Federal Court Vacates FinCEN Residential Real Estate Rule
The American Land Title Association (ALTA) reports that a federal judge in the Eastern District of Texas has vacated the FinCEN Residential Real Estate Rule in full, finding that the agency exceeded its authority under the Bank Secrecy Act. The decision conflicts with a recent ruling from the U.S. District Court for the Middle District of Florida in Fidelity National Financial v. Bessent.
FinCEN has issued guidance stating that, for now, covered parties are not required to submit reports under the vacated rule, signaling the agency’s acknowledgement of the Texas court’s decision.
ALTA notes that the immediate and long-term effects remain uncertain. An appeal of the Texas ruling is likely, and courts sometimes stay such decisions while appeals proceed.
Sources: – ALTA coverage: https://www.alta.org/news-and-publications/news/20260320-Eastern-District-of-Texas-Vacates-FinCEN-Residential-Real-Estate-Rule – Court order (PDF): https://storage.courtlistener.com/recap/gov.uscourts.txed.237265/gov.uscourts.txed.237265.34.0.pdf – FinCEN guidance: https://www.fincen.gov/rre – Prior coverage on Real Estate Investing Today: https://realestateinvestingtoday.com/?s=fincen