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sleepless-in-Seattle
Cherry Bomb


Joined: 04 Jul 2008
Posts: 148

HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 7:21 am Reply with quoteBack to top

I saw on Bloomberg television that they've decided to shut down the remaining Household and Beneficial offices. 6100 jobs eliminated. No more originations.

Some info from bloomberg.com

"HSBC is also expected to announce plans to shrink its U.S. consumer finance operations, the Financial Times reported, citing people familiar with the issue. It plans to scale back its U.S. credit-card and mortgage lending unit and will close its consumer subprime lending to new business, the newspaper said."

"The company bought subprime-mortgage lender Household International, renamed HSBC Finance, for $15.5 billion in 2003. The bank has reduced lending, fired managers and sold parts of the business to reduce provisions at the unit and control losses. It has rejected pressure from shareholder Knight Vinke Asset Management LLC to separate the operation."
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jwerner
C-4


Joined: 20 Jul 2008
Posts: 1140
Location: Cleveland, OH

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 2:08 pm Reply with quoteBack to top

I apologize to HSBC and everyone associated with the company. In many of my previous posts, I exposed fraud at places like Citi, Chase, BofA, Cwad, IMac, Wells, Wacho Bank, USB, WaMu, and so on, but I completely forgot about HSBC.

HSBC is arguably the second most predatory lender in the world (behind Citigroup errr USAgroup).

Simply reviewing credit reports when I wrote deals was clear as day for me. At the office, we'd look at the credit report and colleagues would say, "Look, he's with CitiFinancial, Beneficial, and HFC; we can rip him off too. He'll be easy."

Thanks,
Jason

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Woe unto them that decree unrighteous decres, and that write grievousness which they have prescribed;
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funnylookin
Dyn-o-mite!


Joined: 31 Jul 2008
Posts: 249
Location: On top of the world

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 2:10 pm Reply with quoteBack to top

jwerner wrote:
I apologize to HSBC and everyone associated with the company. In many of my previous posts, I exposed fraud at places like Citi, Chase, BofA, Cwad, IMac, Wells, Wacho Bank, USB, WaMu, and so on, but I completely forgot about HSBC.

HSBC is arguably the second most predatory lender in the world (behind Citigroup errr USAgroup).

Simply reviewing credit reports when I wrote deals was clear as day for me. At the office, we'd look at the credit report and colleagues would say, "Look, he's with CitiFinancial, Beneficial, and HFC; we can rip him off too. He'll be easy."

Thanks,
Jason


You don't really think a 2nd mortgage with no appraisal at 19% is predatory do you?

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cooper
Dyn-o-mite!


Joined: 11 Mar 2007
Posts: 491
Location: River City

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 2:46 pm Reply with quoteBack to top

Quote:
HSBC is arguably the second most predatory lender in the world
To HSBC i say "don't let the door hit you on the way out." Few companies have contributed more to the predatory products across the board that were laid in the american consumers lap. Take your car loans, your mortgages and your credit cards with you.

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jwerner
C-4


Joined: 20 Jul 2008
Posts: 1140
Location: Cleveland, OH

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 2:51 pm Reply with quoteBack to top

Oh man. That was strong. Good take.

Thanks,
Jason

funnylookin wrote:
jwerner wrote:
I apologize to HSBC and everyone associated with the company. In many of my previous posts, I exposed fraud at places like Citi, Chase, BofA, Cwad, IMac, Wells, Wacho Bank, USB, WaMu, and so on, but I completely forgot about HSBC.

HSBC is arguably the second most predatory lender in the world (behind Citigroup errr USAgroup).

Simply reviewing credit reports when I wrote deals was clear as day for me. At the office, we'd look at the credit report and colleagues would say, "Look, he's with CitiFinancial, Beneficial, and HFC; we can rip him off too. He'll be easy."

Thanks,
Jason


You don't really think a 2nd mortgage with no appraisal at 19% is predatory do you?

_________________
Woe unto them that decree unrighteous decres, and that write grievousness which they have prescribed;
Isaiah 10:1
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amabo
Flash in the pan


Joined: 20 Feb 2009
Posts: 33

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 3:58 pm Reply with quoteBack to top

Jason-

Before becoming a Broker and a Rep I was a Finance Manager near your Office for many Years with HFC. I know I helped several Borrowers out when everyone else at the time would say NO. You are always going to get the Customer that states they were ripped off, etc., You know "selective memory". You are always going to have the naive Broker that does not understand how rate is determined and charged. Not every borrower deserves a single digit rate of interest, just like not every borrower deserves a double digit. Speaking in OHIO, the Finance Company got the Borrower back on track to become credit worthy. Here the Broker took that borrower to the next level refinancing. My Question is this not necessarily directed at you: Placing that customer in a Pay Option ARM, or a 125%CLTV Product, who ripped the Borrower off more? Not every finance company Branch was trying to rip the customer. Just like not every Broker did an injustice to their customer.
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cooper
Dyn-o-mite!


Joined: 11 Mar 2007
Posts: 491
Location: River City

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 4:09 pm Reply with quoteBack to top

Quote:
Not every borrower deserves a single digit rate of interest
Look, i'm not trying to pick a fight, this single statement seems to me to be the call to arms of predatory lending. Nothing wrong with saying "NO", EVERYTHING wrong with saying 18% on a home loan and picking the pocket every time of the people that can least afford it. Again to HSBC, goodbye, don't dawdle.

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sleepless-in-Seattle
Cherry Bomb


Joined: 04 Jul 2008
Posts: 148

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 4:41 pm Reply with quoteBack to top

I wonder how far behind the other big three are?

Citigroup and AIG have both made comments about unloading Citifinancial and American General.

Not much word on Wells Fargo finance other than a comment from the Wells Fargo CEO that his company hasn't been involved in sub-prime.
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jwerner
C-4


Joined: 20 Jul 2008
Posts: 1140
Location: Cleveland, OH

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 4:52 pm Reply with quoteBack to top

I heard from long-time veterans that they'd charge 10 points upfront back in the day when 2nds were practically unregulated.

Look, a loan officer is worthy of his wages, but when are loans officers predators?

Thanks,
Jason

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Woe unto them that decree unrighteous decres, and that write grievousness which they have prescribed;
Isaiah 10:1
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Chedman
Dud?


Joined: 02 Mar 2009
Posts: 4

Re: HSBC Closes HFC and Bene
PostPosted: Mon Mar 02, 2009 5:04 pm Reply with quoteBack to top

With guidelines becoming stricter - higher scores on FHA, limited PMI, increased FNMA add ons, the problem now is access to credit. The banks have always left fin comp customers behind. Differentiate your personal views on 'consumer finance co' and 'predator'. Two different things. Predators can be banks, mortgage companies, credit unions, insurance companies, realtors, brokers, etc. Once you cut off credit to the lower credit levels, you further shrink economy. There's no place for predators, but there needs to be a place for a finance company.
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