Maryland Homeowners Victims of Alleged Predatory Lending Scheme

Maryland Attorney General Anthony G. Brown has announced that the Consumer Protection Division has filed charges against MV Realty PBC, LLC, and associated entities, along with their corporate officers. The action alleges that MV Realty engaged in unfair, abusive, and deceptive trade practices by offering “Homeowner Benefit Agreements” (HBAs) that constituted illegal and usurious loans to Maryland residents. These agreements purportedly provided a small sum of money to homeowners, which would later need to be repaid with exorbitant interest, impacting over one thousand Maryland households.

Per charges filed by the Consumer Protection Division, MV Realty circumvented Maryland’s lending laws, which mandate licensing for consumer lenders, require clear disclosure of loan terms, and establish limits on interest rates. Furthermore, these laws generally prohibit lenders from placing liens on real property for loans under $4,000. The Division contends that the HBAs, which MV Realty marketed as an alternative to traditional loans, were in fact secured loans that unlawfully encumbered consumers’ homes. These agreements allegedly imposed substantial penalties if homeowners sold or transferred their property without involving MV Realty.

The Consumer Protection Division’s allegations specify that MV Realty either misrepresented or failed to adequately disclose critical details of the HBAs to consumers. Notably, these agreements are alleged to last for 40 years and bind not only the original homeowner but also their heirs and successors. According to the charges, MV Realty proceeded to record these HBAs in land records, effectively creating liens on the properties. These liens would then require homeowners to pay MV Realty a significant portion of their home’s value, reportedly at least 3.0%, upon the sale or transfer of the property. Additionally, the Division claims that MV Realty charged consumers an undisclosed “administrative fee” of $500 if they chose to use MV Realty’s services to sell their homes.

The Maryland Attorney General’s Office is seeking an order to compel MV Realty to cease all violations of Maryland’s lending, debt collection, and consumer protection statutes. The legal action also aims to terminate all HBAs and any associated liens currently placed on consumers’ homes. Furthermore, the Office is pursuing restitution for funds unlawfully obtained from consumers and is seeking statutory civil penalties and legal costs. A hearing in this case is scheduled to commence on September 8, 2026, at the Office of Administrative Hearings. Consumers who believe they have been affected by MV Realty’s practices are encouraged to contact the Consumer Protection Division at 410-528-8662, file a complaint online at http://www.OAG.Maryland.gov, or submit a written complaint to the Consumer Protection Division at 200 St. Paul Place, 16th Floor, Baltimore, MD 21202.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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