When is your home loan placed with HSBC Mortgage Services (HSBC USA) on the reputable side of the bank? When is your mortgage shuffled to Decision One and Household Finance or HSBC Finance Corporation and the troubled predatory side of the organization? Often asked and little known facts are now available. The average for HSBC USA is a FICO of 720 and above. The average FICO of those involved with the predatory side of the house is 641.
Other statistic for the predatory vulnerable group are as follows:
Average total debt ratio of 39.2%
Average LTV at 88.3%
82% of loans have a pre-payment penalty
79% refinance vs. 21% purchase money
91.6% first lien
98% primary residence

HSBC USA branch leads (non-prime customers) are referred to Decision One for marketing, underwriting and loan closing using a pilot launched in June 2004.

Consumer watchdog organization Household – HSBC Watch analysts determined that Household International, now called HSBC Finance Corporation, could drop the FICO score of their average credit card borrower or private label credit card holder to gain more business for Decision One and HSBC Finance Corporation. Using tactics which they used during Shea v Household’s ten year period from 1994 through 2004, and predatory tactics seen with Household Finance and Beneficial Finance, the average FICO score could easily drop 40 to 80 points through no fault of the customer.

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