CFPB warns staff of possible layoffs as funding cap looms

☀️ It's Monday. Thanks for joining us. Today’s newsletter is 679 words, 2.5 minutes.

1. Zillow faces class-action suit over Premier Agent, Flex commissions

Zillow is facing a class-action lawsuit in Seattle federal court over its Premier Agent and Flex programs. The complaint, filed by Portland homebuyer Alucard Taylor, alleges that Zillow misleads consumers by routing them to affiliated agents through the “contact agent” button, rather than the property’s listing agent.

Plaintiffs claim Zillow presents its Touring Agreement as offering “free” buyer services, but commissions are still paid, with Flex agents required to give Zillow up to 40% of their earnings. The lawsuit argues this structure inflates home prices, discourages commission negotiations, and locks sellers into paying high fees.

The suit accuses Zillow of violating RESPA and the Washington Consumer Protection Act, and seeks treble damages, profit forfeiture, and an injunction against the practices. Zillow denies the allegations, saying the complaint misrepresents its business and that it will “vigorously defend” itself.

2. Home flipping profits drop to new multiyear low

Home-flipping profits fell to their lowest level since 2007 in Q2 2025, according to ATTOM. The median flip generated a $65,000 gross profit, equal to a 27.5% ROI, down from 50%-plus margins seen in 2016 and 2021.

Flips made up just 7.2% of all U.S. home sales, the smallest share in nearly three years, as rising acquisition and renovation costs outpaced resale gains. Returns were stronger in the South and Midwest, while investors in the high-cost West saw the weakest results.

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3. More Nuggets

🏘️ Trump cabinet members have same shady mortgages as his Fed enemy. (Yahoo)

💸 Toll Brothers sells apartment platform to Kennedy Wilson. (MultifamilyDive)

💼 CFPB warns staff of possible layoffs as funding cap looms. (Reuters)

📈 $67K to sell a home? Consumers drastically underestimate the costs. (HousingWire)

💳 As GSEs prep for crypto, lenders test the non-QM waters. (smry)

4. Nearly 60% of renters want to buy a home

Realtor.com’s latest rental report shows 59.7% of renters plan to purchase a home, with about 32% expecting to do so within the next one-to-two years. The trend highlights how renters are changing their behavior and starting to pursue home ownership.

5. J.P. Morgan wins Freddie Mac license to underwrite affordable housing debt

J.P. Morgan Commercial Banking secured its license to underwrite affordable housing debt for Freddie Mac, expanding the bank’s role in the government-sponsored lending market.

The Freddie Mac Multifamily Targeted Affordable Housing Optigo designation adds to J.P. Morgan’s existing agency offerings and complements a similar designation it already has with Fannie Mae.

J.P. Morgan has more than doubled the size of its agency business since 2022, growing the segment through conventional Freddie Mac loans and underwriting multifamily debt as a member of Fannie Mae’s Delegated Underwriting and Servicing, or DUS, program.

☀️ You’re all caught up. See you on Wednesday!

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