HSBC is the latest in a string of banks who warned investors via their SEC filing that they expect to get fined after getting a letter from regulators chastising their improper foreclosure practices. On Friday, Wells Fargo, Ally Financial (formerly GMAC) and SunTrust banks made similar announcements.
The letters took them to task for three things:
- “Deficiencies” in how they processed mortgage and foreclosure documents
- Poorly monitoring issue that might arise in that paper trail
- Not setting aside enough money to deal with the eviction process
Even after the fines, the door was left open for further action against the banks, so it’s possible we might see more of this down the pike.
One Of World’s Largest Banks Warns Of Punishment For Improper Foreclosure Practices In U.S. [Huffington Post] (Thanks to Lee!)