Quick update on the foreclosure/robo-signing front here:
HSBC, the largest bank in Europe, announced in its 2010 Annual Report and Accounts that it is immediately suspending all U.S. foreclosures to address deficiencies in its foreclosure processes (see pages 83 and 108 of the linked pdf). Per the report:
“Following the examination, our examiners issued supervisory letters noting certain deficiencies in our processing, preparation and signing of affidavits and other documents supporting foreclosures, and in the governance of and resources devoted to our foreclosure processes, including the evaluation and monitoring of third party law firms retained to effect our foreclosures… We have suspended foreclosures until such time as we have substantially addressed noted deficiencies in our processes.”
HSBC says that it is in discussions with the Fed and the Office of the Comptroller of the Currency regarding cease and desist orders intended to address the deficiencies in the foreclosure processes. They say they cannot determine if additional fines or penalties will be imposed by regulators. They further warned investors that foreclosure documentation could be subject to increased scrutiny as a result of the regulatory investigations, and that additional delays in foreclosure could result after foreclosures resume.
The timing of this is odd to me. Back in October, HSBC’s CEO Irene Dorner claimed that the bank “[doesn't] have robo-signers, we don’t believe we have that issue.” At the time, many other lenders suspended foreclosures in response to the robo-signing crisis (these lenders have since resumed foreclosures). I can’t figure out what prompted the 180 degree turnaround over the course of four months. One would assume that HSBC, had they fully investigated the issue in October, would’ve found these deficiencies that were subsequently turned up by U.S. regulators.
Seems strange…what say you?
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chance
March 4, 2011 @ 5:21 pm
The banks cannot simply write down loan balances for people arbitrarily. This will cause a casscading of the good loans on the books. This will also drive home prices down even more. Plus there will be home owners like me who will organize a class action lawsuit against my bank for not writing down my balance as well. So you see there is no easy answer here. This is why the democrats need to stay out of the private markets. If they want to set in Washington and bitch about the whole world I don’t care. Please just stay in Washington and leave the rest of us alone.
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