CLAIM FORMS GOING TO HSBC BORROWERS WHO MAY BE ELIGIBLE FOR PAYMENT

~More than 3,100 Virginia borrowers may be eligible for payment from $59.3 million national fund~

RICHMOND(August 24, 2016) -- Attorney General Mark R. Herring announced that claim forms are going out today to HSBC borrowers in Virginia who lost their homes to foreclosure between January 1, 2008 and December 31, 2012 and who may be eligible for payment under the $470 million HSBC national mortgage foreclosure settlement. Qualified borrowers will receive a bilingual English/Spanish packet containing a letter from Attorney General Herring, instructions, answers to frequently asked questions, and a claim form that must be returned by November 15, 2016.

"This payment is intended as partial compensation for the mortgage servicers' illegal conduct and servicing abuse, and further terms of the settlement ensure that HSBC will abide by more rigorous standards when servicing mortgages or attempting to foreclose," Herring said. "We will continue to work each and every day to defend the rights of Virginia consumers and to hold businesses accountable when they violate consumers' rights."

 

HSBC agreed to a $470 million national settlement with the federal government, the Commonwealth of Virginia, 48 other states and the District of Columbia following investigations which alleged numerous violations in its servicing of mortgages and its foreclosure practices.  The settlement, which was filed in February 2016 and took effect in March 2016, earmarked $59.3 million in payments for approximately 75,329 borrowers nationwide who lost their homes to foreclosure during that period and had their loan serviced by HSBC.  The exact payment will depend upon the total number of borrowers who decide to participate.

Broad reform of the mortgage servicing process resulted from the settlement, as well as financial relief for borrowers still in their homes through direct loan modification relief, including principal reduction, second-lien modifications/extinguishments, and forgiveness of forbearances.

By participating, borrowers do not give up any legal rights. They may participate in this settlement and also pursue other legal remedies such as filing a lawsuit or participating in a class action, if they so choose.

Eligible Virginia borrowers should complete their claim forms and return them as soon as possible in the envelope provided, or file them online at: www.nationalHSBCsettlement.com.  

The deadline for all claims is November 15, 2016.   Payment checks are expected to be mailed in February or March 2017. 

Free claim form assistance available

The one-page claim forms are simple to complete. However, borrowers who have questions or need help filing their claim can contact the settlement administrator, toll-free, at 1-888-538-5792, or send questions by email to: This email address is being protected from spambots. You need JavaScript enabled to view it.. The information line is staffed Monday through Friday from 8 a.m. to 8 p.m. Eastern Time.

Payment won't stop other legal claims

Eligible borrowers do not need to prove financial harm to receive a payment, nor do they give up their rights to pursue a lawsuit against their mortgage servicer.

Eligible borrowers may get a payment from this settlement even if they participate in another foreclosure claims process.  However, any payment received may reduce payments that borrowers may be eligible to receive in any other foreclosure claim process or legal proceeding.

Eligible borrowers who are not notified should contact settlement administrator

Borrowers who believe they may qualify for a payment, but who do not receive a notice because they have moved, should contact the settlement administrator directly to provide that information:

Call toll-free: 1-888-538-5792.  The line is staffed Monday through Friday from 8 a.m. to 8 p.m. Eastern Time.

Email:  This email address is being protected from spambots. You need JavaScript enabled to view it. 

Beware of scams

Borrowers should not need to pay anyone to file their claim.  Herring warns all homeowners to be aware of settlement-related scams. Do not provide personal information or pay money to anyone who calls or emails you claiming that they are providing settlement-related assistance.   If you believe someone is conducting a settlement-related scam, call Attorney General Herring's Consumer Protection Hotline at (800) 552-9963 if calling from Virginia, or (804) 786-2042 if calling from the Richmond area or from outside Virginia.

Settlement background

The national settlement followed state and federal investigations, which alleged that HSBC routinely signed foreclosure-related documents outside the presence of a notary public and without personal knowledge that the facts contained in the documents were correct. This civil law enforcement action also alleged that HSBC committed widespread errors and abuses in its foreclosure processes.

For more information about eligibility and filing a claim:

Online: www.NationalMortgageSettlement.com

Email:  This email address is being protected from spambots. You need JavaScript enabled to view it.

Call toll-free: 1-888-538-5792.  The line is staffed Monday through Friday from 8 a.m. to 8 p.m. Eastern Time.

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