I 

110TH CONGRESS 

1ST SESSION H. R. 111 

To amend the Bank Holding Company Act of 1956 and the Revised Statutes 

of the United States to prohibit financial holding companies and national 

banks from engaging, directly or indirectly, in real estate brokerage 

or real estate management activities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 4, 2007 

Mr. KANJORSKI (for himself, Mr. CALVERT, Mr. SHERMAN, Mr. LEWIS of 

California, Mr. BERMAN, Mr. BONNER, Ms. CORRINE BROWN of Florida, 

Mrs. CAPPS, Mr. CARDOZA, Mr. CHABOT, Mr. CHANDLER, Mr. CLEAVER, 

Mr. CULBERSON, Mr. DAVIS of Kentucky, Ms. DELAURO, Mr. DINGELL, 

Mr. ENGEL, Ms. ESHOO, Mr. FARR, Mr. FRANKS of Arizona, Ms. 

GRANGER, Mr. AL GREEN of Texas, Mr. HIGGINS, Mr. HINOJOSA, Mr. 

HOLDEN, Mr. HOLT, Mr. HUNTER, Mr. KNOLLENBERG, Mr. KUHL of 

New York, Mr. LANGEVIN, Mr. LEWIS of Kentucky, Mr. LIPINSKI, Mr. 

LOBIONDO, Mr. MARSHALL, Ms. MATSUI, Mr. MEEKS of New York, Mr. 

MICHAUD, Mrs. MILLER of Michigan, Mr. GARY G. MILLER of California, 

Mr. OLVER, Mr. PAUL, Mr. PETRI, Mr. PLATTS, Mr. ROGERS of Alabama, Mr. SAXTON, Ms. SCHAKOWSKY, Mr. SCHIFF, Mr. SHAYS, Ms. 

SOLIS, Mr. TIERNEY, Mr. WHITFIELD, Mr. ALEXANDER, Mr. GALLEGLY, 

Mr. STEARNS, Mr. UDALL of Colorado, Mr. RADANOVICH, Ms. WATERS, 

Mr. DAVIS of Alabama, Mr. BARTON of Texas, Mr. EMANUEL, and Mr. 

DOOLITTLE) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Bank Holding Company Act of 1956 and 

the Revised Statutes of the United States to prohibit 

financial holding companies and national banks from engaging, directly or indirectly, in real estate brokerage 


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or real estate management activities, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Community Choice in 

5 Real Estate Act’’. 

6 SEC. 2. CLARIFICATION THAT REAL ESTATE BROKERAGE 

7 AND MANAGEMENT ACTIVITIES ARE NOT 

8 BANKING OR FINANCIAL ACTIVITIES. 

9 (a) BANK HOLDING COMPANY ACT OF 1956.—Sec10 tion 4(k) of the Bank Holding Company Act of 1956 (12 

11 U.S.C. 1843(k)) is amended by adding at the end the fol12 lowing new paragraph: 

13 ‘‘(8) REAL ESTATE BROKERAGE AND REAL ES14 TATE MANAGEMENT ACTIVITIES.— 

15 ‘‘(A) IN GENERAL.—The Board may not 

16 determine that real estate brokerage activity or 

17 real estate management activity is an activity 

18 that is financial in nature, is incidental to any 

19 financial activity, or is complementary to a fi20 nancial activity. 

21 ‘‘(B) REAL ESTATE BROKERAGE ACTIVITY

22 DEFINED.—For purposes of this paragraph, the 

23 term ‘real estate brokerage activity’ means any 

24 activity that involves offering or providing real 


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1 estate brokerage services to the public, includ2 ing— 

3 ‘‘(i) acting as an agent for a buyer, 

4 seller, lessor, or lessee of real property; 

5 ‘‘(ii) listing or advertising real prop6 erty for sale, purchase, lease, rental, or ex7 change; 

8 ‘‘(iii) providing advice in connection 

9 with sale, purchase, lease, rental, or ex10 change of real property; 

11 ‘‘(iv) bringing together parties inter12 ested in the sale, purchase, lease, rental, or 

13 exchange of real property; 

14 ‘‘(v) negotiating, on behalf of any 

15 party, any portion of a contract relating to 

16 the sale, purchase, lease, rental, or ex17 change of real property (other than in con18 nection with providing financing with re19 spect to any such transaction); 

20 ‘‘(vi) engaging in any activity for 

21 which a person engaged in the activity is 

22 required to be registered or licensed as a 

23 real estate agent or broker under any ap24 plicable law; and 


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1 ‘‘(vii) offering to engage in any activ2 ity, or act in any capacity, described in 

3 clause (i), (ii), (iii), (iv), (v), or (vi). 

