Banks in Real Estate

Banks in Real Estate Not a possibility for now

House and Senate lawmakers passed omnibus spending legislation in mid February, that includes a provision restricting the U.S. Department of Treasury from spending any money to implement a rule it proposed two years ago allowing big national banking conglomerates to enter real estate brokerage and management.

For more information on this critical issue, visit the National Association of REALTORS® web site

Passage of the provision is a major victory for consumers and real estate professionals concerned about the potential conflicts of interest and unfair competitive advantages of national banking conglomerates should they be allowed into real estate brokerage and management.

The National Association of REALTORS® has led a strong opposition to the proposed rule, maintaining that it is contrary to what Congress intended when it passed the 1999 Gramm-Leach-Bliley Act.

Legislation that would amend the Bank Holding Company Act and permanently prohibit big banks from entering the real estate business was reintroduced on January 7.  As of mid-February, the bills have strong bipartisan support with more than 175 House members and almost a dozen senators have signed on as cosponsors.