Kroll Bond Rating Agency Releases Research Report on the Restatements by Ocwen Financial Group and Home Loan Servicing Solutions

NEW YORK--(BUSINESS WIRE)--

Kroll Bond Rating Agency (KBRA) released a research report today on the recent restatements by Ocwen Financial Corp OCN and Home Loan Servicing Solutions, Ltd. (“NYSE:HLSS”) and their implications for investors in Mortgage Servicing Rights. KBRA believes that these restatements on the valuation of a sale of a mortgage servicing right (MSR) resulted from a change in the position of the audit firm serving these two companies rather than an error in the effectiveness of internal controls by either entity.

KBRA believes that the change in accounting treatment by the auditor for OCN and HLSS was driven, in turn, by regulatory considerations. We believe that the investors in MSRs, the entire financial services industry and their public accounting firms, may face heightened regulatory scrutiny regarding the valuation methods used for MSR transactions.

To view the report, please click here.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).