HSBC Bank (HTB) suspended foreclosures to address deficiencies in its mortgage servicing department found by state and federal officials, the company said in its annual financial supplement released Monday. In the third quarter of 2010, news surfaced that employees at large mortgage servicers were signing documents en masse and without a proper review of the documentation. In October, the 50 state attorneys general and several federal regulators including the Federal Reserve and the Office of the Comptroller of the Currency launched investigations into the foreclosure practices of the nation's largest lenders, including HSBC. While most of those companies are completing their corrections, HSBC announced its suspension of filings Monday but gave no details on how long it will last. "We have suspended foreclosures until such time as we have substantially addressed noted deficiencies in our processes," HSBC said in its report. Following their examination, the Fed and the OCC sent letters to the bank, noting problems with HSBC's foreclosure processing, including the preparation and signing of affidavits. Examiners also pointed to the bank's lack of oversight over law firms it hired to put those foreclosures into effect. HSBC said it is currently in talks with the Fed and the OCC regarding the terms of cease and desist orders that will be finalized soon. The bank added that the orders will not clear it from future actions, fines or civil penalties by other regulators. "We are unable at this time, however, to determine the likelihood of any further action or the amount of fines or penalties, if any, that may be imposed by the regulators or agencies," HSBC said in its report. Write to Jon Prior. Follow him on Twitter: @JonAPrior