Whether or not anyone should receive a loan modification has become a moot point. A group of hard-working Americans who have been requesting loan modifications is unearthing extraordinary ineptness on the part of America’s largest lenders. One year into the request for loan modification, one binder is five inches thick with at least 20 bank errors in those pages and contains 12 typed pages, single spaced, of who said what to whom. Absolutely no one at this bank knows what anyone else is doing!
Of note recently is that Wells Fargo has sold a number of loans to HSBC after those loans have fallen in some type of default. Most believe that HSBC is based in China; it isn’t. It was started in China in the 1800s by a Scotsman . . . something to do with the opium trade. HSBC was incorporated in Wales/England prior to Hong Kong goin back to the Chinese. HSBC is the largest bank in England with holdings around the world. It is not globally answerable to anyone because, as it notes, each bank/branch is subject to local rules/regulations.
HSBC has partnered with Wells Fargo on commercial banking levels. Because of that, and because is bundling and selling defaulting loans in bulk to HSBC, don’t you wonder if this is some type of money laundering/offshore banking on a high level.
Following is text from HSBC’s web site; these are the rules they subject themselves to. (I did the same with Wells Fargo . . . if you are having trouble with loan modifications through Wells Fargo, you may want to read their code of ethics — it will amuse you, I’m sure.)
Both of these entities purport to act fairly and honestly at all times and insist that their employees do also. My apologies to them, but that is not what we are seeing and many of the employees are in the dark; I have heard repeatedly that they do not know what is going on.
HSBC USA Inc. – Statement of Business Principles and Code of Ethics
The Fundamental Principle
In all its endeavors, it is the policy of HSBC North America Holdings Inc. and each of its subsidiaries (collectively referred to herein as the “Corporation”) to act honestly and fairly at all times. It is the Corporation’s policy to comply with the spirit as well as the letter of all applicable laws and regulations in all that it does. Each employee of the Corporation is expected to do the same.
Violations of this policy and failures to report known violations will subject the employee to disciplinary procedures, including termination of employment. In addition, employees who should have, through the exercise of due diligence, discovered violations of this policy, but who fail to do so, may be subject to discipline, including termination of employment.
In dealing with employees, customers and suppliers, the Corporation makes decisions without regard to race, ancestry, color, religion, national origin, citizenship, marital status, veteran’s status, gender, gender identity, sexual orientation, age or disability that can be reasonably accommodated . . .
In dealing with customers, the Corporation is dedicated to offering top quality products and services and to supplying only honest information about them. The Corporation will offer products and services on a competitive basis and will not tolerate the use or attempted use of improper incentives to obtain business . . .
Compliance with Laws and Regulations: Numerous laws and regulations, both domestic and foreign, specifically govern various aspects of the Corporation’s business: the Foreign Corrupt Practices Act, the Financial Institutions Regulatory and Interest Rate Control Act (FIRA), the Community Reinvestment Act, the Truth-in-Lending Act, the Fair Credit Reporting Act, the Bank Secrecy Act, and various federal and state usury laws, to name just a few. In addition, laws and regulations of general applicability, such as the securities, equal employment, wage and hour and antitrust laws, affect us. Failure to comply with these laws and regulations can have serious consequences, including legal liability for damages and other penalties. You have a responsibility to learn and understand the laws and regulations applicable to the activities of your department and your particular responsibilities within your department. If you identify unresolved legal questions you should bring them promptly to the attention of your supervisor or department head. The General Counsel’s office is always available to provide further help.
The banking industry has concerns that money laundering schemes will increase and, if successful, will lead to the erosion of public confidence in the banking system. Bank personnel therefore must comply aggressively with the provisions of the Bank Secrecy Act — particularly the reporting of unusual cash transactions. Compliance will not only help the Corporation avoid stringent penalties, but also will assist us in fulfilling our obligations to our fellow workers, our parent company and our communities.
Corporate Sustainability: Our goal is to be one of the world’s leading brands in corporate sustainability. This is not solely an environmental or social agenda, nor is it confined to governance and ethics. Sustainability is about bringing all of these issues together into our business model, and about maintaining the long-term growth of a successful business for the benefit of our stakeholders. For HSBC, sustainability is about making decisions that maintain the right balance between the environment, society and the economy to ensure long-term business success.
