While it would like to enjoy basking in the afterglow of victory to retain its servicemarks Realtor and Realtors against a petition to cancel filed by a California lawyer and his client, the NAR never really gets a chance to rest on its laurels.

The trade organization is still battling the Office of the Comptroller of the Currency, a division of the U.S. Treasury which has tried to allow banks into real estate through the issuing of "rules." While that door is temporarily closed, the NAR has spotted a window where the OCC has issued a rule to exempt banks from state law oversight.

On January 7, 2004, the OCC issued a final rule identifying types of state laws that are preempted for national banks, explained the NAR, including mortgage lender/broker licensing laws, escrow account laws, credit score disclosure laws, and anti-predatory lending laws. "In addition, the OCC has reserved for itself enforcement of all rules against national banks and their operating subsidiaries. State regulators no longer have authority to pursue wrongdoing in this area against these entities."

On February 13, 2004, the NAR sent a letter to the OCC to explain its "continued opposition to the rule on applicability of state law to the operations of national banks and their operating subsidiaries. "As noted in our comment letters to the OCC," wrote the NAR, "it is our belief that the OCC has ignored congressional intent and overstepped their authority in granting broad preemption of state real estate lending related laws and consumer protections. We ask that you urge the OCC to rescind this rule.

The NAR says that the OCC argues that REALTORS® are unaffected by this rule, but NAR counsel says members are involved in mortgage and title services, appraisal, and home inspection and "remain obligated to apply for licenses and register their businesses, while national banks and their operating subsidiaries are now exempt from these requirements. That will lead to increased costs for our members, and further consolidation within a few large national banks and their operating subsidiaries, which have the added benefits that come with their federal charter."

The trade organization hopes to galvanize Congress against this rule, the way it did previously by lobbying for the Community Choice In Real Estate Act whose supporters in Congress were largely responsible in getting the banks in real estate issue shelved for another year.

To that end, NAR President Walt McDonald testified yesterday before the U.S. Senate Committee on Banking, Housing and Urban Affairs.

"The OCC is helping to create an industry that is dominated by a few large mega-banks, leaving consumers with fewer choices and higher rates," said McDonald, broker-owner of Walt McDonald Real Estate in Riverside, California, "and it sends a clear message to consumers that the federal government cares more about corporate America than about America's consumers."

Banks, insists the NAR, by virtue of their federal charter should not be allowed to "ignore an assortment of state banking, advertising, licensing, privacy and insurance laws designed to protect consumers from predatory lending and other abusive banking practices."

Pointed out McDonald, "It's simply not fair that local mortgage companies will be required to pay various state fees and comply with numerous state regulations, while the local branch for the mega-bank next door will be exempt.

"At a time when state consumer protection laws have not kept banks from enjoying the largest profit margins they've earned in decades and the housing sector has been the pillar of our economy, why does the OCC need to fix a regulatory system that's obviously working? NAR believes policy decisions like this that have such a profound effect on whole industries, states rights and consumers should only be made by elected officials in Congress. We're firmly committed to ensuring that Congress carefully scrutinizes the implications of the Comptroller's actions and takes the appropriate legislative action," McDonald testified.

United in opposition to the new rule are all 50 governors, 50 state attorneys general, 50 state banking supervisors, state real estate commissioners, AARP, the Consumer Federation of America, the National Conference of State Legislatures, the National Association of Homebuilders, the National Association of Mortgage Brokers and the NAR, says the NAR.

"NAR is also concerned that the OCC rule is yet another link in the chain that will lead to national banks' engaging in new activities, such as real estate brokerage, while remaining unconstrained by state consumer protection safeguards and licensing requirements. Clearly the expansion of national bank activities at the expense of state consumer protections is bad for consumers and it's bad for the community-based businesses that serve them best," McDonald told the panel.

McDonald's testimony is also supported by the Center for Responsible Lending and Self-Help, which plans to have its CEO Martin Eakes testify that:

• the OCC regulation rolls back existing state legislation that has curbed abusive lending;

• the regulation has essentially eliminated the role that states play in enforcing laws against predatory lending by national banks;

• the OCC has ignored Congressional directives to refrain from interfering with state efforts to protect their citizens from predatory lending; and

• OCC actions will make national bank charters a safe haven for predatory lenders.

For more information about this issue, visit www.realtor.org.

Published: April 8, 2004

Use of this article without permission is a violation of federal copyright laws.

Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.