HSBC Reaches $470 Million Accord Over Foreclosure Abuses

  • Bank reached settlement with Justice Department, 49 states
  • HSBC must reform mortgage-servicing practices under deal
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HSBC Holdings Plc will pay $470 million to end U.S. probes into allegations of foreclosure abuses including robo-signing that may have deprived struggling borrowers of opportunities to keep their homes.

Federal and state officials said on Friday that the bank’s North American subsidiaries reached a settlement with the U.S. Justice Department, federal housing and consumer protection regulators and 49 states as well as the District of Columbia.