• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Nevada Business Magazine

The Decision Maker's Magazine

Subscribe Now!

  • Subscriptions
    • Print
    • Mobile App
    • Email
    • Nevada News & PR Wire
  • Features
    • New This Month
    • View Issues
    • Cover Stories
    • Feature Stories
    • Industry Focus
    • Building Nevada
    • Special Reports
    • Meet the Decision Maker
    • Press Release Wire
    • Nevada Industries
  • Departments
    • A Matter of Opinion
    • Around the State
    • Business Indicators
    • Commentary
    • Commercial RE Report
    • Crossfire
    • Expert Advice
    • Face to Face
    • Free Market Watch
    • Inside Politics
    • Power of Attorney
    • Profit & Loss
    • Speaking for Nevada
    • Tech.knowledge.me
    • The Last Word
    • Vital Signs
  • Planning Calendar
  • Advertising
    • Advertising Info
    • Advertising Staff
    • Submission Requirements
    • Online Advertising
  • Events
    • NBM Events
  • About
    • About the Magazine
    • Contact the Staff
  • Connect
    • Business Directory
    • Press Release Wire
    • Business Calendar
    • Submit Listing
    • Post Press Release
    • Add Your Event
    • Sign Up
    • Log In
You are here: Home / Departments / State the Issues / July 2003: State the Issues

July 2003: State the Issues

July 1, 2003 By Nevada Business Magazine Leave a Comment

Issue: Should banks be allowed to sell real estate?

This Proposal Poses Significant Risks for Consumers

By Robert W. Sadler, CAE

Real estate services are commercial activities and customarily apply to a broad range of activities involved in the day-to-day management and brokering of real estate. Frequently, firms with property management operations also engage in real estate investment and development. All of these activities relate to the day-to-day operation of a commercial enterprise and any financial activity that occurs in connection with their operation is incidental to the commercial real estate activity.

The national banks argue that the rule could help simplify the fragmented home-buying process, in which consumers have to deal with real estate agents, title companies, mortgage bankers, insurance companies and others. The national banks contend that the proposal would allow them to provide “one-stop” shopping and bundle real estate brokerage services with the banks’ existing mortgage-lending and insurance functions.

In actuality, the proposal poses significant risks to consumers. Currently, homebuyers have a varied selection of mortgage products, due to a highly competitive loan system. Consumers also have a choice of REALTORS to work with them in buying or selling a home. Concentrating the home buying and selling process into financial institutions will lead to conflicts of interest, fewer competitive loans, higher rates to consumers, and the loss of a community-centered, small business orientation to home selling and buying.

In the aftermath of recent banking consolidations and the loss of local banks to big, national companies, consumers were promised significant improvements by the banking industry such as lower banking costs, streamlined services and improved customer relations. Yet, the big banks are still charging higher fees. ATM fees have increased substantially, and there are more charges now than ever related to credit cards. Additionally, personalized service has given way to automation, frustrating consumers because of their inability to obtain assistance in their important banking needs.

The rule would further add to consumers’ cost and anxiety burdens and represent another empty promise by the banking. It’s doubtful that a bank-controlled real estate broker would spend hours searching for the best mortgage product when his or her bank already has a mortgage that might not necessarily be the best offering available. Under this scenario, consumers wouldn’t have access to the independent source of information they currently enjoy through the use of an independent real estate broker. Absent all the facts, this could lead to higher costs for real estate transactions and acceptance of a mortgage product that may not be in their best interest.

Allow Banks to Compete Fairly and Equally

By James McLaughlin

Allowing banks to offer real estate brokerage and management services would provide customers added convenience and greater choice. Some real estate firms are already offering combined services: brokerage, title, mortgage and property insurance. So the combining of real estate brokerage and banking services is not a new or unusual activity. In fact, state-chartered banks in more than half the states offer real estate brokerage services today. It’s only logical that all banks be allowed to compete fairly and equally.

Consumers would also have more choices of real estate firms when buying or selling a home. Real estate brokers would have more choices of potential employers. Real estate companies would have more sources of capital for expansion or greater flexibility. Keeping banks from providing real estate services leaves consumers, real estate agents and real estate companies with fewer choices.

Scare tactics by the real estate industry would have one believe that most banks are large, like the integrated real estate firms such as Cendant Corporation’s Century 21 and Coldwell Banker, which are affiliated with more than 25 percent of the real estate agents in the country. These firms currently provide brokerage services, mortgage lending, title insurance and property insurance. Nearly 40 percent of all banks – more than 5,000 institutions – have fewer than 25 employees. These community banks are small businesses that would like the opportunity to broaden the financial products they can offer their customers and to compete with real estate firms offering mortgage loans and homeowners insurance. In many rural, underserved communities, community banks are often in the most practical position to provide real estate brokerage services.

