A House Judiciary subcommittee has summoned the chief executives of Compass and MRED, Chicago’s regional multiple listing service, to brief lawmakers on a private-listing partnership between the two companies that critics say could limit consumers’ access to home listings.
The Subcommittee on the Administrative State, Regulatory Reform and Antitrust, chaired by Rep. Scott Fitzgerald, R-Wis., sent letters on July 22 to Compass CEO Robert Reffkin and MRED CEO Rebecca Jensen requesting a briefing by August 5, according to RISMedia and RealEstateNews.com, which both reviewed the letters.
What the subcommittee is asking
The letters concern a partnership the two companies announced in April that lets Compass agents share certain listings with MRED participants before those properties reach a broader multiple listing service or public home-search sites. Fitzgerald wrote that the arrangement “has raised concerns about the information that will be available to consumers and the effect that it could have on housing affordability,” according to RISMedia.
RealEstateNews.com reported the subcommittee’s letter also raised concerns the partnership could fragment inventory, weaken price competition, create “velvet ropes” around certain properties, and incentivize brokers toward dual-agency deals that limit independent buyer representation.
The inquiry follows an earlier request from the Consumer Federation of America, a nonprofit advocacy group, that the Federal Trade Commission and Justice Department review Compass’s listing agreements with multiple MLSs, both outlets noted.
Company responses
MRED said it intends to cooperate, telling RISMedia: “We look forward to responding and helping the committee understand our business practices.” Compass declined to comment to both outlets.
What it means
Verified facts: a congressional subcommittee has formally requested that Compass and MRED brief lawmakers on their private-listing partnership by August 5; the letters cite consumer-access and affordability concerns; MRED said it will cooperate and Compass has not commented publicly.
What’s not yet established: the letters are a request for information and a briefing, not a finding of wrongdoing or the opening of a formal investigation with subpoena power. Whether the FTC or Justice Department will act on the earlier advocacy-group request is unknown.
What to watch: whether Compass and MRED agree to the August 5 briefing, and whether other brokerages using similar private-listing networks draw comparable congressional attention. The scrutiny adds to a broader, ongoing industry debate over how much of the housing inventory should be marketed off the open market.
