Banks in Real Estate News Updates

Banks Kept Out of Real Estate For Another Year
December 2003
Effectively buying time in the Banks and Real Estate fight, the conferees on the Treasury, Transportation and Related Agencies Appropriations bill agreed to retain language prohibiting the Treasury Department from finalizing the banks in real estate rule during FY 2004. The language was inserted in the House appropriations bill by Rep. Anne Northup (R-KY) and its retention was urged by Conference Chairman (and 2003 IREM Legislator-of-the-Year) Richard Shelby (R-AL). The conference report now heads to the House and Senate floors for final approval and continues to the White House for the President's signature.

Community Choice in Real Estate Act Reintroduced
January 2003
The Federal Reserve and Treasury have yet to act on their proposed rule (published January 2001) to allow national banks and financial holding companies to engage in real estate brokerage and property management. NAR and IREM have strongly opposed this proposal, and had legislation introduced in 2002 to prevent such a mixing of banking and commerce. The legislation had more than 240 co-sponsors in the House and 15 in the Senate. With the same strong bipartisan support, the legislation was reintroduced on January 7, 2003 for the new 108th Congressional Session. Lead co-sponsors in the House are Representative Ken Calvert (R-Calif) and Paul E. Kanjorski (D-Penn) and the lead co-sponsors in the Senate are Senators Richard Shelby (R-Ala), Wayne Allard (R-Colo) and Hillary Rodham Clinton (D-N.Y.).