Multinational bank HSBC has agreed to a $470 million settlement with the U.S. government for mortgage lending and foreclosure abuses that worsened the 2008 financial crisis, but is it enough?
The Justice Department’s Acting Associate Attorney General Stuart F. Delery said the agreement was “the result of a coordinated effort between federal and state partners to hold HSBC accountable for abusive mortgage practices. This agreement provides for $370 million in creditable consumer relief to benefit homeowners across the country and requires HSBC to reform their servicing standards.”
Under the agreement HSBC must reduce mortgage interest rates as well as the principal on mortgages for homeowners who are at risk of default. HSBC must also improve their standards for handling service loans and foreclosures. The hope is that new practices will discourage the actions that lead to the financial crisis that started in 2007 due to banks like HSBC knowingly giving out bad loans.
The U.S. government and the individual states involved will received $100 million in an escrow fund that will make payments to people who lost their homes due to foreclosure between 2008 and 2012. Full story...
Related posts:
The Justice Department’s Acting Associate Attorney General Stuart F. Delery said the agreement was “the result of a coordinated effort between federal and state partners to hold HSBC accountable for abusive mortgage practices. This agreement provides for $370 million in creditable consumer relief to benefit homeowners across the country and requires HSBC to reform their servicing standards.”
Under the agreement HSBC must reduce mortgage interest rates as well as the principal on mortgages for homeowners who are at risk of default. HSBC must also improve their standards for handling service loans and foreclosures. The hope is that new practices will discourage the actions that lead to the financial crisis that started in 2007 due to banks like HSBC knowingly giving out bad loans.
The U.S. government and the individual states involved will received $100 million in an escrow fund that will make payments to people who lost their homes due to foreclosure between 2008 and 2012. Full story...
Related posts:
- Iceland does what the US won’t: 26 top bankers sent to prison for role in...
- Big bank 'crime of the century' results in guess what? No jail time for anyone...
- Libor scandal: You can bank on there being a scapegoat...
- Death threats sent to Geneva bank managers...
- The real bank robbers got away...
- Iceland jails former bank bosses...
- How Iceland goes after the bankers that brought down its economy...
No comments:
Post a Comment