Calvert Introduces Community Choice in Real Estate Act

Calvert Introduces Community Choice in Real Estate Act
Tuesday, January 4, 2005

WASHINGTON, DC - Congressman Ken Calvert (CA-44) today introduced H.R. 111, the Community Choice in Real Estate Act.

The bill is designed to prevent the conflicts of interest that would result from financial institutions entering the real estate business.
In one of their first acts of interpreting the 1999 Gramm-Leach-Bliley Act, the Federal Reserve Board and the Treasury Department, at the request of national banks, issued a proposed rule that would potentially allow national banks and financial holding companies and their subsidiaries to engage in real estate management and brokerage.

The proposed rule has encountered considerable opposition in Congress. For the past 3 years Congress has added language in appropriations bills to prevent the rule from being finalized. Calvert's bill would permanently prevent the rule from being implemented. The essence of Calvert's bill has been included in annual appropriations bills, including H.R. 4818, the 2005 Omnibus.

"Congress never intended for banks to be directly involved in real estate transactions. Allowing financial institutions access to real estate activities is a dangerous proposition," said Rep. Calvert. "In order to properly protect consumers and home buyers, as well as the national economy, banking and commerce should remain separate."

The Community Choice in Real Estate Act was introduced with support of 106 cosponsors. Calvert expressed confidence that that number would soon increase to a supermajority.

"H.R. 111 is essential in maintaining stability and fairness in the fields of banking and real estate," stated Rep. Calvert.

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