HSBC Holdings plc (HBC) has suspended foreclosure proceedings in the U.S., reports the Wall Street Journal. In its annual filing with the SEC, the London-based bank noted it had received a supervisory letter from the Officer of the Comptroller of the Currency that cited problems in its processing, preparation, and signing of affidavits and other documents supporting foreclosures. The bank received a similar letter from the Federal Reserve.
The bank said it has halted foreclosures “until such time as we have substantially addressed the noted deficiencies in our processes.”
Shares of HSBC are lower on the session by 2.50%, trading at $53.70.