A proposal being considered by the Federal Reserve and the Treasury Department would allow financial holding companies to get involved in selling real estate and managing property. The question that has to be tackled before the proposal is approved is whether such real estate services can be considered financial activities. If they are, banks can handle them.
Bankers are overjoyed.
The real estate industry is downcast. Then real estate firms began adding mortgage subsidiaries, providing title services, and selling homeowners insurance. The banks, in turn, figured that if real estate agents could handle mortgages, banks should be able to sell real estate. Not to Mendenhall, who said Realtors believe that banks will be more interested in making loans or selling mortgage insurance than helping a buyer find the best deal. Not all banks are interested in this business opportunity.