Banks and real estate comment period extended

The Federal Reserve Board has extended the period for public comment until close of business May 1 on a proposed regulation that would allow federally chartered banks to enter real estate brokerage and property management, according to a news release from the National Association of Realtors.

"The extension will allow more Realtors and consumers to register their views on the proposed regulation," NAR President Richard Mendenhall said.

"We believe that this regulation will have a far-reaching impact on consumers and the real estate industry," he continued.

It was Mendenhall who wrote Chairman Alan Greenspan on Feb. 15 to request an extension.

"We would like to thank Congressman Spencer Bachus (R-Ala.), chairman of the House Subcommittee on Financial Institutions and Commercial Credit, for requesting an extension, as well as more than 30 members of Congress who have signed a bipartisan joint letter to the Federal Reserve requesting an extension," Mendenhall said.

A survey of 800 consumers released in February found that nearly two out of three consumers believe that in order to protect consumers, the Federal Reserve Board and the U.S. Treasury Department should not allow banks to own real estate brokerage.

The survey also found that 68 percent of consumers believe they would be hurt because bank-owned real estate brokerages would have access to all of home buyers', home sellers' and bank account holders' personal financial information.

Fifty-eight percent of respondents said they believe banks are too powerful already and should not be allowed to own real estate brokerages, according to the survey.

NAR has mounted a grass roots campaign to oppose the regulation and Mendenhall has urged every Realtor concerned about the issue to contact the Federal Reserve Board, the Treasury and Congress.