HSBC Holdings PLC said its HSBC Mortgage Services will stop purchasing subprime loans from correspondents May 31.
However, the London company also said Friday that its investment bank would continue to buy such loans.
A spokeswoman for HSBC said the policy change would not affect its wholesale nonprime business, Decision One, or its retail nonprime business, HSBC Consumer Lending.
"We're committed to the mortgage nonprime business," the spokeswoman said.
She would not say how the change would affect the volume of correspondent loans purchased by HSBC.
