December 17, 2001
Representative James P. Moran
Representative James P. Moran
PO Box 8208
Alexandria, VA 22306-8208
December 17, 2001
The Honorable James P. Moran
U.S House of Representatives
2239 Rayburn House Office Building
Washington, DC 20515-4608
Dear Representative Moran:
I strongly urge you to oppose H.R. 3424, the “Community Choice in Real Estate Act.” By prohibiting financial holding companies from engaging in real estate brokerage and management activities, this legislation would significantly reduce consumer choice and limit competition in the real estate brokerage industry. It would also reverse the will of Congress as expressed in the Gramm-Leach-Bliley Act. Please preserve consumer choice and competition in the real estate brokerage market by opposing H.R. 3424. If you have any questions about this legislation, please contact the Government Relations Department at America’s Community Bankers at (202) 857-3100.
Sincerely,
James Landrith
February 1, 2002
Mr. James Landrith
PO Box 8208
Alexandria, VA 22306
Dear Mr. Landrith:
Thank you for contacting me to express your support for allowing financial holding companies to engage in real estate brokerage and management. It is always a pleasure to hear from my constituents.
When Congress passed the Graham-Leach-Bliley Act (GLBA) of 1999 it contained specifications regarding certain financial activities in which companies owning banking, securities, and insurance operations (FHCs) as well as banks, through owned subsidiaries (FS),could participate. Real estate brokerage and property management were not initially on the GLBA’s statutory list of permitted activities, although the law does have a mechanism which allows the list of businesses available to bankers to expand.
As you know, currently a regulation has been proposed by the Federal Reserve Board (Fed) and the Treasury Department which would allow FHC’ and FS’s to offer two new services. The services are real estate brokerage and real estate management. This proposal was open for comment until May 1, 2001, and the Federal Reserve received over 44,000 comments. They are not expected to issue a final rule on the matter until 2002 at the earliest.
Because of the amount of time involved in the final rule making process, on December 6, 2001, Congressman Ken Calvert introduced the Community Choice in Real Estate Act (H.R. 3424) to the House of Representatives. Since that time it has been referred to the House Committee on Financial
Services Subcommittee on Financial Institutions and Consumer Credit, where it is currently awaiting a hearing.
You can rest assured that I will be closely monitoring the progress of the Fed in reaching a final rule, as well as H.R. 3424 as it moves through the legislative process. Should this issue come to the floor of the House for debate this year I will keep your specific thoughts in mind.
Again, I appreciate hearing from you and trust you will continue to contact me on other matters of mutual concern. Please feel free to visit my website at http://www.house.gov/moran which contains information on topics that may be of interest to you.
Yours truly,
James P. Moran
JPM/ts