Ohio is joining 47 other states in a nearly half-billion-dollar settlement with mortgage lender and servicer HSBC.
The settlement will pay cash out to nearly 20,000 borrowers who the states say were victims of mortgage-servicing abuses and loan modifications by HSBC. Dan Tierney with the Ohio Attorney General’s office says a $59 million fund has been created with this settlement.
“There will be relief for these borrowers, about 1,574 in Ohio: refinancing, principal reductions, somebody’s lost their home to foreclosure, they will be eligible for cash payments.”
HSBC is one of the smaller lenders involved in the mortgage crisis, and wasn’t covered in a $50 billion settlement in 2012 that implemented new standards and oversight for mortgage servicers.