According to NAR spokesman Steve Cook, a subcommittee of the House Financial Services Committee will hold a hearing on the matter Apr. 5. Deadline for commenting on the proposal, which has drawn heated opposition from the real estate industry but, perhaps not surprisingly, has the support of the banking industry, is due by May 1.

Cook says the NAR has deep concerns about the regulation. "On a scale of 1 to 10, we're at about 15," says Cook.

At issue is the intent of the Graham-Leach-Bliley Act passed by Congress in 1999 to reform the banking industry. The bottom-line question being asked of the Federal Reserve Board is whether real estate activities are either financial in nature or incidental to financial services.

The banking industry contends they are, while realtors say brokerage services are non-financial. If the Fed deems real estate transactions as financial, banks would likely be allowed to enter the business.

According to the study commissioned by the NAR, home buyers and sellers are concerned banks will use consumers' private, confidential financial information to market them for real estate services. The survey, conducted by Yankelovich Partners, also found that 89% of home buyers and sellers fear their privacy will be violated if banks are allowed to enter real estate and share consumers' confidential financial information with their real estate subsidiary.

The NAR says according to the telephone survey, which was conducted between March 15 and 19 and involved 2,049 Americans, three in five consumers do not believe current Federal banking laws adequately protect their privacy and 83% of home buyers and sellers said it's not a good idea to allow large banks the power to act as real estate brokers. Under current law, subsidiaries of a bank holding company are allowed to share personal financial data without consumers' consent.

"This study reveals the deep concerns consumers have about the lack of privacy protection provided by banks and current banking laws. Extending real estate brokerage powers to banks will only make the situation worse, according to the vast majority of Americans," says NAR president Richard A. Mendenhall.

The lack of privacy on the consumer side of real estate brokerage could also extend to the commercial market, says Cook. It could also effectively block out real estate brokers because bank-owned brokerage firms could be privy to financial information not available to outside brokers, he says.

Among the other survey findings, nearly 90% of Americans believe the real estate business is already "very" or "somewhat" competitive. Nearly 90% also believe banking is already a "very" or "somewhat" competitive business.