Michigan Joined $15.5 Million Settlement With NewRez
The agreement provides remediation to homeowners wrongly charged for duplicate insurance coverage.
Updated on Oct. 5, 2026 in Insurance
Live Poll
Do you trust your mortgage servicer to correctly manage your homeowners insurance requirements?
Michigan is part of a $15.5 million multistate settlement with mortgage servicer NewRez. The action resolves findings that the company improperly charged over 4,200 borrowers for force-placed insurance despite those homeowners having active policies.
Why it matters
This settlement addresses financial harm caused when mortgage servicers erroneously demand duplicate coverage payments from borrowers. It ensures that funds are returned to impacted households while establishing stricter monitoring to prevent similar insurance overcharges.
The settlement includes $4.5 million in direct remediation for impacted borrowers and $11 million in state penalties. Michigan will receive $274,206 from the total $15.5 million agreement.
The players
NewRez
A mortgage servicer based in Fort Washington, Pennsylvania, that collects payments and manages insurance requirements for homeowners.
The details
NewRez improperly imposed force-placed insurance on borrowers who already maintained active homeowners coverage. To rectify this, the company self-identified the impacted individuals for cost remediation and agreed to adopt enhanced monitoring processes for future insurance-related loan servicing.
Timeline
October 5, 2026: The settlement was announced.
Money Landscape
This action reflects ongoing efforts by state regulators to curb improper mortgage servicing practices that harm consumer budgets. It marks a continuation of the multistate mortgage servicing examination framework used to enforce consumer protection standards across the industry.
Homeowners who believe they were charged for unnecessary force-placed insurance should verify their account statements for past errors. Consult a qualified financial professional to determine if you are eligible for remediation payments or if your account requires a formal review.
The takeaway
Servicers must not charge for insurance when a borrower already provides proof of an active policy. Review your annual escrow analysis statement to confirm your insurance premiums are accurately reflected and that no duplicate charges appear for force-placed coverage.
Further reading
For more on managing your coverage, visit our Insurance section.
Source note: This article includes information reported by Insurance Journal.
Live Poll
Do you trust your mortgage servicer to correctly manage your homeowners insurance requirements?
