2nd Jul 2014 05:44
LONDON (Alliance News) - HSBC Holdings PLC has agreed to pay USD10 million to the US to settle allegations of fraud over foreclosure fees.
The claims were related to HSBC's failure to oversee the reasonableness of foreclosure-related charges it submitted to HUD's Federal Housing Administration and the Federal National Mortgage Association for reimbursement, contrary to program requirements and HSBC's certifications that it had done so.
Preet Bharara, the US Attorney for the Southern District of New York, and Michael Stephens, Acting Inspector General for the Federal Housing Finance Agency Office of Inspector General Tuesday said that the US has settled these civil fraud claims.
In the settlement, ''HSBC accepted responsibility for failing to create or maintain systems to review fees and charges submitted by outside counsel and other third-party providers to the lender during 2009 and 2010, fees and charges which HSBC then submitted to Federal Housing Administration and
Fannie Mae for reimbursement without the requisite oversight and review.''
HSBC agreed to pay the Government USD10 million to resolve its liability to the US for this conduct.
HSBA.L closed up 0.9% on Tuesday at 598.20 pence.
Copyright RTT News/dpa-AFX
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