Scare tactics by the real estate industry also include ludicrous claims that bank participation in real estate brokerage poses a safety and soundness risk that will cause bank failures. Because brokerage involves the process of putting buyers and sellers together, and not the bank putting its capital at risk in owning real estate – as the bank agencies have recognized – it creates no new risk and cannot cause bank failures.

Allowing banks to participate in real estate brokerage underscores the pro-consumer, pro-marketplace competition that Congress created with the Gramm-Leach-Bliley Act (1999). If brokers can provide financial services such as mortgages and insurance, banks should be able to compete on equal terms. Efforts by the real estate industry to undo the legislation hinder competition, choice and the intent of Congress.

Filed Under: State the Issues

Paul Krakovitz: Intermountain Healthcare

Edward Vance: EV&A Architects

Scott Arkills: Silver State Schools Credit Union

Tonya Ruby: Cox Media Las Vegas

Online Advertorials

Online Advertorials

Bank of NevadaFunding Will Provide Nevada Students With Financial Literacy Education

Infrastructure InvestmentsAssure Our Community’s Water Future

Roseman’s College of MedicineAddressing the Physician Workforce Shortage

Groundbreaking LawRequires Businesses Replace Decorative Grass

Advertise With Us

Advertise With Us. more details ►

Primary Sidebar

Get important updates from Nevada Business Magazine, directly to your inbox.
Subscribe

Nevada TaxesWill the Tax Man Cometh to Carson City in 2023?

Industry FocusBusiness Insurance

Medical FacilitiesBuilding Trends Post-COVID

Southern Nevada CCIMPassing the Torch to the Next Generation of Professionals

Nevada News & PR Wire

  • Student at Coral Academy of Science Las Vegas Selected to Participate in Year Long Leadership Program

  • Edgewood Companies Appoints Robert Winkel as New Chairman of the Board

  • Virginia Knudsen Announces Gwen Harvey as New Executive Coach for BOAR

  • Nevada State Bank Branches Accepting Donations for the Communities in Schools of Nevada Fill the Bus School Supplies Drive

  • Dickson Commercial Group (DCG) Announces New Healthcare Services Division

  • KPS3 Announces Three New Hires

  • Brian Kleven Joins Nevada Donor Network Governing Board

  • Las Vegas Doctor Warns Of The Dangers Of Handheld Sparklers

  • Southwest Medical Adds a New Physician

  • The State Of Nevada Presents The Launch Of 9-8-8, The Nation’s First Three-Digit Number For Suicide Response.

  • ICRWDA To Host K-9 Officers Competition & Training Seminar In Las Vegas

  • Take on Summer With Dunkin’s New Lineup of Iced Drinks

  • Nonprofit Cristo Rey St. Viator College Preparatory High School Kicks off Summer Campaign to Gain Additional Business Partners for Student Work-Study Program

  • Naqvi Injury Law Opens Henderson Office

  • Foster Care Panel Scheduled to Discuss Need for Foster Parents in Nye County – Division of Child and Family Services Will Host Event in Pahrump

  • Sportsman’s Royal Manor’s Continuous Improvements to Property Result in Low Crime Numbers

  • Miracle Flights Celebrates 150,000 Flight Milestone by Honoring Local Boy

  • United Way of Southern Nevada Announces Internal Promotions

  • Henderson Chamber of Commerce to Host Networking Breakfast: On a Roll – Local Gaming Update With M Resort Spa Casino Leadership

  • Nevada Supreme Court Justices Recognize Southern Nevada Senior Law Program

  • SR Construction Announces Completion Of The Henderson Hospital Expansion Project

  • Celebrate Dad With These Specials at Ava Rose Agency Restaurant Clients

  • Las Vegas-based Body Balance System to Showcase OvationULT Red Light Therapy Bed at This Year’s IECSC Show

  • Henderson Professional Fire Fighters, Henderson Police Officers’ Association, and the City of Henderson Launch Annual Safety Campaign, “Check Your Seats in the Heat”

  • Juzzef Martinez promoted to Commercial Banker for JPMorgan Chase in Las Vegas

  • Las Vegas Realtor Offers Free Buying Guide to Clark County Residents.

