HSBC Holdings PLC  has suspended its foreclosure proceedings in the U.S. after a regulatory letter noted “certain deficiencies” in its processes.

The London-based bank became the latest to disclose that investigations by the Federal Reserve and the Office of the Comptroller of the Currency into foreclosure practices will likely result in fines and costly changes to the way it runs its mortgage business.

HSBC said in its annual filing with the Securities and Exchange Commission that its U.S. operations received a supervisory letter from the OCC citing problems in its processing, preparation and signing of affidavits and other documents supporting foreclosures. The bank received a similar letter from the Fed.

The bank said it has suspended foreclosures “until such time as we have substantially addressed the noted deficiencies.” It is also reviewing foreclosures awaiting judgment and will correct any deficient documentation.

HSBC said it is in discussions with the OCC and the Fed on its cease-and-desist orders, and expects consent orders soon.

As recently as November, HSBC had said it had “no concerns with its processes” and hadn’t halted foreclosures.

HSBC’s American depositary shares were recently down 3.3 percent, to $53.29. The bank was separately downgraded by Deutsche Bank and UBS to hold based on its 2010 results, which HSBC reported Monday.

The Buffalo News earlier reported HSBC’s foreclosure halt.