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Delaware joins federal gov't in $470M settlement with HSBC

Delaware will join in a settlement with British bank HSBC over financial malpractice leading up to the 2008 mortgage crisis.

The $470 million dollar settlement was announced Friday by the federal government and agencies in 49 states and Washington.

Delaware Attorney General Matt Denn says 240 Delawareans who had their homes foreclosed on between 2008 and 2012 and who "encountered servicing abuse" with HSBC will be eligible for payments. Those will come out of a $60 million federal fund as part of the settlement.

Denn says eligible borrowers will be contacted. And he's applauding the settlement, having spent much of his first year as AG working to use other bank settlement funds for social justice purposes in Delaware.

"The irresponsible practices of the mortgage industry that led to the housing crisis and recession are continuing to change as a result of actions like these," Denn writes.

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