Idaho Department of Finance · ID
Idaho Joins $15.5 Million Multistate Settlement with Mortgage Servicer NewRez
August 24, 2026
Summary
The Idaho Department of Finance, along with 48 other state financial agencies, settled with NewRez LLC for $15.5 million over improper force-placed insurance charges. NewRez will remediate impacted borrowers and implement enhanced monitoring and controls for force-placed insurance. Mortgage servicers should review their own force-placed insurance practices to avoid similar actions.
AI-generated summary · Aug 29, 2026. Verify with your compliance counsel before acting.
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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.
Common questions
- What does "Idaho Joins $15.5 Million Multistate Settlement with Mortgage Servicer NewRez" cover?
- The Idaho Department of Finance, along with 48 other state financial agencies, settled with NewRez LLC for $15.5 million over improper force-placed…
- Which agency issued this update?
- This update was issued by Idaho Department of Finance.
- When was it published?
- It was published on August 24, 2026.
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