CFPB withdraws rule cracking down on data brokers

Plus: Longbridge wins partial injunction against Mutual of Omaha in Ad dispute

May 16, 2025

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Disclaimer: Average mortgage rates as of May 15, 2025. © MND Daily Rate Index.

1. CFPB withdraws rule cracking down on data brokers

The CFPB has cancelled plans to introduce new rules designed to limit the ability of data brokers to sell sensitive information about Americans, including financial data, credit history, and Social Security numbers.

CFPB proposed the new rule in early December under former director Rohit Chopra, who said the changes were necessary to combat commercial surveillance practices that “threaten our personal safety and undermine America’s national security.”

The rule was withdrawn early Tuesday, according to its listing in the Federal Register. The CFPB’s acting director, Russell Vought, wrote that the rule is “not aligned with the Bureau’s current interpretation” of the Fair Credit Reporting Act.

2. Spring homebuying off to slowest start in 5 years

April saw the fewest signed contracts since the COVID-19 lockdown in 2020, according to seasonally adjusted data from Redfin.

Deals were down 3% from last April, which was already considered a low point, Bloomberg reported Wednesday. The outlet added that active listings for April surged to their highest level since 2019, suggesting homes are piling up on the market.

3. Dark Matter confirms layoffs amid restructuring

Dark Matter Technologies has confirmed a workforce reduction as part of a strategic realignment. The move comes roughly 20 months after the company was spun off from Black Knight and rebranded following its acquisition by Intercontinental Exchange.

CEO Sean Dugan, who stepped into the role in April, said the layoffs reflect both market conditions and internal restructuring. He cited overlap from the integration of the Nova team and the company’s shift to Amazon Web Services as factors.

The number of affected employees was not disclosed. (NMN)

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4. More Nuggets

💰 NAR's new law firm for antitrust suits charges up to $3K an hour. (Inman)

🎥 FHFA Director Bill Pulte on the housing market, mortgage rates, future of Fannie Mae & Freddie Mac. (Youtube)

📊 These metros could be first-time buyers' best chance to close a loan. (NMP)

🏘️ Here's exactly how unaffordable today's housing market is — and where it's getting worse. (CNBC)

5. CFPB moves to scrap nonbank offenders registry

The Consumer Financial Protection Bureau wants to rescind a rule that requires nonbank financial firms to register with the agency if they find themselves in the cross-hairs of any court order or regulatory enforcement order.

The registry, adopted last year, was meant to “help the CFPB, the law enforcement community and the public limit the harms from repeat offenders” who violated consumer laws, former CFPB head Rohit Chopra said when it was proposed in 2022.

“The Bureau is proposing to rescind the NBR Rule based upon concern that the costs the rule imposes on regulated entities, and which may in large part be passed onto consumers, are not justified by the speculative and unquantified benefits to consumers discussed in the analysis proffered in the NBR Rule,” CFPB Acting Director Russ Vought wrote.

6. Longbridge wins partial injunction against Mutual of Omaha in Ad dispute

A federal judge granted partial preliminary injunctive relief to Longbridge Financial in its lawsuit against Mutual of Omaha Mortgage over allegedly deceptive advertising.

Judge Dana M. Sabraw ruled that some of Longbridge’s claims were supported by the law and facts. The order bars Mutual and its affiliate site Review Counsel from implying Longbridge is unlicensed in states where it is authorized and from using Google ads referencing a “Top 3” list without naming three independent lenders.

The judge also found Mutual had falsely presented its brands—Mutual of Omaha and Retirement Funding Solutions (RFS)—as separate top providers. RFS is not a distinct company but an internal brand. The case remains ongoing.

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

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