HSBC
has
agreed
to
direct
$25
million
over
the
next
four
years
to
support
underserved
communities
in
an
agreement
with
the

National
Community
Reinvestment
Coalition
(NCRC)
following
allegations
of

redlining,
the
parties
announced
on
Wednesday. 

In

August
2023,
the
bank
disclosed
it
was
under
investigation
by
the

Department
of
Housing
and
Urban
Development
(HUD)
after
the nonprofit
organization

filed
a
complaint
alleging
violations
of
the
U.S.
Fair
Lending
Act. 

According
to
the
document,
HSBC
allegedly
engaged
in

discriminatory
lending
practices
in
majority
Black
and
Hispanic
neighborhoods
in
six
U.S.
metropolitan
areas
from
2018
through
2021.
It
included
New
York
(NY),
Seattle
(WA),
Orange
County
(CA),
Los
Angeles
(CA),
Oakland
(CA),
and
the
Bay
Area
(CA). 

NCRC
withdrew
the
complaint
in
the
spring,
and
talks
toward
the
agreement
began
shortly
thereafter.
The
new
partnership
begins
in
January
and
aims
to
expand
economic
opportunities
in
low—and
moderate-income,
diverse
and
underserved
communities
through
loan
subsidies,
grants
and
donations.

“What
began
as
a
dispute
turned
into
a
conversation
that
will
now
expand
a
powerful
bank’s
work
on
behalf
of
lower-income
communities,

communities
of

color
and
other
places
that
the
whole
banking
industry
has
historically
overlooked,” Jesse
Van
Tol,
president
and
CEO
of
NCRC,
said
in
a
statement. 

The
HSBC
US
and
Americas
CEO
Michael
Roberts
added
that
the
partnership
“reflects
our
shared
commitment
to
fostering
economic
resilience
and
opportunity
in
communities
across
the
U.S.,
and
we
are
honored
to
support
these
efforts
through
our
loans,
investments
and
grants.”

HSBC
has
committed
$10
million
in
loan
subsidies,
including
$3.5
million
to
certain
California
markets.
Another
$4
million
will
be
directed
to
grants
to
Community
Development
Financial
Institutions
(CDFIs)
and
community-based
nonprofit
organizations,
$6
million
will
be
donated
to
NCRC
and
$1
million
will
go
towards
community
engagement
initiatives. 

According
to
the
mortgage
tech
platform

Modex,
HSBC
originated
about
$3.5
billion
in
mortgages
in
the
last
12
months,
most
of
them
purchases
(77%
of
the
total)
and
conventional
(90%)
loans.
California
and
Washington
are
the
bank’s
main
markets.
The

Nationwide
Multistate
Licensing
System
(NMLS)
shows
87
registered
mortgage
loan
officers
as
of
Wednesday.

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