Banks Banned From Real Estate
On Thursday, the Senate Appropriations Committee approved legislation that would permanently ban U.S. banks from engaging in real estate activities. However, it is unknown when the legislation will be considered by the full Senate.
The NAR, an advocate for the legislation, took the position that banks should be barred from investing in potentially risky commercial investments like hotels or apartment buildings. Banks and regulators had disagreed stating banks’ real estate investments were well founded in precedent and did not typically involve brokerage activities.