I find it hard to swallow Dumbledore knowing, let alone sharing all of this information so readily with others. I understand you needed to get the information out for the story's sake but in general it bogged things down a bit and felt a little to unrealistic. If Dumbles knew all of this already then he is a large part of the problem, if he has kept it to himself thus far I find it hard to believe he would so easily share it with the heads of house like this.
Then again Shadow might have scared some actual sense into him...
Generally I love your stories and I plan to continue reading this one, but I know many people who will not read past chapter 3 unfortunately. Please though, continue writing and I will continue reading. It was still enjoyable and an interesting look into Wizarding Britain.