8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 5, 2016

__________________________________

Commission File Number 001-08198

HSBC FINANCE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	86-1052062
(State of incorporation)	(I.R.S. Employer Identification No.)
26525 North Riverwoods Boulevard, Suite 100, Mettawa, Illinois	60045
(Address of principal executive offices)	(Zip Code)

(224) 880-7000

Registrant’s telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

HSBC Finance Corporation

Item 8.01. Other Events.

On February 5, 2016, HSBC North America Holdings Inc. ("HSBC North America") and certain subsidiaries (together "HSBC US") reached a national mortgage settlement ("NMS") with the Department of Justice, the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, various other federal agencies and the attorneys general from 49 states and the District of Columbia. HSBC US’ financial commitment under the NMS is $470 million comprised of a $100 million cash payment to be allocated among participating federal and state parties and $370 million in customer relief. All except $32 million of the $470 million commitment is allocable to HSBC Finance Corporation ("HSBC Finance"). Separately, a $131 million civil money penalty ("CMP") was assessed by the Federal Reserve Board ("FRB") against HSBC North America and HSBC Finance in conjunction with the FRB’s April 2011 foreclosure consent order. The CMP will be satisfied by the financial commitments of HSBC Finance under the NMS. The settlement and the CMP will not cause HSBC Finance to take any additional charges to income beyond those recorded in prior years.

A copy of the press release is attached as Exhibit 99.1 to this report and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No.	Description
99.1	Press release dated February 5, 2016.

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HSBC Finance Corporation

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:    February 5, 2016

HSBC FINANCE CORPORATION
By:	/s/ MICHAEL A. REEVES
	Michael A. Reeves
	Executive Vice President and
	Chief Financial Officer

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HSBC Finance Corporation

Exhibit Index

Exhibit No.	Description
99.1	Press release dated February 5, 2016.

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EX-99.1

EXHIBIT 99.1

HSBC North America Holdings Inc. Announces

National Mortgage Settlement

New York - Feb. 5, 2016 - HSBC North America Holdings Inc. and certain subsidiaries have reached a national mortgage settlement (NMS) with the Department of Justice, the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, various other federal agencies and attorneys general from 49 states and the District of Columbia.

As part of the agreement, the participating federal parties and state attorneys general have agreed to release HSBC from civil claims related to past residential mortgage loan origination, servicing and foreclosure practices.

Under the NMS, HSBC will provide $470 million in financial commitments, comprised of the following:

• $100 million cash payment to be allocated among participating federal and state parties

• $370 million in customer relief

In addition, HSBC will adhere to the national mortgage servicing standards set forth in prior NMS agreements reached with other US mortgage servicers.

“We are pleased to have reached this settlement and believe it is a positive result that benefits American homeowners and the US housing industry,” said Kathy Madison, CEO, HSBC Finance Corp. “Throughout the housing market downturn, HSBC stayed focused on home preservation and approached foreclosure as a last resort option, and this agreement affirms our commitment to assisting customers who are facing financial difficulties.”

Additionally, the Federal Reserve Board issued a Civil Money Penalty Assessment Order in conjunction with its April 2011 foreclosure Consent Order. The $131 million civil money penalty will be satisfied by HSBC’s financial commitments under the NMS.

The settlement will not cause HSBC to take any additional charges to income beyond those recorded in prior years.

Media inquiries:

Rob Sherman +1 212-525-6901robert.a.sherman@us.hsbc.com

Forward-looking statements:

Certain statements in this press release are "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results and other financial conditions may differ materially from those included in these statements due to a variety of factors including those contained in HSBC Finance Corporation’s and HSBC USA Inc.'s filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of HSBC Finance Corporation’s 2014 Annual Report and HSBC USA Inc.'s 2014 Annual Report, each on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this release.

Notes to editors:

HSBC North America Holdings Inc. is the holding company for HSBC Holdings plc's operations in the United States and, at 30 September 2015, had assets of US $291.6 billion (US GAAP). The company’s businesses serve

customers in the following key areas: retail banking and wealth management, commercial banking, private banking, and global banking and markets.

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