Ocwen Unit Targeted In FCA Probe Over Mortgage Program

Law360, New York (March 4, 2013, 5:27 PM EST) -- A Texas division of the U.S. Department of Justice is investigating a subsidiary of Ocwen Financial Corp. over alleged violations of the False Claims Act in connection with its participation in a federal mortgage-modification program, the company said Friday.

Ocwen said in a filing with the U.S. Securities and Exchange Commission that prosecutors from the Eastern District of Texas had issued two civil investigative demands regarding Homeward Residential Inc.’s participation in the federal Home Affordable Mortgage Program, but declined to offer more specific details.

The company...
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