Massachusetts Division of Banks · MA
State Financial Regulators Reach $15.5 Million Settlement with Mortgage Servicer NewRez, LLC
August 12, 2026
Summary
A 48-state settlement led by Massachusetts and other state regulators requires mortgage servicer NewRez to pay $15.5 million for improperly force-placing insurance on borrowers who already had active coverage. Servicers should audit their force-placed insurance processes, including verification of existing policies and borrower notification, to avoid similar penalties. The action underscores state enforcement of servicing obligations around hazard insurance.
AI-generated summary · Aug 29, 2026. Verify with your compliance counsel before acting.
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- Division of Banks
The Massachusetts Division of Banks was a lead state agency along with Washington, DC, Arkansas, Iowa, and Montana on a forty-eight state $15.5 million settlement with NewRez, LLC, one of the nation’s largest mortgage servicers for improperly imposing “force-placed” insurance costs on borrowers who already had active homeowners insurance policies. For more information, see the Conference of State Bank Supervisors press release.
Division of Banks
The Division of Banks (DOB) is the chartering authority and primary regulator for financial service providers in Massachusetts. DOB's primary mission is to ensure a sound, competitive, and accessible financial services environment throughout the Commonwealth.
Common questions
- What does "State Financial Regulators Reach $15.5 Million Settlement with Mortgage Servicer NewRez, LLC" cover?
- A 48-state settlement led by Massachusetts and other state regulators requires mortgage servicer NewRez to pay $15.5 million for improperly force-placing…
- Which agency issued this update?
- This update was issued by Massachusetts Division of Banks.
- When was it published?
- It was published on August 12, 2026.
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