The American Land Title Association (ALTA), the Maryland Land Title Association (MLTA) and AARP today commended Maryland Attorney General Anthony G. Brown and the Consumer Protection Division for taking action against MV Realty and seeking to terminate allegedly unlawful Homeowner Benefit Agreements and related liens that burdened Maryland homeowners.
According to the charges, MV Realty engaged in illegal consumer lending when it entered into Homeowner Benefit Agreements (HBAs) with Maryland consumers, advancing them a small sum that they would have to repay with exorbitant interest. The Attorney General’s action seeks to halt the alleged unlawful conduct, terminate the agreements and related liens, and obtain restitution for consumers.
“Attorney General Brown’s action sends a clear message: homeowners should never be trapped in deceptive agreements that cloud title and threaten their most valuable asset,” said Caroline Cone, director of state government affairs, ALTA. “Protecting clear title and preserving the ability to sell, refinance or pass on a home are fundamental to consumer confidence and property rights.”
Maryland’s charges allege that MV Realty trapped Maryland homeowners and their heirs in costly long-term agreements and failed to clearly disclose key terms, including the 40-year duration and the impact the recorded agreements could have on future transfers of the home.
“AARP applauds Maryland Attorney General Brown for taking decisive action to protect homeowners from predatory agreements that trap homeowners and limit their ability to sell or pass on their homes to the next generation. The charges levied against MV Realty make it clear that Maryland will not tolerate schemes that exploit home equity or strip away future choices,” said Jenn Jones, vice president of financial security and livable communities, government affairs, AARP. “We remain committed to working with leaders and advocates nationwide to stop these practices and to protecting older homeowners from unknowingly risking long-term security for a short-term payment.”
ALTA, MLTA and AARP have worked alongside policymakers and consumer advocates nationwide to raise awareness about these types of agreements, often referred to as non-title recorded agreements for personal services (NTRAPS), and to advance solutions that better protect homeowners from hidden risks. In 2023, the Maryland state legislature passed a law that made NTRAPs unenforceable by law.
“These agreements can create serious uncertainty in the land records and unnecessary obstacles for homeowners and real estate transactions,” said Eric Oberer Esq. CLTP, president of the Maryland Land Title Association. “We appreciate Attorney General Brown’s leadership in taking action to protect Maryland homeowners and uphold transparency in the marketplace.”
“For many older Marylanders, a home represents both financial security and a legacy to pass on to loved ones,” said Kathy Lewis, AARP Maryland interim state director. “AARP Maryland is proud to support this action and stand with Attorney General Brown to ensure homeowners are not burdened by predatory long-term agreements that can threaten their ability to sell, refinance or transfer their homes.”
ALTA, MLTA and AARP will continue working with state leaders, industry partners and consumer advocates to advance protections against predatory real estate contracts and safeguard homeowners’ property rights.
About ALTA
The American Land Title Association, founded in 1907, represents an industry comprised of more than 17,000 title insurance companies operating across the nation, with over 90% being small businesses.
About the Maryland Land Title Association
The Maryland Land Title Association promotes professionalism and communication throughout the real estate title industry. Its mission includes promoting standards and regulations that increase the effectiveness of the industry through legislative initiatives and educational programs.