New York's top financial regulator said on Monday that Ocwen Financial Corp, a company that collects home loan payments, may be funneling as much as $65 million in questionable fees to an affiliate, in a potential conflict of interest. Benjamin Lawsky, superintendent of New York's Department of Financial Services, sent a letter to Ocwen questioning regular payments the company indirectly makes to Altisource Portfolio Solutions, which is owned by Ocwen officials. The payments are related to referrals for Ocwen's purchase of force-placed insurance from Southwest Business Corp, an insurance agent, Lawsky said. Force-placed insurance is a type of coverage that kicks in when a mortgage borrower cannot afford to pay for home insurance. The mortgage lender, or the company collecting the home loan payments, passes the costs of these premiums onto borrowers. For years authorities have been looking at cases where borrowers are overcharged for the policies. Ocwen essentially pays commissions
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