Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

HSBC to Pay $550 Million to Settle U.S. Mortgage Bond Claims

euronews.com | September 15, 2014

By Nate Raymond

NEW YORK (Reuters) – HSBC Holdings Plc <HSBA.L> is expected to pay $550 million (338.29 million pounds) to resolve a U.S. regulator’s claims the bank made false representations in selling mortgage bonds to Fannie Mae <FNMA.OB> and Freddie Mac <FMCC.OB> before the financial crisis, a person familiar with the matter said Friday.

A settlement could be announced as soon as later Friday between HSBC and the Federal Housing Finance Agency, the conservator for the two government-controlled mortgage finance companies, the person said.

The deal came less than three weeks before a scheduled Sept. 29 trial in New York, where HSBC has said it could have faced up to $1.6 billion in damages.

The deal, if finalised, would become the latest arising from 18 lawsuits that the FHFA filed in 2011 to recoup losses on $200 billion in mortgage-backed securities sold to Fannie Mae and Freddie Mac, which the U.S. government took into conservatorship amid the 2008 economic crisis.

The lawsuit accused HSBC of falsely representing to Fannie Mae and Freddie Mac that loans underlying $6.2 billion of mortgage-backed securities sold from 2005 to 2007 met underwriting guidelines and standards.

HSBC has denied the allegations. It recently lost a bid to dismiss the case.

Earlier settlements with Bank of America Corp <BAC.N>, Deutsche Bank AG <DBKGn.DE>, Morgan Stanley <MS.N> and other banks have enabled the FHFA to recover $17.3 billion. Last month, Goldman Sachs Group Inc <GS.N> agreed to a settlement that the FHFA valued at $1.2 billion.

Other lawsuits remain pending against Nomura Holdings Inc <8604.T>, and Royal Bank of Scotland Group Plc <RBS.L>.

Many of the banks settled after U.S. District Judge Denise Cote, who has overseen most of the FHFA litigation, issued several rulings making it harder to mount defences.

The case is Federal Housing Finance Agency v. HSBC North America Holdings Inc, U.S. District Court, Southern District of New York, No. 11-06189.

(Reporting by Nate Raymond in New York; Editing by Meredith Mazzilli and David Gregorio)


Back to September 2014 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo


Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package