SD25 - The Activities of Financial Institutions and Real Estate Brokers and Agents in the Sale and Financing of Residential Real Estate
Executive Summary: A. Authority for Study Senate Joint Resolution 218 (SJR 218, 1989) established a joint subcommittee to study the desirability of revising the Commonwealth's laws to either expand or restrict the ability of financial institutions and real estate brokers and agents to offer both real estate brokerage services and mortgage loan services. The subcommittee consisted of seven members as follows: four members representing the House Corporations, Insurance and Banking Committee that were appointed by the Speaker of the House; and three members representing the Senate Commerce and Labor Committee that were appointed by the Senate Committee on Privileges and Elections. B. Overview Based on the authority provided by SJR 218, the subcommittee addressed two issues. First, it examined whether real estate brokers and agents should be permitted to collect fees for assisting the home buyer in obtaining a mortgage loan. The subcommittee also studied whether financial institution holding companies should be permitted to operate third-party real estate brokerages. The subcommittee held two meetings in Richmond during the fall of 1989. At its first meeting, the subcommittee heard testimony on the issues from numerous interested parties. The second meeting dealt primarily with discussion of the legislative options available to the General Assembly. Upon the conclusion of its deliberations, the subcommittee decided that no recommendations would be made. The subcommittee did gain a thorough understanding of the positions of interested parties and the public policy implications of related legislative alternatives. This report will review that process. |
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