The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Zillow and Compass hearing begins Tuesday, Nov. 18
On Tuesday, Nov. 18, Compass and Zillow will meet in court for a scheduled four-day hearing held in New York City, the latest round in the ongoing litigation between the two companies over private listing standards.
The subject of the hearing is a preliminary injunction against Zillow’s new rules, which mandate listings published on Zillow must be listed on an MLS feed within one day or face removal. Compass has claimed this is an anticompetitive action and thus filed for an injunction against the Listing Standards while their case against Zillow moves through the courts.
Both Compass and Zillow have filed pre-hearing briefs reiterating their positions. Compass described the rules as a “Zillow ban” that allows the portal to enforce compliance by intimidation.
In an emailed reply to RISMedia, Compass said: “Unlike Zillow, which has a mandatory submission policy that if not followed results in a ban, Compass has options, not a mandatory policy. Compass cannot force agents or home sellers to market their property in any particular way and instead only wants to provide agents and home sellers with choice—choice the Zillow Ban blocks.”
Zillow’s emailed statement to RISMedia about the hearing read: “While Americans are struggling to access and afford housing, Compass wants to hide available listings from the public. Hidden listings harm consumers, agents and smaller brokerages; Zillow’s standards protect against that harm. The Compass hidden listings scheme benefits only Compass; Zillow’s standards benefit the entire marketplace. Sellers deserve the widest possible audience, and buyers shouldn’t have to wonder what homes they’re not seeing. Real estate works when it’s fair, equal, open and transparent, so Zillow is defending that transparency—and we’re not backing down.”
FHFA Director Bill Pulte facing scrutiny from agency watchdogs
After several internal watchdogs—including the inspector general—were fired at the FHFA, the Wall Street Journal reported last week that Fannie Mae’s ethics and investigations group had been probing whether FHFA chair and CEO Bill Pulte had improperly obtained mortgage documents of people the administration sought to investigate.
Citing anonymous sources, the Wall Street Journal said the initial investigation focused on whether Pulte had the authority to obtain the documents and whether the organization followed “the proper procedure” in obtaining information about New York Attorney General Letitia James and others. James was indicted for mortgage fraud last month.
Pulte has overseen significant cuts to the FHFA, and also fired dozens of employees from Fannie Mae for fraud last summer—though many of those now former employees are suing, claiming wrongful termination and discrimination.
eXp granted extension to respond to amended complaint in sexual assault lawsuit
eXp has been granted an extension to file a response to the third amended complaint against the company in a lawsuit alleging sexual assault and coverup, known as Acevedo vs. eXp.
Plaintiffs filed a third amended complaint back in October to expand the damages sought in the lawsuit. eXp was to respond to the complaint by early November, but lawyers say they reached out to the plaintiffs for an extension instead.
eXp then filed a request for the court to intervene and allow an extension after arguing with the plaintiffs over that extension. The request was then granted by the court on Nov. 4. eXp will now have until Nov. 24 to respond to the complaint.
As of Nov. 12, defendants David Golden and Brent Gove have filed their responses to the third amended complaint. Both denied or alleged they lacked sufficient knowledge of most allegations laid out by plaintiffs, or claimed they were taken out of context.
DOJ rejects new funding for CFPB, potentially shutting down agency in 2026
In a memo filed in federal court last week, the Department of Justice wrote, in a response to acting CFPB director Russ Vought, that the agency’s funding mechanism disallows it from drawing more money, potentially shutting it down in early 2026.
In a 23-page document signed by Assistant Attorney General Elliot Gaiser, the DOJ wrote that the Federal Reserve cannot not be allowed to provide more funds to the CFPB. The CFPB, which has already seen significant cuts under the second Trump administration, enforces many rules and regulations around mortgage markets and lenders, most prominently fair housing issues.
Under Trump, the CFPB dropped a handful of investigations into kickbacks and redlining, including a major inquiry into Rocket and the Jason Mitchell Group.
Vought has said explicitly he wants to shutter the CFPB.
