Was ‘corruption’ involved in DOJ review of Compass-Anywhere deal?
Several U.S. lawmakers have expressed concern over the merger’s speedy closing. Plus, SCOTUS strikes down tariffs; a new step in Fannie, Freddie IPO; more.
Key points:
- 18 U.S. legislators sent a letter to the DOJ seeking answers about its review of the Compass-Anywhere merger and possible “corruption” at the agency.
- The Supreme Court struck down the tariffs President Donald Trump ordered last year, which could mean the U.S. owes trading partners billions in refunds.
- Plans for Fannie Mae and Freddie Mac to go public could soon gain traction.
- Malibu is suing the city of Los Angeles and state of California over losses from the massive wildfires that swept through the region a year ago.
Federal lawmakers are questioning whether Compass' acquisition of Anywhere Real Estate — which closed six weeks ago — should have received a more strenuous review by the U.S. Department of Justice (DOJ).
Meanwhile, the U.S. Supreme Court ruled against the global tariffs President Donald Trump began imposing last spring — though Trump intends to add more — and a Republican lawmaker said legislation is in the works to take Fannie Mae and Freddie Mac public.
Across the country, a California city is suing over the financial losses incurred as a result of the wildfires that devastated communities in Southern California last year.
Legislators want answers about Compass-Anywhere deal
The $1.6 billion mega-merger announced last September closed quickly — and 18 members of Congress want to know why.
Six senators — five Democrats and one Independent — and 12 Democratic representatives posed questions about the DOJ's review of the merger in a Feb. 19 letter to U.S. Attorney General Pam Bondi. Two signees — Sens. Elizabeth Warren of Massachusetts and Ron Wyden of Oregon — had previously urged the DOJ to "closely scrutinize" the deal.
The letter cited reporting by the Wall Street Journal, which indicated former DOJ antitrust chief Abigail Slater wanted to thoroughly review the merger but was blocked by the deputy attorney general — reportedly after a direct appeal from Compass lawyers.
"This decision raises questions about corruption under your watch and its impact on housing affordability for American families," the letter said, later noting that Slater "was subsequently forced out" of the DOJ.
"Corruption in this process could exacerbate the current housing crisis" and set "a dangerous precedent that invites political interference," the legislators wrote, closing the letter with 17 questions regarding the DOJ's merger review process for this and other deals.
Real Estate News has contacted the DOJ for comment.
Supreme Court tosses Trump tariffs
The Supreme Court dealt a blow to the president's economic strategy in a Feb. 20 decision that struck down the global tariffs he began implementing last spring. An initial estimate from Penn Wharton suggests the U.S. may now owe importers "up to $175 billion in refunds."
Trump, who condemned the 6-3 ruling, has since said that he will sign an executive order introducing a new 10% global tariff.
The tariffs have impacted home construction costs and contributed to the Federal Reserve's hesitancy to lower short-term interest rates in the first half of 2025.
Regardless of the Supreme Court's decision, "Trump still has wide latitude in setting tariff policy," said Bill Owens, who was recently installed as the 2026 board chair of the National Association of Home Builders.
"With the nation facing a housing affordability crisis, NAHB urges the president to exempt building materials as part of his tariff strategy because they raise construction costs, impede supply chains and result in market and business uncertainty that make it difficult for builders to price their homes," Owens said in a statement.
Fannie, Freddie IPO legislation coming soon
The Trump administration's long-discussed plans to take Fannie Mae and Freddie Mac public may be moving forward.
During a Feb. 11 House Financial Services Committee hearing, GOP Rep. Scott Fitzgerald of Wisconsin teased legislation that would end the conservatorships "by codifying many of the reforms that have been accomplished the past few years, in particular encouraging more credit risk transfers."
The new legislation will be unveiled "in the coming weeks," Fitzgerald said.
Many administration officials have publicly backed the idea of a Fannie and Freddie IPO, with Federal Housing Finance Agency Director Bill Pulte suggesting last fall that their value would make a public offering the "largest IPO in history."
However, economists have warned that such a move could push mortgage rates higher.
California city sues over LA fires
The City of Malibu has filed a lawsuit over the "significant financial losses" resulting from the wildfires that tore through parts of Southern California in early 2025.
The 66-page complaint, which was filed this week in the Los Angeles County Superior Court, names California and Los Angeles as defendants, among other government agencies.
A "series of failures" involving fire danger and emergency preparedness contributed to the widespread damage, Malibu officials alleged in a Feb. 18 news release.
"The lawsuit seeks accountability for the extraordinary losses suffered by our community while recognizing that Malibu must continue to work collaboratively with our regional partners going forward," Malibu Mayor Bruce Silverstein said, adding that the decision to pursue legal action "was not taken lightly."
Thirty-one civilian deaths have been officially linked to the Palisades and Eaton fires, which began on Jan. 7, 2025. With more than 37,000 acres burned and over 16,000 structures destroyed, the fires were among the most destructive in the state's history.