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| Big Step for Bill Separating Banks, Commerce |
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(May 3, 2007) --
The NATIONAL ASSOCIATION OF REALTORS® on Wednesday applauded the House Financial Services Committee for passing key legislation that would restrict big retailers from operating an industrial loan company (ILC), which is a type of bank.
The legislation is now headed to the full House for a vote.
Companies such as Home Depot and Wal-Mart have applied with the Federal Deposit Insurance Corp. to open ILCs, although Wal-Mart withdrew its application in March. NAR has argued that banks should be "honest brokers" of financial services, and should not be swayed into making credit decisions based on their affiliation with retailers.
"REALTORS® have long supported the national policy against mixing banking and commerce," says NAR President Pat V. Combs. "We oppose any efforts that weaken this policy, either by allowing commercial firms to engage in banking, or by permitting large national banks to engage in commercial activities, such as real estate brokerage and management."
The Industrial Bank Holding Company Act of 2007 (H.R. 698) is "a critical component to the continued stability of our nation's financial system," Combs says. The committee's passage of the legislation is "a big step toward keeping this important separation and safety measure in place."
NAR, while applauding the passage of H.R. 698, also encouraged the committee to consider additional legislation such as the Community Choice in Real Estate Act (H.R. 111), which like H.R. 698, would clarify and prohibit the mixing of banking and commerce.
"H.R. 111 clarifies congressional intent that real estate brokerage and management are not banking activities, but are commercial activities," Combs says.
- REALTOR® Magazine Online
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| Reprinted from REALTOR® Magazine Online (http://www.realtor.org/realtormag) May 2007 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2007. All rights reserved. |
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