WASHINGTON (2/9/16)--Issues with mortgage originations and servicing, as well as foreclosure abuses, led to a $470 million settlement with HSBC and the U.S. Department of Justice, Department of Housing and Urban Development and Consumer Financial Protection Bureau, the agencies announced last week. Also included in the settlement are attorneys general from 49 states and the District of Columbia.
According to the agencies, the agreement resolves potential violations of civil law based on HSBC’s deficient mortgage loan origination and servicing activities. HSBC has agreed to provide more than $470 million in relief to consumers and payments to federal and state parties, and to be bound to mortgage servicing standards and be subject to independent monitoring of its compliance with the agreement.
Specifically, the settlement provides that:
The agreement will be filed as a consent judgment in the U.S. District Court for the District of Columbia. Compliance with the agreement will be overseen by an independent monitor.