HSBC Holdings Plc broke New York foreclosure law and put homeowners at greater risk of losing their homes, according to New York Attorney General Eric Schneiderman, who said that he is suing the bank today, Bloomberg News reported today. A state investigation found that HSBC has left homeowners languishing in foreclosure by failing to meet requirements for giving them an opportunity to negotiate loan modifications, according to Schneiderman’s office. The lawsuit comes as state attorneys general nationwide have targeted banks over foreclosure practices, last year reaching a $25 billion settlement with five mortgage servicers, including Bank of America Corp. and Wells Fargo & Co. HSBC was not part of that settlement.
