HSBC’s U.S. branch is no longer undergoing a redlining investigation by the Department of Housing and Urban Development after it was last year’s. Recent Securities Filings.
The National Community Reinvestment Coalition, which filed a complaint with HUD last August, withdrew its complaint in May.
HUD has since closed its investigation into HSBC, and the bank and NCRC “continue to engage in discussions regarding NCRC’s concerns,” according to the filing.
HUD HSBC’s US branch is under investigation for redlining From 2018 to 2021, we looked at majority Black and Hispanic neighborhoods in six metropolitan areas.
Cities cited in the NCRC complaint included New York City, Los Angeles, San Francisco, Oakland, Seattle and Orange County, California.
The branches under investigation may no longer be under the control of HSBC, which downsized its U.S. footprint in 2021, selling 10 West Coast branches to Los Angeles-based Cathay Pacific Bank and 80 mostly East Coast branches to Citizens Bank.
But in recent years, government agencies have placed a greater emphasis on lending discrimination. First National Bank of Pennsylvania, Washington Trust and Patriot Bank We have resolved redlining investigations in the past year.
In 2016, HSBC agreed to pay $470 million to HUD, the Consumer Financial Protection Bureau, and attorneys general of 49 states and the District of Columbia over mortgage origination, servicing and foreclosure violations. The bank was ordered to pay. Another $131 million To the Federal Reserve.
Spokespeople for HSBC and the NCRC did not respond to requests for comment. A HUD spokesperson referred Banking Dive to a Freedom of Information request.
