Compass CEO asks Congress to include agents in stimulus

“When they can’t show a property, they can’t earn a living,” Robert Reffkin said

National /
Mar.March 19, 2020 09:40 AM
Compass CEO Robert Reffkin (Credit: Brad Barket/Getty Images for Fast Company)

Compass CEO Robert Reffkin (Credit: Brad Barket/Getty Images for Fast Company)

Compass CEO Robert Reffkin implored Congress to include independent contractors in a massive economic stimulus package that will help bail out the faltering U.S. economy.

In a letter Thursday to Reps. Nancy Pelosi and Kevin McCarthy, the chief executive of the SoftBank-backed brokerage urged lawmakers to consider economic benefits for independent contractors, which includes real estate agents, and “not limit this essential support to W-2 employees and the most-frequently-discussed industries.”

In the letter, he cited the “crucial” importance of sheltering in place and social distancing, but said those policies prevent agents from showing properties. “When they can’t show a property, they can’t earn a living,” he wrote.

He said agents may not earn back lost revenue until “many months” after the financial and housing markets stabilize, because they aren’t paid until after a home sale closes.

“As is true across our stratified economy and within every industry, there are agents who are massively successful and others who are struggling to make it from one paycheck to the next,” he wrote. The gross income of the median agent is roughly $41,800 per year before taxes and health insurance. Two-third of agents are women and 63 percent are over age 50.

On Wednesday, the National Association of Realtors said in a statement that it was talking with lawmakers about stimulus options. “Last week, we urged Congressional leaders to include robust protections for small business owners and the self-employed in this bill,” Shannon McGahn, NAR’s senior vice president of government affairs, said in the statement. “This bill does both, and with the structure of the tax credits, financial relief will come quickly.”

Compass is scaling back its lending programs amid the coronavirus pandemic, and other national brokerages including Redfin and RE/MAX have suspended open houses.


Related Articles

arrow_forward_ios
L-R: Douglas Elliman CEO Scott Durkin, Serhant CEO Ryan Serhant, Brown Harris Stevens CEO Bess Freedman, The Real Deal's Hiten Samtani (Photos by Paul Dilakian)
Top resi execs talk brand building, tech and politics at TRD NYC event
Top resi execs talk brand building, tech and politics at TRD NYC event
Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Vanke US, Getty, M18 Public Relations)
With Aby Rosen out, Chinese developer slashes Midtown condo prices
With Aby Rosen out, Chinese developer slashes Midtown condo prices
Robert Reffkin, founder and CEO, Compass (Getty Images, iStock)
Compass reports $188M first-quarter loss, CFO’s resignation
Compass reports $188M first-quarter loss, CFO’s resignation
Expansion teams: Residential brokerages take on new frontiers
Expansion teams: Residential brokerages take on new frontiers
Expansion teams: Residential brokerages take on new frontiers
David Cone, ex-Yankees and Mets star pitcher turned broadcaster, in front of 160 West 12th Street in the West Village (Getty Images, Google Maps, Compass StreetEasy)
Ex-Yankees, Mets star David Cone sells West Village condo
Ex-Yankees, Mets star David Cone sells West Village condo
Joseph Beckerle and Pooneet Kant (CTC, Compass, iStock)
Compass acquires California title and escrow provider
Compass acquires California title and escrow provider
Justice Barry Ostrager, Realogy CEO Ryan Schneider and Compass CEO Robert Reffkin (NYCourts, Getty Images, Realogy, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Judge recuses himself from Realogy-Compass suit over property dispute
Judge recuses himself from Realogy-Compass suit over property dispute
LA-based Carl Gambino expands in New York with Compass
LA-based Carl Gambino expands in New York with Compass
LA-based Carl Gambino expands in New York with Compass
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...