Industry Cheers Increasing Support for Barring Banks from Real Estate

WASHINGTON, DC-The Community Choice In Real Estate Act–legislation that would prevent large banks from becoming active in the real estate and property management industries–has moved forward as additional cosponsors sign on to back the act. Real estate industry leaders have made note of the most recent count of House cosponsors, totaling 230 as of May 21, following intensive lobbying on Capitol Hill by attendees of the National Association of Realtors Midyear Legislative Meetings held earlier this month.

NAR president Cathy Whatley points out some of the potential damages of allowing banks into the industry. “Housing continues to be the leading sector of our economy,” she notes. “Approximately 68% of new growth in our gross domestic product last year was housing-related. We’re thrilled that a majority of the House and close to 20 Senators agree that America simply cannot afford to allow big banks to take over the real estate business, which continues to be the leading pillar of our economy.” The House version of the bill is still in the hands of the Subcommittee on Financial Institutions and Consumer Credit.