Good morning Superstars.
Banks prohibited from entering into real estate brokerage and management businesses? Right. And pigs fly.
In 2001, the Federal Reserve Board and the U.S. Treasury Department proposed rules allowing national bank conglomerates to engage in real estate brokerage and management. The rule would have reclassified these activities as financial in nature.
The National Association of Realtors was dead set against this and used their powerful lobbying force to fight.
NAR's position was that.....
On March 11, 2009, President Obama signed into law the FY2009 Omnibus Appropriations Act that permanently prohibits banks from entering the real estate brokerage and management businesses.
Fast forward to today.
When was the last time you did a Real Estate transaction that the Banks didn't control? In my market area of Poinciana Florida approximately 65% of all real estate transactions are either REOs or Short Sales. In both cases the Banks are in control.
The Banks control the real estate commission by limiting how much we can charge and how we can charge. The once "always negotiable" commission is now set at 6% whether we like to or not. Anti-competitive and, in my opinion, a direct violation of Sherman Anti-Trust Laws.
Banks are also.....
Banks are doing everything they can to make selling and purchasing Real Estate difficult. Banks are making up the rules as they go along and most make no sense whatsoever. So agents, buyers and sellers are thinking of ways to skirt around these unreasonable rules. Problem is.....we can't act illegally or unethically just because the bank is doing so.
Banks prohibited from entering into real estate brokerage and management businesses? Right. And pigs fly.
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Comment
legal eagles have been saying this for years .. good article
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