A New York judge has dismissed a lawsuit filed in 2013 by New York Attorney General Eric Schneiderman, alleging HSBC Holdings Plc violated a state law requiring lenders to file paperwork entitling homeowners to settlement conferences within 60 days to negotiate loan modifications.
Justice John Michalski of New York State Supreme Court in Buffalo dismissed the case this week, ruling that HSBC's delay or failure in filing the administrative paperwork - known as a request for judicial intervention - was procedural, not substantive, and did not qualify as an "illegal act," according to a copy of the decision.
Rob Sherman of the media relations team at HSBC told Reuters: "We of course agree with the court's decision to dismiss the case and remain committed to ensuring that struggling homeowners are treated fairly."
The decision, first reported by Reuters, could not immediately be located in court records.
Matt Mittenthal, a spokesman for the New York attorney general, said the office had not decided whether to appeal.