We believe that it is our duty to our customers, investors and employees to foster an ethical, responsible and sustainable corporate philosophy.
While our biggest contribution to society is the responsible provision of financial services, we have also long sought to strengthen our ties with local communities through philanthropic partnerships. Education continues to be the primary focus for our corporate giving. The second philanthropic area we support is the environment.
Conflict of Interest: . . . A “conflict of interest” arises when your personal interest in a transaction, or an obligation you owe to someone else, comes into conflict with your obligation to the Corporation and its customers. This includes using your position to advance your own personal gain or advantage on the basis of sensitive information gained during your employment, whether or not you obtained this gain or advantage at our expense or at the expense of any entity of the Corporation or its customers . . .
Self Dealing, Fiduciary Appointments and Powers of Attorney: You may never participate in the consideration or approval of any extension of credit, any waiver of fees or any other transaction between the Corporation and yourself or anyone in your immediate family, or with other people, corporations, partnerships, trusts or other organizations in which you or any member of your immediate family have a significant financial interest . . .
Gifts from Suppliers or Customers: The Bank Bribery Act and other applicable laws prohibit you from seeking or accepting for yourself or any other person anything of value (including services, discounts or entertainment) from customers, suppliers or anyone else in return for any business, service or confidential information of the Corporation . . . exceptions to the general prohibition against seeking or accepting anything of value as follows:
(i) Lunches, dinners and other customary entertainment (e.g., sports events, golf, etc.) provided in the ordinary course of a supplier’s or customer’s business and in situations where we would normally reimburse the cost as a proper business expense;
(ii) Services or discounts customarily afforded by suppliers or customers in the ordinary course of their business;
(iii) Promotional gifts such as lighters, pencils, calendars and the like, routinely distributed by the donor; and
(iv) Gifts in connection with customarily recognized events (e.g., holidays, job promotions, etc.) not exceeding a $100 value.
You must promptly report to the General Counsel’s office anything of value beyond those items listed above if offered to you, received by you, or if you anticipate receiving such an item.
NOTE: Employees may never accept gifts of cash, checks or gift certificates convertible to cash, regardless of amount.
Borrowing Money from Suppliers or Customers: Employees are not permitted to borrow from any of the Corporation’s suppliers or customers . . .
Note: Because the Corporation is engaged in the business of lending, the Corporation’s employees must set an example. Failure to timely repay loans from the Corporation may place the employee in a conflict of interest situation. Therefore, the Corporation believes it appropriate to disclose an employee’s delinquent debt to the employee’s business unit manager.
Outside Employment and Business Activities: Other potential sources of conflict of interest include holding any outside employment position or conducting personal business which may interfere with the employee devoting full attention and loyalty to the Corporation during working hours; holding a direct or indirect financial interest in a competitor company or in any firm or entity with which the Corporation does business (excepting normal investments in publicly owned companies); holding a direct or indirect financial interest in any firm or entity that is a supplier of or vendor for the Corporation (excepting normal investments in publicly owned companies); holding or acquiring an interest in any property or business in which the Corporation has or proposes to acquire an interest; serving as a director or officer of any firm that is a competitor, customer or supplier of the Corporation; or conducting business on behalf of the Corporation with an individual related by blood, marriage or adoption. Accordingly, you should disclose and obtain approval for any outside employment from your manager or Human Resources . . .
You should know that certain types of outside employment, such as with other financial institutions or securities dealers, are prohibited by law. Refer questions relating to the appropriateness of such outside employment to the General Counsel’s Office.
Soliciting or Accepting Legacies or Other Favors: We do not allow you to solicit any legacy or other favor granted by an individual or organization where your relationship to the individual or organization arose primarily during the course of your employment.
Information About Our Customers and Employees: We expect you to treat information entrusted to us by our customers and employees as you perform your duties for the Corporation as confidential and privileged. This includes information relating to deposit and loan balances, information concerning the management, financial condition and future plans of our customers’ businesses, employee/salary information and information obtained in the course of fiduciary relationships. You must not disclose confidential information to anyone either inside or outside the Corporation except in compliance with the Corporation’s information protection policies. Your obligation to maintain the confidentiality of the information continues even after you leave the Corporation . . .
