Banks Out Of RE Biz For One Year
Lawmakers have agreed on a provision that will prevent banks from entering the real estate business for one more year. The provision, including in a bill to fund the U.S. Treasury operations, will prohibit the Treasury from finalizing rules that would allow banks to manage real state and broker home sales.
The one-year moratorium is similar to one approved last year after heavy lobbying by the National Association of Realtors, which is seeking a permanent ban. Banks' entry into real estate services was enabled under the Gramm-Leach-Bliley Act, giving the Treasury Department final say on what services banks can engage in.
The growing turf war between the bankers and the Realtors is showing promise of being every bit as nasty as the enmity between the bankers and credit unions.