LITTLE ROCK, Ark. (KATV) — Arkansas and 48 other state financial agencies have reached a $15.5 million settlement with one of the nation’s largest mortgage servicers over allegations it improperly charged borrowers for force-placed insurance despite the homeowners having active insurance policies.
NewRez LLC, a mortgage servicer based in Fort Washington, Pennsylvania, will pay $15.5 million under the settlement. The company previously identified and reimbursed $4.5 million to affected borrowers and will pay an additional $11 million in costs and penalties.
The settlement follows a multistate examination that found NewRez improperly imposed force-placed insurance on more than 4,200 borrowers nationwide who already had active homeowners insurance policies, resulting in $4.5 million in consumer harm…