Limited Use of Confidential Information: While recognizing the need for a constant flow of information for the smooth operation of the Corporation, we expect you will not disclose confidential information pertaining to our customers’ affairs to your fellow employees unless they have a clear business need to know the information for the performance of their duties. You must exercise particular care in communicating confidential information to persons in other departments or in other corporate subsidiaries and affiliates who may have different responsibilities and possibly conflicting obligations . . . you cannot communicate nonpublic information . . .
Disclosure of Information to Outsiders: Apart from routine credit inquiries, you cannot release information concerning our customers’ affairs to outsiders, including law enforcement authorities, except in response to a valid subpoena or similar legal process within strict compliance of the Corporation’s established internal operating procedures. Treat information concerning the Corporation, its affiliates, or any of their customers as confidential . . .
Information About HSBC North America Holdings Inc., its Subsidiaries or Affiliates: Because of your position, you may obtain information about your business unit or HSBC North America Holdings Inc. or other HSBC subsidiaries or affiliates not otherwise available to the public. You cannot disclose confidential financial or other proprietary information concerning any of these entities to outsiders until it has been published in reports to security holders or otherwise made generally available to the public. HSBC policy requires the coordinated communication of sensitive information about HSBC or its affiliates to investors, security analysts and the press through properly designated representatives in our Investor Relations and Public Affairs areas. Your obligation to maintain information about HSBC and its affiliates as confidential remains in effect even after you are no longer employed by the Corporation. In addition, you may have legal liability if someone inside or outside your immediate family obtains a personal gain or advantage on the basis of confidential information obtained directly or indirectly from you.External Communications: You must refer all media inquiries directly without further comment to Public Affairs. Likewise, Public Affairs must coordinate all ongoing media contact. This ensures the preparation of official statements is consistent with corporate policy, monitored contacts and anticipated news coverage . . .
Personal Gain: You must not use confidential information about the Corporation or any of its affiliates, customers, or suppliers entrusted to you in the course of your employment for your personal gain or the personal gain of your family, friends, or others.
Securities Law Penalties: The improper or personal use of confidential information concerning the Corporation or its affiliates, customers or suppliers is a violation of the Corporation’s policies, and may subject both you and the Corporation to penalties under various securities laws and regulations . . .
Competition: The Corporation believes in the free enterprise system and is dedicated to the maintenance of fair competition in an open market. Employees are to avoid any circumstances that will, or would appear to, violate antitrust or competition laws . . . Normal business activities occasionally require contacts with competitors, but on such occasions discussion of any of the above-mentioned subjects must be avoided. Any violation of these conditions should be reported immediately to the General Counsel’s office . . .
Employees are prohibited from making, offering or soliciting any payment that is in the nature of a bribe, kickback or other illegal payment to any customer or supplier of the Corporation or to any other person. If any customer, supplier or any other person solicits or requests such a payment, that solicitation or request should be reported immediately to the General Counsel’s office.
Corporation Records: The Corporation’s books and records and other essential data are to be maintained with accuracy and honesty in strict compliance with applicable laws, accounting principles and management’s general authorization. When preparing such records, employees are not to make false or misleading entries in records nor permit to exist any fund or asset or liability which is not fully and properly recorded on the Corporation’s books. No transactions, agreements, programs, plans, obligations or payments shall be entered into, made or recorded with the understanding that their use is for other than the stated purpose.
Employees shall not make any false or misleading statements about such records or conceal information from management or the Corporation’s auditors . . .
Government and Public Affairs
The Corporation advocates the democratic system and is committed to upholding the political, legal and governmental processes of the local, state and federal systems of the United States and other countries where the Corporation operates.
Further the Corporation recognizes that participation by citizens in civic and political activities is necessary for this system to function properly. The Corporation encourages employees to exercise their right to vote, to participate actively in the political process, to be informed on public issues and on the positions and qualifications of public officials and candidates for public office and to support issues, candidates and parties of their choice, as individual citizens.
Employees should not use the Corporation’s name or the name of HSBC Holdings plc or any of their affiliated entities, either directly or indirectly, to endorse any public issue, political candidate, political party or business interest, product or service, unless otherwise authorized by the General Counsel’s office.
