(Bloomberg) — HSBC Holdings Plc and Wells Fargo & Co. agreed to settle lawsuits by mortgage holders who alleged they were forced to pay for property insurance at inflated rates.
HSBC will pay as much as $32 million to resolve the claims, according to the proposed settlement agreement filed Feb. 28 in federal court in Miami. The Wells Fargo settlement agreement, filed yesterday in Miami, didn't specify the total amount the lender may pay.
The deals follow an earlier $300 million agreement with JPMorgan Chase & Co. and a $110 million settlement with Citigroup Inc. on the same issue. Bank of America Corp. has also reached an agreement in principle to settle a class-action by lenders over the insurance, according to a Feb. 18 filing in Miami federal court.
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