Industry News

Banks-out-of-real-estate bill back in Congress

U.S. Reps reintroduce legislation this week

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Legislation that if passed would permanently prohibit big banking conglomerates from entering real estate brokerage or property management has been introduced in the 109th Congress, the National Association of Realtors reported today. U.S. Reps. Ken Calvert (R-Calif.) and Paul E. Kanjorski (D-Penn.) this week reintroduced the bill, dubbed the "Community Choice in Real Estate Act." The NAR has led a push for the legislation over the last three years. The bill is identical to legislation introduced into Congress during the last session. According to NAR, 28 Senators and 255 Representatives backed the previous bill. 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. Joining...