  • Team Nevada Returns After a Successful Appearance at the 2022 Special Olympics USA Games

  • The Problem Solver To Speak at Celebrity Speakers Business Network

  • Plumas Bancorp Honored Among Best-In-Class Banking Institutions

  • ImageWords Communications Founder Ruth Furman to Share Media Relations Tips at NAWBO Southern Nevada’s Personal Branding Workshop on June 28

  • Nevada Custom Residence Designed by Daniel Joseph Chenin, Ltd. Receives International Architizer A+ Design Award

  • National Council of Juvenile and Family Court Judges Adopts Resolution To Strengthen Role of Judges Nationwide

  • Ovation Design & Development Celebrated Grand Opening of Arioso Affordable Senior Apartment Complex — Governor Steve Sisolak and County Commissioner Justin Jones Joined Developers and Finance Leaders to Promote Affordable Housing Solutions —

  • aha! Announces Wine Flies Free Program

  • Via Brasil Steakhouse Hosts Father’s Day All You Can Eat Brunch and Dinner at $54.99!

  • Crew Las Vegas Hosts “Woman Who Build” Luncheon, June 14

  • Fennemore Joins Forces With Bay Area Wendel Rosen

  • Communities in Schools of Nevada Announces the Promotion of Alex Bybee to Chief Strategy Officer

  • Marker Trax Adds Director of Product Development and Integration to Help Company Continue to Grow

  • Grand Sierra Resort and Casino Announces the Addition of Chickie’s & Pete’s Crab House and Sports Bar

  • Southwest Medical Adds Two New Health Care Providers

  • Reno Tahoe Pain Associates Welcomes New Staff

  • How Adaptable Is Your Company? iTernal Networks’ Free Upcoming Webinar “Planning for Scalability – Tech More, Stress Less” – June 16th 1 pm PDT

  • De Castroverde Law Group receives Chambers USA’s highest ranking for the second consecutive year

  • Donor Network West Opens New Northern Nevada Headquarters

  • Blueprint Sports Launches ‘Friends of UNILV’ Name, Image, and Likeness Collective at University of Nevada, Las Vegas

  • aha! Announces Nonstop Flights to Idaho Falls From Reno-Tahoe Hub

  • Nevada Women’s Fund Selects Marilyn Newton as 2022 Salute to Women of Achievement Hall of Fame Inductee

  • Debbie Strimling Announced as Jewish Nevada Women’s Philanthropy Council Chair

  • Northcap Commercial Arranges Sale of 3842 Royal Crest St Apartments for $951,500

  • Northcap Commercial Arranges Sale of 3828 Hazelwood St Apartments for $1,730,000

  • Senior Operator at Broadbent & Associates, Inc. Receives Wastewater Operator of the Year Award

  • Siena Italian Authentic Trattoria Offers 50% Off on Wine Bottles

  • Huntington Jewelers to Add New Summerlin Location

  • CAMCO Nevada Hires Ashley King as New CFO

  • June 16 NAIOP Southern Nevada Breakfast Presents “Inflation and Rising Interest Rates: What Is the Impact to CRE Investment Sales?”

  • Project 150 Awarding More Than $170,000 in Scholarships at June 22 Event

  • Las Vegas Home Prices Set Another Record Amid Signs of a Shift in Local Housing Market

  • Emerald Island Grille in Downtown Henderson Unveils Expanded Menu

  • Touro University Nevada’s College of Osteopathic Medicine Receives Top-Level 10-Year Accreditation with ‘Exceptional Outcome’

  • Touro University Nevada’s School of Nursing Programs Receive Prestigious 10-Year Accreditation Extension

  • Quinn Gallagher Joins Blackmon Home Loans as Mortgage Loan Officer

  • Communities In Schools of Nevada Announces First Recipient of the Elaine P. Wynn Stronger Together Scholarship

  • 56th Anniversary of Miranda Rights

  • Martin Vece Named Favorite Teacher in Teacher Appreciation Week Contest — 570 Teachers Nominated in Move 4 Less Contest —

  • In-Person Workplace Safety Training Courses Have Resumed for Nevada Businesses and Employees

  • International Celebrity Vocal Coach Romeo Johnson Offers Vocal Lessons To Clark County Resident

  • 2022 WSOP Sponsor Lexicon Bank is All In Supporting Southern Nevada Charities

  • Holley Driggs Las Vegas Office Expands with New Attorney Additions

  • Nevada’s Exchange Promotes Two Long-Time Employees to Leadership Roles

  • Nathan Strager Awarded Top 1% Of Real Estate Agents in Las Vegas Valley

  • The Embedded Technology Expo To Be Hosted By The Las Vegas Convention Center

  • ExpressJet Airlines Names Bobby Looney Director of Safety

  • Angels of Las Vegas Hosts 2nd Angels on the Green Fundraiser!

