Iowa is part of a federal and state settlement with HSBC Bank concerning alleged issues with mortgage settlements. Iowa Attorney General Tom Miller’s spokesman, Geoff Greenwood, says Iowans will see some of the $470 million settlement.
“Over the years, HSBC we alleged had engaged in mortgage servicing abuse. This is the same type of thing we had seen throughout the industry over the years of lost documents, incorrect information that’s on documents, foreclosures that really shouldn’t have happened,” Greenwood says.
HSBC has agreed to make changes in how they operate. “This settlement requires them to go through new servicing standards. They have to up their game when it comes to wanting to foreclose on a borrower,” Greenwood says. “We are trying to make sure that when they file documents, that the documents are accurate, that they have done everything they can to avoid a foreclosure, and make it a fair playing field for the borrower.”
He says some 600 Iowans could be getting part of the settlement. “Those borrowers are going to get contacted by a settlement administrator sometime later this year — they’ll have to submit some paperwork — and they’ll be eligible for a payment,” Greenwood explains.
The amount each Iowan will get in the settlement depends on how many borrowers file. It covers those who lost their home to foreclosure from January 1st, 2008 through December 31st, 2012.