Maryland Joins $15.5 Million Multistate Settlement with Mortgage Servicer NewRez

BALTIMORE, MD (August 13, 2026) — The Maryland Department of Labor’s Office of Financial Regulation, has joined 47 other state financial regulatory agencies in a $15.5 million settlement with NewRez LLC (NMLS ID 3013), one of the nation's largest mortgage servicers—known to Maryland borrowers primarily through Shellpoint Mortgage Servicing, its servicing brand.

“Our Office of Financial Regulation is holding financial companies accountable and getting money back for Maryland families,” said Maryland Secretary of Labor Portia Wu.

The settlement resolves findings that NewRez improperly charged borrowers for force-placed insurance even when those borrowers already had active homeowners insurance coverage, adding costs on top of the mortgage payments families were already covering.

Under the terms of the settlement, NewRez, based in Pennsylvania, worked with state regulators to identify and proactively remediate the issue. They will return $4.5 million to more than 4,200 affected borrowers nationwide, and will pay an additional $11 million in costs and penalties. NewRez will be required to implement and conduct enhanced monitoring of loans with force-placed insurance and to strengthen its internal controls.

The value of Maryland’s settlement is approximately $400,000. This includes restitution of nearly $98,000 that will go to 109 Maryland borrowers—nearly $900 per affected consumer. In addition, Maryland will receive nearly $300,000 in civil penalties, representing the 9th-highest penalty amount among the 48 participating states.

“Marylanders trust that when they pay their insurance premiums, they won't also be billed a second time for coverage they never needed,” said Commissioner of Financial Regulation Antonio P. Salazar. “This settlement holds NewRez accountable and puts real money back in the pockets of Maryland homeowners.”

Force-placed insurance is often required when a homeowner’s policy is cancelled, delinquent, or insufficient in coverage and the borrower has not secured replacement coverage. When necessary, a lender, bank, or loan servicer may force the replacement coverage to protect its financial interest in the property, but this coverage is typically significantly more costly than a policy the consumer secures on their own.

Results for Maryland Consumers

The NewRez settlement is the latest in a series of enforcement actions that have returned money to Maryland consumers and the state over the past year.

The Office of Financial Regulation’s enforcement efforts in FY2025 resulted in $792,750 in penalties assessed and $4 million in restitution ordered to Maryland consumers. That total is on top of more than $2.2 million in Maryland’s combined share from two other recent multistate settlements: a $20 million multistate cybersecurity settlement with Bayview Asset Management, and a multistate settlement with Block, Inc. The Office of Financial Regulation also participated in a 22-state coordinated action addressing misconduct by a mortgage loan originator.

Maryland residents with questions about the NewRez enforcement action should contact Assistant Commissioner of Enforcement Dana Allen at [email protected]. Residents can also visit NMLS Consumer Access to verify that a company is licensed to do business in Maryland and to view past enforcement actions.

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The Maryland Department of Labor strives to create an equitable and inclusive Maryland where all residents have the opportunities and resources to attain financial stability, reach their career potential, and contribute to their communities; where businesses have access to capital and the skilled workforce they need to succeed; where workplaces are safe and well-regulated; and where the economy is resilient and growing. For updates and information, follow MD Labor on LinkedIn, Instagram, Facebook, and visit our website.