SEC to Probe Mortgage Servicing Fees Tied to Soured Debt
- SEC said to examine whether loans are prematurely written off
- Investors have long complained that servicers are conflicted
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The Securities and Exchange Commission is looking at whether mortgage servicers are boosting profits by prematurely unleashing debt collectors on delinquent home equity borrowers, a person with direct knowledge of the matter said.
The probe is focusing on servicers that are not owned by banks, including Ocwen Financial Corp., the person said. It is part of the investigation that Ocwen disclosed last month, when it said that the SEC was looking at fees and expenses tied to liquidated loans.