases to $647,200, but for 'high-cost areas' loan ceiling set at $970,800 for single-family homes.

Regulation and Compliance
Dec 01, 2021
Regulators Are Back In The Saddle

There’s not only a new sherriff in town, it’s a whole gang of them.

Regulation and Compliance
Nov 29, 2021
CFPB Seeks Insight On Creating A Fairer Mortgage Market

The Consumer Financial Protection Bureau has been actively looking to create a fairer mortgage market, free of discriminatory engagements. To do so, it issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act.

Regulation and Compliance
Nov 17, 2021
Regulators Renew Effort to Protect Against Foreclosures

CFPB, The Fed, FDIC and other agencies will watch for compliance with COVID-19 protections

Regulation and Compliance
Nov 10, 2021