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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 72 November 2025 J O U R N A L tion Financial Bureau's (CFPB) Personal Financial Data Rights Rule, which the agency said is designed to give consumers more control over their financial data. The injunction cited the ongoing debates about data access and security. "The plaintiffs raise a reasonable argument that the CFPB failed to address a key issue: How data providers are expected to comply with the Rule when the 'consensus standards' may not yet exist," said Judge Danny Reeves in issuing the injunction. Among those debating changes in what is commonly known as the open banking rule were Cynthia Lummis (R-WY), Chair of the Senate Banking Subcommittee on Digital Assets Chair, who had asked for open banking, and the Bank Policy Institute (BPI), which wanted to see the status quo, arguing that the proposed change put sensitive consumer financial data at risk and exceeded the CFPB's legal authority. "The court's decision ensures banks won't waste resources preparing for a rule being rewritten," said BPI, the Kentucky Bankers Association, and Forcht Bank, in a joint statement following the ruling. Sen. Lummis cited the following as bene- fits of the CFPB open banking rule: • It enables access to financial services for rural communities via phones and computers. These tools make it easier to build credit with alternative scoring models that use transaction or banking data to prove the ability to pay. • Open banking supports small busi- nesses and agricultural operations with better cash flow and credit ac- cess. Ranchers, farmers, and mom- and-pop shops across Wyoming often rely on seasonal or irregular income. Fintech tools can provide more flexible payment, financing, and invoicing options that align with that cash flow (e.g., verifying income in real time, dynamic credit), but only if consumers have control over their data to use these tools. • It provides access to third-party tools that increase options so they can compare financial products like loans, credit cards, and savings, lead- ing to the best possible transaction terms. • Open banking helps automate payments, reduce travel and postage, avoid late fees, and enhance budget- ing and fraud detection. With the injunction, banks are temporarily relieved from upgrading their digital platforms to comply with the halted regulation. CHICAGO HOUSING AUTHORITY SUES HUD OVER NEW FUNDING RESTRICTIONS T he Chicago Housing Authority (CHA) is suing the U.S. Depart- ment of Housing and Urban De- velopment (HUD), seeking immediate intervention from the court regarding new conditions HUD has placed on the CHA's federal funding. As part of the annual application to receive continued federal operating subsidies for public housing units, HUD is, for the first time, requiring Public Housing Authorities to certify that federal funds will not be used to fund or promote "diversity, equity, and inclu- sion mandates, policies, or programs," gender ideology, elective abortions, and immigration-related policies. Earlier this year, HUD cancelled $4 million in contracts promoting DEI, saying that the cuts were part of the department's larger $260 million review of all contract expenditures. The terminated contracts were intended for "DEI culture transforma- tion," including outward mindset train- ing and diversity and inclusion research subscription services. Policy Shifts at HUD "It is inexcusable the American tax- payer was footing the bill for the promo- tion of DEI propaganda. Not only was this costing millions of taxpayer dollars but it was also wasting valuable time that should have been used to better serve individuals and families in rural, tribal, and urban communities. DEI is dead at HUD," Secretary Scott Turner said when the action was taken. According to CHA, the HUD certi- fications cite several recent Executive Orders but provide no additional information or clarification on these requirements beyond the language in the application. The deadline for CHA to submit the signed application is Oct. 21, 2025. "CHA is seeking a temporary restraining order to lift the mandatory certification requirement from the ap- plication in advance of the forthcoming deadline, so that the agency can focus on its vision of quality affordable hous- ing where everyone feels welcome," the agency said in a press release. At issue is the federal Operating Subsidy Grants that the agency was expecting to receive in December. The grants of $185 million were to account for more than 13% of CHA's proposed fiscal 2026 operating budget. But the agency expects HUD to impose these certifications across additional feder- al funds and programs, which could implicate more than $1 billion in federal funding for CHA. GOVERNMENT SHUTDOWN FORCES HUD LAYOFFS, DELAYING KEY HOUSING SERVICES A ccording to reporting by Atlanta News First and a recent court filing, more than 4,000 federal employees have been laid off as a result of the ongoing government shutdown, including 442 people from the Department of Housing and Urban Development (HUD). The move, part of