HSBC agreed to pay $96 million to eligible borrowers who lost their homes to foreclosure in 2009 and 2010, and provide $153 million in other assistance, including loan modifications and forgiveness.
The bank said it was pleased to have reached the agreement and expected to record a pretax charge of $96 million in the fourth quarter of 2012 for the cash portion of the settlement. The bank said it expected to cover the loan assistance through existing reserves.
The settlement, with the Office of the Comptroller of the Currency and the Federal Reserve Board, is the 13th the agencies have reached this month.
The agreements stem from the reviews of individual loan files that regulators ordered in 2011 and 2012, after widespread mistakes were discovered in the way mortgage servicers had processed home seizures.
The reviews, initially expected to determine which borrowers were harmed and to compensate them based on their individual experiences, proved slow and expensive.
Ten banks, including Bank of America, Wells Fargo, Citigroup and JPMorgan Chase, agreed to pay a total of $8.5 billion — some in cash, and the rest in loan assistance — to end the reviews last week.
On Wednesday, Goldman Sachs and Morgan Stanley agreed to a similar $557 million deal.
About 112,000 borrowers whose homes were in foreclosure with HSBC Bank and other HSBC subsidiaries will receive some cash, regulators said.
Article source: http://www.nytimes.com/2013/01/19/business/hsbc-will-pay-249-million-to-settle-foreclosure-review-case.html?partner=rss&emc=rss
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