Aug 18 Mortgage servicing company Ocwen Financial Corp said on Monday it had received a subpoena from the U.S. Securities and Exchange Commision in June seeking documents related to its "business dealings" with some of its affiliates.
The company, disclosing the information in a filing with the SEC, said it was cooperating with the investigation. (reut.rs/1oUTX8C)
Ocwen said the probe was related to its dealings with Home Loan Servicing Solutions, Altisource Asset Management Corp and Altisource Residential Corp, and the interests of its executives in these companies.
Ocwen sold a part of its mortgage servicing rights in 2011 to Home Loan Servicing Solutions, which was founded by Ocwen's Chairman William Erbey.
Reuters reported earlier this month that superintendent of New York's Department of Financial Services has sent a letter to Ocwen questioning regular payments the company indirectly makes to Altisource Portfolio Solutions SA, which is owned by Ocwen officials.
The payments were related to referrals for Ocwen's purchase of force-placed insurance from Southwest Business Corp, an insurance agent.
Ocwen, which collects home loan payments, has come under increasing scrutiny from New York regulators since its purchase of mortgage servicing rights on $39 billion worth of Wells Fargo & Co home loans was indefinitely halted in February.
Last week, the company said it would restate its results for full year 2013 and the first quarter, citing non-GAAP compliance. The adjustment is expected to reduce its pretax income in the first quarter by about $17 million. (1.usa.gov/1mFETf4)
Ocwen's shares were down 2.3 percent at $26.32 in late afternoon trading on the New York Stock Exchange. (Reporting By Neha Dimri in Bangalore)