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Ownership of Industrial Loan Companies (ILCs) by Commercial Firms
There is currently a legal loophole that allows commercial firms like Home Depot to own an industrial loan company-a kind of state bank. Home Depot has applied to the FDIC for permission to do so.

NAR, bank trade associations, and many others have voiced concerns with the FDIC and with Congress about mixing banking and commerce in this way. NAR supports legislation to close this loophole.

What is an ILC?
ILCs are a special type of state-chartered, federally insured bank that has most of the powers of other banks except they may not accept checking accounts or other "demand deposits."

Why should REALTORS® care?
Banks should be "honest brokers" of financial services. They should not be swayed into making credit and other business decisions based on their affiliation with commercial firms.

When commercial firms are allowed to engage in banking, the bank functions under an inherent and irreconcilable conflict of interest.

The bank's commercial parent will be tempted to use the bank in a way that furthers its own corporate objectives, which may be at odds with what is in the best interests of the ILC, customers, competitors, REALTORS®, and the safety of our financial system.

The latest news
House Overwhelmingly Votes to Keep Banking and Commerce Separate: Passes Bill to Close the ILC Loophole

House Decisively Passes NAR-Backed ILC Bill

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