The U.S. arm of HSBC Holdings Plc agreed to pay $249 million to end a case-by-case review of past home foreclosures in the United States, bringing the total payout by banks to resolve related issues to $9.3 billion. HSBC agreed to pay $96 million to eligible borrowers who lost their homes to foreclosure in 2009 and 2010, and provide $153 million in other assistance, including loan modifications and forgiveness.
London-based HSBC said in a statement it was pleased to have reached the agreement and expects to record a pre-tax charge of $96 million in the fourth quarter of 2012 for the cash portion of the settlement. The bank said it expected to cover the loan assistance through existing reserves.
The settlement, with the Office of the Comptroller of the Currency and the Federal Reserve Board, is the 13th the agencies have reached this month. They stem from reviews of individual loan files the regulators ordered in 2011 and 2012, after widespread mistakes were discovered in the way
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