HSBC Settles RMBS Charges for $765M – NMP Skip to main content

HSBC Settles RMBS Charges for $765M

Oct 10, 2018
The Federal Deposit Insurance Corporation (FDIC) has reached a settlement with HomeStreet Bank of Seattle for violations of the Real Estate Settlement Procedures Act

HSBC has reached definitive agreement with the Department of Justice that resolves charges related to the underwriting, issuance and securitization of residential mortgage-backed securities (RMBS) from between 2005 and 2007.
 
The settlement requires HSBC North America Holdings Inc. to pay a $765 million civil monetary penalty, of which $492 million will be paid by HSBC USA Inc. The company is not required to admit liability or wrongdoing in connection to the RMBS matter.
 
“We are pleased to put this investigation related to activity that occurred more than a decade ago behind us,” said Patrick J. Burke, President and Chief Executive Officer at HSBC USA. “Since the financial crisis, HSBC has been strengthening our culture, processes and internal controls to ensure fair outcomes for our clients. The U.S. management team is focused on putting historical matters into the rearview mirror and completing the turn-around of HSBC’s U.S. operations.”

 
About the author
Published
Oct 10, 2018
West Capital LO Challenges Contractor Status, Required Fees

A former originator alleges unpaid overtime, recurring tech charges, and company restrictions that he says undermine his independent-contractor status

CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

UAD 3.6 Deadline Is Monday. Are Brokers Ready?

Wholesale lenders have adopted different rules for appraisal transfers, loan product changes, and reporting formats, adding complications for brokers and appraisers ahead of the Nov. 2 mandate

Friday Harbor Expands AI Appraisal Reviews As UAD 3.6 Deadline Nears

The new capability adds more than 350 automated checks as lenders prepare for the November 2 mandate

Oct 27, 2026