OCC Fines HSBC for Violations of Mortgage Order
HSBC was fined $32.5 million for failing to comply with a 2011 consent order that directed the bank to revamp its mortgage servicing and foreclosure practices.
The violations had previously led to strict restrictions on the bank's mortgage servicing business in February 2013, and then again in June 2015.
"The OCC found that HSBC failed to correct deficiencies identified in the 2011 consent order in a timely fashion," the agency said in a press release Monday.
The violations tied to the fine took place between Oct. 1, 2014 and Sept. 30, 2016, the OCC said. The agency also accused the bank of failing to file payment change notices in line with bankruptcy rules. These errors cost the bank about $3.5 million in remediation to borrowers, the OCC said.
Along with this latest fine, the OCC agreed to terminate the original consent order. But HSBC is still in hot water with other U.S. regulators. In February, the bank was fined $470 million by the Justice Department, the Department of Housing and Urban, the Consumer Financial Protection Bureau and dozens of state attorneys general for abusive practices in mortgage origination, servicing and foreclosures.
In a statement, HSBC said it was "pleased with the OCC's assessment of the enhancements we've made to mortgage servicing over the last several years."