Indiana is part of a $470 million settlement with mortgage lender HSBC involving servicing and foreclosure abuse accusations during the financial crisis. Attorney General Greg Zoeller says thousands of Indiana borrowers could be eligible for more than $2 million as part of the agreement.
Zoeller’s office says there were 2,830 eligible Hoosier borrowers whose loans were serviced by HSBC and who lost their homes to foreclosure between 2008-2012. The state says, if all borrowers who encountered servicing abuses submit claims, total payments to Hoosiers could top $2 million.
Eligible Indiana borrowers will be contacted by mail from the settlement administrator. In addition to the payments, the settlement requires HSBC to provide some borrowers with loan modifications or other relief. The company will also have to reform how it services mortgage loans, handles foreclosures and ensures the accuracy of information it provides in federal bankruptcy court.