  • Dragon Lights Festival Returns to Reno

  • Great Western Steam-up Features Days of Family Fun

  • Student Enrollment Now Open at Groundbreaking New Cactus Park Elementary in Las Vegas

  • CVMC CEO Prater Board Chair of Nevada Rural Hospital Partners

  • Henderson Chamber of Commerce Along With the Henderson Development Association Hosts Commercial Real Estate Development Update & Mixer

  • Michael Grimm and Bill Zappia “Givin’ It to ‘Em” New Variety Show Headlining at the Stirling Club in Las Vegas for a Limited Engagement

  • United Way of Southern Nevada’s 65th Anniversary Golf United Tournament Raises $126,440 for Las Vegas Community

  • Local Students Earn Scholarships in “Shark Tank” Style Business Pitch Competition by Junior Achievement of Southern Nevada

  • Girl Scouts Partner with CAMCO to Deliver Free Cookies to Summerlin Hospital Emergency Room Staff

  • Mark Wiley Group Welcomes New Vice President of Marketing and Communications

  • CSN and The National Juneteenth Observance Foundation Present Two-Day “Juneteenth Powwow” Festivities

  • Nevada Dairy Farmers Award $15,000 in Scholarship Money to Two Winners

  • Lily Funds Announces Sale of 2.2 Acres of Land on Las Vegas Strip

  • MDX Labs Fundraiser Supports Caridad Charity

  • Hosts of the Problem Solver Show Offering Clark County Schools Free Active Shooter Training

  • KPS3 Announces New Hires

  • Cindy Buchanan Joins JPMorgan Chase Commercial Banking in Northern Nevada

  • Dr. Chris Robey, DC, Doctor of Chiropractic, Joins the Crovetti Orthopaedics & Sports Medicine Team

  • Gaetano’s Ristorante Owner’s Recent Travels to Sicily Inspire New Authentic Recipes for 20th Anniversary Menu

  • John Rinaldo Joins Cristo Rey St. Viator College Preparatory High School as Director of Business Partnerships

  • Green Valley Library Re-Opening to Community After Extensive Renovation

  • McCarthy Building Companies Promotes Mark Mohning to Vice President of Integrated Design Delivery

  • Education Non-Profit CORE Promotes Founder Lindsay Harper to Chief Executive Officer, Launches Search for New Executive Director

  • Barracuda Championship Announced as First PGA Tour Event to Accept Cryptocurrency

  • TRU Development and LMC, A Lennar Company Officially Break Ground

  • Dueling Axes Las Vegas Launches “Cosmic Axes” to Kick off AREA15’s “Neon Dream” Memorial Day Weekend 2022



 
Submit Your News & PR | Subscribe
Submit Your News & PR

Business Connection

Business Connection Portal

Log In Sign Up

Business Connection Portal

Log In Sign Up

Nevada Business Calendar

There are no upcoming events.

View Full Calendar ►

Nevada Business Directory

Featured Businesses
Find a Nevada-Based Business Submit Your Business Subscribe to the Nevada News & PR Wire

Nevada Industries

Architects & Engineers
Arts & Culture
Banking
Commercial Real Estate
Construction
Credit Unions
Economic Development
Education
Financial Management
Healthcare
Human Resources
Insurance
Law
Manufacturing
Marketing
Media
Mining
Philanthropy
Residential Real Estate
Rural Nevada
Sports
Tax Planning and Accounting
Technology
Telecom
Tourism
Transportation
Utilities

Footer

Subscriptions

  • Print Subscription
  • Mobile App
  • E-mail Subscription

Editorial

  • Features
  • Departments
  • Events

Advertising

  • Advertise
  • Submission Requirements

Connect

  • Contact
  • LinkedIn
  • Facebook
  • Twitter

Copyright © 2022, Business Link LLC dba Nevada Business Magazine and Nevada Business Journal. Privacy Policy | Terms & Conditions
Nevada Web Design services by Nevada Central Media using Genesis Framework by StudioPress

    *Your Name

    *Your Email

    Phone Number

    Company

    *Subject

    *Your Message

      *Your Name

      *Your Email

      Phone Number

      Company

      *Subject

      *Your Message

        *Your Name

        *Your Email

        Phone Number

        Company

        *Subject

        *Your Message

          *Your Name

          *Your Email

          Phone Number

          Company

          *Subject

          *Your Message

            *Your Name

            *Your Email

            Phone Number

            Company

            *Subject

            *Your Message

              *Your Name

              *Your Email

              Phone Number

              Company

              *Subject

              *Your Message

                *Your Name

                *Your Email

                Phone Number

                Company

                *Subject

                *Your Message

                  *Your Name

                  *Your Email

                  Phone Number

                  Company

                  *Subject

                  *Your Message

                    *Your Name

                    *Your Email

                    Phone Number

                    Company

                    *Subject

                    *Your Message