Attorney General Fox Reaches $470 Million Joint State-Federal Settlement with HSBC – Foreclosed Loans May Be Eligible For Payments For Past Abuse
Attorney General Tim Fox announced a $470 million joint state-federal settlement on Friday with mortgage lender and servicer Hong Kong Shang-Hai Banking Corporation to address mortgage origination, servicing, and foreclosure abuses. Fox said this settlement holds HSBC accountable for its past abusive practices, and it provides relief to Montana borrowers.
"What we found is that there were a number of large mortgage servicing companies that were engaging in abuse practices. In some cases, they didn't have the proper paperwork," Fox said. "Unfortunately, not only did Montana mortgage holders and homeowners suffer, but across the country that happened as well."
Fox said the settlement includes Montana and 48 other states, the District of Columbia, the U.S. Department of Justice, the U.S. Department of Housing and Urban Development and the Consumer Financial Protection Bureau.
"Some of [the settlement money] will find its way to Montana. We estimate about 104 eligible Montana borrowers," Fox said. "These are folks who actually had their homes foreclosed will receive a settlement that is yet to be determined. They will be contacted in the future of the availability of that settlement money."
Fox said the agreement also includes stringent servicing conditions that HSBC has to engage in as it looks to servicing future mortgages.