The following is an overview of the compliance report I have filed with the United States District Court for the District of Columbia as Monitor of the National Mortgage Settlement (NMS or Settlement).
This report details my review of HSBC’s performance on the Settlement’s servicing standards. This report is a summary of the servicer’s performance through the end of 2016.
I have concluded that HSBC did not fail any metrics for the third and fourth quarters of 2016 and has satisfied its obligations under the Settlement.
Joseph A. Smith, Jr.
As required by the Settlement, I filed a compliance report with the United States District Court for the District of Columbia (the Court) for a servicer subject to the Settlement: HSBC.
The report I filed contains the results of the testing of HSBC’s compliance with the NMS servicing standards for the third and fourth quarter of 2016. This is the second compliance report for HSBC. Copies of both reports are available on my website, mortgageoversight.com.
As Monitor, I evaluate HSBC using the 34 metrics, or tests, enumerated in the Settlement. These metrics determine whether the servicers adhere to the 304 servicing standards, or rules, contained in the NMS.To evaluate HSBC’s compliance, I work with a team
To evaluate HSBC’s compliance, I work with a team of professionals. HSBC and my professionals follow a work plan in which an internal review group (IRG) made up of HSBC personnel who are independent of its mortgage servicing operation determines whether HSBC has complied with the Settlement terms. My professionals and I then review the work of the IRG. On the basis of this review, I determine if the IRG’s work was satisfactory and report my findings to the Court and the public. For more information about the oversight and review process, please see my previous reports.
This report covers the third and fourth quarters of 2016. For this period, HSBC was tested on up to 34 metrics.
The work to test the servicer in the third and fourth quarters of 2016 involved 32 professionals, including my primary professional firms, secondary professional firms and other professionals who dedicated approximately 12,815 hours over six months.