Compass International Holdings recently sent multiple MLSs a letter requesting that they exclude Compass listing and agent data from feeds provided to recruiting software vendors, as the mega-brokerage continues to lobby for significant changes to MLS policies.
In the letter, Compass expressed issues with MLS data supplied to vendors including Courted, BrokerMetrics and Brokerkit, noting that much of that information could be used for recruiting purposes.
In an email to RISMedia, a Compass spokesperson confirmed the letter was sent but would not comment further. The letter was sent by Victor Lund, a managing partner at industry consulting firm WAV Group. He told RISMedia in an email that as a contractor to Compass he cannot engage with the media.
According to media reports, the letter said that while Compass supports MLS data-sharing for cooperation, the data they provide the MLS for cooperation purposes should not be sold to a technology company that in turn further sells or leverages that data for something such as agent-recruitment technology.
The letter represents yet another effort by Compass to leverage its significant market power to push for changes to the way MLSs store or utilize data. The company most notably has sparred with—and sued—MLS leaders over how they treat private listings, but also over other data-sharing practices.
The move elicited at least some pushback around the industry. In an email to RISMedia, longtime proptech entrepreneur and MLS consultant Greg Robertson said that “(i)t seems that Mr. (Robert) Reffkin (Compass CEO) is seeking to change the national MLS landscape to more fit the New York style of doing real estate. That’s the best case. The worst case is that he is driving us to the Australian real estate market.”
NextHome Founder James Dwiggins, a frequent critic of Compass and Reffkin, claimed on social media that Compass has “a similar platform internally,” seemingly referring to the agent recruitment platforms.
Also on social media, Jay Teresi, a former executive at Howard Hanna and Inside Real Estate took a more supportive view, calling Compass’s push “valid.”
“I would push back on this as well. The bigger picture has been the mission creep of MLS/Associations for years,” he said.
In his Vendor Alley commentary, Robertson claimed that in the letter, “there’s a 30-day deadline, plus a line about ‘damage claims to the MLS’ that Compass will generously release if the MLS plays along.
“Here’s what I’d tell MLSs. Don’t answer this alone, and don’t answer it in 30 days. Send it to counsel, send it to CMLS, and pull out the 2014 policy,” wrote Robertson. “If licensing agent-level production data to recruiters is a problem (and reasonable people think it might be), fix it with a rule that applies to every participant the same way. Just stop short of a side deal with the biggest one. Because the first MLS that grants Compass an off switch will get the same letter from every broker with a lawyer.”
But as always, business concerns appeared to be intertwined with these more nuanced policy debates. Robertson pointed out that Courted’s founder worked for Compass many years ago. And Teresi, in his post, said he had a “next gen recruiting tool ready for launch.”
“DM for more info,” he wrote.
