Friday, February 5, 2016
At least 1,300 Washington borrowers eligible to receive up to $1,400 in cash payments
Attorney General Bob Ferguson announced Friday that Washington homeowners will recover $1 million, as part of a $470 million agreement secured for homeowners nationwide through a state-federal legal action against mortgage lender and servicer HSBC.
The agreement provides $59.3 million in direct payments to 75,000 consumers nationwide for past foreclosure abuses. Washington’s share of approximately $1 million will be available for 1,300 borrowers. The amount each borrower receives depends on how many submit a claim, and is estimated to be $800-$1,400 each. HSBC will also pay $40.5 million to the federal government.
The agreement also provides $370 million in nationwide loan modifications and other relief for borrowers in need of assistance, imposes tough new mortgage servicing standards, and grants oversight authority to an independent monitor.
“HSBC engaged in unacceptable, abusive practices that hurt Washington homeowners,” Ferguson said. “My office will not tolerate companies that don’t play by the rules and treat borrowers unfairly. This action holds HSBC accountable to compensate Washington families who lost their homes, assist those in danger of foreclosure, and abide by tough new serving standards.”