HSBC Mortgage Abusive Practices

Homesamantha severyn

HSBC North America Holdings has agreed to pay $470 million to settle allegations it engaged in abusive practices in its mortgage foreclosure, origination and servicing operations.

As part of that settlement, HSBC will pay a total of $470 million in relief to consumers and payments to federal and state parties, and will be bound to mortgage servicing standards and be subject to independent monitoring of its compliance with the agreement

 Highlights of the National HSBC Settlement include:

  • $370 million in relief for borrowers who are still in their homes
  • $58 million in cash to foreclosed homeowners
  • Modeled on National Mortgage Settlement

 Borrowers who are eligible to participate in the HSBC Settlement will be mailed a postcard followed by a Notice Letter and Claim Form in August 2016

Borrowers who believe they are eligible but have not received a Notice Letter by September 2016 may contact the settlement administrator.

Who’s Eligible?

Borrowers must meet certain minimum criteria to be eligible to receive a settlement payment. In particular:

  •  The loan was serviced by HSBC at the time of the foreclosure sale
  • The loan went to foreclosure sale between Jan. 1, 2008 and Dec. 31, 2012
  • The borrower made at least three payments on the loan
  • The home (or foreclosed property address) was, or was intended to be the borrowers’ primary residence at the time the mortgage loan was obtained
  • The borrower had a mortgage loan secured by a one-to-four unit residential property
  • The unpaid principal balance of the first-lien mortgage loan did not exceed $729,750 for a one-unit property; $934,200 for a two-unit property; $1,129,250 for a three-unit property; or $1,403,400 for a four-unit property.

Potential AwardVARIES. 

Eligible loans will receive a minimum payment of approximately $780 from the National HSBC Settlement. The amount you will actually receive if you submitted a timely claim is very likely to be more, because the $780 figure is based on 100 percent of the eligible borrowers participating.

To file a claim: 

Deadline: 11/15/2016