Business

SEC probes Ocwen for dealings with related companies

Ocwen Financial, the mortgage-servicing company owned by billionaire William Erbey, has been subpoenaed by the largest US financial regulator for its dealings with sister companies, the latest in an onslaught of investigations into the embattled corporation.

The Securities and Exchange Commission is investigating Ocwen and its leadership for how it deals with four other companies connected to Erbey, according to a Monday regulatory filing from the company.

The announced subpoena is the company’s third stumble this month, with Ocwen admitting that it misstated the value of special mortgage rights and was accused by a New York regulator of conflicts of interest.

The four other inter-related companies are Altisource, Home Loan Servicing Solutions, Altisource Asset Management, and Altisource Residential—all of which have boards of directors that are chaired by Erbey.

Together, the companies—as well as others with Erbey’s fingerprints on them—do business with each and few other companies in order to boost shareholder coffers.

Altisource’s stated purpose in the real estate and mortgage markets is “supporting Ocwen,” according to a July quarterly financial statement.

Home Loan Servicing buys mortgage servicing rights, which allows them to foreclose on homeowners, from Ocwen, according to its financial filings.

Altisource Asset Management manages Altisource Residential, which buys and forecloses on people who struggle to pay their mortgage, according to filings.

The scope of the SEC’s investigation is unclear from the filing.

The New York Department of Financial Services has had a monitor installed at Ocwen since the end of 2012, according to the regulatory filing. The DFS is also coordinating with the SEC on its latest investigation into the company, a person familiar with the investigation told The Post.

Kevin Callahan, an SEC spokesman, and David Millar, for Ocwen, declined to comment.