HSBC sued over 'illegal' mortgage claims
HSBC is being sued by the state of New York for allegedly ignoring a law designed to protect US homeowners from losing their houses.
The BBC has reported that the lawsuit against HSBC states, "illegal business practices make it more likely that homeowners will unnecessarily lose their homes."
The state has accused the bank of being too slow to file paperwork in 300 foreclosure cases.
New York state law requires banks to offer a settlement conference within 60 days, giving the homeowner a final chance to renegotiate their loan payments before they lose their homes.
"(HSBC's) business practices not only violate the law, but they make it more likely that homeowners will unnecessarily lose their homes," State Attorney General Eric Schneiderman said in the court filing.
HSBC said it was committed to complying with the laws regarding foreclosure.
For more on HSBC see our special report on banking.
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