By ALLISSA KLINE
akline@bizjournals.com | 716-541-1612

Buffalo's largest bank may ditch its mortgage business.

In another twist to the recent "Will HSBC stay or go?" saga, on Aug. 16 employees were told the bank will "consider strategic options" for its HSBC Mortgage Corp. subsidiary. Options include selling, merging, outsourcing or some other exit from the business. The bank could also decide to make no changes at all.

"We're assessing the business, as is our standard practice, and we'll be making an announcement in due course," HSBC spokesperson Neil Brazil said. "We're really just conducting a review of the business at this time."

Any change is likely to affect the 800 HSBC Mortgage Corp. employees who work in Depew. Eight mortgage loan workers were laid off in May. Another 225 employees were let go in November 2008 when the bank closed its wholesale and third-party correspondent mortgage business.

Nationwide, there are 1,500 Mortgage Corp. employees, Brazil said. He declined to say whether the bank would make a decision about the future of its mortgage business before the end of the year, though he did say the process will take several months.

The bank has made headlines in recent weeks because its lease at HSBC Tower expires in 2013 and the financial institution is exploring opportunities to move to another site. An article two weeks ago by Business First reporter James Fink said the bank has identified three potential sites: two in downtown Buffalo and one in Amherst. The bank has repeatedly declined to discuss the matter.