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Residential property owners in Louisiana who sent insurance proceeds of $25,000 or more to GMFS LLC or NewRez LLC, d/b/a Shellpoint Mortgage Servicing, after Aug. 1, 2022, may be eligible to claim interest payments on funds the companies held in escrow for more than 30 days and on which they did not pay interest from a class action settlement.
GMFS and NewRez agreed to settle a class action lawsuit alleging they failed to pay interest on certain insurance settlement proceeds held in escrow. The lawsuit alleged GMFS and NewRez violated Louisiana law by failing to pay interest on insurance settlement proceeds of $25,000 or more held for more than 30 days in escrow.
Who can file a claim?
Class members must meet all of the following criteria:
- They owned residential property in Louisiana.
- They had a mortgage loan secured by that property.
- NewRez acted as their loan servicer and/or GMFS was the mortgagee.
- On or after Aug. 1, 2022, NewRez or GMFS held insurance settlement proceeds of $25,000 or more in escrow for more than 30 days.
- NewRez or GMFS did not pay interest on those proceeds.
- They were not in default, past due or in foreclosure on their mortgage at the time NewRez or GMFS held their insurance proceeds.
How much can class members receive?
Eligible class members can receive a payment equal to the interest at a rate of 3% per year on insurance settlement proceeds of $25,000 or more that GMFS and NewRez held in escrow for more than 30 days after Aug. 1, 2022. The settlement administrator will calculate interest from the 31st day the company held the funds through the date the escrowed balance fell below $25,000.
The actual payment each class member receives depends on the amount held and the length of time the companies held it beyond the 30-day period.
How to claim a settlement payment
Class members must submit an online claim form or print and complete the PDF claim form and mail it to the settlement administrator.
Settlement administrator's mailing address: Vaughn v. GMFS LLC and NewRez LLC, d/b/a Shellpoint Mortgage Servicing, c/o Kroll Settlement Administration LLC, P.O. Box 225391, New York, NY 10150-5391
The deadline to file a claim is Feb. 26, 2026.
Is proof or documentation required to submit a claim?
- Claimants must attest to the facts on the claim form, including that they meet the eligibility criteria and that the information provided is true and correct. No additional documentation is required at the time of submission, but claimants must certify their statements under penalty of perjury.
- Claimants must provide the last four digits of their Social Security number.
- Online claimants must provide the class member ID they received in their settlement notice.
Payout options
The settlement administrator will mail physical checks to the address provided on the claim form. Checks expire after 90 days.
Settlement fund breakdown
The $350,000 settlement fund includes:
- Settlement administration costs: Amount not specified
- Attorneys' fees and expenses: Up to $350,000
- Service award to class representative: Up to $2,500
- Payments to eligible class members: Dependent on the number of valid claims filed
Important dates
- Deadline to opt-out: Dec. 28, 2026
- Final approval hearing: Jan. 27, 2027
- Deadline to file a claim: Feb. 26, 2027
When is the GMFS and NewRez payout date?
The settlement administrator will distribute payments to eligible class members within 120 days after the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The lawsuit alleged GMFS and NewRez violated Louisiana law by failing to pay interest on insurance settlement proceeds of $25,000 or more held for more than 30 days in escrow.
The companies denied any wrongdoing but agreed to settle to avoid the costs and uncertainties of litigation.
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