Community Choice in Real Estate Act Reintroduced in Senate
U.S. Newswire (press release) - Washington,DC,USA
WASHINGTON, Jan. 25 /U.S. Newswire/ -- Legislation that permanently prohibits big banking conglomerates from entering real estate brokerage or property management was introduced in the U.S. Senate yesterday, the National Association of Realtors (r) announced. Senate Banking Committee Chairman Richard Shelby (R-Ala.), as well as U.S. Sens. Wayne Allard (R-Colo.), Conrad Burns (R-Mont.), Hillary Rodham Clinton (D-N.Y.), Russell Feingold (D-Wis.), Johnny Isakson (R-Ga.) and Frank Lautenberg (D-N.J.), reintroduced the Community Choice in Real Estate Act, S. 98, last night. A companion bill, H.R. 111, was introduced in the House of Representatives by U.S. Reps. Ken Calvert (R-Calif.) and Paul Kanjorski (D-Pa.) on January 4, the first day of the 109th Congress.
The bill is identical to legislation that garnered the backing of 28 U.S. Senators and 255 members of the House of Representatives in the last Congress. NAR expects the list of cosponsors will grow to a majority of Congress for the third consecutive year. For the past three years, Congress has barred national banks from taking over local real estate companies by denying yearly funds to finalize a proposed federal rule.
Banking conglomerates have requested permission from the Federal Reserve Board and the Treasury Department to sell and manage real estate under the 1999 Gramm-Leach-Bliley Act. The bill clarifies congressional intent and amends the Bank Holding Company Act to preclude national bank holding companies and their subsidiaries from entering the real estate business.
"Realtors(r) across America applaud Senators Shelby, Allard, Burns, Clinton, Feingold, Isakson and Lautenberg for reintroducing the Community Choice in Real Estate Act and reiterating their commitment to passing the bill this Congress," said NAR President Al Mansell, CEO of Coldwell Banker Residential Brokerage in Salt Lake City. "We continue to see tremendous support from members of Congress for keeping big banking conglomerates out of real estate, which has served as the pillar of our economy. We will not relent until national banks are permanently prohibited from taking over local real estate businesses that are part of the fabric of our communities."
A chorus of consumer, community and small business advocates has voiced their support for the bill because they agree that if big banks were allowed to sell or manage real estate, there would be a negative impact on communities across America, leaving home buyers and sellers with fewer choices, higher loan fees and reduced customer service.
Organizations that have voiced support for the Community Choice in Real Estate Act include the Building Owners and Managers Association, CCIM Institute, Consumers Union, Institute of Real Estate Management, International Council of Shopping Centers, National Affordable Housing Management Association, National Association of Home Builders, National Association of Industrial and Office Properties, National Auctioneers Association, National Fair Housing Alliance, National Federation of Independent Business, National Leased Housing Association and the National Community Reinvestment Coalition.
The National Association of Realtors(r), "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
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Information about NAR is available at realtor.org.">http://www.realtor.org. This and other news releases are posted in the Web site's "News Media" section in the NAR Media Center.
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From: Edward L. Yingling, Executive Vice President, ABA
RE: Do Not Cosponsor H.R. 111,
Legislation Undermining the Gramm-Leach-Bliley Act and Denying Banking
Institutions Real Estate Brokerage Authority On behalf of the American Bankers Association, I am writing to convey our strong opposition to H.R. 111, legislation that would amend the Gramm-Leach-Bliley Act
(GLBA) so as to deny national banks and financial holding companies the opportunity to offer real estate brokerage and property management services. ABA urges you not to cosponsor H.R. 111.
H.R. 111 would short-circuit the specific regulatory process established by GLBA in 1999. The process was specifically designed to allow regulators to respond to the changing marketplace for financial services. The Treasury Department and the Federal Reserve Board have issued a proposed regulation that would benefit consumers by authorizing national banks and financial holding companies to offer real estate brokerage and property management. H.R. 111 would deny the regulators the authority to complete the regulatory process, and would undermine the critical concept of continuous modernization of our financial system established under GLBA. House Financial Services Committee Chairman Mike Oxley last week reiterated his support for allowing the regulatory process established under the GLBA to work. Chairman Oxley said: “The Gramm-Leach-Bliley Act was
ground-breaking legislation that forever changed the landscape of financial regulation in the United States. Its concepts were carefully considered and balanced. The rulemaking process by the Fed and the Treasury – as set in law by the Act – should be allowed to take its course without legislative interference.”
H.R. 111 would reduce competition and discriminate against certain banking organizations. While national banks and financial holding companies would be denied the authority to offer real estate brokerage services under H.R. 111, state- chartered banks in 29 states, credit unions, and savings institutions would continue to be able to offer these services under current law. No market disruption has resulted from the participation by these other depository institutions in the real estate marketplace. In fact, consumers have benefited from the increased competition.
Yet, H.R. 111 would single out national banks and financial holding companies for a prohibition.
Furthermore, large real estate firms such as ERA, Long and Foster, and Century 21 are already doing what the bill would prohibit national banks and financial holding companies from doing – offering one-stop shopping that combines real estate brokerage, mortgage lending, and other financial services. In fact, these firms’
advertisements emphasize the financial services they offer in addition to brokerage.
Increasingly, small real estate firms are also offering mortgage lending and real estate brokerage.
It is indeed ironic that H.R. 111 is titled the “Community Choice in Real Estate Act,” because what the bill clearly seeks to do is reduce the real estate choices available to consumers in our communities.
The regulators should be allowed to proceed to analyze, as GLBA intended, this changing marketplace and the competitive environment involving national banks, financial holding companies, real estate brokers, credit unions, savings institutions, and state-chartered banks. Again, we urge you not to cosponsor H.R. 111.
Thank you.