Household HSBC Watch

It is one thing to buy a predatory lender — Household International — but quite another to cotinue the business practices almost unchanged. HSBC is still one of the biggest subprime lenders in the United States. As a result, lawmakers sent a letter to HSBC asking the lender and mortgage servicer to help home owners. “We are calling upon servicers to forbear foreclosures for potentially eligible homeowners over the next few months, review their loan documents and prepare to refinance eligible borrowers by October 1,” the lawmakers wrote.

will it happen, or will HSBC continue to seek what little profit they can from homeowners? Will home equity lines of credit and second mortgages retain their risky position? We wonder if London headquarters even knows about the letter. Maybe they read about it in the news? Here si the twist: Many people sent complaints about HSBC mortgage servicing of illegal loans purchased or made by other lenders, some of whom have gone out of business. How HSBC protects their position and how they will react to requests by lawmakers remians to be seen.

One fact is clear. If HSBC, and specifically HSBC Finance (formerly Household International), reacts the same way they react to customer requests two things will happen. HSBC will claim that they never got the letter. When that proves to be untrue HSBC will claim the “issue is under review” which means it will never be seen again.