Posted on 03/01/2011 8:31:41 AM PST by Chunga85
Bank made disclosure in annual SEC report
Updated: March 1, 2011, 6:33 AM
HSBC Bank USA and HSBC Finance Corp. have stopped all home foreclosures until further notice and may face unspecified regulatory actions or fines, after regulators found “certain deficiencies” in servicing and foreclosure procedures, HSBC said in government filings Monday.
The disclosure by HSBC, buried deep within its annual financial report to the Securities and Exchange Commission, marks the first time HSBC has admitted to a foreclosure moratorium in the wake of a legal and paperwork crisis that swept the industry.
That’s a dramatic reversal from its stance just a few months ago, when it said publicly that it would not suspend home seizures because it didn’t feel its procedures were compromised by so-called “robo-signers” and faulty court affidavits.
(Excerpt) Read more at buffalonews.com ...
Pesky paperwork ping...
Pesky paperwork lol more likely all those fines and lawsuits from investors. I think a lot of what the people are doing with fighting foreclosures has brought light to the toxic mortgages the banks sold to investors. JP Morgan has 10,000 lawsuits against them already and BOA lots of investor lawsuits there too.
This could become a nightmare for our econonmy. The whole thing survives on faith and the rule of law. If we get to a point where even people who have made their payments religiously don’t know if anyone will be able to give them title when they make the last payment, well, we will be in a world of hurt. A form of “Road Warrior” hurt, frankly.
More like, “We have a glut of previously foreclosed homes and will rid ourselves of those beforeing taking on any more.”
I agree and I suspect that is exactly what will happen this has all been papered over no real problems have been solved and worse in the meantime the banks are being allowed to dump these loans onto the taxpayers and psss...the ones they haven’t dumped on us already for a penny on the dollar.
‘Toxic’ Assets Still Lurking at Banks
http://online.wsj.com/article/SB10001424052748704570104576124701144189910.html
“But how sharp is Freddie if all it can do is squeeze a $1.28 billion payment out of a giant customer in exchange for relinquishing fraud claims on $117 billion worth of outstanding loans? The very best its million-dollar executives can do is claw back a penny on each bubbly subprime dollar?”
http://finance.fortune.cnn.com/2011/01/03/is-fannie-bailing-out-the-banks/
Unlimited credit for GSEs seen as backdoor bailout
http://www.reuters.com/article/2010/01/05/us-usa-housing-bailout-idUSTRE6044YU20100105
The mortgage bankers will go thru what the tobacco companies went thru, Eventually the court cases will be resolved over a prolong period of time. The banks will survive and regroup just like the tobacco companies. What the banks need to fear is the criminal charges against the individual officers because the prospectus must be reasonably accurate before it is used to represent the investment products to the investors. Not having the titles to the mortgage notes bundles in the portfolios sold but stating otherwise on the prospectus is a major bolo that can lead to jail/fines.
I think this is different than tobacco. We are talking about people’s mortages here, as well as a system that requires faith in order to function.
Just another isolated incident ,, nothing to see...
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