Ocwen Financial Turns Lower, Altisource Portfolio Solutions Drops on Possible Self-Dealing

Ocwen Financial (OCN) turned lower after reports that New York’s Department of Financial Services sent a letter to OCN over concerns the company and an affiliate, Altisource Portfolio Solutions SA (ASPS), were engaged in so-called self dealing through an online auction site called Hubzu.

Self dealing is when a company represents its own interests in a transaction, rather than those of a client.

OCN uses Hubzu, an ASPS subsidiary, to auction off borrower homes facing foreclosure and foreclosed investor-owned properties. When OCN selects Hubzu to host foreclosure or short sale auctions, the letter said, the Hubzu auction fee is 4.5%. When Hubzu is competing for business on the open market, its fee is as low as 1.5%.

ASPS was last down 3.62% at $112.79 and OCN was 2.87% at $37.89.

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