Fathom Realty, subsidiary of Fathom Holdings Inc., that provides residential brokerage, mortgage, title, and Software as a Service (SaaS) offerings for brokerages and agents, reached a nationwide settlement in the class-action lawsuit, Burnett v. The National Association of Realtors (NAR), which alleged that large real estate brokerages were in conspiracy to artificially inflate home prices.
Per the settlement, Fathom Realty is expected to pay $500,000 into a settlement fund within five days after the settlement is formally approved by the court; $500,000 on or before October 1st, 2025, and $1,950,000 on or before October 1st, 2026. Fathom Realty has also agreed to adhere to the rule changes put forth by NAR.
Fathom Holdings' press release also states that the company will be able to make these payments without compromising its business.
However, Fathom Holdings CEO Marco Fregenal made it clear in his public statement that the settlement should not be taken as an admission of liability or an acknowledgment of the validity of any claims set forth in the class-suit.
“We believe that this settlement represents the most prudent way forward, enabling our agents to focus on their clients without the distraction of prolonged litigation," Fregenal stated. "We continue to assert that Fathom never participated in any conspiracy to inflate commissions and continue to believe that due to our flat-fee model, there was no incentive to join any such conspiracy. Entering into a settlement now has the benefits of avoiding ongoing legal fees and removing the demand on the executive team's time, allowing us to focus on growing our business and ensuring our agents continue to have the opportunity to excel in their service to clients.”
In the aftermath of the NAR settlement, mortgage professionals continue to monitor its effect on the industry and their referral partners.
