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SEC slaps Ocwen Financial with subpoena

New York bank regulator opened an investigation into the loan servicer earlier this month

Ocwen executive chairman William Erbey
Ocwen executive chairman William Erbey

Subprime loan servicer Ocwen Financial is facing its second run-in with a regulator this month.

The Securities and Exchange Commission has subpoenaed Ocwen in order to obtain information about the company’s business relationship with four affiliated companies. The companies, all of which are chaired by William Erbey, do business almost exclusively with one another.

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The four companies are Altisource, Home Loan Servicing Solutions, Altisource Asset Management and Altisource Residential, the New York Post reported. Transactions among the companies allow them to secure servicing rights and foreclose on homeowners, according to the Post.

Earlier this month, New York State Department of Financial Services chairman Benjamin Lawsky opened an investigation into Ocwen’s relationship with Altisource to determine whether it was enriching itself at the expense of homeowners. In June, the company agreed to stop seeking gag orders as part of settlements with borrowers. [NYP] – Tom DiChristopher

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