Industry Continues Battling Banks' Real Estate Ambitions

WASHINGTON, DC-In congressional testimony this week, the National Association of Realtors called on Congress to prevent banks from nationalizing the real estate industry, questioning the viability of regulating banks if they are allowed to enter the real estate game. NAR testified on behalf of the National Auctioneers Association and the National Association of Home Builders as well. The Federal Reserve and Treasury have delayed ruling on the banking industry’s request until next year.

“Does Congress want the Federal Reserve Board, Treasury Department, and Federal Trade Commission to be the regulators of local land matters?” NAR president Martin Edwards Jr. asked members of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. As an example of what could be, Edwards pointed to banks’ efforts to bypass consumer protection laws in the insurance industry. “Although they argue that local regulation would of course be followed, the bankers’ actions speak louder than their words.” Edwards was joined at the hearing by a bevy of supporters, including backers of the popular Community Choice in Real Estate Act, heavily supported legislation that would bar banks from making their entrée into the real estate brokerage and property management business.