A.G. Scneiderman To Sue HSBC Over Foreclosures
ALBANY, N.Y. (AP) - New York's attorney general is suing HSBC Bank USA and HSBC Mortgage Corp., claiming they're failing to set timely foreclosure settlement conferences required by state law.
The law says mortgage lenders who sue to foreclose on residential homeowners will request court-supervised intervention and attend a settlement conference on possible loan modifications within 60 days.
Attorney General Eric Schneiderman says about 25,000 foreclosure cases statewide have languished for months because lenders have delayed filing the papers to trigger a conference while continuing to assess interest, fees and penalties.
The lawsuit would require HSBC to waive those later charges. Schneiderman says lenders are "brazenly ignoring state law," citing nearly 300 HSBC cases in four counties. He says he'll also sue other lenders. HSBC says it's committed to complying with the law and will respond appropriately to Schneiderman.