The Office of the Comptroller of the Currency (OCC) terminated its mortgage servicing-related order against HSBC Bank USA, lifting restrictions placed on the bank over its failure to comply with requirements of the Independent Foreclosure Review, Housingwire.com reported yesterday. This termination marks the last OCC-regulated mortgage service to have its order terminated. The OCC originally issued the order in April 2011 and amended it in February 2013, with the most recent amendment in June 2015 forcing business restrictions on HSBC. HSBC must also pay a $32.5 million civil money penalty for previous violations of the order, which it will pay to the U.S. Treasury. The OCC stated HSBC failed to correct deficiencies identified in the 2011 consent order in a timely fashion. As a result, the OCC determined the bank violated the 2011 consent order from Oct. 1, 2014, through Sept. 30, 2016. In addition, the OCC found that HSBC failed to file payment change notices that complied with bankruptcy rules, which resulted in approximately $3.5 million in remediation to borrowers.
