{"id":48476,"date":"2026-04-08T18:24:23","date_gmt":"2026-04-08T15:24:23","guid":{"rendered":"https:\/\/mk.gen.tr\/newrez-faces-washington-state-enforcement-action-over-alleged-servicing-failures\/"},"modified":"2026-04-08T18:24:23","modified_gmt":"2026-04-08T15:24:23","slug":"newrez-faces-washington-state-enforcement-action-over-alleged-servicing-failures","status":"publish","type":"post","link":"https:\/\/mk.gen.tr\/tr\/newrez-faces-washington-state-enforcement-action-over-alleged-servicing-failures\/","title":{"rendered":"Newrez faces Washington state enforcement action over alleged servicing failures"},"content":{"rendered":"

The Washington State Department of Financial Institutions<\/strong> (DFI) filed a statement of charges against multichannel mortgage lender Newrez<\/a><\/strong>, alleging repeated servicing violations between 2021 and 2026. It seeks a fine of about $4 million and broad consumer remediation.<\/p>\n

DFI said the action, announced Monday, follows an in-depth investigation of more than 125 consumer complaints involving the large nonbank servicer. The agency said it found \u201csignificant deficient business practices\u201d that allegedly harmed Washington<\/a> borrowers.<\/p>\n

In a statement given to HousingWire<\/strong>, a Newrez spokesperson said the company was not given prior notice of the charges and intends to contest the enforcement action<\/a>.<\/p>\n

According to DFI, Newrez allegedly engaged in unfair or deceptive practices that affected 29 Washington consumers by failing to mediate in good faith during foreclosure<\/a> proceedings, by providing misleading or inaccurate information, and by responding to concerns in an untimely manner.<\/p>\n

In addition, the company allegedly onboarded new loans<\/a> incorrectly, leading to errors with private mortgage insurance<\/a> and inaccurate credit reporting<\/a>; applied mortgage payments incorrectly; and improperly serviced escrow accounts \u2014 for example, by force-placing insurance when borrowers already had coverage.<\/p>\n

It also allegedly provided inaccurate mortgage statements and failed to timely respond to the department\u2019s investigation of consumer complaints.<\/p>\n

\u201cWashington homeowners rely on licensed mortgage servicers<\/a> 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,\u201d DFI Director Charlie Clark said in a statement.<\/p>\n

DFI is seeking an order requiring Newrez to stop violating the law, fix all consumer issues and pay a fine of $4,175,000. It alleges violations of Washington\u2019s Consumer Loan Act.<\/p>\n

The Newrez spokesperson said the action came without warning or normal engagement.<\/p>\n

\u201cWe value our regulatory<\/a> relationships, and the surprise nature of this announcement is disappointing,\u201d the spokesperson said. \u201cNewrez takes its obligations to our customers and investors very seriously and is committed to operating in compliance with all applicable state and federal laws. <\/p>\n

\u201cWhile we are still reviewing the specifics of each claim, we fundamentally disagree with the state\u2019s charges and the way our practices have been characterized and intend to vigorously contest the action and its allegations.\u201d<\/p>\n

Newrez has the right to request a hearing to contest DFI\u2019s charges.<\/p>\n

Fl\u00e1via Furlan Nunes reported and wrote this article with drafting assistance from HousingWire Automation, an editorial tool that helps transform announcements and industry data into HousingWire-style news coverage.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

The Washington State Department of Financial Institutions (DFI) filed a statement of charges against multichannel mortgage lender Newrez, alleging repeated servicing violations between 2021 and 2026. It seeks a fine of about $4 million and broad consumer remediation. DFI said the action, announced Monday, follows an in-depth investigation of more than 125 consumer complaints involving…<\/p>","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts\/48476"}],"collection":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/comments?post=48476"}],"version-history":[{"count":0,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/posts\/48476\/revisions"}],"wp:attachment":[{"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/media?parent=48476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/categories?post=48476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mk.gen.tr\/tr\/wp-json\/wp\/v2\/tags?post=48476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}