HSBC, one of the largest banks in the world, entered the U.S. market by buying Household Finance in 2003. HSBC wanted to really grow the business so they entered the market of sub-prime mortgage loans with a vengeance. Like similar banks, they made loans to almost anyone and - the worst part of it - did not verify income in many cases. Now they have a slight problem. The sub-prime borrowers are having a hard time making their payments; many are as late as 60 days, some have defaulted.
There will be more mortgage lenders crying uncle this year.
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