Vermont Business Magazine Over 400 Vermonters may benefit from a settlement announced today by Vermont Attorney General William HSorrell. Vermont is joining a $470 million joint state-federalsettlementwith mortgage lender and servicer HSBC. The settlement creates a $60 million fund to compensate victims of HSBC’s foreclosure abuses, requires a $40 million payment to federal agencies, and provides $370 million in other consumer relief available to HSBC borrowers.
“This settlement continues our aggressive approach to holding banks responsible for misconduct in the mortgage industry,” said Attorney General Sorrell. “By providing financial awards to those who lost their homes, consumer relief to borrowers who are currently struggling, and imposing strict servicing standards applicable to all of HSBC’s customers, this settlement is an important result.”
Approximately 25 Vermont borrowers whose loans were serviced by HSBC and who lost their home to foreclosure between January 1, 2008, through December 31, 2012, may be eligible for a payment under this settlement. Eligible borrowers will be contacted about how to qualify to receive a payment. The amount paid to eligible borrowers will be dependent on the number of claimants, but estimates are that compensation will be at least $1,000.
Nearly 400 Vermont homeowners currently have mortgage loans serviced by HSBC. Under the settlement, HSBC is required to provide $370 million in relief to its customers through a variety of options, including loan modifications, principal reduction, and loan refinancing. Vermont homeowners whose loans are serviced by HSBC Bank USA, N.A. should contact 1-866-435-7085 or their Case Manager for assistance. Vermont homeowners whose loans are serviced by HSBC Mortgage Services, HSBC Household Finance, or HSBC Beneficial should contact 1-800-333-7023 or their single point of contact for assistance. Homeowners who are not afforded the assistance to which they believe they are entitled should contact the Consumer Assistance Program at 1-800-649-2424.
The settlement also holds HSBC to enhanced loan servicing standards comparable to those enacted through the2012 National Mortgage Settlement, and requires the oversight of an independent monitor to confirm HSBC’s compliance with those standards. These enhanced servicing standards will benefit every Vermont homeowner whose loan is serviced by HSBC.
The agreement does not prevent any action by individual borrowers who wish to bring their own lawsuits.
Vermont AG: Feb 5, 2016