It’s a comfort to know that the National Association of Realtors (NAR) has the "best interests" of the American consumer at heart: (Hat tip to Keith at Housing Panic!) Senators Hillary Rodham Clinton (D- N.Y.) and Senator Wayne Allard (R-CO) are introducing The Community Choice in Real Estate Act, S.413. This act:
Amends the Bank Holding Company Act to prohibit financial holding companies and national banks from engaging, directly or indirectly, in real estate brokerage or real estate management activities.
Bend (OR) Weekly is reporting:
In a letter circulated earlier in the week, Clinton and Allard explain that allowing banks into the real estate industry would "upend one of our nation’s most fundamental economic policies — the separation of banking and commerce — and put our economy at risk." The letter also notes that "allowing banks into real estate hurts competition and consumers. It will result in bigger banks, higher costs and less consumer choice and service."
NAR has communicated to Congress its longstanding support for keeping banks as impartial providers of credit and not permitting them to control all aspects of real estate transactions.
"Realtors provide extensive personal attention to consumers during the lengthy process of buying a home. It would be difficult for banks to provide that type of counsel because of conflicts with their other business objectives," said Combs. "We thank Senators Clinton and Allard for their leadership and for gathering bipartisan support for the Community Choice in Real Estate Act. We look forward to working with them towards its passage, and ensuring the vigorous enforcement of the law that prohibits the mixing of banking and commerce."
As the NAR fights the entry of bankers in real estate, there are many realtors rushing to embrace the concept of realtors in banking. The Arizona Republic reported on 1/20:
