OCC Terminates Mortgage Servicing-Related Consent Order Against HSBC Bank USA, N.A.
January 09, 2017 / Source: OCC
FOR IMMEDIATE RELEASE
January 9, 2017
Contact: Bryan Hubbard
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today terminated its mortgage servicing-related order against HSBC Bank USA, N.A. (HSBC), and assessed a $32.5 million civil money penalty against the bank for previous violations of the order.
The OCC terminated the consent order against the bank after determining that the institution now complies with the order. The OCC originally issued the order in April 2011 and amended the order in February 2013 and June 2015. The termination of the order and amended orders ends business restrictions affecting HSBC that the OCC mandated in June 2015.
The OCC also assessed a $32.5 million civil money penalty against the bank. The OCC found that HSBC failed to correct deficiencies identified in the 2011 consent order in a timely fashion. As a result, the OCC determined the bank violated the 2011 consent order from October 1, 2014, through September 30, 2016. The OCC also found that HSBC failed to file payment change notices that complied with bankruptcy rules, which resulted in approximately $3.5 million in remediation to borrowers.
The bank will pay the assessed penalty to the U.S. Treasury.