We finally received approval for a complicated transaction that began 5 months ago. Along with the approval it stated it would be a 4% commission because the selling agent and I both report to the same broker. HSBC is NOT regulated because they are not an AMERICAN company. Their policy:

1 agent 3%, 2 agents same broker 4%, 2 agents different brokers 5%...

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I was told by a Short Sale negotiator that they are not regulated. The bank did not state that our commission would be reduced. We went into it thinking it would be their stated 5%, so it came as a surprise when we heard when we received the approval.  I had this same property approved last fall with ALL the same players and it was NOT reduced then.

They are regulated by FSA - Financial Services Authority.

Ron is correct.  It is HSBC's rules on commissions.  Is this a Fannie or Freddie loan?  What is more important, getting your seller out of a jam that will lead to more and more referrals or fighting HSBC in a losing battle? 

 It is not Fanny or Freddy. Thank you for your input. It is much appreciated! Home inspection set and we are on our way.

HSBC is famous for there very 6 mo a home owner has to reapply for a modification. They will not make them permanent; they will not put the mods in writing. AG and CFPB complaints to no avail. In reading the Consent Decree Amendment looks like it applies to HUD loans not the HSBC portfolio loans.

Still not sure who to contact?

The OCC's Customer Assistance Group is ready to help you find out the correct agency to contact with your question or complaint. Call 1-800-613-6743 toll-free Monday through Friday, from 7:00 a.m. to 7:00 p.m. Central Time.

http://www.helpwithmybank.gov/national-banks/national-banks.html

Key demographic information as of September 5, 2013
HSBC Bank USA, National Association
1800 Tysons Blvd
Mc Lean,VA 22102
FDIC Certificate #: 57890 Date Established: 7/1/2004
Bank Charter Class: National Bank Date of Deposit Insurance: 7/1/2004
Primary Federal Regulator: Office of the Comptroller of the Currency Demographic Information Report
Primary Internet Web Address: www.banking.us.hsbc.com  Generate History Information

Interesting, Kevin and thank you. I am not going to do anything other than get the transaction closed to the satisfaction of both my seller, the selling agent and his buyer. My concern has been that HSBC did a 180 since 6 months ago. And, most of it was discovered at the very end.

Kevin, have you ever used this service?  How the heck do they recover a fee post closing?

I have not. I believe they sue in small claims (in CA only).

Since a lender didn't break any law, or enforceable regulation if it wasn't a GSE/HAFA short sale, by "not approving" a short sale without a reduced commission, there would be no legal recourse.  So, I'm guessing they only work ones where there was a clear, actual violation on a GSE/HAFA file. 

Not a legal opinion, just some random guy typing on a computer.

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