Bank, Real Estate Decision Is Postponed

The Federal Reserve Board and the Treasury Department said they have delayed a decision on a controversial proposal that would allow banks to sell and manage real estate. The federal regulators said they have extended the public comment period on the new rule from March 2 until May 1. The proposal, which would define real estate brokerage and management as “financial in nature,” would allow federally chartered banks to buy, sell and manage real estate, activities that banks have been prohibited from engaging in. Realtors say these additional bank services will hurt consumers and the real estate industry. The National Assn. of Realtors, the nation’s largest trade group, has urged its members to help defeat the proposal, and NAR members have taken their case to Congress. Banking industry spokesmen have said that the new rule would modernize the law and create national uniformity.