Ocwen spinoff says federal agency considering an enforcement action

Ocwen's West Palm Beach office. Photo by Gary Coronado/The Palm Beach Post.

Ocwen’s West Palm Beach office. Photo by Gary Coronado/The Palm Beach Post.

In yet another regulatory entanglement for Ocwen and its spinoffs, Altisource Portfolio Solutions said Thursday that the U.S. Consumer Financial Protection Bureau is investigating Altisource’s dealings with West Palm Beach-based Ocwen.

In its annual report, Luxembourg-based Altisource said it learned in November of the inquiry by the CFPB.

“The CFPB is considering a potential enforcement action against Altisource relating to an alleged violation of federal law that primarily concerns certain technology services provided to Ocwen,” Altisource said in its regulatory filing.

Altisource (Nasdaq: ASPS) said it responded to the federal agency in December with a letter outlining why “an enforcement action is not warranted.” The company doesn’t describe which technology services are in question.

Among other things, Altisource runs Owners.com and manages properties. Ocwen (NYSE: OCN), which collects payments for subprime mortgages, has been hit with a variety of fines in recent years and Chairman Bill Erbey, a former Palm Beach resident, was pushed out.

 

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