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HSBC reaches $470M deal with US, states over banking abuses

8 months 3 weeks 14 hours ago February 05, 2016 Feb 5, 2016 Friday, February 05 2016 February 05, 2016 10:54 AM in News
Source: Associated Press
By: Eric Tucker

WASHINGTON - Banking giant HSBC has reached a $470 million settlement with the federal government and nearly all states over mortgage lending and foreclosure abuses that officials say contributed to the financial crisis.

The agreement announced Friday requires the bank to pay $100 million and to provide an additional $370 million in consumer relief to borrowers and homeowners. That includes reducing the principal on mortgages for homeowners who are at risk of default.

The deal also requires the bank to improve standards for how it services loans and handles foreclosures.

The settlement involves the departments of Justice and Housing and Urban Development and the Consumer Financial Protection Bureau.

Attorneys general from 49 states plus the District of Columbia signed on.

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