Date Filed:
Tuesday, January 1, 2013
Settlement Amount:
$10,000,000
A settlement has been reached in a whistleblower class action lawsuit brought against HSBC Holdings Plc who is accused of overcharging Fannie Mae and the U.S. Department of Housing and Urban Development’s Federal Housing Administration on foreclosure fees.
The $10 million settlement resolves allegations listed above. However, HSBC admitted that it failed, contrary to FHA program requirements, to create or maintain an adequate FHA quality control program to review the fees and charges submitted by outside counsel and other third-party providers, which HSBC then submitted to FHA for reimbursement.
