Today the Securities and Exchange Commission charged Home Loan Servicing Solutions (HLSS) for making material misstatements and for having inadequate internal accounting controls. To settle the charges, HLSS will pay a $1.5 million penalty, as reported in the SEC’s press release here.
According to the order, HLSS misstated its handling of transactions with related parties, including Ocwen Financial Corp., whose chairman also served as HLSS’s chairman. From 2012 to 2014, HLSS required its Chairman to recuse himself from transaction with Ocwen and other related parties. However, the SEC found that HLSS had no written policies or procedures on recusals for related-party transactions and that it’s chairman approved many transactions between HLSS and Ocwen.