Political Activities and Contributions: Federal and state laws and regulations restrict, and in some cases prohibit, corporations from making payments or using their property to support candidates for political office or political parties or committees. As a matter of policy, HSBC and its subsidiaries do not use corporate funds to make contributions to federal, state or local candidates or committees. We prohibit the use of the Corporation’s employees or property, including office supplies, printing facilities, postage and equipment, to promote political candidates or parties. We prohibit you from making any expenditures for such purposes through travel and expense accounts and we do not allow recovery of any such expenditure.
Both state and federal laws, however, permit voluntary personal contributions to segregated funds established for political purposes, such as H-PAC, the political action committee (PAC) for employees of the Corporation. The Corporation may legally pay for the PAC’s administrative expenses, but the employees voluntarily provide the funds the PAC uses to financially support candidate campaigns.
The solicitation of the Corporation’s employees for political contributions on the Corporation’s premises is limited to H-PAC.
Holding of Public Office: Under the laws of the State of New York and most other states in which the Corporation does business, the holding of public office, elective or otherwise, may give rise to an illegal conflict of interest or could prevent us from having normal business relationships with the governmental body involved, including depository relationships and the purchase of its debt obligations. Whether or not the public official receives any salary or participates in the actual deliberations leading up to any contract or transaction does not affect this rule . . .
Improper Payments: The Corporation prohibits the use of corporate funds for bribes or for making improper payments of any kind to any persons or organizations in order to obtain their business or to influence their policies or decisions, or for any other reason. This prohibition includes any payment to any foreign or domestic government official, employee or agent not required by law. We also prohibit the making of any “kickback” or the sharing of fees with those who represent customers or suppliers of the Corporation.
We remind you that the Corporation and its affiliated companies conduct business throughout the world and that the Corporation will strictly comply with the applicable laws and regulations of the countries in which we do business. However, you must remember that laws and business customs vary from one foreign country to another and from the laws and customs of the United States. We forbid foreign practices that violate a U.S. law or regulation even when acceptable locally.
If you have questions concerning the legality of any payment, or any suspicion of a kickback, bribe or other illegal arrangement, you should report it immediately to the General Counsel’s office.
Personal Investments: Subject to any more restrictive divisional policies and procedures, you and the members of your immediate family may invest at your discretion in stocks, bonds and other corporate securities, as well as foreign currency, interest rate and commodity forwards, futures and options. However, because of your position with a financial institution, you should avoid excessive speculation or risk in your personal financial activities. You may easily measure excessive risk by determining if the loss of a particular investment would significantly affect your standard of living or cause you to encounter extreme financial hardship.
You also must avoid particular investments affecting your judgment with respect to making decisions for the Corporation or giving rise to the appearance of a conflict of interest if reported on the front page of The New York Times.
You must limit investments in the obligations of customers, suppliers and other parties doing business with the Corporation to securities publicly traded on a national securities exchange or in the over-the-counter market, unless you obtain the prior written approval of the General Counsel’s office. Investments in such publicly traded securities in excess of 1% of the company’s issued and outstanding shares require prior approval of the General Counsel’s Office.
In making your personal investment decisions, you must carefully avoid the use of any confidential information you have obtained through your employment. In order to avoid potential conflicts in this area, you should avoid investments in the securities of any corporate customer for which you currently have or anticipate having direct or indirect account responsibilities.
Trading and Margin Accounts: Subject to compliance with divisional policies and procedures applied because of your position with the Corporation, officers and employees may maintain accounts, including margin accounts, for their own personal trading and investment activities and those of members of their families and others. You are permitted to maintain these accounts with HSBC affiliates, such as HSBC Brokerage (USA) Inc., or with independent securities, foreign exchange or commodities firms.
The Rules of Fair Practice of the National Association of Securities Dealers restrict NASD registered broker dealers, including HSBC Brokerage (USA) Inc., from selling securities distributed in a public offering (i) to senior officers of commercial banks, investment companies and registered investment advisers, or (ii) to any employees of such entities engaged in buying or selling securities for such entities or their customers. These restrictions also apply to family members sharing the same household.
In addition, rules of the New York Stock Exchange provide that member firms may open margin accounts for bank employees if they first obtain the employer’s consent. Your supervisor or divisional compliance officer can provide such a consent, if requested to do so. Of course, officers and employees should not engage in trading or investment activities conflicting with their employment duties or considered imprudent under their own personal circumstances.