4 ‘‘(C) REAL ESTATE MANAGEMENT ACTIV5 ITY DEFINED.—For purposes of this paragraph, 

6 the term ‘real estate management activity’ 

7 means any activity that involves offering or pro8 viding real estate management services to the 

9 public, including— 

10 ‘‘(i) procuring any tenant or lessee for 

11 any real property; 

12 ‘‘(ii) negotiating leases of real prop13 erty; 

14 ‘‘(iii) maintaining security deposits on 

15 behalf of any tenant or lessor of real prop16 erty (other than as a depository institution 

17 for any person providing real estate man18 agement services for any tenant or lessor 

19 of real property); 

20 ‘‘(iv) billing and collecting rental pay21 ments with respect to real property or pro22 viding periodic accounting for such pay23 ments; 

24 ‘‘(v) making principal, interest, insur25 ance, tax, or utility payments with respect 


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1 to real property (other than as a deposi2 tory institution or other financial institu3 tion on behalf of, and at the direction of, 

4 an account holder at the institution); 

5 ‘‘(vi) overseeing the inspection, main6 tenance, and upkeep of real property, gen7 erally; and 

8 ‘‘(vii) offering to engage in any activ9 ity, or act in any capacity, described in 

10 clause (i), (ii), (iii), (iv), (v), or (vi). 

11 ‘‘(D) EXCEPTION FOR COMPANY PROP12 ERTY.—This paragraph shall not apply to an 

13 activity of a bank holding company or any affil14 iate of such company that directly relates to 

15 managing any real property owned by such 

16 company or affiliate, or the purchase, sale, or 

17 lease of property owned, or to be used or occu18 pied, by such company or affiliate. 

19 ‘‘(E) CURRENT ACTIVITIES NOT AF20 FECTED.—No provision of this paragraph, or 

21 any determination made pursuant to any such 

22 provision, may be construed as prohibiting, re23 stricting, altering, or otherwise affecting, the 

24 right, power, or ability of any financial holding 

25 company to engage in any activity, or acquire 


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1 or retain the shares of any company engaged in 

2 an activity, if engaging in such activity, or ac3 quiring or retaining such shares, was author4 ized for financial holding companies on Decem5 ber 6, 2001.’’. 

6 (b) REVISED STATUTES OF THE UNITED STATES.— 

7 Section 5136A(b) of the Revised Statutes of the United 

8 States (12 U.S.C. 24a(b)) is amended by adding at the 

9 end the following new paragraph: 

10 ‘‘(4) REAL ESTATE BROKERAGE AND REAL ES11 TATE MANAGEMENT ACTIVITIES.— 

12 ‘‘(A) IN GENERAL.—The Secretary may 

13 not determine that real estate brokerage activ14 ity or real estate management activity is an ac15 tivity that is financial in nature, is incidental to 

16 any financial activity, or is complementary to a 

17 financial activity. 

18 ‘‘(B) DEFINITIONS.—For purposes of this 

19 paragraph, the terms ‘real estate brokerage ac20 tivity’ and ‘real estate management activity’ 

21 have the same meanings as in section 4(k)(8) of 

22 the Bank Holding Company Act of 1956. 

23 ‘‘(C) EXCEPTION FOR COMPANY PROP24 ERTY.—This paragraph shall not apply to an 

25 activity of a national bank, or a subsidiary of 


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1 a national bank, that directly relates to man2 aging any real property owned by such bank or 

3 subsidiary, or the purchase, sale, or lease of 

4 property owned, or to be owned, by such bank 

5 or subsidiary. 

6 ‘‘(D) CURRENT ACTIVITIES NOT AF7 FECTED.—No provision of this paragraph, or 

8 any determination made pursuant to any such 

9 provision, may be construed as prohibiting, re10 stricting, altering, or otherwise affecting, the 

11 right, power, or ability of any national bank, or 

12 a subsidiary of a national bank, to engage in 

13 any activity, or acquire or retain the shares of 

14 any company engaged in an activity, if engag15 ing in such activity, or acquiring or retaining 

16 such shares, was authorized for national banks, 

17 or subsidiaries of national banks, on December 

18 6, 2001.’’. 

Æ 


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