Realtors win battle to keep banks out of real estate
    
Washington – March 12, 2009 – It was an eight-year battle against formidable opponents, but the National Association of Realtors®’ (NAR) declared victory in the campaign to keep banks out of real estate. The permanent ban became official upon President Obama’s signature approving the legislation.

Realtors and consumers are now protected from potential conflicts of interest and inhibited competition that could have arisen had banks been permitted to enter into real estate transactions. NAR has consistently stated that the real estate industry is not a financial activity. Preserving the barriers between banking and commerce by permanently preventing banks from engaging in real estate brokerage or real estate management is an important national issue, the association says.

For eight years, NAR kept banks out of the real estate brokerage business by backing short-term bans. A separate bill, backed by many members of Congress, failed to come up for a full vote. The current banks-in-real-estate ban, however, is part of the 2009 Omnibus Appropriations bill, which the Senate approved on Tuesday and sent to President Obama for his signature.

NAR does not plan to advertise the victory because banks are currently dealing with greater problems, and Realtors focus rests on improving the current housing market.

For background information on the banks-in-real-estate issue, visit realtor.org at: www.realtor.org/banks_and_commerce.nsf

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