According to HousingWire, a ransomware group called Interlock is claiming it stole more than 2.5 terabytes of data from NFM Lending around early September. Dark web monitoring sites detected the group's announcement on their leak site, where they posted about the breach. The stolen information reportedly includes customer Social Security numbers, financial account details, and employee personal information, though the exact scope remains unclear.
The breach has triggered legal action. A proposed class-action lawsuit was filed against NFM on September 16 in U.S. District Court for the District of Maryland. The plaintiff, Sheneka Smith, alleges that NFM failed to notify customers of the incident in a timely manner, leaving them unable to take protective steps like freezing their credit or monitoring their accounts for fraud.
Beyond the notification delays, the lawsuit makes broader claims about NFM's security practices. The complaint argues that the lender failed to maintain adequate cybersecurity safeguards and did not properly train employees on cybersecurity risks. Smith is seeking damages, restitution, injunctive relief, and attorney's fees under claims including negligence, breach of implied contract, unjust enrichment, and violations of the Maryland Consumer Protection Act.
As of the lawsuit filing, NFM Lending had not publicly confirmed details about the breach or the number of customers affected. The company declined to comment to HousingWire at the time of the reporting, so the situation remains largely under investigation from the lender's perspective.
What I'm seeing locally in the Bay Area is that these kinds of data breaches are becoming a serious concern for our lending partners and their customers. When a lender this size experiences a breach involving financial and personal information, it affects confidence in the entire mortgage process. For our buyers and sellers working with any lender, this is a good reminder to ask tough questions about data security practices and to monitor your accounts carefully during and after any real estate transaction.
