Public Policy -
Immediate Action Needed!
A Proposed Rule by the Federal Reserve and Treasury Department Would Allow Banks to Own Real Estate Brokerages!
Use the sample letters below to speak out against this proposal!
Please send your comments to the Federal Reserve Board and Treasury Department before May 1, 2001.
Sample Letter to the Federal Reserve Board - download 28k .doc or 15k .pdf
Sample Letter to the Treasury Department - download 28k .doc or 15k .pdf
ISSUE: The Federal Reserve and Treasury Department have proposed a rule that would redefine real estate brokerage and management activities as "financial in nature." If the rule were adopted, financial conglomerates would be able to own and operate real estate brokerages and property management firms. This is an unwarranted power grab by large financial institutions. In fact, when Congress debated the financial reform act (called the Gramm-Leach-Bliley Act), such powers were not granted. Furthermore, real estate development and investment were specifically prohibited. This was to preserve the safety and soundness of our banking system.
BACKGROUND: For almost 20 years, Congress debated the modernization of our nation's banking system. After great public input and debate, the Gramm-Leach-Bliley Act created a new framework that mixed into the banking system financial activities such as securities and insurance. Congress specifically determined that real estate was not financial in nature, and reaffirmed the historic separation of commerce from finance by prohibiting financial institutions from owning or operating non-financial, commercial firms. After losing in Congress last session, financial institutions are trying another route. They have put intense pressure on the Federal Reserve and Treasury Department to expand the definition of "financial in nature." After getting securities and insurance authority, they now want real estate. Essentially, they are trying to grab a huge share of the American economy by way of regulation after losing the fight in Congress.
PLEASE WRITE YOUR MEMBERS OF CONGRESS, THE FEDERAL RESERVE BOARD AND THE TREASURY DEPARTMENT NOW!
You can use the sample letters above or access letters and instructions on how to send these letters on NAR's web site.
SIMPLY FOLLOW THESE STEPS TO ACCESS THE ON-LINE SYSTEM:
Go to www.onerealtorplace.com and login with your username and password. If you have not registered at One Realtor Place before, here's how:
- Click on "registration" at the website
- Then either (a) check for the ## above your address label on REALTORŪ magazine OR (b) use your NRDS ID (which your local AE or State Association can tell you)
- Then enter a username and password
- Go to the Regulatory Alert and click on the line that says "Letters to Congress"
- You are now in the on-line Call-For-Action section. Click on the link that says send a letter now.
- Just follow along with the instructions on the screen.
Visit the "Stop the Big Grab" website for more information on the proposed regulations.
***NOTE: Please send copies of your correspondence (e-mail or letter) to Rob Authier, VAR Executive Vice President at rauthier@varealtor.com and to NAR Policy Director George Griffin at ggriffin@realtors.org *** Letters must go out by May 1, 2001***
FOR MORE INFORMATION: If you wish to download a copy of this information in its entirety, you can download a 21 page Word document or Adobe Acrobat pdf here. The document includes the text on this page, sample letters, background information, talking points, and questions and answers.
