Industry News

Real estate regulators oppose banks’ development projects

Group says OCC overstepped its authority
Published on Apr 19, 2006

The Association of Real Estate License Law Officials, a group of regulatory officials from U.S. states and other nations, has taken a stand against U.S. Office of the Comptroller of the Currency legal opinions that support banks' development of real estate developments including condo, hotel, office and retail projects. "ARELLO is concerned that expanding the authority of banks to develop real estate could lead to banks being given authority to broker their own properties and, as the next step, being given authority to broker real estate for others. If that happens, it will place the regulatory structure of the state-regulated real estate industry at risk," ARELLO officials said in a statement. "The extremely broad preemption authority asserted by the OCC in its ... regulations could permit banks and their operating subsidiaries to broker real estate without having to become Iicensed under, or otherwise comply with, state/territory real estate law. These laws, administered by our mem...

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