CFPB probing Altisource over Ocwen relationship

by Ryan Smith20 Feb 2017

The Consumer Financial Protection Bureau is probing the relationship between Altisource Portfolio Solutions and Ocwen Financial, Altisource said last week.

In a Thursday filing with the Securities and Exchange Commission, Altisource revealed that it had received a notice from the CFPB regarding a “potential enforcement action” against it, HousingWire reported.

The notice said that the CFPB was “considering a potential enforcement action against Altisource relating to an alleged violation of federal law that primarily concerns technology services provided to Ocwen.”

Regulators have clashed with Ocwen and Altisource before. Last year, the SEC fined Ocwen $2 million over its relationship with Altisource, among other things, HousingWire reported. And the relationship between Ocwen and Altisource led to a $150 million penalty from the New York Department of Financial Services in 2014. The NYDFS action also forced the ouster of Ocwen founder William Erbey, who chaired not only Ocwen but four other companies: Altisource Portfolio Solutions, Altisource Residential, Altisource Management and Home Loan Servicing Solutions. Erbey was forced to resign from all five positions.

Altisource said in its Thursday SEC filing that it had provided a written response to the CFPB “setting forth the legal, policy and factual reasons why we believe an enforcement action is not warranted.”

“We are committed to resolving any potential concerns of the CFPB,” Altisource said.
 

Related stories:
Ocwen chairman resigns, company to admit misconduct
Ocwen’s terrible, horrible, no good, very bad time continues

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