Source: Realtor Magazine
In 2001, the Federal Reserve Board and the U.S. Treasury Department issued a proposed regulation to allow national bank holding companies and financial subsidiaries to engage in real estate brokerage and management. Since
this presented a clear conflict of interest, annual bills were passed to prevent banks from doing so. On March 11, President Obama signed into law the Omnibus Appropriations Act that permanently bars banks from entering the real estate brokerage business.
This act is notable because banks in the real estate business could create an uncompetitive environment that is ultimately against consumer interests, since bank employees would not have the same fiduciary relationship with consumers that independent real estate professionals have.
