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Foreclosure Freeze | HSBC 10K Report on Fraudclosure "Deficiencies"

4closureFraud's picture




 

 

UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Commission file number 1-8198
HSBC FINANCE CORPORATION

~

From the report...

We
may incur additional costs and expenses in ensuring that we satisfy
requirements relating to our mortgage foreclosure processes and the
industry-wide delay in processing foreclosures may have a significant
impact upon loss severity. State and federal officials are
investigating the procedures followed by mortgage servicing companies
and banks, including HSBC Finance Corporation and certain of our
affiliates, relating to foreclosures. We and our affiliates have
responded to all related inquiries and cooperated with all applicable
investigations, including a joint examination by staffs of the Federal
Reserve and the OCC as part of their broad horizontal review of
industry foreclosure practices. Following the examination, the Federal
Reserve issued a supervisory letter to HSBC Finance Corporation and
HSBC North America noting certain deficiencies in the processing,
preparation and signing of affidavits and other documents supporting
foreclosures and in governance of and resources devoted to our
foreclosure processes, including the evaluation and monitoring of third
party law firms retained to effect our foreclosures. Certain other
processes were deemed adequate. The OCC issued a similar supervisory
letter to HSBC Bank USA. We have suspended foreclosures until such time
as we have substantially addressed the noted deficiencies in our
processes
. We are also reviewing foreclosures where judgment has not
yet been entered and will correct deficient documentation and re-file
affidavits where necessary.

We and our affiliates are engaged in
discussions with the Federal Reserve and the OCC regarding the terms
of consent cease and desist orders, which will prescribe actions to
address the deficiencies noted in the joint examination. We expect the
consent orders will be finalized shortly after the date this Form 10-K
is filed. While the impact of the Federal Reserve consent order on HSBC
Finance Corporation depends on the final terms, we believe it has the
potential to increase our operational, reputational and legal risk
profiles and expect implementation of its provisions will require
significant financial and managerial resources. In addition, the
consent orders will not preclude further actions against HSBC Finance
Corporation or our affiliates by bank regulatory or other agencies,
including the imposition of fines and civil money penalties. We are
unable at this time, however, to determine the likelihood of any
further action or the amount of penalties or fines, if any, that may be
imposed by the regulators or agencies.

We expect to incur
additional costs and expenses in connection with the correction or
affirmation of previously filed foreclosure paperwork and the resulting
delays in foreclosures, including costs associated with the
maintenance of properties while foreclosures are delayed, legal
expenses associated with re-filing documents or, as necessary,
re-filing foreclosure cases, and costs associated with fluctuations in
home prices while foreclosures are delayed. These costs could increase
depending on the length of the delay. In addition, we may incur
additional costs and expenses as a result of legislative, administrative
or regulatory investigations or actions relating to our foreclosure
processes or with respect to the mortgage servicing industry in general.
We may also see an increase in private litigation concerning our
practices. However, it is not possible at this time to predict the
ultimate outcome of these matters or the impact that they will have on
our financial results.

Due to the significant slow-down in
foreclosures, and in some instances, cessation of all foreclosure
processing by numerous loan servicers, including us, for some period of
time in 2011 there may be some reduction in the number of properties
being marketed following foreclosure. The impact of that decrease may
increase demand for properties currently on the market resulting in a
stabilization of home prices but could also result in a larger number
of vacant properties in communities creating downward pressure on
general property values. As a result, the short term impact of the
foreclosure processing delay is highly uncertain. However, the longer
term impact is even more uncertain as eventually servicers will again
begin to foreclose and market properties in large numbers which is
likely to create a significant over-supply of housing inventory. This
could lead to a significant increase in loss severity on REO
properties.

The entire 10K report can be read here...

Well, that’s a pretty dramatic reversal from its stance from just a few months ago, when they  said publicly that they would not suspend home seizures because they
didn’t feel their procedures were compromised by so-called “robo-signers”
and felonous court affidavits.

HSBC CEO Irene Dorner, October 2010: "We have looked. We don't have robo-signers," HSBC has not suspended foreclosures and "we don't believe
we have a reason to do so," she said.

Now where are the damn handcuffs???

 

4closureFraud.org

 

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Tue, 03/01/2011 - 22:57 | 1010022 Catullus
Catullus's picture

Again: WTF Wells Fargo!  Disclose the same thing.

Tue, 03/01/2011 - 15:05 | 1008116 D1eeeeeNAHHHHH
D1eeeeeNAHHHHH's picture

HSBC is still a big player.  They don't seem like it because they have a lot of subsidiaries. 

Tue, 03/01/2011 - 14:34 | 1007956 disabledvet
disabledvet's picture

Was it 58 billion in "provisions for bad debts in the USA"?  I look forward to seeing the Fed's balance sheet publicly traded so we can see what the US taxpayer is on the hook for.  Should we include America's "private banks" as well?  this publicly traded bank only lost "7.7 billion" in the USA in 2009.  Rounding error by "bailout nation" standards...which to my knowledge unlike the Swiss Banks et al "HSBC wasn't demandin'."  No good deed goes unpunished of course...The need for "privacy" has now been banished from the Swiss lexicon "per imperial requirements."  should i expect it from "the homeland"?  according to media reports "JP Morgan never had a loss."  I don't recall the stock price soaring on the news of bailout nation either, however--nor of anyone there "turning up their nose" at the discount window.  Just observations from a combat vet of course and no "Wall Street guy."  Now let's "pay for this puppy!"

Tue, 03/01/2011 - 14:29 | 1007934 beastie
beastie's picture

Just wanted to thank you for continuing to turn over the rocks these low lifes hide under.

 

Tue, 03/01/2011 - 20:07 | 1009488 GreenSideUp
GreenSideUp's picture

I'll second that!  

I'm doing everything I can to pass the info you present to everyone I know.  

Tue, 03/01/2011 - 14:16 | 1007852 topcallingtroll
topcallingtroll's picture

It wont hurt the real estate market to slow down contested foreclosures, and mark to magic can cover up any problems. I will call this a positive for the stock market.

Tue, 03/01/2011 - 14:12 | 1007821 apberusdisvet
apberusdisvet's picture

HSBC is a minor player; the biggest fraudsters are BAC and JPM.  JPM, at least, has a plausible defense:  "We are an arm of the US Gov't".

Tue, 03/01/2011 - 14:17 | 1007864 Seasmoke
Seasmoke's picture

i think Wells Fargo has them both beat.....but if not, they have all broke the Law, many, many times.....No one should ever leave their home withoit fighting these criminals in court, you will be AMAZED at what you find in your research of assignment of your titles......I KNOW I HAVE BEEN !

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