First it was 10 of the largest mortgage servicers. Next, it was a pair of Wall Street investment banking behemoths. Now, a London-based banking giant has agreed to a settlement with U.S. banking regulators over its mortgage servicing practices.
Earlier this month, the Office of the Comptroller of the Currency announced that it reached an $8.5 billion deal with 10 servicers to resolve foreclosure review requirements from April 2011 consent orders that emerged as a result of allegedly faulty foreclosure practices.
The following week, the OCC and Federal Reserve announced that Goldman Sachs and Morgan Stanley agreed to settlements totaling $557 million to resolve the consent orders.
Now, HSBC has joined the fray.
U.S. subsidiaries of the company include HSBC Mortgage Corp. (USA), which closed its indirect lending channels in 2008, and HSBC Finance Corp., the former Household Finance business that shut down in 2009.
A joint statement Friday from the OCC and Fed indicated that the U.S. subsidiary of the U.K. financial institution will pay $249 million to resolve the foreclosure review requirement of its consent order.
The settlement includes $96 million in cash payments to eligible borrowers and $153 million in other assistance
The other assistance includes loan modifications and forgiveness of deficiency judgments.
The regulators noted that they continue to work with other servicers to reach similar agreements.