Sen. Elizabeth Warren (D-MA), the ranking member of the Senate Banking Committee, sent a letter to Robert Reffkin, CEO of Compass International Holdings (NYSE: COMP), and Rebecca Jensen, CEO of Midwest Real Estate Data, requesting information on their planned creation of a national private listings database.
Warren was critical of Compass last February when the company was plannings its acquisition of Anywhere Real Estate. Her new concern, which was first reported by Realtor.com, was expressed in a nine-page letter where she claims the database could have a negative impact on homebuying.
“Your partnership threatens to create a two-tiered housing market where insiders pay for exclusive access to housing inventory and market data, while everyone else is shut out,” Warren wrote in the letter. “I am concerned that this move will increase industry consolidation and harm consumers by driving up housing costs and worsening inequalities in the housing market.”
The senator claimed the Compass-MRED endeavor “increases risks of civil rights violations” as defined by the Fair Housing Act.
“I am particularly concerned that the non-public, exclusive nature of private listings may perpetuate housing discrimination through residential steering that is prohibited under the FHAct and other civil rights laws, also making potential discrimination harder to detect,” she wrote.
Warren requested details of the companies’ partnership and how they would ensure there are no fair housing or antitrust problems.
Compass did not comment on the story, while MRED offered a statement that said, “It would be an honor to speak with Senator Warren and explain the important role of the MLS in the Real Estate marketplace. Issues such as fair housing, data quality, and rules are critical to any MLS. We look forward to discussing MRED’s value with her.”
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