North Dakota part of $15M settlement with mortgage servicer company

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North Dakota is part of a multistate $15.5 million settlement with one of the nation’s largest mortgage servicers.

Pennsylvania-based NewRez LLC improperly imposed “force-placed” insurance costs on more than 4,200 borrowers who already had active homeowners insurance policies, according to the state Department of Financial Institutions.

That resulted in $4.5 million of consumer harm, the agency said. NewRez also will pay an additional $11 million total to 48 states for costs and penalties.

North Dakota’s share is $54,756, which will be deposited into the department’s regulatory fund, NDDFI Commissioner Lise Kruse told the Tribune. The fund is used for regulation of the North Dakota entities overseen by the department, agency operations and financial education efforts, she said.

Force-placed insurance is often required when a homeowner’s policy is canceled, delinquent or is insufficient in coverage and the borrower has failed to secure replacement coverage, according to DFI. The lender, bank or loan servicer may force the replacement coverage to protect its financial interest in the property. The practice usually is significantly more costly than if a consumer secures their own insurance policy.

NewRez will also be required to do enhanced monitoring for loans that have force-placed insurance, and it must implement other actions to strengthen controls.

“The penalties and enhanced monitoring requirements underscore the importance of meeting state requirements to protect consumers,” Kruse said in a statement.

North Dakota residents who have questions about the enforcement action can contact NDDFI Deputy of Non-Depository Division Jan Murtha at jjkmurtha@nd.gov or call the department at 701-328-9933.

© 2026 The Bismarck Tribune (Bismarck, N.D.). Visit www.bismarcktribune.com. Distributed by Tribune Content Agency, LLC.

The post North Dakota part of $15M settlement with mortgage servicer company appeared first on Insurance News | InsuranceNewsNet.

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