LANSING, Mich. (AP) – Michigan is getting more than $3.5 million as part of banking giant HSBC’s $470 million settlement with states and the federal government over mortgage lending and foreclosure abuses.
Michigan Attorney General Bill Schuette announced Michigan’s share of the settlement today.
The money will provide direct payments to borrowers for past foreclosure abuses, loan modifications and other relief for borrowers in need of assistance. The deal also requires the bank to improve standards for how it services loans and handles foreclosures.
Officials say the lending and foreclosure abuses helped intensify the country’s economic meltdown.