Forbes is reporting that troubles for mortgage servicing giant Ocwen Financial continue to mount. As recent as January, Ocwen was fined by the SEC for $2 million for misstating financial results “by using a flawed, undisclosed methodology to value complex mortgage assets,” now we’re learning that Ocwen has disclosed a new SEC probe into its operations.
On Monday, Ocwen reported a $247 million annual loss and saw revenues tumble 17.5% as the company tries to deleverage and recover from an onslaught of scrutiny by regulators into its servicing practices and financial arrangements with related entities, Altisource Portfolio Solutions, Altisource Residential, Altisource Asset Management, and New Residential-owned Home Loan Servicing Solutions.
In an annual securities filing, Ocwen said it received a letter from the SEC on February 10, 2015 regarding an investigation on its use of collection agents by the company’s various mortgage loan servicers, something the company believes was disseminated widely across the servicing industry. On Feb. 11, 2016, Ocwen says it received a follow up, which stated that SEC has opened an investigation into the fees and expenses the company charges in connection with its management of liquidating mortgage loans and real estate owned properties in various RMBS trusts.
