Do we really need a house loan from Wallmart?
Posted by Terra Houstonia on May 8, 2007
Loaf of bread, milk, cereal, tooth paste, home equity loan… This is certainly not the shopping list I would like to keep in my purse.
H.R. 698, the Industrial Bank Holding Company Act of 2007 (not to be mistaken with H.R. 698 Citizenship Reform Act of 2005), which provides enhanced regulation of parent companies of industrial loan companies (ILCs) and strengthens the national policy separating banking and commerce, finally passed House Financial Services Committee and is headed to the full House for a vote.
This would restrict big retailers from operating an industrial loan company (ILC), which is a type of bank. Home Depot and Wal-Mart have applied with the Federal Deposit Insurance Corp. to open ILCs, although Wal-Mart withdrew its application in March.
NAR (National Association of Realtors) has argued that banks should be “honest brokers” of financial services, and should not be swayed into making credit decisions based on their affiliation with retailers.
For the testimony of FDIC (Federal Deposit Insurance Corporation) please see the testimony given by Sheila C. Bair.
To share your opinion on proposed bill, contact your Congress Representative
