HSBC has been fined $470m (£325m) for "abusive mortgage practices" in relation to the 2007-2009 housing crisis in which millions of people lost their homes.

The British bank on Friday agreed to pay the fine to settle US federal and state investigations into alleged abuses against homeowners struggling to keep up with mortgage payments during the 2008 global financial crisis.

"There has to be one set of rules for everyone, no matter how rich or how powerful, and that includes lenders who engage in abusive business practices," New York attorney general Eric Schneiderman said in a statement. "The settlement announced today is a joint partnership that will create tough new servicing standards that will ensure fair treatment for HSBC's borrowers and provide relief to customers across New York State and across the country."

The settlement with the US Department of Justice and 49 states plus DC centres on allegations that the bank "robo-signed" thousands of foreclosure documents – leading to evictions – without properly reviewing the paperwork.