Following the divisive events of last year, in which three of the largest brokers in Chicagoland moved their North Shore-area listings from the giant regional association-controlled Multiple Listing Service of Northern Illinois (MLSNI) to the broker-controlled MAP over licensing issues, accounting irregularities, and other conflicts with the CEO, new leadership is working toward healing the rifts of the past and moving toward merging the two MLSs into one, say sources.

To those who may not understand the magnitude of the rift -- having the listings pulled out of the MLS was like Los Angeles agents losing Beverly Hills, or New York City agents losing access to Manhattan.

The rift was over initiatives encouraged by CEO Jay Huffman and his supporters, which some brokers felt were self-serving and not in the MLS's purview in serving its duties to brokers and agents. Among other things, Huffman awarded a highly lucrative consulting agreement to his wife (over $282,000 for six months of consulting), helped start a third-party data-mining company named REBIG using seed money from MLSNI that was never seen again ($2.2 million) and insisting that his wife be installed as REBIG's CEO at an annual salary of $315,000. These facts were found by a PriceWatershouseCoopers audit ordered by the shareholders.

Editor's note: Brenda Huffman, former CEO of REBIG, contacted Realty Times with the following statement: "Your information is completely false. It is verifiably wrong. There were no 'accounting irregularities' found, and every REBIG shareholder received monthly accountings from day one."

The brokers pulled their listings to send the message that the MLS is supposed to serve brokers, not the other way around. But the move was not without controversy as angry agents, now having to search homes and pay dues to two MLSs complained.

But intensive efforts, including the replacement of Huffman with a new manager, by all concerned is resulting in some progress.

As of yesterday morning, Coldwell Banker Residential Brokerage, Baird & Warner, and Koenig & Strey have reentered their North Shore offices and listings back into MLSNI.

According to a release on the Baird & Warner intranet, "These offices will be using MLSNI in good faith because we are encouraged by the progress of the MAP/MLSNI task force that is working to create a new organizational structure that meets the data utility needs of its members," said Baird & Warner President and CEO Stephen W. Baird.

"The new structure would be a not-for-profit MLS owned by brokers," Baird said. "I strongly support that model, and we are taking this proactive step to enable those talks to proceed in earnest. We believe that at this point it is in the best interests of our clients and Sales Associates to have access to MLSNI," he said. "Ultimately, this market is best served through one MLS."

"Yes, their listings and offices are back in the system," confirms Brad Tertell, the new vice president and general manager of MLSNI. "And we have had discussions, but nothing has been agreed on. There are a lot of issues."

Largely credited by observers with helping move the impasse forward, Tertell has been working closely with MAP CEO Bud Fogel, consultant Steve Murray, and others to move towards an MLS solution that makes brokers, agents, and their clients feel comfortable.

Tertell says the task force is making great progress, but he isn't ready to put out any details. One reason is that the ideas that the task force has, have yet to be presented to the shareholder-owners, but a meeting is scheduled for this Friday to hold a presentation.

"There will be a presentation of what we've discussed to date and we'll be looking for feedback," he says. "We're trying to do what's best for the business, and I'm very hopeful we'll come to a positive conclusion."

Published: March 17, 2005

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