AG Campbell announced a $4.65 million settlement agreement with Delaware-based national residential mortgage loan servicer Newrez LLC – as successor by merger to Specialized Loan Servicing LLC (SLS). The settlement resolves allegations that SLS engaged in widespread unfair and deceptive servicing practices that put borrowers at unnecessary and unlawful risk of foreclosure in violation of state mortgage servicing and debt collection laws, as well as the COVID-19 foreclosure and eviction moratorium. SLS’s portfolio included nearly 24,000 properties in Massachusetts.  

As part of the settlement, Newrez will pay $4.65 million, which includes significant restitution to hundreds of consumers who experienced foreclosure while subject to SLS’s alleged unlawful practices. In addition, Newrez is required to implement extensive remedial procedures and business practices designed to protect Massachusetts borrowers and ensure future compliance with state laws, as well as provide regular reporting on its compliance with the settlement to the Attorney General’s Office (AGO). 

“SLS chose to prioritize profit over people and put thousands of Massachusetts homeowners at unnecessary risk of foreclosure, including during the financial hardship of the COVID pandemic. While this settlement cannot undo the pain of losing one’s home, it will deliver meaningful relief for impacted borrowers and ensure stronger protections to prevent future harm.” – AG Campbell