Things at Ocwen just went from bad to much, much worse

Things at Ocwen just went from bad to much, much worse

Embattled company hit with an avalanche of bad news

Pending home sales surge to highest level in 18 months

Buyer demand boosts sales

Foreclosure: The Movie… (finally!) coming to a screen near you

In new film, neighborhood of foreclosed homes drives man insane
W S
Servicing

HSBC to pay $249 million to end foreclosure probes

International bank HSBC (HBC) signed onto an agreement that effectively ends the companies' review of questionable foreclosure practices.

Rather than using an independent review process already in place, the bank will address the issue through a one-time settlement with impacted homeowners.

The mega bank is joining 12 other servicers that already ended independent foreclosure reviews by opting to solve legacy foreclosure processing claims through a cash settlement.

HSBC alone will pay $249 million in both direct cash payments and foreclosure assistance to borrowers harmed by sloppy or questionable foreclosure practices, the Office of the Comptroller of the Currency said Friday.

Of those funds, $96 million will go to eligible borrowers, while $153 million will cover loan modifications and deficiency judgments.

The Federal Reserve and OCC released similar deals with other major servicers, including Aurora, Bank of America (BAC), Citibank (C), Goldman Sachs (GS), JPMorgan Chase (JPM), MetLife Bank (MET), Morgan Stanley (MS), PNC (PNC), Sovereign, SunTrust (STI), U.S. Bank (USB) and Wells Fargo (WFC).

With HSBC added to the pile of settling firms, 4.2 million borrowers will receive about $3.6 billion in cash to be distributed among them. Another $5.7 billion will be used to offer mortgage assistance.

Federal regulators moved to the one-time settlement approach after finding the foreclosure review process too costly and inefficient. 

kpanchuk@housingwire.com

 

Recent Articles by Kerri Panchuk

Comments powered by Disqus