OLYMPIA, Wash. – Washington’s Department of Financial Institutions (DFI) issued a statement of charges seeking to order Newrez LL, a mortgage lender, to pay a fine of over $4 million for alleged deceptive practices and improperly maintained records, among other infractions.
A statement of charges is a formal document that outlines alleged wrongdoing and are issued to alert a company that they’re being investigated.
DFI said in a press release that the charges follow an investigation of more than 125 complaints from customers. The total fine amount is $4,175,000, one of the largest fines pursued by DFI outside of multi-state enforcement.
Consumers can file complaints about any financial business, including mortgage lenders, online on DFI’s website.
“DFI closely monitors consumer complaints and takes action when serious violations are discovered,” DFI Director Charlie Clark said. “Washington homeowners rely on licensed mortgage servicers 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.”
Allegations against Newrez according to DFI include “providing misleading or inaccurate information to consumers,” “inaccurate credit reporting,” and “improperly maintained and serviced escrow accounts,” between 2021 and 2026. DFI also said that Newrez did not respond to their investigation of consumer complaints in a timely manner when alerted.
In a statement provided to NonStop Local, Newrez stated that DFI’s statement of charges was a “surprise.”
“We recently became aware that the state of Washington has filed a statement of charges against Newrez without warning or normal engagement,” the company said. “We value our regulatory relationships, and the surprise nature of this announcement is disappointing. Newrez takes its obligations to our customers and investors very seriously and is committed to operating in compliance with all applicable state and federal laws. While we are still reviewing the specifics of each claim, we fundamentally disagree with the State’s charges and the way our practices have been characterized and intend to vigorously contest the action and its allegations.”