Lawmakers Question Compass and MRED Over Private Listing Network Partnership

Lawmakers Question Compass and MRED Over Private Listing Network Partnership

A U.S. House Judiciary subcommittee has formally requested information from Compass, Inc. and Midwest Real Estate Data (MRED) regarding a recently expanded data partnership. Lawmakers are concerned that the collaboration involving private listing networks may stifle competition and reduce transparency for homebuyers and sellers.

In letters dated July 22, 2026, the Subcommittee on the Administrative State, Regulatory Reform, and Antitrust, chaired by Rep. Scott Fitzgerald (R-Wis.), pressed Compass CEO Robert Reffkin and MRED CEO Rebecca Jensen for briefings. The committee is investigating whether specific real estate firms are utilizing off-MLS structures to insulate themselves from market competition, potentially violating U.S. antitrust principles.

The scrutiny centers on an April agreement in which MRED, a major multiple listing service, expanded its Private Listing Network nationwide. This arrangement allows agents to market properties that are not immediately available on the open market or public portals. Under the deal, Compass lists many of these properties as “Compass Private Exclusive” listings, sharing them within the brokerage’s internal agent network before they appear on public sites like Zillow or local MLS databases.

The legislative letters outline several risks associated with these private networks. A primary concern is inventory fragmentation, which could create “velvet ropes” that prevent buyers from seeing all available homes. Additionally, the subcommittee flagged incentives that might encourage agents to steer sellers away from the open MLS to “double-end” deals, a practice where a single agent represents both the buyer and seller to capture the full commission. There are also worries that private networks could allow listing brokers to capture unrepresented buyers, concentrating deal flow within specific firms.

As this regulatory story develops, shares of Compass are trading lower. The stock is currently down 2.09% on the day, priced at $11.26. Zillow Group, a prominent portal often used for public listings, is also seeing a decline, trading at $31.36, a drop of 1.25%.

What to watch

• Regulatory Briefings: Responses from Compass and MRED to the House subcommittee regarding the mechanics and market impact of their private listing agreement.
• Industry Data: Future reports on the volume of off-MLS listings and their effect on overall market inventory and commission structures.

Source: original release