Alaska Joins National Settlement with HSBC over Mortgage Misconduct
February 5, 2016
(ANCHORAGE, AK) Alaskans whose mortgages are serviced by HSBC may benefit from a national settlement filed today in federal court in the District of Columbia. The settlement addresses mortgage origination, servicing, and foreclosure abuses by HSBC. Forty-nine states and several federal agencies participated in the settlement.
Alaskans with loans serviced by HSBC may be eligible for loan modifications or, if their homes were foreclosed on between 2008 and 2012, cash payments. HSBC estimates that 19 Alaska borrowers will receive foreclosure-related payments.
The settlement is similar to the 2012 National Mortgage Settlement with five banks (Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo) and to settlements with Ocwen and SunTrust. Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement, will oversee HSBC’s compliance with today’s settlement. A third-party administrator will notify qualified foreclosed borrowers regarding the cash payments.
Consumers with questions about the settlement may call HSBC. For questions about loans serviced by HSBC Bank USA, they should call 1-866-435-7085 or talk with their case manager. For questions about loans serviced by HSBC Mortgage Services, Household Finance, or Beneficial, they should call 1-800-333-7032 or speak with their assigned contact.
For more information about the settlement, please contact Assistant Attorney General Cynthia Drinkwater at (907) 269-5200.
Consumer Protection Unit