Ocwen to Pay $2 Million in SEC Settlement
21 January 2016 - 10:10AM
Dow Jones News
Mortgage-servicing company Ocwen Financial Corp., which has
faced regulatory scrutiny for its interactions with related
companies, will pay a $2 million penalty in a settlement with the
Securities and Exchange Commission.
Ocwen previously said it accrued $2 million for an expected
pact.
The SEC said on Wednesday that Ocwen used a "flawed, undisclosed
methodology" to value mortgage assets and said the company's
internal controls "failed to prevent conflicts of interest"
involving its former chairman.
New York state regulators, which had criticized Ocwen's
relations with affiliated companies and its practices regarding
distressed mortgage borrowers, forced Chairman William C. Erbey to
step down as part of a settlement announced in late 2014.
The company has been working to sell some of its
mortgage-servicing rights and concentrate on mortgages not owned by
government agencies. It has been cutting jobs and in September
announced plans to cut about 10% of its U.S. workforce.
It narrowed its loss during the third quarter, though the
company posted a 21% drop in revenue.
(END) Dow Jones Newswires
January 20, 2016 17:55 ET (22:55 GMT)
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