One of the Largest Banks Warns of Fines for Improper Foreclosures
HSBC North America Holdings, the nation’s ninth largest bank has announced that it could possibly be hit with impending fines from federal bank regulators for improper foreclosure practices, according to the Huffington Post. Although HSBC had announced that its net profit had more than doubled in 2010, reporting $13.2 billion, up from $5.8 billion in 2009 the firm is facing stiff fines related to foreclosures. This is the latest among many large financial institutions who have warned investors that they might face fines and increased costs associated with mortgages and repossessing homes. Wells Fargo & Company, Ally Financial and SunTrust Banks have already notified that they anticipate being sanctioned by the U.S. government for their foreclosure practices.
The lender’s two mortgage subsidiaries combined, HSBC Finance Corporation and HSBC Bank USA, handle about $110 billion in home loans, according to Inside Mortgage Finance, a trade publication and data provider. Investigations in all 50 states are targeting lenders for improper foreclosure practices that could result in some $30 billion in fines and penalties.