HSBC to Pay $249 Million to Settle Foreclosure-Abuse Case

HSBC (NYSE: HSBC  ) has reached an agreement with the Federal Reserve and the Office of the Comptroller of the Currency to settle allegations of improper conduct regarding its foreclosure practices. The bank will pay $249 million in cash and other forms of compensation to eligible borrowers. Of that amount, $96 million will be paid directly to those individuals, while $153 million will go toward other forms of assistance such as loan modifications.

The agreement covers over 112,000 borrowers whose homes were foreclosed by HSBC or affiliated companies in 2009-2010.

The agreement is the latest in a series of deals between banks and regulators over such practices. Several days before the HSBC settlement was announced, the Fed reached a nearly $560 million foreclosure accord with Goldman Sachs and Morgan Stanley.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2205238, ~/Articles/ArticleHandler.aspx, 11/20/2014 6:25:06 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement