GEORGIA – Attorney General Chris Carr has won a consent judgment that bars MV Realty from doing business in Georgia and prohibits the company from collecting any more money from state consumers, the attorney general’s office said.
Under the order, Florida-based MV Realty paid $1 million in consumer restitution — the largest up-front payment any state has received in a settlement with the company. That payment brings total savings for Georgia homeowners to $25.6 million.
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The settlement stems from a lawsuit Carr filed in January 2024 and provides relief to more than 3,300 homeowners who were tricked into signing what prosecutors called predatory contracts. The group includes about 1,000 Georgians ages 60 and older.
More than 400 Georgians paid MV Realty’s early termination fee and will be eligible for restitution from the fund, which the Attorney General’s Consumer Protection Division will administer. Consumers identified as MV Realty customers will be contacted by the division.
“MV Realty took advantage of Georgia homeowners who were already struggling — scamming them out of their equity and putting their life savings at risk,” Carr said. “It’s unconscionable, and it’s why we took action to put a stop to their predatory scheme once and for all. With this outcome, we’re returning those funds to the hundreds of Georgians who were impacted, and we’re sending a strong message that this type of illegal behavior won’t be tolerated in this state.”
MV Realty marketed a deceptively branded “Homeowner Benefit Program” online and through telemarketing as a way to “get cash without borrowing,” promising a small payment in exchange for a future business agreement.
Consumers were not told they were signing 40-year agreements that could cost them or their heirs at least 3 percent of the home’s value if the home was sold without MV Realty as the agent, transferred to another person, or went into foreclosure before the 40 years ended.
The company enrolled more than 3,300 Georgians in a Homeowner Benefit Agreement, for which it recorded a memorandum in property records.
That memorandum acted as a lien on the property to secure the 3 percent early termination fee and interfered with homeowners’ ability to sell, refinance or obtain a reverse mortgage. As part of Carr’s lawsuit, each of those memorandums has been terminated.
MV Realty customers with questions about how the order affects them should visit the Attorney General’s FAQ page. The Georgia General Assembly also passed a law imposing specific prohibitions and requirements on unsolicited brokerage solicitations; it took effect Jan. 1, 2024.