Idaho Joins $15.5 Million Multistate Settlement with Mortgage Servicer NewRez

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The Idaho Department of Finance, along with 48 state financial agencies in 47 states, has reached a $15.5 million settlement with NewRez LLC (NMLS ID 3013), one of the nation’s largest mortgage servicers, for improperly imposing “force-placed” insurance costs on borrowers who already carried active homeowners insurance policies. Idaho homeowners may know the company by the name it uses to service loans, Shellpoint Mortgage Servicing.

Under the terms of the settlement, Fort Washington, Penn., based NewRez, will pay a total of $15.5 million. The company worked with state regulators to self-identify and proactively remediate more than $4.5 million to the impacted borrowers, and it will pay nearly an additional $11 million for costs and penalties. NewRez will be required to implement and conduct enhanced monitoring for loans that have force-placed insurance. The company also must implement other actions to strengthen controls.

View the full Press Release

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