The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

Inside Look: RealTrends 2021 Brokerage Compensation Study

Steve Murray, senior advisor to RealTrends, gives an exclusive first look at the 2021 RealTrends Brokerage Compensation Report.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

How lenders can prepare for increasing regulatory pressures

As compliance becomes an increased focal point for mortgage lenders and investors, staying ahead of state and federal regulations can be the difference between a flourishing business and one mired in fines.

Real EstateIPO / M&AAppraisals & Valuations

Compass eyes IPO in 2021: report

Resi brokerage has raised over $1.5 billion since its founding in 2012

Venture-backed residential brokerage Compass has hired bookrunners ahead of an independent public offering in 2021, according to a new report.

Compass, most recently valued at $6.4 billion, is working with Goldman Sachs and Morgan Stanley to underwrite the IPO, according to Bloomberg, which cited anonymous sources.

Like other real estate companies of late, SoftBank-backed Compass has benefited from low interest rates and changing consumer behavior that’s driven new home purchases across the country.

Founded in 2012 by Robert Reffkin and Ori Allon, New York-based Compass has raised more than $1.5 billion from blue-chip investors, including SoftBank, Fidelity, Wellington Management, Goldman Sachs, Dragoneer, Canadian Pension Plan Investment Board, IVP, LeFrak and others.

Compass positions itself as a tech-forward brokerage that has gradually branched out beyond brokerage – it offers a concierge service, facilitates bridge loans, has a title-and-escrow arm, and has deployed a bevy of resources into tech centers in Seattle and Hyderabad.

The residential brokerage has also spent heavily to acquire smaller brokerages and top agents in over a dozen markets across the country since its founding, which led to accusations of agent poaching and issuing huge splits and signing bonuses that drove up costs to unsustainable levels.

There are also open questions about how much expansion is possible for the brokerage, which currently boasts more than 18,000 agents and sold over $91 billion worth of property in 2019, according to Real Trends.

In the early days of the pandemic, when lockdowns prevented Compass from showing homes in its strongest market, the brokerage elected to cut 15% of non-agent staff. Compass subsequently rebounded to cash in on record home sales in the summer and into the fall.

Realogy, the largest brokerage conglomerate in the U.S., is currently trading at $12.35 a share, up dramatically from a low of $2.09 in March. Despite its heft, Realogy’s market cap stands at roughly $1.43 billion, less than Compass has raised across several funding rounds.

Leave a comment

Most Popular Articles

Treasury removes restrictions on investment properties

The Treasury Department and FHFA announced Tuesday that they are suspending certain requirements that were added in January to the Preferred Stock Purchase Agreements (PSPAs) between Treasury and Fannie Mae and Freddie Mac.

Sep 14, 2021 By

Latest Articles

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

The United States is grappling with a sharp rise in natural disasters, including wildfires, an active hurricane season, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Sep 17, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please