Former HSBC mortgage borrowers to begin receiving settlements

Posted at 7:39 AM, Feb 17, 2017
and last updated 2017-02-17 07:39:01-05

RICHMOND, Va. – More than 2,100 Virginians who had their mortgages serviced by HSBC Mortgage and lost their homes to foreclosure between 2008 and 2012 will begin receiving settlement checks soon.

The checks, for approximately $1,200, will be distributed beginning Feb. 17 and all checks should be received within a few weeks.

HSBC agreed to a national settlement with the federal government, and the Commonwealth of Virginia, 48 other states and Washington D.C after investigations alleged numerous violations in HSBC’s practices in servicing mortgages and foreclosure procedures.

The $470 million settlement was filed in February 2016 and took effect in March 2016, making $59.3 million available to over 74,000 borrowers nationwide who lost their homes during that period of time and had their loans serviced by HSBC.

Virginia Attorney General Mark Herring sent out claim forms to eligible Virginia borrowers in August 2016 with a filing deadline of November 15, 2016.

Virginia exceeded the national average by having nearly 68 percent of eligible borrowers file a claim to receive part of the settlement.

Those whose claims were approved will receive a check. Those whose claims were denied will receive a letter informing them that they were found ineligible.  Anyone who receives a check or a letter and who still has questions is encouraged to call the Settlement Administrator at the following number: (888) 538-5792.