We want to make you aware of a recent legal development affecting the Residential Real Estate Reporting Rule issued by the Financial Crimes Enforcement Network (FinCEN), which took effect March 1, 2026.
A federal judge in the U.S. District Court for the Eastern District of Texas has issued a ruling vacating the rule, finding that FinCEN exceeded its authority under the Bank Secrecy Act. The decision effectively pauses enforcement of the rule while the matter proceeds through the appellate process.
The ruling conflicts with a recent decision from the U.S. District Court for the Middle District of Florida in Fidelity National Financial v. Bessent, which upheld the rule, creating uncertainty regarding the rule’s immediate status. Industry groups, including the American Land Title Association, are monitoring the situation and seeking guidance from FinCEN.
In the meantime, at least one of our underwriters has advised that the prudent approach is to continue existing compliance processes and reporting and we agree. As such, our office will continue collecting the required information and initiating reports for applicable transactions unless and until we receive contrary guidance from our title insurance underwriters.
We will continue to monitor developments closely and provide updates as additional guidance becomes available.
Links to Case Rulings: Flowers-case FNF Case
Two Rivers Title Company, LLC
For more detailed information and ongoing updates, you can bookmark the following link: Case Tracker
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