Wednesday, June 10, 2026
California, FTC secure nearly $3 million in refunds for victims of mortgage relief scam
More than 1,800 consumers, including hundreds of Californians, will receive refund checks totaling nearly $3 million after state and federal authorities dismantled a mortgage fraud scheme that targeted struggling homeowners during the COVID-19 pandemic.
More than 1,800 consumers, including about 900 Californians, are expected to receive nearly $3 million in refunds after state and federal authorities shut down a mortgage relief scam that targeted homeowners during the COVID-19 pandemic.
The California Department of Financial Protection and Innovation announced Tuesday the refunds stem from a court order secured in partnership with the Federal Trade Commission following an investigation into a multi-year mortgage fraud scheme.
According to state officials, the companies involved falsely promised to lower homeowners' mortgage payments and prevent foreclosure by claiming to offer assistance through programs tied to federal pandemic-related mortgage relief efforts.
In February 2024, a federal judge in the Central District of California found the operators of the scheme had misled financially distressed homeowners into redirecting their mortgage payments to the companies, falsely assuring them the arrangement would help reduce interest rates and save their homes.
The operation used more than a dozen business names, including Golden Home Services, Academy Home Services and Home Matters USA. Investigators said the companies relied on telemarketing call centers to contact vulnerable homeowners and misrepresented their services as being connected to government relief programs.
Following an investigation by the California Department of Financial Protection and Innovation, the court barred the companies and their operators from participating in the telemarketing and debt relief industries, and ordered them to pay millions of dollars in penalties and restitution.
"This case shows what's possible when state and federal partners work together with purpose to crack down on fraud, hold bad actors accountable, and deliver justice for victims," California Gov. Gavin Newsom said in a statement.
DFPI Commissioner KC Mohseni said the agency remains committed to protecting homeowners from financial scams.
"We are pleased to be able to give refunds to people who have been scammed out of their hard-earned money," Mohseni said in a statement. "We will continually pursue all avenues to prevent scammers from preying on and profiting off Californians, including vulnerable homeowners trying to keep a roof over their families' heads."
The Federal Trade Commission has begun mailing refund checks to eligible consumers. Officials said recipients should cash the checks within 90 days. The FTC also warned consumers that it never requires people to pay a fee or provide financial account information to receive a refund payment.
The California Department of Financial Protection and Innovation regulates mortgage lenders, debt-relief companies and other financial institutions operating in the state.
The California Department of Financial Protection and Innovation announced Tuesday the refunds stem from a court order secured in partnership with the Federal Trade Commission following an investigation into a multi-year mortgage fraud scheme.
According to state officials, the companies involved falsely promised to lower homeowners' mortgage payments and prevent foreclosure by claiming to offer assistance through programs tied to federal pandemic-related mortgage relief efforts.
In February 2024, a federal judge in the Central District of California found the operators of the scheme had misled financially distressed homeowners into redirecting their mortgage payments to the companies, falsely assuring them the arrangement would help reduce interest rates and save their homes.
The operation used more than a dozen business names, including Golden Home Services, Academy Home Services and Home Matters USA. Investigators said the companies relied on telemarketing call centers to contact vulnerable homeowners and misrepresented their services as being connected to government relief programs.
Following an investigation by the California Department of Financial Protection and Innovation, the court barred the companies and their operators from participating in the telemarketing and debt relief industries, and ordered them to pay millions of dollars in penalties and restitution.
"This case shows what's possible when state and federal partners work together with purpose to crack down on fraud, hold bad actors accountable, and deliver justice for victims," California Gov. Gavin Newsom said in a statement.
DFPI Commissioner KC Mohseni said the agency remains committed to protecting homeowners from financial scams.
"We are pleased to be able to give refunds to people who have been scammed out of their hard-earned money," Mohseni said in a statement. "We will continually pursue all avenues to prevent scammers from preying on and profiting off Californians, including vulnerable homeowners trying to keep a roof over their families' heads."
The Federal Trade Commission has begun mailing refund checks to eligible consumers. Officials said recipients should cash the checks within 90 days. The FTC also warned consumers that it never requires people to pay a fee or provide financial account information to receive a refund payment.
The California Department of Financial Protection and Innovation regulates mortgage lenders, debt-relief companies and other financial institutions operating in the state.
