Protect long-standing national policy
The U.S. economy depends on a strong real estate market and a healthy banking industry. Therefore, REALTORS® are concerned about market disruptions, especially those that would affect both banking and real estate.
Real estate is a commercial enterprise
Banking is financial in nature. Real estate is commercial. Throughout the years Congress has defended its Depression-era policy that the two should not be mixed.
Most recently, in the Gramm-Leach-Bliley Act, Congress explicitly declared what functions were financial in nature and therefore permissible for banks. Real estate was not one of them. While debating this legislation, Congress repeatedly voted to uphold our national policy against mixing banking and commerce.
Banks are trying to change the definition of real estate
Despite Congressional policy, regulators are slowly blurring the line separating banking and commerce:
Why should REALTORS® care?
Banks should be impartial providers of credit, not powerful, concentrated conglomerates that grow bigger to the detriment of small businesses and consumers. The success of real estate agents is determined by how well he or she meets consumers' needs.
Putting real estate into the hands of banks would leave consumers with fewer choices and agents who may be pressured to put the interests of parent companies and shareholders above those of the home buyer or seller. |
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The latest news
Maintaining Separation of Banking and Commerce is Critical, Say Realtors®
NAR's letter urging the Federal Reserve to apply special scrutiny when it considers the application of GMAC to become a bank holding company
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