How did NAR finally succeed?
NAR worked hard to block the proposed rule ever since it was published in January 2001 by convincing Congress that the rule was inconsistent with banking law, bad for consumers, and bad for banking. Q2. Why did NAR oppose National Banks entering the real estate brokerage and property management If banks had been allowed to engage in real estate brokerage, it would have created anti-competitive and anti-consumer concentrations of power within the financial services sector, which would ultimately increase costs for homebuyers. Banking conglomerates with direct and indirect federal subsidies would: (1) have been able to compete unfairly with real estate firms and their affiliates because they have access to cheap sources of capital (thanks to federal deposit insurance and loans from the Federal Home Loan Bank System) and (2) have cross-subsidized their commercial operations. Permitting banks to engage in commerce also would have compromised bank lending decisions and created conflicts of
