Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

Real Estate

Realogy suing Compass for unfair business practices, illegal schemes

Accuses real estate brokerage of scheming to damage, eliminate competition

Realogy Holdings, the nation’s largest real estate brokerage, filed a bombshell lawsuit Wednesday against its SoftBank-backed rival, Compass, accusing it of unfair business practices and illegal schemes.

The impassioned complaint filed in New York Supreme Court alleges that Compass engages in illegal activities in a bid to edge out its competitors “at all costs” in order to gain market share.

“To reach its desired ends, Compass steals from, tortiously interferes with, and disparages its competitors,” the complaint states. “Compass' very business model is founded on misappropriating, by whatever means necessary, the assets, confidential business information, trade secrets, contracts, talent, and strategies of its competitors.”

Specifically, Realogy alleges that Compass poaches employees and agents from its competition by grossly overpaying them, leveraging more than $1 billion from investors to make up for the losses incurred by this practice.

It also accuses the brokerage of luring employees from its competitors, encouraging them to breach their non-competes and divulge confidential information learned in their previous jobs.

It even goes so far as to claim that Compass infiltrates the computer systems of its competitors to gain access to proprietary information, which it then uses to poach staff.

It further alleges that CEO Robert Reffkin solicited Realogy to enter into an illegal price-fixing agreement that would have the two companies agree to limit compensation and compete on brand rather than price, an offer Realogy said it refused.

Realogy is not the first to take Compass to court, as a number of other companies, including Zillow, have accused Compass of poaching and data theft.

For its part, Compass accused its competitors of using the courts to suppress competition.

“At Compass we focus on providing the best possible experience for our employees, agents and their clients. Instead of building a better future for the real estate industry, our competitors are using the court system to stifle competition, but these efforts have been unsuccessful,” a Compass spokesperson told HousingWire. “Compass will continue on its mission to meaningfully improve the real estate industry and help everyone find their place in the world.”

Realogy would likely contest the assertion that Compass is seeking to improve the real estate industry, as the company calls Compass’ practices “as brazen as they are unlawful” in the complaint.

“Its conduct has damaged – and unless Compass is stopped, will continue to damage – the real estate industry by suffocating competition through improper means, to the detriment of its competitors, agents, and consumers as well,” it states.

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please