Sham mortgage relief operators defrauded more than 3,000 homeowners. Now the FTC is sending money back
The Federal Trade Commission (FTC) is mailing refund checks to 1,821 homeowners. The payments — totaling nearly $3 million — stem from the Golden Home Services mortgage relief scam.
The scheme, also known as Home Matters USA, falsely promised to reduce homeowners’ mortgage payments and prevent foreclosures.
Who ran the mortgage relief scam
The FTC and the California Department of Financial Protection and Innovation (DFPI) first sued the operators in September 2022. The defendants operated under a string of names:
- Golden Home Services
- Home Matters USA
- Academy Home Services
- Atlantic Pacific Service Group
- Westwood Advocates
Four individual operators were named in the suit, alongside their associated companies.
What the court found
A federal court ruled in February 2024 that the defendants defrauded more than 3,000 people nationwide. Elders and veterans were among those particularly affected.
The court required the operators to turn over $19 million and barred them and their companies from telemarketing, debt relief services, and making misrepresentations about any product or service. The June 2026 refund distribution is part of that process, with payments now reaching verified victims.
A wider enforcement push
The Golden Home Services case is part of a broader pattern. The FTC has pursued multiple mortgage relief scam operators in recent years:
- January 2025: The FTC sent refunds to consumers harmed by HOPE Services and HouseHoldRelief, a case originally filed in 2015
- June 2026: The FTC obtained a temporary restraining order against National Amendment Assistance, a Southern California operator accused of sending letters falsely claiming homeowners were eligible for relief under a “CARES-Act Homeowner Assistance Fund”
“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, in a June 3 statement.
Red flags brokers should watch for
Brokers working with distressed borrowers are well-placed to catch warning signs early. The FTC has a long track record of banning mortgage relief operations from the industry for exactly these kinds of violations.
The agency warns that scammers promise to make changes to a mortgage loan or take steps to save a home. They never deliver.
Some red flags to point out to clients, based on FTC guidance:
- Upfront fee demands — it is illegal for a company to require payment before delivering loan modification or relief services
- Guarantees of a specific rate reduction or payment outcome before any lender negotiation has occurred
- Unsolicited letters or calls claiming eligibility under government programs such as a CARES Act relief fund
- Companies operating under multiple brand names or frequently changing business names
- High-pressure tactics that push clients to decide quickly, without time to review terms or seek independent advice
How brokers can advise clients
With foreclosure filings rising 18% year-over-year as of April 2026, the pool of homeowners vulnerable to these schemes is growing. When a client is struggling with payments, brokers can steer them toward legitimate options before a scammer gets the chance.
At a minimum, brokers and lenders can keep in touch with their borrowers and offer advice about where to seek help. This includes warning them against paying upfront for relief, or helping them recognize false claims from those pretending to represent a government agency.
Practical steps to share with clients:
- Contact their mortgage servicer directly to ask about hardship options
- Seek a free consultation from a Department of Housing and Urban Development (HUD)-approved housing counselor
- Check county property records for any unauthorized filings or transfers
MPA has previously outlined how to detect and avoid mortgage fraud in more detail. A recent California real estate and loan fraud case is a further reminder that schemes targeting financially distressed homeowners remain active.
Brokers with clients who may have been affected can direct them to contact refund administrator JND Legal Administration at 1-833-674-0067.
Stay across the latest mortgage fraud enforcement and industry developments. Read and bookmark Mortgage Professional America’s industry trends section.
