MV Realty, the company that marketed a controversial homeownership benefits program that locked consumers into a relationship for 40 years, has now settled its legal matters with the California Attorney General's office.
The deal follows agreements reached with officials in Nevada, Pennsylvania and North Carolina during April. Massachusetts
Under the settlement, MV Realty will pay a total monetary judgement of $2.5 million to California along with the victims. It consists of full restitution to those consumers of over $1.3 million as well as nearly $1.2 million in civil penalties, the state Attorney General office said.
The contracts with consumers, known as non-title recording agreements for personal services or NTRAPS, provided cash in exchange for MV Realty having the exclusive right to market their homes if they were ever listed for sale in the next 40 years. Those agreements were enshrined by recorded lien on the property.
As of the end of last year, 33 states, including California,
The California settlement was reached in advance of a trial set to begin on June 10 in Los Angeles County. The suit was initially filed by Attorney General Rob Bonta, along with the district attorneys of Santa Barbara and Napa, in December 2023.
A state appellate court last December upheld an injunction requiring MV Realty to terminate its liens. The company started doing business in California in 2022.
"This settlement delivers the relief we sought in our lawsuit, including full restitution for consumers and the complete undoing of the unlawful practices at issue," Bonta said in a press release. "At a time when Californians are facing an affordability crisis, exploitation like this only adds pressure on households struggling to make ends meet — and it is unacceptable."
Under the agreement, MV Realty will void all contracts and individually terminate each of the liens.
The company, along with CEO Antony Mitchell and David Manchester, chief operating officer, cannot engage in any real estate business in California that requires a license for five years.
National Mortgage News reached out to MV Realty for a comment. The settlement agreement states it was reached "without Defendants admitting or denying any liability or wrongdoing regarding any issue of law or fact alleged in the operative complaint."
Other recent legal developments involving MV Realty
In Pennsylvania, MV Realty is paying partial consumer restitution of $645,595 and litigation costs of $7,000. It also levied civil penalties against MV Realty of $1,663,000 and against another company executive, Amanda Zachman, at $50,000. Those shall be suspended so long as they remain in compliance with the agreement.
North Carolina has permanently banned MV Realty. The company must make restitution of $1.3 million and could be liable for an additional $5.7 million if they violate terms of the judgement.
This case also alleged MV Realty made nearly 150,000 calls to numbers on the Do Not Call Registry and more than 340,000 robocalls.
In Colorado, MV Realty is paying $600,000 in restitution, $450,000 in civil penalties and $50,000 in attorney's fees. The latter are suspended as long as the company remains in compliance with the settlement.
Nevada's deal calls for $200,000 in restitution.
As of the end of last year, a total of 13 states sued MV Realty, according to the American Land Title Association. Others which have settled include
Ohio and MV Realty agreed to a one-time offer to cancel contracts in February.
