Action Against Mortgage Servicer Newrez LLC

Washington State DFI Takes Action against Mortgage Servicer Newrez, LLC

FOR IMMEDIATE RELEASE FROM
THE WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS

Contact
Lyn Peters, Director of Communications
PH (360) 902-8731 or Media Query Form

April 06, 2026 DFI’s Statement of Charges seeks to order Newrez to stop alleged violations of the law, fix consumer issues, and pay a fine of $4,175,000 - one of DFI's most significant fines sought outside of multi-state enforcement Olympia – The Washington State Department of Financial Institutions (DFI) issued a Statement of Charges (Charges) against Newrez, LLC, a large non-bank mortgage servicer, alleging numerous repeat violations of the law between 2021-2026. The Charges follow an in-depth investigation of more than 125 consumer complaints. The investigation revealed significant deficient business practices, which DFI alleges harmed consumers.

The Charges also allege that Newrez:

• Engaged in unfair or deceptive practices against 29 Washington consumers, including:
  • Failing to mediate in good faith during foreclosure,
  • Providing misleading or inaccurate information to consumers, and
  • Responding to consumer concerns in an untimely manner;
• Onboarded new loans incorrectly leading to:
  • Errors with private mortgage insurance,
  • Inaccurate credit reporting, and
  • Inaccurate escrow accounts;
• Applied mortgage payments incorrectly;
• Improperly maintained and serviced escrow accounts for 62 Washington consumers, including:
  • Purchasing forced placed insurance for borrowers who were already insured;
• Failed to timely respond to the Department’s investigation of consumer complaints; and
• Provided inaccurate mortgage statements to 16 Washington consumers. “DFI closely monitors consumer complaints and takes action when serious violations are discovered,” DFI Director Charlie Clark said. “Washington homeowners rely on licensed mortgage servicers to correctly service their loans, and we will hold companies accountable when they put consumers at risk of losing their homes or when they financially harm consumers.”

Based on the alleged violations of the Consumer Loan Act of Washington, DFI seeks to order Newrez to stop violating the law, fix all consumer issues, and pay a fine of $4,175,000. This is one of the most significant fines DFI has sought outside of multi-state enforcement actions due to the number and nature of the alleged violations. Newrez has a right to request a hearing to contest DFI’s Charges. Washington State consumers can submit complaints about mortgage servicing issues with Newrez via DFI’s online complaint form.

Documents

• Statement of Charges