In May, Ocwen also disclosed that the SEC is looking into how its chairman, William Erbey, handled his April 22 surrender of some options to buy stock, plus details on the earlier stock option grant, which was part of his compensation package.
Earlier this month, Bloomberg News reported that New York's top banking regulator was also looking into whether Ocwen's insurance agreements with another of its affiliated firms, Altisource Portfolio Solutions, was designed to funnel fees to the firm, partly owned by Ocwen insiders including Erbey.
Ocwen and other mortgage servicing firms have been under scrutiny for their use of so-called “force-placed” home insurance, which protects the lender when the homeowner’s insurance has lapsed. Homeowners must pay or face potential foreclosure.
Critics say some mortgage servicers have placed overpriced insurance policies with affiliates they partially owned or with third-party companies in deals that appeared to steer some profits back to the mortgage servicer.
According to Bloomberg, Erbey is the chairman and largest shareholder in several of the affiliates the mortgage servicer does business with, including Altisource. He also owns a small stake in Home Loan Servicing Solutions, according to company filings.
Last year the New York Department of Financial Services fined another Ocwen insurance affiliates, Assurant, $14 million and ordered it to cut premiums and refund homeowners, according to Bloomberg.
Ocwen said in the filing it is cooperating with the various investigations.