What Happened
At the FTC's request, a federal court in California temporarily halted National Amendment Assistance, also known as N.A.A., and related entities over an allegedly deceptive mortgage-assistance relief operation.
According to the FTC's complaint, the defendants mailed letters to homeowners nationwide claiming the homeowners could obtain mortgage relief under a special adjustment program connected to the CARES Act Homeowner Assistance Fund or a lender-specific in-house mortgage adjustment program.
The FTC says the letters gave homeowners specific supposed modification terms, including a lower mortgage rate and monthly payment, and urged them to call for more information. The agency alleges the defendants charged unlawful upfront fees, told some consumers they had a grace period and did not need to pay their mortgage, then failed to get the promised relief.
Why This Matters
Mortgage-relief scams hit people exactly when they are trying to keep a roof over their heads. The FTC says consumers lost money paid to the defendants, handed over financial information and, in some cases, fell behind on mortgage payments, facing foreclosure or default.
The complaint alleges violations of the FTC Act, the Mortgage Assistance Relief Services Rule and the Gramm-Leach-Bliley Act. The FTC is seeking redress for affected consumers, and the case will be decided by the court.
The Dumb Part With The Official-Sounding Envelope
The dumb part is the costume. Take a pandemic-era law people vaguely remember, add a fake-sounding "special adjustment" program, put it in a mailer, and suddenly financial distress becomes a sales lead.
This is why every official-looking debt or mortgage letter deserves the same energy you bring to a suspicious gas-station sushi roll: pause, inspect and do not swallow the pitch just because the wrapper has serious fonts.
The Bottom Line
The court entered a temporary restraining order after the FTC's 2-0 vote to authorize the complaint. The real stupid shit is that homeowners looking for help lowering their bills allegedly got a fake relief pipeline that made the mortgage problem worse.
Sources
FTC: FTC sues to stop deceptive mortgage assistance relief operation that targets homeowners
FTC case page: National Amendment Assistance, FTC v.
FTC Consumer Advice: Mortgage relief scams