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As with most things, RFM was put in place partly because people abused the system. Sororities were inviting back girls they had NO intention of bidding just to cover their butts in case something wild DID happen and they lost all the girls they wanted (it never did) or for bragging rights (we had more people come back to our parties than any other sorority!).
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This also damaged other sororities within the system as well. When the stronger chapters aren't cutting that means that the PNMS get to do the dropping. Then, when their big cuts come in they are either left high and dry or with invitations to chapters they haven't been to since the first round. Before RFM was instituted at my campus suicide rates (for bid signing, not the real kind) were extremely high due to one of the struggling chapters inviting girls who had cut them but were invited to their pref as they had only one other chapter inviting them back.
If a chapter invites too many girls back they are also preventing other sororities from sharing their sisterhood with PNMS