FTC Sues to Stop Deceptive Mortgage Assistance Relief Operation that Targets Homeowners

At the Federal Trade Commission's request, a U.S. district court in California has temporarily halted an allegedly deceptive mortgage assistance relief operation that claims it can provide mortgage relief assistance under the Coronavirus Aid, Relief and Economic Security (CARES) Act to lure and scam homeowners.

The court granted a temporary restraining order against National Amendment Assistance (also doing business as N.A.A.) after the mortgage assistance relief operator and related entities allegedly misled consumers into paying unlawful upfront fees in exchange for guarantees of lower mortgage rates and monthly payments that never materialized.

"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," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. "When scammers try to take advantage of ordinary consumers, the FTC will act swiftly and decisively to stop such scams."

According to the FTC's complaint,since at least 2022, Southern California-based companies steered by Marinus Pieter Van Zweeden, Martin Howard Rub and Susan Jane Bustamante have mailed letters to homeowners nationwide claiming to offer mortgage relief under the CARES Act. These letters claim that consumers can obtain a reduction in their home mortgage rate due to a special mortgage adjustment program connected to a "CARES-Act Homeowner Assistance Fund or Lender Specific In-house Mortgage Adjustment Program" and urge the consumer to call a phone number to learn more. The complaint notes that the letters provide specific terms for the mortgage modification that the consumer is supposedly eligible to obtain, including a lower mortgage rate and monthly mortgage payment.

The defendants also allegedly misrepresent that consumers have a "grace period," in which they do not need to pay their mortgage, according to the complaint.

The FTC alleges that these promises are false. Ultimately, the defendants do not obtain any mortgage relief for consumers and simply walk away with consumers' upfront fees and financial information. Consumers-many of whom are often already in financial distress-have lost the money they paid to the defendants and have fallen behind on their mortgage payments, with some facing foreclosure or default.

The proposed complaint alleges that the defendants violate the law by deceptively:

• Promising mortgage loan modifications that will make consumers' payments more affordable;
• Claiming their mortgage assistance relief services are associated with a federal government homeowner assistance plan;
• Instructing consumers that they do not have to or should not make monthly payments toward their mortgage;
• Collecting upfront payments before consumers executed a written agreement between the consumer and the loan holder or servicer; and
• Making false statements to induce consumers to provide the defendants with customer information of a financial institution, in violation of the Gramm-Leach-Bliley (GLB) Act.

The complaint alleges that the defendants have violated the FTC Act, Mortgage Assistance Relief Services (MARS) Rule, and the GLB Act, and the FTC seeks redress for affected consumers. The court entered a temporary restraining order against the defendants based on their alleged law violations.

The Commission vote authorizing the staff to file the complaint against the defendants was 2-0. The complaint was filed under seal in the U.S. District Court for the Central District of California, and the seal has now been lifted.

The defendants include Accounting Business Consultants Inc. (CA), Accounting Business Consultants Inc. (NV), Accounting Servicing Providers Inc., Amster Beene Partners Inc., Assertive Loan Advisors Inc., Independent Accounting Consulting Inc., United Administration Counseling Inc., United Bookkeeping Services Inc., and their three officers, Marinus Pieter Van Zweeden, Martin Howard Rub and Susan Jane Bustamante.

NOTE: The Commission files a complaint when it has "reason to believe" that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

Staff attorneys on this matter are David Hankin, Jeffrey Tang, Miles Freeman and John Jacobs, of the FTC's Western Region, Los Angeles. The FTC thanks the Better Business Bureau of Los Angeles & Silicon Valley for their invaluable assistance with this matter.