The Securities & Exchange Commission announced this week that Ocwen Financial will pay a $2 million fine for misstating financial results “by using a flawed, undisclosed methodology to value complex mortgage assets.”
Ocwen agreed to pay a $2 million penalty after an SEC investigation found that the company inaccurately disclosed to investors that it independently valued these assets at fair value under U.S. Generally Accepted Accounting Principles (GAAP).
“Ocwen’s filings led investors to believe the company was valuing complex mortgage assets using GAAP rather than relying on a related company’s accounting methodology that later proved to be flawed,” said Michael J. Osnato, Chief of the SEC Enforcement Division’s Complex Financial Instruments Unit. “Ocwen released inaccurate financial statements because its internal controls were inadequate and its audit committee failed to scrutinize whether the methodology was an appropriate way to measure fair value.”
There have been at least two previous stories about Ocwen on Real Estate Investing Today;
- Ocwen Failed Four Metrics in the Second Half of 2014
- New York Demands Answers About Ocwen, Altisource & Hubzu Business Practices
Click here to read the media release from the SEC
Click here to read SEC fines Ocwen $2 million for misstating financials; Altisource, HLSS relationships, HousingWire 1/20/16
