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
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
The payments were related to referrals for Ocwen's purchase
of force-placed insurance from Southwest Business Corp, an
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)