Regulator looking into Ocwen Financial’s ties to insurer

Mortgage servicer faces questions about business dealings with spinoff company

TRD MIAMI /
Aug.August 06, 2014 03:00 PM

New York’s Department of Financial Services is investigating an alleged scheme by West Palm Beach-based Ocwen Financial Corp.

The investigator has issued a letter questioning an arrangement that “appears designed to funnel as much as $65 million in fees annually from already distressed homeowners” to a spinoff company doing minimal work, according to the Palm Beach Post.

In a letter to Ocwen General Counsel Timothy Hayes, New York Superintendent of Financial Services Benjamin Lawsky has asked for more information regarding the mortgage servicing firm’s involvement with “related company” Altisource Portfolio Solutions regarding forced-placed insurance.

Forced-placed insurance can cost five to 10 times more than a typical plan and is charged to borrowers whose policies lapse as they fall behind on mortgage payments.

In a statement, Ocwen said it will “continue to cooperate with the New York Department of Financial Services and provide the information requested, as we have done with all previous requests from the department.” [PBP]Christopher Cameron


Related Articles

arrow_forward_ios
Joseph Menaged with his units at Faena House and One57 (Credit: Facebook, Redfin, StreetEasy)

Father of “Property Wars” star pleads guilty to bank fraud

Georgina Pineda and King David Condominium at 17555 Atlantic Boulevard (Credit: Realtor)

Property manager stole HOA money, then gambled it away: police

Robert Matthews and the Palm House Hotel (Credit: NAIOP)

Palm House Hotel developer will use taxpayer money to pay legal bills: report

(Credit: iStock)

Three arrested in South Florida affordable housing scam

Miccosukee casino

Feds look to seize properties tied to Miccosukee embezzlement scheme

From left, clockwise: Marquis Miami, the Bath Club, an Odebrecht sign, and Peninsula 2 condos (Credit: Wikipedia)

SoFla luxury real estate now tied to former Odebrecht execs implicated in corruption probe

Anthony Gignac and Fontainebleau Miami Beach (Credit: Maimi-Dade police)

Fake sultan sentenced after allegedly defrauding Jeffrey Soffer and others

Two Hialeah construction executives were sentenced for defrauding the low-income housing tax credit

Two Hialeah construction execs sentenced for defrauding low-income housing program

arrow_forward_ios
Loading...