Consumer complaint received 2017-06-08
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Dear CFPB, This is a complaint against HSBC Mortgage. Please allow me to provide some background. <P/>As you know, HSBC has been fined and sanctioned on numerous occasions for its fraudulent practices. As an example, there is a XX/XX/XXXX Consent Decree ( XXXX ) in which HSBC admitted, among other things, that : I- ( 2 ) - ( f ) it failed to sufficiently oversee outside counsel and other third-party providers ... I- ( 3 ) By reason of the conduct ..., the Bank engaged in unsafe or unsound banking practices HSBC was ordered to and HSBC accepted to : a- An Action Plan, for " effective mortgage servicing ... compliance, quality control, audit, training, staffing, and related functions .... '' b- " Develop and implement an adequate infrastructure to support existing and/or future Loss Mitigation ... and ensure compliance with the Order '' c- " Develop organizational structure, managerial resources, and staffing to support existing and/or future Loss Mitigation ... '' d- " Adequacy of staffing levels ... <P/>e- " Agree to deadlines to review loan modification documentation, make loan modification decisions, and provide responses to borrowers f- " To ensure compliance with all applicable federal and state laws ... including those with the Federal Housing Administration and those required by the Home Affordable Modification Program ( HAMP ) ... '' I am one of those that was harmed by HSBC and is continued to be harmed by HSBC as describe below. As I demonstrate below, HSBC continues to violate the terms of its agreements with the regulators, including the above Consent Decree Order and others still in force. Let me elaborate. <P/>( 1 ) I obtained a mortgage from HSBC in XX/XX/XXXX. Because of what I had read in the media about mortgages, I asked and HSBC assured me that the loan was a government-backed mortgage. Later, faced with an on-going hardship, I tried to use the HARP program but learned that despite HSBC assertions, the loan was a private loan hold presumably by HSBC itself, and was ineligible for HAMP. On numerous occasions I have asked HSBC to investigate this, compute and compensate me for the damages ( estimated to be about $ 100k ). HSBC has failed to comply with the enumerated terms of the Consent Decree ( XXXX ) above, and to address the switching of my loan type. I ask that HSBC investigate, respond, and make me whole without delays. <P/>( 2 ) Unable to use HAMP, I attempted to refinance but HSBC refused. I attempted loan modification but HSBC twice rejected it because of its XXXX  processor mistakes! After months of foot dragging, HSBC admitted its mistakes, promised a loan modification, but failed to provide the information I requested. HSBC has failed to comply with the enumerated terms of the Consent Decree ( XXXX ) above. I am asking HSBC to provide me with the breakdown of the amounts it used to compute my income and expense to evaluate my eligibility for loan modification. <P/>( 3 ) I have requested HSBC to provide me with the general eligibility CRITERIA it uses for loan modifications ( the income / expense ratio range, loan to income rations, etc. ) HSBC so far has not responded. The servicer says the investor has that criteria, yet the investor is HSBC itself, and HSBC refuses to communicate with me hiding behind its incompetent servicer XXXX. These are just the kind of behavior HSBC agreed to curtail per the Consent Decree ( XXXX ) above. I am asking HSBC to inform me of the identity and contact information including phone and email for the real 'investor ' holding my Note, and also obtain and provide me the general eligibility CRITERIA used for loan modifications in general and mine in particular. <P/>( 4 ) HSBC has now admitted to its mistake in rejecting my application twice, and claims it has performed a corrected review resulting in a loan modification offer for me. HSBC wants me to complete a trial period and then receive a permanent loan modification offer the terms of which are undisclosed. I have in principle agreed and so advised the HSBC asking how can I agree to go through a trial period for a plan whose terms are hidden from me? I have asked but the HSBC Case Manager refuses to provide me with the relevant documents. Not providing this information is conducting business in bad faith contrary to the terms of the Consent Decree ( XXXX ) above. I am requesting that HSBC provide me without delay a copy of the agreements / documents I would have to sign for the permanent " loan modification offer. <P/>( 5 ) HSBC 's offer stipulates that I go through a three month trial period during which it will test my ability to pay the new monthly payment. YET, this new monthly payment is LOWER that what I have been paying for the past several years. This begs the question of what is the purpose of this trial period other than a delay tactic to inflict unwarranted anguish and harassment of the consumer. I ask HSBC to review and withdraw the irrelevant and unjustifiable trial period for my loan modification, and I request CFPB to review this and similar cases. <P/>( 5 ) HSBC has sent me a letter stating that the loan modification will severely affect one 's consumer credit rating specially if the consumer is current on loan payments and has good credit!!! In other words, HSBC threatens decent people with hardship that it will deliberately report derogatory information on them to the credit agencies to damage their credit. I ask that HSBC abandon this vengeful practice of damaging the credit of good customers seeking loan modification, and conduct business in good faith with customers in good standing who, unlike HSBC, have honored their commitments. <P/>In summary, I have listed what I need from HSBC. I have also provided CFPB with one among many examples proving that HSBC has not complied with the terms of its agreements with the regulators, that it continues to violate the law, and that there is credible cause for action against HSBC by CFPB consistent with its mandate as a taxpayer supported US government agency created to make sure that lenders treat you fairly ( CFPBs motto ).

Company response to consumer: Closed with explanation