Vaughn v. GMFS and NewRez Insurance Interest Settlement

You may be included if you own residential property in Louisiana; NewRez serviced the mortgage and/or GMFS was the mortgagee; the company held at least $25,000 in insurance proceeds from property damage for more than 30 days starting August 1, 2022 without paying interest; and you were not in default, behind on mortgage payments, or in foreclosure when the money was held.
Insurance Settlement Proceeds are insurance money for damage to a borrower's home that the mortgage servicer received and held in escrow, meaning in trust until it was paid out to the borrower.
The class excludes certain current or former officers and directors of the companies or their affiliates, certain judicial officers and relatives, and people who properly opt out.

A qualifying claimant will receive interest at 3% per year on qualifying insurance proceeds of $25,000 or more.
The interest is calculated starting on the 31st day the proceeds were held in escrow and ends when the escrowed balance fell below $25,000.
This is not a flat payment. The payment depends on the qualifying amount and how long it remained at or above $25,000 in escrow.

You must submit a Claim Form to receive a payment. You can submit it online or mail it to the Settlement Administrator.
For a mailed claim, the postmark deadline is February 26, 2027.
The notice says the form must be timely, valid, and verified.

The notice requires a valid, verified Claim Form, but it does not say in this notice what verification is needed or whether documents must be submitted with the form.
The notice identifies the online and mail submission methods, but the Claim Form itself may provide further instructions.

Payments can be made only if the Court grants final approval and any appeals are resolved.
The Final Approval Hearing is scheduled for January 27, 2027, at 1:30 p.m. CST. That hearing date is not a payment date.
The notice does not give a specific date when payments will be sent.

Opting out means choosing not to take part in the settlement. You would not receive a settlement payment, but you would keep the right to bring your own lawsuit about the claims resolved here.
To opt out, mail a written Request for Exclusion postmarked no later than December 28, 2026. It must include the requested exclusion statement, your name, address, telephone number, and your personal signature.
You can request exclusion only for yourself; group or mass opt-outs are not allowed.

If you stay in the settlement, you may object to it. An objection tells the Court what you disagree with; it does not remove you from the settlement.
To be considered, the objection must be filed with the Court. Copies must also be mailed to Class Counsel and Defense Counsel, postmarked by December 28, 2026.
The objection must include the case name and number, your contact information, the reason for the objection, whether you plan to attend the hearing, and your personal signature. A separate Notice of Intent to Appear is required if you or your lawyer plans to appear.

If you do nothing, you will not receive a settlement payment.
If you are a class member and do not opt out, you will also give up the right to bring, continue, or join another lawsuit against the Defendants and Released Parties about the legal issues resolved by this settlement.

The defendants will pay notice and administration costs, attorneys' fees and costs, and the award to the plaintiff separately.
According to the notice, those amounts will not reduce payments to Settlement Class Members.
Class Counsel may request up to $350,000 in attorneys' fees and expenses, and the plaintiff may receive up to $2,500, subject to Court approval.

Other Important Dates

Exclusion deadline: 2026-12-28
Objection deadline: 2026-12-28
Final approval hearing: January 27, 2027, at 1:30 p.m. CST
Hearing location: Courtroom Division B of the 17th Judicial District Court for the Parish of Lafourche, 201 Green St., Thibodaux, LA 70301

Case name: Racheal M. Vaughn v. GMFS, LLC and NewRez, LLC, d/b/a Shellpoint Mortgage Servicing
Case number: C-152523
Court: 17th Judicial District Court, Parish of Lafourche, State of Louisiana
Administrator: Kroll Settlement Administration LLC
Official Settlement Website: https://www.LouisianaInsuranceInterestSettlement.com

Official Settlement Website
Claim form, FAQ, deadlines, administrator information

Official Settlement Notice (PDF)
Court-approved notice describing eligibility and benefits