Georgia Counties Sue HSBC Over Mortgage Practices

Law360, New York (October 19, 2012, 4:03 PM EDT) -- Three Georgia counties on Thursday sued units of HSBC USA Inc., alleging that the bank's mortgage unit used fraudulent practices to boost its subprime mortgage units and cost the counties hundreds of millions of dollars in lost tax revenue when the mortgages went bad during the financial crisis.

In a complaint filed in Georgia federal court, DeKalb, Fulton and Cobb counties allege that HSBC units violated the Fair Housing Act by targeting borrowers in largely African-American and Hispanic neighborhoods, and pushed them into high-cost subprime and...
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