Tags: Walter Investment | mortgage | regulation | investigation

Walter Investment Under Regulatory Scrutiny for Mortgage Servicing

Thursday, 06 Nov 2014 12:31 PM

Walter Investment Corp., one of the largest U.S. companies that collect home loan payments, said on Thursday that several state regulatory agencies were investigating its business practices, and its shares fell nearly 19 percent.

Green Tree Servicing, a mortgage servicer that Walter acquired in July 2011, received a list of questions and a request for documents from a working group of attorneys general and regulators of various states on Oct 16.

The company previously met with the working group during the second quarter to discuss "concerns about various loan servicing practices, including certain bankruptcy-related matters," Walter said on Thursday in a quarterly filing with the U.S. Securities and Exchange Commission.

In addition, Green Tree received a subpoena from the attorney general of California, a member of the working group, on Sept. 11, Walter said in the filing.

Walter is the eighth-largest U.S. mortgage servicer, according to the most recent data available from industry publication Inside Mortgage Finance.

The office of California's attorney general did not immediately respond to a request for comment.

Walter also said on Thursday that it had lost $70.8 million in the third quarter, in part because it had set aside $37.2 million for legal and regulatory issues.

Shares of Walter were down 18.6 percent at $17.70 in morning trading.

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Walter Investment Corp., one of the largest U.S. companies that collect home loan payments, said on Thursday that several state regulatory agencies were investigating its business practices, and its shares fell nearly 19 percent.
Walter Investment, mortgage, regulation, investigation
213
2014-31-06
Thursday, 06 Nov 2014 12:31 PM
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