Reporting and Inquiries: The basic principles presented in this statement are intended as general guidelines rather than rules and regulations for all situations. Should any question arise as to the interpretation of a particular principle or situation, the employee shall refer the question to the General Counsel’s office.
Inquiries and information reported under this policy will be kept in confidence except as may otherwise be required to protect the Corporation’s interests. There shall be no reprisals for reporting information pursuant to this policy.
Violations of this policy and failures to report known violations will subject the employee to disciplinary procedures, including termination of employment. In addition, employees who should have, through the exercise of due diligence, discovered violations of this policy, but who failed to do so, may be subject to discipline, including termination of employment.
Reporting Violations: If asked or ordered to participate in, or you otherwise become aware of, any event violating the Corporation’s policies, applicable laws and government regulations, or both, you should report the information to the General Counsel’s office and/or contact the Employee Integrity Tip Line at 888-560-1777. The Employee Integrity Tip Line Unit will notify Corporate Security, if appropriate. Corporate Security conducts such investigations as are required under the circumstances and has responsibility for coordinating the related involvement of the Corporate Security Department, Human Resources Division and related division management . . .
Last Revised: July 23, 2008
Banks are in the business of lending, and only want to seize these properties when the borrower defaults. They’re not in the business of owning, managing, or maintaining real estate. But some banks have been pretty aggressive about foreclosing . . . 
The letter to the FBI (way down there) comes from a group digging into the foreclosure crises, all of whom are finding absolute non-cooperation by lenders, no matter what the background, ethnic group, income level, hair color, married or single, kids or sans kids, sexual preference, West Coast or East Coast denizen, etc.
Mortgage companies have managed to level the playing field across this country; it doesn’t matter who you are, how tall you are, what color your eyes are, they are NOT going to cooperate. As every cloud has a silver lining, so does this one: We can all finally acknowledge that we ARE in the same boat; if we work together we can beat them back; perhaps this is the lesson here.
HSBC is accusing an employee of stealing client data and selling it to French authorities (from the “Office of Inadequate Security” . . . don’t you love the internet?);
If you are in the midst of dealing with these duplicitous lenders, try contacting the FBI with the following, which is from one of my committee members (the full PDFs of this will follow in a week or so). You have absolutely NOTHING to lose by calling their cards, and given that many of us have 10-12 pages of notes about their mistakes, lies in court, and incompetencies, you stand to win; sadly, they do not know what they are doing and they WILL be the demise of America if left unchecked. So check them:
The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? Nancy Pelosi. She is the leader of the majority party. She and fellow House members, not the president, can approve any budget they want. If the president vetoes it, they can pass it over his veto if they agree to.
STILL THINK THIS IS FUNNY? Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. What in the hell happened? Can you spell ‘politicians?’ And why do I still have to ‘press 1′ for English!?
The good news is most lawsuits based on the findings of a forensic loan review are generally successful in attaining for the borrower a loan modification. The bad news: hiring a law firm is just another big expense at a time when you are so hurting financially you are in danger of losing your home.
Abandoned and vacant foreclosed homes are piling up around the country . . . Repairing the damage from foreclosures is a difficult challenge, because cities, states, community development groups, and even willing banks and servicers have no experience working together on the complicated process of disposing of or reclaiming unwanted properties, said Joseph Schilling, a Virginia Tech urban affairs professor and co-founder of the National Vacant Properties Campaign . . . “We do a pretty good job in this country of recycling cans and plastic bottles,” Schilling said. “But we do an awful job of recycling and reusing vacant properties.”
What is the guarantee that the new homeowner will be able to keep their jobs and afford the payments down the road? None. Nada. 
We met all the requirements and applied for the HAMP program with Wells Fargo and were told that our “investor” is not participating in the HAMP program only to find out that Wells Fargo is actually our investor. They approved us for their “in-house” modification program, and put us on a 3 month forbearance. We made our final payment on Dec. 1st. We then received a notice saying we need to come up with $14,000 by January 5, 2010 or risk foreclosure proceedings. I have called and emailed Wells Fargo and am waiting for a call back. They are they are putting homeowners through a vicious obstacle course, many won’t find their way, and their lives will be horribly effected in the process. (Coming from a homeowner that had 800+ credit score, now low 600’s, and still no relief from Wells Fargo, just more panic attacks.) Good luck economy!