The New York State Department of Financial Services joined financial agencies in 46 states in securing a $15.5 million settlement with mortgage servicer NewRez LLC for charging borrowers for force-placed insurance despite their having active homeowners insurance. A multistate examination found that the practice affected more than 4,200 borrowers nationwide and caused USD 4.5 million in consumer harm. NewRez paid USD 4.5 million in restitution and will pay another USD 11 million to state regulators for costs and penalties. The company returned USD 409,026 to affected New York borrowers and will pay a USD 602,226 penalty. It must also introduce new controls and enhance monitoring of loans with force-placed insurance.
New York State Department of Financial Services2026-08-12
New York State Department of Financial Services joins $15.5 million multistate settlement with NewRez over improper force-placed insurance charges
The New York State Department of Financial Services joined a USD 15.5 million multistate settlement with NewRez over improper force-placed insurance charges affecting more than 4,200 borrowers. NewRez returned USD 409,026 to affected New Yorkers, will pay a USD 602,226 state penalty and must strengthen its controls and monitoring.