HSBC North America Holdings Inc. Announces National Mortgage Settlement
February 05 2016 - 12:06PM
Business Wire
HSBC North America Holdings Inc. and certain subsidiaries have
reached a national mortgage settlement (NMS) with the Department of
Justice, the Department of Housing and Urban Development, the
Consumer Financial Protection Bureau, various other federal
agencies, and attorneys general from 49 states and the District of
Columbia.
As part of the agreement, the participating federal parties and
state attorneys general have agreed to release HSBC from civil
claims related to past residential mortgage loan origination,
servicing and foreclosure practices.
Under the NMS, HSBC will provide $470 million in financial
commitments, comprised of the following:
- $100 million cash payment to be
allocated among participating federal and state parties
- $370 million in customer relief
In addition, HSBC will adhere to the national mortgage servicing
standards set forth in prior NMS agreements reached with other US
mortgage servicers.
“We are pleased to have reached this settlement and believe it
is a positive result that benefits American homeowners and the US
housing industry,” said Kathy Madison, CEO, HSBC Finance Corp.
“Throughout the housing market downturn, HSBC stayed focused on
home preservation and approached foreclosure as a last resort
option, and this agreement affirms our commitment to assisting
customers who are facing financial difficulties.”
Additionally, the Federal Reserve Board issued a Civil Money
Penalty Assessment Order in conjunction with its April 2011
foreclosure Consent Order. The $131 million civil money penalty
will be satisfied by HSBC’s financial commitments under the
NMS.
The settlement will not cause HSBC to take any additional
charges to income beyond those recorded in prior years.
Forward-looking statements:
Certain statements in this press release are "forward-looking
statements" within the meaning of the rules and regulations of the
U.S. Securities and Exchange Commission. These statements are based
on management's current expectations and are subject to uncertainty
and changes in circumstances. Actual results and other financial
conditions may differ materially from those included in these
statements due to a variety of factors including those contained in
HSBC Finance Corporation’s and HSBC USA Inc.'s filings with the
U.S. Securities and Exchange Commission, including without
limitation the "Risk Factors" section of HSBC Finance Corporation’s
2014 Annual Report and HSBC USA Inc.'s 2014 Annual Report, each on
Form 10-K. Precautionary statements included in such filings should
be read in conjunction with this release.
Notes to editors:
HSBC North America Holdings Inc. is the holding company
for HSBC Holdings plc's operations in the United States and, at 30
September 2015, had assets of US $291.6 billion (US GAAP). The
company’s businesses serve customers in the following key areas:
retail banking and wealth management, commercial banking, private
banking, and global banking and markets.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160205005587/en/
Media inquiries:HSBC North
America Holdings Inc.Rob Sherman,
+1-212-525-6901robert.a.sherman@us.hsbc.com
HSBC (NYSE:HSBC)
Historical Stock Chart
From Mar 2024 to Apr 2024
HSBC (NYSE:HSBC)
Historical Stock Chart
From Apr 2023 to Apr 2024