The group supports allowing banks and financial services companies into the real estate business, a move loudly opposed by the real estate industry. According to an 11-page letter filed by the Financial Services Roundtable with the Federal Reserve Board and Treasury Department, the proposal should be approved because it was Congress' original intent when it enacted the Graham-Leach-Bliley Act, legislation that reformed the banking industry. Real estate organizations have argued against the measure on several counts, but Richard M. Whiting, the Financial Services Roundtable Director, says the groups are wrong on all their claims.

"Contrary to the assertions of opponents to the proposed regulation, diversified financial companies, banks, and credit unions are currently affiliating with real estate brokerage companies and cross-marketing loan products, brokerage services, and insurance products to their customers," he writes in the letter.

In a statement, Whiting said consumers would benefit if the proposal is approved because it would make possible one-stop shopping and more competition. "In fact, companies such as GMAC Home Services and Long & Foster currently provide consumers with one-stop shopping to obtain a mortgage loan, find a home, and get insurance. The marketing of these services is not new and is permitted under current law," he says.

The NAR in February released the results of a survey it conducted on the proposal showing that two out of three consumer banks shouldn't be allowed to enter real estate brokerage, and that many were worried about privacy. However, the Financial Services Roundtable argues that adding brokerage to its array of services would be a convenience for its customers.

"To buy a home, most consumers must receive approval for a loan, obtain title insurance, obtain property insurance and, in some cases, obtain private mortgage insurance," says Roundtable president Steve Bartlett. "Our member companies are integrally involved in every step of the process except brokerage. The agencies should not prohibit this convenience for our customers."

The roundtable's letter can be seen in its entirety at http://www.fsround.org. Comments on the proposed rule are due by May 1.