UPDATE 1-HSBC US CEO says foreclosure review reassures

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Thu Oct 28, 2010 12:57am BST

* "We don't have robo-signers," says Dorner

* No reason to suspend foreclosures

NEW YORK Oct 26 (Reuters) - HSBC Bank USA [HBABU.UL] Chief Executive Irene Dorner said the bank has completed a review of its U.S. mortgage foreclosure process and has not found any evidence of the faulty processes that has sparked a nationwide furor.

"We have looked. We don't have robo-signers, we don't believe we have that issue," Dorner said during a panel discussion at a conference on Tuesday.

U.S. attorneys general for all 50 states are jointly investigating whether bank units that foreclose on bad loans failed to review documents properly or submitted false information to evict delinquent borrowers.

Federal regulators are also examining lenders' procedures. The document problems caused some banks to temporarily suspend foreclosures while they conducted internal reviews.

HSBC has not suspended foreclosures and "we don't believe we have a reason to do so," she said.

HSBC Holdings PLC (HSBA.L), Europe's biggest bank, bought Household Finance Corp in 2003 to expand its U.S. presence, especially among subprime borrowers. After losing billions of dollars as on soured U.S. loans during the financial crisis, HSBC is retaining its U.S. unit but running down its consumer finance business in the country.

The U.S. bank is expecting a visit from its regulator in a few weeks to review its foreclosure process, which Dorner said she welcomed.

"This is something that needs to be aired," she said. "This issue will turn into a political football."

Dorner spoke at The Economist's Buttonwood conference in New York. She declined to say how many foreclosure cases her bank reviewed. (Reporting by Maria Aspan; Editing by Tim Dobbyn)

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