Consumer complaint received 2021-07-14
Product: Mortgage — Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: GUARANTEED RATE INC. (CA)

NEW YORK and XXXX, XX/XX/XXXX /XXXX/ -- XXXX, XXXX ( XXXX : XXXX ), the nation 's largest independent brokerage and a leading real estate technology company, and Guaranteed Rate , Inc. ( `` Guaranteed Rate '' ), one of the nation 's five largest retail mortgage companies, today announced they have entered into a definitive agreement to form XXXX, a new mortgage origination company. 

Compass and Guaranteed Rate are natural partnersGuaranteed Rate is the number one non-bank lender for Compass  agents, and both companies have deep expertise in the jumbo space. Once Guaranteed Rate 's digital mortgage platform is fully integrated into Compass ' suite of XXXX cloud-based software, XXXX will drive efficiencies throughout every step of the mortgage process to bring a faster, more seamless and completely transparent home buying and selling experience to loan officers, agents and clients. 

XXXX will originate mortgages for clients of Compass ' real estate brokerage, as well as any other brokerage, making loans available to a broad consumer audience. The new venture will combine the power of Compass ' end-to-end technology platform with Guaranteed Rate 's superior digital mortgage capabilities to quickly drive growth. XXXX will directly unite agents with loan officers to create a cohesive team that will reduce consumer uncertainty in the homebuying process and ultimately lead to much greater customer success and satisfaction. 

" Partnering with Compass and XXXX XXXX to rapidly build a best-in-class, tech-focused mortgage company is really exciting, '' said Guaranteed Rate Founder and Chief Executive Officer, XXXX XXXX, whose companies collectively are having their best year ever, closing more than {$60.00} billion in loan volume since the start of XXXX. " With interest rates creeping up, limited housing supply and refis slowing down, right now couldn't be a more perfect time to hire the best of the best of the top loan officers and sales leaders throughout the country. '' The mortgage origination industry presents a multi-billion-dollar opportunity for Compass to bring its agent-centric approach and end-to-end technology platform to this critical component of the real estate transaction. 

" Over the past eight years Compass has been laser-focused on building a company that empowers top agents across the country, and with XXXX we're creating a direct connection between these agents and the top loan officers in the industry, '' said XXXX XXXX, Founder, Chairman and CEO of Compass. " Buying a home is the most emotionally and financially significant decision of most people 's lives and the role of the agent is to make the process as stress-free as possible. XXXX brings together two digital-first companies to deliver a mortgage product that provides a seamless and transparent experience for agents and their clients, which ultimately leads to a simpler real estate transaction for everyone involved. '' XXXX will be available to all consumers in every market where Compass operates and XXXX is licensed regardless of the brokerage they choose to work with. The new venture intends to modernize the real estate transaction process through increased speed and efficiency for loan originators, agents and their clients. Loan originators who join XXXX will be able to leverage the growth-driving innovations developed by Guaranteed Rate, including its proprietary operational flow, unique products and pricing structure, a true digital mindset that integrates advancements in XXXX, and an industry-leading XXXX program designed to drive success. 

The creation of XXXX comes amidst another record-setting year for Guaranteed Rate, whose companies funded more than {$73.00} billion of total loan volume in XXXX, and is on pace to have a record XXXX. Compass is currently home to over 22,000 agents, serving hundreds of the top cities in the country. Last year these agents transacted approximately {$150.00} billion in residential real estate and completed 66 % more transactions than they did the year before, making Compass the largest independent real estate brokerage in the country. 

For more information, visit : XXXX This partnership is an attempt to bypass RESPA regulations and antitrust regulations by a licensed broker and a licensed MLO. RESPA prohibits consumer steering between these entities. Consumers must shop for their mortgages openly, they must shop for their broker commissions openly. If companies like this continue to abuse federal regulations, consumers will end up being steered against their best interests, toward fewer options. Compass is not an end-to-end platform, it is a real estate broker. GR is not a technology service, its an MLO. CFPB needs to set these things apart for the good of the open competition.