Mortgage

HSBC fulfills consumer relief obligation under National Mortgage Settlement

Provides more than $371M in consumer relief

HSBC is officially finished with its consumer relief requirement under the National Mortgage Settlement, providing more than $371 million in consumer relief, according to the latest update on the company from Joseph Smith, monitor of the NMS.

Back in February 2016, 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.”

The last update on the settlement came in December of last year. Smith’s office reported that HSBC did not fail any metrics for the first and second quarters of 2016 and credited the servicer with $222,601,311 in consumer relief.

This latest progress report covers the HSBC’s progress through the third quarter of 2016 and, adding an additional $148,473,979 in consumer relief toward its total obligation of $370 million.

In total, Smith said he has credited HSBC with $371,075,290 in consumer relief and determined that HSBC has exceeded its consumer relief obligations.

“HSBC has completed its consumer relief obligation under the NMS,” Smith said. “In total, HSBC has provided more than $371 million in consumer relief and helped more than 11,000 borrowers. I will continue to monitor HSBC’s compliance with the servicing standards under the NMS and will report my findings later this year.”

Smith stated, however, that this will be his final report on HSBC’s consumer relief obligation. 

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