03-12-2013 05:28 PM
Does anybody know if the announcement last week that HSBC is selling its U.S. loans, etc., includes mortgages serviced by HFC (Household Finance)? If it does, any ideas of how will it affect the mortgages that were originated and serviced by HFC? I have been trying since my husband died to lower the interest rate of our mortgage, but they refuse. They won't remove his name from the mortgage, even though the deed has been transferred to my name. This is causing me problems with the IRS because HFC is reporting the mortgage interest paid (1098) under my deceased husband's social security. I hate HFC!!! Thank you
BBR Staff Writer Published 06 March 2013
HSBC Finance Corporation (HFC), an indirect wholly-owned subsidiary of HSBC Holdings, has agreed to dispose of its unsecured and personal homeowner loan portfolios to SpringCastle Acquisition.
SpringCastle is a Delaware-based company managed collectively by Springleaf Finance and Newcastle Investment.
The Asia-focused lender said that the sale of loan portfolios is likely to conclude in the second quarter of 2013, pending receipt of regulatory approvals and satisfying customary closing conditions.
Commenting on the agreement, HSBC Finance Corporation CEO Patrick Burke said that the disposal of loan portfolios is part of the lender's plan to strengthen its businesses in the US and concentrate on core businesses globally.
Additionally, HFC has also signed a deal with Springleaf to offload its loan servicing facility and related assets in London, Kentucky.
Based on the terms of the transaction, majority of the staff working at the facility will be transferred and will become employees of Springleaf.
Expected to conclude during the fourth quarter of 2013, the transaction pertaining to the completion of the sale of the building and assets, is also subject to customary closing conditions.
SpringCastle and Springleaf will pay the total purchasing price of $3.2bn in cash, for both the deals.
03-12-2013 06:22 PM - edited 03-12-2013 06:23 PM
Wow. If it is true, I wonder what the real reason is. First their CC, now their loans. (Maybe unrelated, but I heard some overseas banks are dumping/refusing US clients, too.) I'll have to have a look around to see what's what with this article.
03-13-2013 12:46 AM
09-16-2013 07:21 AM
The sad thing is I finished paying off my principal balance on my home equity loan and it was then sold to Spring Castle and now I cannot communicate with them to see what is my deferred interest balance. They have now a cease and desist order in my account not to provide me with any information regarding my account. It is really stressful trying to figure out who has your account.