HSBC has agreed to pay a $470 million settlement to the US government and states related to dubious mortgage lending and foreclosure practices that contributed to the financial crisis.
The agreement includes a $100 million fine and $370 million in consumer relief to borrowers.
Investigations began in 2010 after the bank was found to be signing off foreclosure documents without proper review.
In a statement, HSBC CEO Kathy Madison called the agreement a “positive result.”
The consumer relief will require the bank to cut the loan amount on mortgages for homeowners close to default.
HBSC will also be required to change internal practices like foreclosing on homeowners who are being considered for a loan modification.
“The agreement is part of our ongoing effort to address root causes of the financial crisis,” said the head of the Justice Department’s Civil Division Benjamin Mizer.
The deal settles claims with 49 states, the District of Columbia and the federal government.
HSBC’s agreement is similar to deals that were given to US banks including JP Morgan and Bank of America in 2012.
O.J. Simpson’s South Florida house will be auctioned today (October 29), a Miami-Dade Clerk of Courts official said.
The sale is part of a bank foreclosure proceeding issued by a judge in August for JPMorgan Chase Bank.
The 4,233-square-foot home near Miami has been in foreclosure proceedings for about two years. The home is expected to appear in the online auction Tuesday.
O.J. Simpson was convicted in 2008 in Nevada of the kidnapping and armed robbery of two sports memorabilia dealers in Las Vegas
O.J. Simpson was convicted in 2008 in Nevada of the kidnapping and armed robbery of two sports memorabilia dealers in Las Vegas. He was also acquitted in 1995 of killing his ex-wife and her friend.
Court documents show O.J. Simpson owes more than $796,000 in principal and interest on the Florida property. There’s also nearly $42,000 in unpaid property taxes and insurance premiums of about $43,000.
The property is located on 9450 Southwest 112 Street in Kendall.
A $45 million Atlanta mansion – Forsyth County estate Le Rêve – was foreclosed and then sold at a massive 75% drop at only $11.5 million.
Forsyth County estate Le Rêve (“The Dream” in French) was foreclosed at the end of 2010 after taking three years to build with no expense spared by Hubert and Norma Humphrey.
The impressive mansion, which has its own private 18-hole golf course, now has a new owner, who bought it for almost $34million less than the asking price.
WSBTV reported Le Rêve (The Dream) estate features seven bedrooms, nine full baths, 11 half baths, ten fireplaces and two elevators.
The $45 million Atlanta mansion - Forsyth County estate Le Rêve - was foreclosed and then sold at only $11.5 million
Besides the private 18-hole golf course, the expensive mansion features other sports courts, stables, a camping area, bowling alley, home theatre, fifties diner, an exercise facility, a massage room and a pool. Le Rêve property is gated and entirely monitored by security cameras.
Troy Stowe, a real estate agent described the property:
“One of the largest challenges of selling Le Rêve was it sat on 72 acres, it was 47,000 square feet and just trying to find someone (who) wants to take on (what) I kind of call the big dragon.
“If you’re not used to maintaining and caring for a property like that, it is a challenge.
“I was told that in that one room, there are 27 seats and there was over $1 million spent in the home theatre.”
Immediately after foreclosure, the mansion was originally listed for $45 million. Then the bank took possession of the property and its price was dropped to $28 million. The Forsyth County estate Le Rêve price was dropped down to $16 million before the $11.5 million offer was accepted.
Troy Stowe said: “Ultimately, if you get a $50 million house for $11.5 (million), at some point, when the money lined properly with what the property offers, (a buyer) just came onboard.”
According to Zillow, the online real estate database, Hubert Humphrey started life as a railroad brakeman and conductor who later enjoyed entrepreneurial success.
Hubert Humphrey sold insurance for A.L. Williams, where he earned record sales, then launched his own company, Humphrey Worldwide Network, before selling it to Primerica, which is now part of CitiGroup.
The entrepreneur then formed World Marketing Alliance, followed by the World Leadership Group, a marketing, financial services and mortgage company based in Atlanta.
Hubert Humphrey started building Le Rêve mansion in 2005 on the 72-acre property.
Asked about the identity of the new Le Rêve owner, Troy Stowe said he cannot give anything away:
“Everybody wants to know who bought it. And I did sign a confidentiality agreement, but I just tell them it’s normal folks, husband and wife living at the property.”