A new law passed by the Federal Government has created a permanent ban on banks getting into the real estate brokerage and management business. At stake was banks' desire to house mortgage lending and a real estate brokerage under the same umbrella, creating a one-stop-shop for real estate transactions.
The new law probably makes sense in the long-term, although there are some efficiencies that may have been created by a few of these companies. Think about ending the countless phone calls and faxes between lenders, agents, and buyers/sellers to transfer documentation. These large companies could surely have saved us some time, some paperwork, and just plain old paper.
Despite those possibilities, the consumer safeguards in this law win out, and there is a better competitive marketplace when more companies are competing for your dollar. With the scrutiny placed on banking in our current financial state, it doesn't make sense to allow greater control of these transactions by one entity.
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