If it is wrong for banks to offer a compbination of services, it must be wrong for integrated real estate companies and they should be required to cease offering financial services. Credit unions, state-chartered banks, and savings institutions are allowed to engage in real estate brokerage. This has been done without market disruption and benefits customers. The same rules do not apply to realtors affiliated with mortgages companies. Banks will be subject to all rules applicable to real estate brokers - including licensing, qualification and sales practices.
Consumers have additional privacy protection if banks are involved.
Existing anti-tying provisions would prohit a bank from extending credit, furnishing any service, or varying the consideration for any loan or service on the condition that the customer obtain real estate brokerage services from the bank's affiliate. The same rules, however, do not apply to realtors affiliated with mortgage companies. There are strong laws in place that provide protection for depository institutions. Diversifying bank income, such as through real estate brokerage activities, actually improves safety and soundness by spreading out sources of revenue. This makes a bank stronger by allowing it to better withstand swings in sectors of the economy.