Michigan Getting More Than $3.5 Million In HSBC Settlement

LANSING, Mich. (WWJ/AP) - Michigan is getting more than $3.5 million as part of banking giant HSBC's $470 million settlement with states and the federal government over mortgage lending and foreclosure abuses.

Michigan Attorney General Bill Schuette announced Michigan's share of the settlement on Monday.

The money will provide direct payments to borrowers for past foreclosure abuses, loan modifications and other relief for borrowers in need of assistance. The deal also requires the bank to improve standards for how it services loans and handles foreclosures.

Officials say the lending and foreclosure abuses helped intensify the country's economic meltdown.

National Mortgage Settlements in Michigan

The settlement complements the $25 billion 2012 National Mortgage Settlement (NMS) and the SunTrust Mortgage Inc. Settlement of over half a billion dollars. Like the previous settlements, HSBC's settlement stems from allegations of misconduct related to mortgage loans, including origination, servicing and foreclosure.

Borrowers Eligible for Payment

Michigan borrowers whose loans were serviced by HSBC and who lost their home to foreclosure from January 1, 2008 through December 31, 2012 and encountered servicing abuse will be eligible for a payment from the national $59.3 million fund for payments to borrowers. The borrower payment amount will depend on how many borrowers file claims.

Additional information will be posted on the Attorney General's website at www.michigan.gov/ag when it becomes available. Consumers can also call the Attorney General's Office toll-free at 1-877-765-8388.

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