FTC wins court order to shut down alleged mortgage relief scheme

The Federal Trade Commission (FTC) on Wednesday announced that it secured a court order to shut down an alleged mortgage relief scheme. The regulator says the scheme referenced federal homeowner assistance programs to collect upfront fees from financially distressed borrowers while failing to deliver promised loan modifications.

A judge for the U.S. District Court for the Central District of California granted the FTC’s request for a temporary restraining order against National Amendment Assistance (NAA) and a network of affiliated companies and executives.

The order freezes the defendants’ assets, places the businesses into receivership and gives federal authorities immediate access to company records as the case proceeds.

“When Americans look for ways to cut costs and lower their monthly bills, they shouldn’t have to worry about being targeted by mortgage scammers,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement. “When scammers try to take advantage of ordinary consumers, the FTC will act swiftly and decisively to stop such scams.”

According to the FTC, companies operated by Marinus Pieter Van Zweeden, Martin Howard Rub and Susan Jane Bustamante have, since at least 2022, mailed solicitations to homeowners nationwide claiming they qualify for mortgage relief programs tied to the CARES Act.

The letters allegedly stated that recipients were eligible for reduced mortgage rates and monthly payments through a “CARES-Act Homeowner Assistance Fund” or a lender-specific mortgage adjustment program, directing consumers to call for additional information. The defendants also told consumers they had a “grace period” during which they did not need to pay their mortgage, the complaint alleges.

The FTC said the mailers often included specific modification terms that consumers were purportedly eligible to receive, including lower interest rates and monthly mortgage payments.

Aside from Van Zweeden, Rub and Bustamante, the defendants include Accounting Business Consultants Inc., Accounting Service Providers Inc., Amster Beene Partners Inc., Assertive Loan Advisors Inc., Independent Accounting Consulting Inc., United Administration Counseling Inc. and United Bookkeeping Services Inc.

The FTC alleges the companies falsely claimed they could secure substantial mortgage relief, improperly suggested ties to government assistance programs, and in some cases, advised homeowners to stop making mortgage payments. Regulators also say the defendants collected advance fees before obtaining any relief, in violation of the federal Mortgage Assistance Relief Services rule.

The court order temporarily bars the companies from requesting or accepting such fees.

The agency said many consumers were already in financial distress and instead of receiving relief, some lost fees, fell further behind on payments and faced default or foreclosure.

In granting the FTC’s request, the court found there was good cause to believe the agency is likely to succeed on claims that the defendants violated the FTC Act, the Mortgage Assistance Relief Services Rule and the Gramm-Leach-Bliley Act, and that assets or records could be concealed or dissipated without immediate action.

The commission voted 2-0 to authorize staff to file the complaint, which was originally filed under seal in U.S. District Court for the Central District of California and has since been unsealed.

The commission noted that it files a complaint when it has “reason to believe” the named defendants are violating or are about to violate the law and determines that a proceeding is in the public interest. The case will be decided by the court.