Defendant Name:
Home Loan Servicing Solutions, Ltd.
Defendant Type:
Public Company
SIC Code:
9999
CUSIP:
G6648D10
Document Reference:
34-76074
Document Details
Legal Case Name
In the Matter of Home Loan Servicing Solutions, Ltd.
Document Name
Order Instituting Cease-and-Desist Proceedings, Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
05-Oct-2015
Document Format
Administrative Proceeding
AAER
3713
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On October 5, 2015, the SEC instituted settled cease-and-desist proceedings against Home Loan Servicing Solutions, Ltd. (HLSS). The SEC alleged: "This matter involves two sets of misstatements made by HLSS from 2012 to 2014, one concerning related party transactions and the other concerning valuation of company assets. First, HLSS inaccurately disclosed that it had policies governing conflicts of interest inherent in related party transactions, which included the recusal of its Chairman of the Board (the 'Chairman') from negotiating and approving transactions with related parties such as Ocwen Financial Corp. ('Ocwen'), for which the Chairman also served as Executive Chairman. Second, HLSS's erroneous valuations of its primary asset, contributed to HLSS misstating its financial results for the years 2012 and 2013 and the first quarter of 2014. These misstatements resulted from an internal accounting controls failure that allowed the company to adopt a valuation methodology that did not conform to U.S. Generally Accepted Accounting Principles ('GAAP')."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Monetary Penalties:
Civil Penalty
Individual:
$1,500,000.00
Shared:
