According to the NAR, however, 68% of consumers believe they would be hurt under the proposal because of privacy issues. In the survey, consumers said bank-owned real estate brokerages would have access to all personal financial information of those involved in real estate transactions. Fifty-eight percent of respondents said banks are already too powerful.

At a press conference in Washington, NAR president Richard A. Mendenhall spoke out against the rule, noting that, "Should this regulation take effect, consumers would be the real losers. Real estate brokers' loyalty is to buyers and sellers. Their success depends upon the quality of service they provide their customers. On the other hand, banks' expertise and vested interest lies in making loans, not providing real estate services. If the Fed grants by regulation what Congress in its wisdom has banned since 1933, Federal banks could quickly assume a monopolistic hold on virtually all aspects of the real estate transaction. This rule would allow banks to buy up large brokerages and force the closure of thousands of smaller brokers, unable to complete with the advantages of a Federal bank charter and the financial resources enjoyed by major banking superpowers."

NAR announced its opposition to the regulation on Dec. 13, 2000, after the Fed decided to seek public comment on the proposal. The comment period closes March 2.