Senators Elizabeth Warren and Cory Booker have called on the Federal Trade Commission to investigate three real estate practices they say could be making it more expensive for Americans to buy a home. In an October 15 letter to FTC Chair Andrew Ferguson, the senators asked the agency to look into deceptive “contact agent” buttons on home search platforms, mortgage referral practices, and private listing networks. The letter argues these practices reduce transparency and competition in the online home-buying marketplace, as reported by Broker Activity Monitor. It is a useful reminder for buyers: knowing how the home buying process actually works, and who represents whom, matters now more than ever.
The Three Practices Under Scrutiny
The letter identifies three specific practices that the senators believe deserve a close look:
“Contact agent” buttons on major home search platforms. When a buyer clicks to contact the listing agent on some platforms, they may actually be routed to a platform-affiliated agent who shares part of their commission with the platform, without the buyer knowing who they are really talking to.
Mortgage referral practices. Agents who participate in platform referral programs can be pressured to direct homebuyers toward affiliated mortgage lenders, which can limit a buyer’s ability to compare loan costs and terms across the market.
Private listing networks. Some homes are shown only to a limited group of agents and buyers, which restricts competition and transparency in what buyers get to see. If you never see a home, you can never compete for it.
The common thread across all three is a lack of disclosure. In each case, a buyer could make a decision based on incomplete information, and the senators argue that reduces competition in the online home-buying marketplace.
Why This Matters for Homebuyers
The common thread is transparency. When a buyer thinks they are talking to the listing agent but are actually connected to a platform-affiliated agent, or when they are steered toward a lender because of a referral arrangement rather than because it is the best fit, the buyer can end up paying more without ever knowing it. The senators argue these practices exacerbate the housing affordability crisis.
For anyone buying a home, the lesson is simple: ask who you are actually working with, how they get paid, and how many options you are really being shown. Those three questions take thirty seconds, and they tell you most of what you need to know about whether you are getting the full picture.
What This Means for Your Mortgage
Of the three practices, the mortgage referral piece is the one I see most directly. Buyers should always have the freedom to shop their loan across multiple lenders and compare loan estimates line by line. That is not just good advice, it is the entire argument for working with an independent mortgage broker: a broker compares programs and pricing across many lenders, instead of selling the one rate sheet their employer carries.
That is the opposite of steering, and it is why transparency is the foundation of the work. When you know all your options, you can make a confident decision. If you want the full breakdown of how a bank, a retail lender, and a broker compare, my bank vs. broker guide walks through where the differences actually show up in dollars.
How to Protect Yourself When Buying
You do not need to wait for Washington to act. A few practical steps protect you starting today:
- Ask who you are contacting when you click a button on a home search site. If the answer is not the listing agent, ask what the relationship actually is.
- Ask your agent how they get paid and whether they have any referral arrangements. A good agent will answer directly.
- Ask your lender how many lenders and programs they can actually shop. If the answer is one, you are getting one opinion.
- Compare loan estimates from more than one source. Line up the same fees on the same lines, not just the headline rate.
A little extra questioning up front can save real money over the life of the loan. You can see the full menu of what I help with on the services page, and every conversation starts with the numbers, not a sales pitch.
What Did Warren and Booker Ask the FTC to Investigate?
The senators asked the FTC to investigate three real estate practices: deceptive “contact agent” buttons on home search platforms that may route buyers to a platform-affiliated agent, mortgage referral practices that steer buyers toward affiliated lenders, and private listing networks that restrict which homes buyers see. The letter argues these practices reduce transparency and competition in the online home-buying marketplace.
Does Clicking “Contact Agent” on a Listing Site Connect Me to the Listing Agent?
Not always. The senators allege that on some platforms, the button may route you to a platform-affiliated agent who shares commission with the platform, without you knowing. The takeaway is simple: always ask who you are actually speaking with before you share any information or rely on any advice.
Should I Use the Lender My Agent Recommends?
It depends. Referral arrangements can be legitimate, and agents often recommend lenders they know will perform. But you should always compare: ask what programs and rates the recommended lender can offer for your specific scenario, and get a second opinion before you commit. I can shop your scenario across 170+ lenders and show you what the comparison looks like on paper.
What Is a Private Listing Network?
A private listing network restricts certain homes to a limited group of agents and buyers, which can reduce competition and transparency. The practical effect: buyers may not see every home that is available. If you are actively shopping, ask your agent whether anything off-market or limited is relevant to what you are looking for.
Will the FTC Actually Investigate These Practices?
The letter urges the FTC to investigate, but outcomes are not guaranteed. Agencies receive many such requests, and investigations take time if one opens at all. Regardless of what happens in Washington, buyers can protect themselves starting today by asking questions and comparing options. That part does not require a ruling, just a little diligence.
Let’s Look at the Numbers
Whether you are buying, refinancing, or just want to understand your options, you should always know exactly who you are working with and what they are showing you. My job is to give you clear answers and a full view of the market, then let you decide. Book a call or reach out through the contact page, and we will walk through your situation together.
Thanks, Jeff