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» VISIT US ONLINE @ DSNEWS.COM 57 LENDER/SERVICER PROFILE HSBC Finance Corporation MEGA-SERVICER Sources: Hsbc.com (1/25/14) Take a look inside the numbers S T A T E S S E R V I C E D * RECOGNITION » HSBC is recognized as the second largest consumer finance company KNOW THIS According to information released on its site, on April 1, 2013, HSBC Finance Corporation completed the previously announced sale of its Personal Unsecured Loan and Personal Homeowner Loan portfolios to trusts for which affiliates of Springleaf Finance, Inc., Newcastle Investment Corp., and Blackstone Tactical Opportunities Advisors L.L.C. are the sole beneficiaries. VERBOSITY "These agreements accelerate the run-off of the legacy consumer mortgage and lending business and are a continuation of HSBC's strategy to reposition its U.S. operations and focus on the core businesses supporting our aim to be the world's leading international bank." - Patrick Burke, HSBC Finance Corporation CEO on the April sale of the company's Personal Unsecured Loan and Personal Homeowner Loan portfolios COMPANY VITALS Headquarters: Mettawa, Illinois Phone: 800.333.7023 Online: Hsbc.com Founded in 1878, HSBC Finance Corporation (formerly Household International) is a subsidiary of the HSBC Group and was acquired in March 2003 for the total value of $1.53M. HSBC Finance Corporation is the second largest consumer finance company, with more than 900 branches in 46 states. Though its subsidiaries HSBC Finance Corporation owns and services a portfolio of residential real estate loans. COMPANY'S LATEST January 3, 2014 FHFA Recovers Nearly $8B from Banking Institutions in 2013 As conservator of Fannie Mae and Fannie Mae, the Federal Housing Finance Agency (FHFA), recovered nearly $8 billion on behalf of taxpayers in 2013 through settlements with financial institutions. FHFA sued 18 financial institutions in 2011 alleging violations of the federal Securities Act of 1933 and in some cases, alleging fraudulent activity, related to sales of private-label mortgage-backed securities to Fannie and Freddie between 2005 and 2007 . . . . Of the 18 lawsuits filed by FHFA, 12 are still pending a resolution. Named as defendants in these are: Barclays Bank, Bank of America, Credit Suisse Holdings (USA), First Horizon National Corp., Goldman Sachs & Co., HSBC North America Holdings (Hong Kong Shanghai Banking Corp.), Merrill Lynch & Co., Morgan Stanley, Nomura Holding America, SG Americas (Societe Generale), the Royal Bank of Scotland, and Countrywide Financial. - DSNews.com June 4, 2013 New York AG Sues HSBC, Alleging Failure to Follow Foreclosure Law HSBC faces a lawsuit from New York Attorney General Eric T. Schneiderman, who accused the bank of failing to follow a state foreclosure law that mandates a settlement conference for past due borrowers. In a statement Tuesday, Schneiderman announced he filed a lawsuit against HSBC Bank and HSBC Mortgage Corporation, alleging HSBC repeatedly failed to file a Request for Judicial Intervention (RJI) in a timely manner in hundreds of foreclosure cases. After filing an RJI, lenders are required to attend a settlement conference within 60 days to provide an opportunity for borrowers to negotiate alternatives to foreclosure, including loan modifications. According to Schneiderman, delays in filing the RJI increase the risk that homeowners will lose their home and leads to a backlog of foreclosure cases. - DSNews.com SERVICER RATINGS Fitch Ratings: Long Term/Senior >> A+, Stable Outlook; Short Term >> F1 Moody's Investor's Service: Long Term/Senior >> Baa1, Stable Outlook; Short Term >> P-2 Standard & Poor's: Long Term/Senior >> A, Negative Outlook; Short Term A-1 KEY PERSONNEL Patrick J. Burke CEO Julie Davenport EVP and General Counsel Steven G. Ekert SVP and Chief Risk Officer Loren C. Klug EVP and Head of Strategy and Planning Kathryn Madison EVP and Chief Servicing Officer, Consumer and Mortgage Lending Staffing » More than 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa. Figure accounts for the entirety of the HSBC Group. » More than 900 branches in 46 states. Figure accounts only for HSBC Finance Corporation. » 58,000 employees (including HSBC Finance Corporation, HSBC Bank Canada, and CIBM) SERVICING SUMMARY Assets & Liabilities: September 30, 2013 » Assets: $40.98B » Liabilities: $32.25B Assets & Liabilities: December 31, 2012 » Assets: $46.78B » Liabilities: $40.67B California, Florida, Texas New York, Illinois