Lawsuit: HSBC Bank Reports Satisfied Mortgage Months Late

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HSBC Bank USA, N.A. is facing a homeowner’s proposed class action lawsuit claiming the bank failed to timely file a satisfaction of mortgage after he paid off his loan in full. According to the complaint, New York state law provides that lenders must report a satisfaction of mortgage to the county clerk no more than 30 days after a borrower has satisfied the entire amount of his or her loan.

The plaintiff claims he and his wife paid off their mortgage on September 1, 2017, and were charged a $575.00 “Recording Fee” by the defendant in exchange for its timely reporting of the satisfied obligation. Nevertheless, the complaint alleges, the bank did not file a Satisfaction of Mortgage until February 17, 2017, subjecting the plaintiff to injury and frustration.

The suit claims under state law, if mortgage lenders fail to record loans as satisfied within 30 days of full payment, they must pay a $500.00 fee that doubles after 60 days and triples after 90 days to equal $1,500.