U.S. Congress eyes real estate bill

St. Louis Daily Record & St. Louis Countian, Jan 14, 2005 by St. Louis Daily Record Staff

Legislation that permanently prohibits big banking conglomerates from entering real estate brokerage or property management has been introduced in the 109th Congress, the National Association of Realtors® announced. U.S. Reps. Ken Calvert, R-Calif., and Paul E. Kanjorski, D-Penn., reintroduced the Community Choice in Real Estate Act, HR111, with the support of more than 100 co-sponsors.

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 again grow to a majority of Congress. For the past three years in a row, 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® around the country thank Congressmen Calvert and Kanjorski for reintroducing the Community Choice in Real Estate Act and reaffirming their commitment to passing the bill this Congress, said NAR President Al Mansell, CEO of Coldwell Banker Residential Brokerage in Salt Lake City, in an announcement.

We continue to see unswerving support from members of Congress for keeping national banks out of the real estate business that has served as the backbone of our economy, he added. Realtors are vital community leaders, and we will not relent until banking conglomerates are permanently prohibited from taking over local real estate businesses.

A chorus of consumer, community and small-business advocates have 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®, 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.