TITLE: Kansas Office of the State Bank Commissioner Joins Settlement with Mortgage Servicer NewRez LLC
BODY:
On August 12, 2026, the Kansas Office of the State Bank Commissioner joined 47 other state financial agencies in reaching a multistate settlement with mortgage servicer NewRez LLC for improperly imposing force-placed insurance costs on borrowers with active homeowners' insurance policies.
NewRez imposed force-placed insurance on more than 4,200 borrowers nationwide who already maintained active homeowners' insurance coverage, causing consumer harm totalling more than $4.5 million. Under the settlement terms, NewRez will pay a nationwide total of $15.5 million to remediate affected borrowers, cover investigative costs, and pay penalties. The company must also implement enhanced monitoring for loans carrying force-placed insurance and strengthen internal controls to prevent future violations.
Force-placed insurance is typically required when a homeowner's policy is cancelled, delinquent, or provides insufficient coverage and the borrower fails to secure replacement coverage. Lenders, banks, or loan servicers may impose this coverage to protect their financial interest in the property. However, force-placed insurance is generally significantly more expensive than consumer-secured policies and often provides lesser protection for the borrower's interests.
Deputy Commissioner James Payne said the settlement holds the company accountable, compensates affected borrowers, and ensures future compliance. State regulators in the District of Columbia, Arkansas, Iowa, Massachusetts, and Montana led the multistate enforcement effort. NewRez cooperated with the states throughout the settlement process.
Kansas residents with questions regarding the settlement can contact the Office of the State Bank Commissioner at www.osbckansas.gov or verify a company's licensing status through the NMLS Consumer Access website at www.nmlsconsumeraccess.org.