HSBC credited with $223 million in consumer relief
First update from monitor of the National Mortgage Settlement
The first report is out on the status of HSBC compliance with the National Mortgage Settlement, showing they passed all metrics.
According to the report from Joseph Smith, monitor of the National Mortgage Settlement, HSBC did not fail any metrics for the first and second quarters of 2016, and Smith credited the servicer with $222,601,311 in consumer relief.
HSBC is required to provide $370 million in consumer relief. As a result, HSBC has completed 60% of its consumer relief obligation.
Back in February, HSBC agreed to a $601 million settlement with a series of federal agencies and nearly every state over charges that the bank engaged in mortgage origination, servicing and foreclosure abuses.
“This agreement is the result of a coordinated effort between federal and state partners to hold HSBC accountable for abusive mortgage practices,” said Acting Associate Attorney General Stuart Delery at the time.
“This agreement provides for $370 million in creditable consumer relief to benefit homeowners across the country and requires HSBC to reform their servicing standards,” Delery added. “The Department of Justice remains committed to rooting out financial fraud and holding bad actors accountable for their actions.”
As monitor, Smith evaluated HSBC using the 34 metrics, or tests, enumerated in the Settlement. These metrics determine whether the HSBC adheres to the 304 servicing standards, or rules, contained in the NMS.
The next update on HSBC will be in early 2017. Smith’s office released the update on HSBC in conjunction with an update on SunTrust as well. The details on SunTrust’s progress can be found here.