On March 11, the Massachusetts attorney general announced her office filed a $2.25 million proposed settlement agreement in Suffolk County Superior Court to resolve allegations that a real estate company and its CEO engaged in unfair and deceptive practices proscribed by the Massachusetts Consumer Protection Act. The attorney general alleged the defendants marketed “Homeowner Benefit Agreements” (HBAs) to financially vulnerable residents, offering small upfront payments — typically less than $1,500 — in exchange for a 40‑year exclusive right to act as listing broker, while securing mortgages on homes and imposing early termination fees at least ten times the advance for nearly any transfer, including foreclosure or death. According to the amended complaint, the company allegedly targeted elderly and low‑income homeowners with ads implying the program was affiliated with the government, told consumers “you NEVER repay these funds,” concealed core terms, and recorded mortgages without the substantive involvement of an attorney — thereby clouding property titles and limiting refinancing options.

The settlement makes permanent a 2023 preliminary injunction against the company, which barred it from unfair marketing practices, recording new mortgages, and required releases of existing ones. Under the settlement, the company must forgive all amounts owed under Massachusetts HBAs, discharging advances totaling more than $700,000, which the attorney general contends would save homeowners at least $7 million in future payments. The company must also notify affected consumers within 30 days that they are no longer bound by their HBAs and that the mortgages on their properties have been released. The company agreed to pay $300,000 by June 30 and another $100,000 within 30 days of the first payment, with funds allocable for restitution, state programs, or Massachusetts’ General Fund, while $1.85 million of the total is suspended provided the company adheres to the settlement’s terms. Among other provisions, the settlement prohibits circumvention through other entities and requires one year of compliance monitoring after its effective date.