NAR: Moratorium by FDIC Temporarily Helps Protect the Safety and Soundness of Banking System.

WASHINGTON -- Last week's approval by the Federal Deposit Insurance Corp. (FDIC) of a six-month moratorium on Industrial Loan Company (ILC) applications marks a positive turn of events in the campaign to protect the separation of banking and commerce, the National Association of Realtors(R)

"Recent ILC applications by Wal-Mart and Home Depot highlight our serious concerns about the dangers of mixing banking and commerce," said Thomas M. Stevens of Vienna, Va., president of NAR. "The moratorium imposed by the FDIC is a necessary measure to halt the approval of these applications by commercial firms which would create an inherent conflict of interest and put the consumer and the financial system in danger."

NAR has repeatedly spoken out at both congressional and FDIC hearings and in letters to key federal officials on the importance of keeping banking and commerce separate. NAR has stressed the risks to the financial system that would come with a bank owned by a commercial firm that may not have the ability to exercise independent credit judgments.

The moratorium provides that the FDIC will not make any final decisions or accept any future applications for deposit insurance or notices of change in control for ILCs during this six-month period expiring on January 31, 2007. The action also provides the FDIC with a suitable time-frame to evaluate the need for clear-cut statutory, regulatory, or policy changes. NAR urges the FDIC to narrow the loophole that allows retail and commercial firms to own ILCs. In addition, NAR supports swift congressional action on the protection of the separation of banking and commerce by passing bipartisan legislation - The Industrial Bank Holding Company Act of 2006 (H.R. 5746) - before the current legislative session ends in the fall.

The National Association of Realtors(R), "The Voice for Real Estate," is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at http://www.realtor.org. This and other news releases are posted in the Web site's "News Media" section in the NAR Media Center.

REALTOR(R) is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics.