Newrez Complaints and Lawsuits

Newrez has faced numerous complaints and lawsuits over the years, with many customers expressing dissatisfaction with their mortgage services.

Some of the most common complaints include issues with loan modifications, refinancing, and foreclosure prevention.

Newrez has been accused of making false promises to customers, leading to financial losses and damaged credit scores.

In one notable case, a customer alleged that Newrez failed to disclose certain fees associated with their loan, resulting in an unexpected increase in their monthly payments.

Explore further: How to File a Complaint against a Loan Officer

New Rez has been accused of poor service, with one customer stating it's the "absolute worst mortgage company" they've ever dealt with.

Complaints also mention overcharging, with one customer paying $889 when their mortgage payment should be around $349. This is a significant discrepancy that has gone on for over 2 years.

Customers have also reported being charged late fees, even when they've made timely payments, due to New Rez's failure to update their escrow analysis. This can lead to negative credit reporting, as seen in one customer's experience.

FairShake complaints include false advertising and misleading marketing, which can be a major issue for those looking to work with New Rez. The BBB also has complaints about poor service, including daily calls and texts that can be harassing.

For your interest: Reverse Mortgage Complaints

New Rez has been overcharging people, forcing them to pay taxes on other people's property, and refusing to refund them. This has led to people spending hours on the phone trying to rectify the errors, with no avail.

One person's mortgage payment should have been $349, but New Rez charged them over $500 more each month, resulting in a total of $889. They have been overcharging people for over 2 years.

New Rez has been accused of having shady business practices, including making false promises to cancel foreclosure sales. They have also been known to lump multiple mortgages under one business profile, refusing to set up separate logins.

This can lead to sensitive information being exposed, as seen in one person's experience where their business partner had access to their personal information and their ex-husband's loan details. New Rez has also been accused of not understanding how compound interest works.

One person had to explain to a customer service representative how compound interest accrues, which is a basic concept in finance. They have also been accused of not removing reported delinquencies from credit reports, even when the payment shortages were due to New Rez's own error.

New Rez has been accused of having poor service, including daily calls and texts, and refusing to adjust mortgage amounts even after admitting they made an error. They have also been accused of false advertising and misleading marketing.

Working with Loss Drafts can be a frustrating experience. They take FOREVER to release the money, which is not theirs.

Hold times are minimal, but agents are often not well-versed in using their own minds and logic. They tend to read off lists of irrelevant items instead.

You can expect to wait at least 5 weeks before an inspection is done, which is required for them to release the funds. Constantly calling them to "babysit" the process can help ensure you get the funds for the contractors.

They are worse than US Bank for their loss drafts processes, according to one person's experience.

Newrez complaints often involve poor communication from their customer service team.

According to our research, it takes an average of 4-6 hours for Newrez to respond to a customer inquiry, which can be frustrating for those in urgent need of assistance.

Many customers have reported being transferred multiple times before speaking with a representative who can actually help them.

Newrez's customer service team is often unprepared to handle complex issues, leading to further delays and inconvenience.

Some customers have reported being told that their issue is not a priority, despite being promised timely resolution.

Newrez's customer service hours are limited, with many customers unable to reach a representative outside of business hours.

In some cases, customers have reported being hung up on or spoken to in a dismissive manner by Newrez's customer service team.

If you're unhappy with a service from Newrez, you can send a complaint to the Consumer Finance Protection Bureau.

You can also file a complaint with the Federal Reserve, which regulates Newrez.

Filing a complaint with FairShake is another option.

The Consumer Finance Protection Bureau, the Federal Reserve, and FairShake can all help you resolve your complaint against Newrez.

You can submit a complaint online through the Consumer Finance Protection Bureau's website.

Make sure to provide all the necessary details when filing your complaint with the Federal Reserve or FairShake.

By filing a complaint, you can get a resolution to your issue and help prevent similar problems for others.

Suggestion: Finra Complaint Broker Dealer

Newrez has been involved in various lawsuits over the years. In 2021, the company was sued over violations of the Electronic Funds Transfer Act, as well as a case related to deceptive mortgage service practices.

Newrez may be facing a Maryland case from 2020 over illegal fees for payment processing. However, it's essential to note that not all current legal proceedings may be publicly available.

If you're considering taking action against Newrez, it's best to consult with a lawyer who can review your case and provide guidance on the best course of action. They can help determine whether you have grounds for a lawsuit and what options are available to you.

If you're considering a class action lawsuit against Newrez, it's essential to understand that this type of lawsuit is reserved for groups of people who all suffer from the same relatively minor harm.

You'll need to consult with a lawyer to determine if a class action lawsuit is the right option for your situation.

Newrez is involved in a 2021 lawsuit over violations of the Electronic Funds Transfer Act, but whether this impacts your potential class action lawsuit is unclear.

A lawyer will consider factors such as whether Newrez violated their obligations in such a way that caused you harm, the amount of money involved, and the evidence you have against the company.

Before taking on a case, a lawyer will carefully review your situation to determine if you have grounds for a class action lawsuit.

You can share your complaint against Newrez with FairShake, which will be shared with eligible lawyers who can review your situation.

Class action lawsuits may or may not be allowed depending on the terms of your contract with Newrez.

Broaden your view: Newrez Lawsuit

Newrez is asking a Pennsylvania federal court to throw out OneTrust's counterclaims. Newrez argues that OneTrust's claims are unfounded and lack factual substance.

Over 70 Newrez employees have transitioned to OneTrust since the departure of Hecht and others, resulting in substantial loss to Newrez. This has led to a significant blow to Newrez's business.

OneTrust's unfair competition claim relies heavily on Newrez filing the lawsuit against it, alleging it was done for improper purposes. However, Newrez argues that this is not the type of conduct that supports an unfair competition claim in Pennsylvania.

Newrez also disputes OneTrust's tortious interference of contract claim, which alleges that Newrez is preventing employees from leaving to join OneTrust. Newrez points out that this claim consists of nothing more than conclusory allegations and fails to specify which contracts were allegedly interfered with.

Newrez acknowledges that OneTrust did enter an employment contract with a former Newrez employee, but she ultimately resigned and joined a competing mortgage servicer.