HSBC Took $77M In Payments From Insurers, Suit Says

Law360, New York (March 12, 2012, 11:03 PM EDT) -- A proposed class of homeowners on Monday accused HSBC USA Inc. and an affiliated reinsurer of collecting at least $77 million through a scheme with private mortgage insurers to refer customers in exchange for a cut of those customers' reinsurance premium payments with the insurers.

In a complaint filed in California federal court, Lucas McCarn, who had obtained a home loan from HSBC Mortgage Corp. in 2006, claims HSBC units including HSBC Reinsurance USA Inc. had a captive reinsurance agreement with private insurers including United Guaranty...
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