In February 2016, 49 state attorneys general, the District of Columbia, and the federal government announced a Settlement with HSBC.

This bipartisan Settlement will provide approximately $58 million in direct cash payments to foreclosed borrowers. The agreement settles state and federal investigations alleging that HSBC engaged in various abuses during the mortgage servicing and foreclosure process.

Borrowers from Oklahoma were not eligible for any of the direct payments because Oklahoma elected not to join the Settlement.


Aid to homeowners needing loan modifications or other relief. HSBC is required to work off up to $370 million in relief to homeowners still in their homes. This relief may take a variety of forms, including first lien principal reduction.

Past experience with the National Mortgage Settlement has shown that principal reduction is an effective tool in combating foreclosure and that it does not lead to widespread defaults by borrowers who can afford to pay.

Payments to borrowers who lost their homes to foreclosure. The National HSBC Settlement Administrator mailed Notice Letters and Claim Forms in August 2016 to approximately 75,000 borrowers who lost their home due to foreclosure between January 1, 2008 and December 31, 2012 and whose loans were serviced at the time of foreclosure by HSBC.

Please note; the deadline to file a claim was November 15, 2016 and claim forms are no longer being accepted.  Payments mailed on February 17, 2017. The payment amount for each loan was approximately $1,200. The exact amount is not being released to help prevent fraud.

Nationwide reforms to servicing standards. These servicing standards require a single point of contact, adequate staffing levels and training, better communication with borrowers, appropriate standards for executing documents in foreclosure cases, ending improper fees, and ending dual-track foreclosures for many loans.

Compliance Oversight
• HSBC will be required to regularly report on its compliance with the Settlement to an independent, outside monitor that reports to the participating state and federal agencies.
• HSBC may have to pay penalties for non-compliance with the Settlement, including missed deadlines.
The Consent Judgment appointed former North Carolina Commissioner of Banks Joseph A. Smith, Jr. to be the Settlement monitor. Information about Smith's Office of Mortgage Settlement Oversight is available here:

This agreement holds HSBC accountable for its alleged wrongdoing regarding mortgage servicing. This Settlement does not address other potential legal issues and the agreement and its release preserve legal options for others to pursue, if appropriate.
Specifically, this Settlement does not:
• Release any criminal liability or grant any criminal immunity.
• Release any private claims by individuals or any class action claims.
• Release claims related to the securitization of mortgage backed securities that were at the heart of the financial crisis.
• Release any claims by a state that chooses not to sign the Settlement.
• End state attorneys general investigations of Wall Street related to financial fraud or the financial crisis.



This site is not operated by the Attorneys General, or federal government. Please contact the National HSBC Settlement Administrator with questions at 1-888-538-5792, Monday through Friday, 8:00 a.m. - 6:00 p.m. Central Time.

Este sitio no es operado por el Procurador General o el gobierno federal. Por favor contacte al Administrador del Acuerdo Nacional de HSBC con preguntas al número 1-888-538-5792, lunes a viernes, 8:00 a.m. – 6:00 p.m. horario central.

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