HSBC pays $470m over ‘abusive foreclosure’

HSBC is to pay $470m (£325m) to settle US charges alleging the bank’s mortgage servicing arm engaged in abusive foreclosure and loan origination practices. The Justice Department said the settlement will provide $370m in various forms of consumer relief, such as reducing the principal on some borrowers’ mortgages. Another $100m will be divided up, with $40.5m going to the federal government and $59.3m going to borrowers who lost their homes.