Colorado Attorney General Cynthia H. Coffman Reaches $470 Million Joint State-Federal Settlement with HSBC
Agreement to provide certain Colorado borrowers with loan modifications; foreclosed HSBC loans may be eligible for payments for past abuse
DENVER – Colorado Attorney General Cynthia H. Coffman today announced a $470 million joint state-federal settlement with mortgage lender and servicer HSBC to address mortgage origination, servicing, and foreclosure abuses.
“This settlement is good news for Colorado borrowers who played by the rules and trusted that a lender would as well,” said Attorney General Coffman. “This multistate, multimillion dollar agreement will now compel HSBC to treat its borrowers more fairly in the future.”
The settlement provides direct payments to Colorado borrowers for past foreclosure abuses, loan modifications and other relief for borrowers in need of assistance; rigorous mortgage servicing standards; and grants oversight authority to an independent monitor.
The settlement includes Colorado and 48 other states, the District of Columbia, U.S. Department of Justice, U.S. Department of Housing and Urban Development, and the Consumer Financial Protection Bureau.
If you believe you have been a victim of lender abuse - or would like to report any fraudulent activity - please file a report at www.stopfraudcolorado.gov or call 800-222-4444.
# # #
HSBC Agreement Closely Mirrors National Mortgage Settlement -- The agreement’s mortgage servicing terms largely mirror the 2012 National Mortgage Settlement reached in February of 2012 between the federal government, 49 state attorneys general, including Colorado, and the five largest national mortgage servicers. That agreement provided consumers nationwide with more than $50 billion in direct relief, created new servicing standards, and implemented independent oversight.
A subsequent state-federal agreement with SunTrust Mortgage Inc. worth nearly $1 billion was announced in June of 2014.