HSBC

HSBC Concedes to More Loan Modification Options

HSBC's old loan modification plan

HSBC, which bought an Illinois subprime lender called Household International Inc. in 2003, has modified loans since 2007 of some 238,000 home loans, with a combined outstanding balance of $28.8 billion. Initially, to modify loans, HSBC tried a strategy called "re-aging." If a borrower fell behind on payments by two months or more, HSBC allowed sometime to catch up, by declaring the loan current and adding the delinquent amount to the balance owed.