New Hampshire Banking Department · NH
New Hampshire joins $15.5 million settlement with Mortgage Servicer that wrongly charged customers for force-placed insurance
August 12, 2026
Summary
New Hampshire and 47 other state banking agencies settled with NewRez LLC for $15.5 million over improper force-placed insurance charges on over 4,200 borrowers who already had active homeowners insurance. The settlement requires NewRez to pay $4.5 million in restitution and $11 million in penalties, and mandates enhanced monitoring and controls for force-placed insurance programs. Mortgage servicers must ensure force-placed insurance is only applied when borrowers lack required coverage, and maintain robust oversight to avoid similar enforcement actions.
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The New Hampshire Banking Department is among 48 state financial service agencies that have reached a $15.5 million settlement with one of the nation’s largest mortgage servicers for improperly imposing “force-placed” insurance costs on borrowers who already had active homeowners’ insurance policies.
Under the terms of the settlement, NewRez LLC will pay a total of $15.5 million, remediating more than $4.5 million to the impacted borrowers and 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. A multistate examination of NewRez found the company had improperly imposed “force-placed” insurance on more than 4,200 borrowers nationwide with active homeowners’ insurance policies, causing consumer harm in the sum of $4.5 million.
“Forced-placed insurance errors can create real and unnecessary burdens for homeowners. This multistate settlement not only delivers restitution to affected borrowers but also requires improved controls that promote responsible servicing practices,” said Emelia Galdieri, New Hampshire Banking Department Commissioner. “We remain focused on safeguarding consumers and maintaining trust in the mortgage system.”
Common questions
- What does "New Hampshire joins $15.5 million settlement with Mortgage Servicer that wrongly charged customers for force-placed insurance" cover?
- New Hampshire and 47 other state banking agencies settled with NewRez LLC for $15.5 million over improper force-placed insurance charges on over 4,200…
- Which agency issued this update?
- This update was issued by New Hampshire Banking Department.
- When was it published?
- It was published on August 12, 2026.
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