US Accuses HSBC of Ignoring Foreclosure Law

June 4, 2013
Financial Times  
mortgage lending news

In a lawsuit, New York Attorney General Eric Schneiderman accused HSBC of putting thousands of borrowers in danger of foreclosure and accused the bank of ignoring a state law designed to initiate discussions between homeowners and banks to resolve foreclosure cases. According to the state, HSBC often failed to file paperwork in hundreds of foreclosure cases that would have triggered a settlement. Instead, the bank continued to charge interest and fees and in some cases delayed the document filing for more than two years -- which lessened homeowners' chances of qualifying for relief. "Companies like HSBC are brazenly ignoring state law, leaving homeowners across New York stuck in a legal limbo where they can't even get the legally required settlement conference that could help them keep their homes," Schneiderman said in a statement. 
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