HSBC's residential lending and servicing business continues to be under what the bank calls a “strategic review,” leaving its mortgage workers in limbo.Servicing advisors say the bank has considered selling its Depew, N.Y., servicing platform and its roughly $42 billion of receivables, but hasn't liked the bids offered thus has far.
According to figures compiled by National Mortgage News and the Quarterly Data Report, HSBC Mortgage USA ranks 22nd nationwide among servicers, and 38th among residential lenders.
In the fourth quarter, HSBC funded just over $1 billion in home mortgages, a 24% decline from the same period a year earlier.
A bank spokesman said the Depew operation is open and operating, confirming that “The business is under strategic review and that review remains ongoing.”
In the fall of 2010 the bank first signaled its intention to sell the business. Over the past four years HSBC has lost billions of dollars in mortgage banking, most of it tied to its ill-fated purchase of nonprime lender/servicer Household Finance early last decade