$470M settlement reached for HSBC mortgage abuses

PROVIDENCE – A $470 million state-federal settlement with HSBC to address mortgage origination, servicing and foreclosure abuses will allow more than 1,150 Rhode Island borrowers to be eligible for relief, Attorney General Peter F. Kilmartin announced last week.

The national settlement, which includes 48 other states, provides direct payments to Rhode Island borrowers for past foreclosure abuses and loan modifications, as well as other relief for borrowers in need of assistance, sets forth rigorous mortgage-servicing standards and grants oversight authority to an independent monitor, according to a news release from Kilmartin.

Rhode Island borrowers whose loans were serviced by HSBC and who lost their homes to foreclosure from Jan. 1, 2008, through Dec. 31, 2012, and encountered servicing abuse will be eligible for a payment. They include 222 whose homes were foreclosed, and then 946 Rhode Island homeowners “who were victim to the same bad mortgage-servicing practices by HSBC yet were not foreclosed upon” during the same period, according to Kilmartin. Payment amounts will depend on how many borrowers file claims. •

No posts to display