HSBC Finance Corp., based in Illinois and part of one of the world’s largest banks, said Nov. 10 that it agreed to sell its U.S.-based auto servicing operation, part of which is based in San Diego, as well as $1 billion in auto loans for $904 million in cash, to Santander Consumer USA Inc.

HSBC Finance said it entered into a loan servicing arrangement on the rest of its $6.7 billion in managed receivables which it serviced for itself and for HSBC Bank USA.

Under the terms of the sale, workers at the auto unit servicing facilities in Kearny Mesa and in Texas will be assigned to Santander Consumer, headquartered in Dallas, beginning in the first quarter of 2010, with most of the 700 employees offered positions with the acquiring firm, according to HSBC Finance.

HSBC Finance, which once had more than 1,000 employees working out of two offices here, laid off about 400 people last year after the company exited the indirect auto origination business, or lending on cars through auto dealers.

— Mike Allen