What’s Next?
As you may be aware, last Thursday, March 19th, 2026, the U.S. District Court for the Eastern District of Texas, Tyler Division, issued a ruling in Flowers Title Companies v. Bessent ordering “vacatur and remand” of the Residential Real Estate Reporting Rule (RRE) adopted by FinCEN and effective March 1, 2026. The court determined that FinCEN lacked the authority to require reports covered by the RRE.
What the Rule required
Under the RRE Rule, certain professionals involved in closings must file a Real Estate Report (RER) for qualifying transactions. This includes title companies, settlement agents, escrow officers, and closing attorneys.
FinCEN acknowledgement:
FinCEN has acknowledged the federal court decision, and has discontinued any RRE enforcement actions, including the filing of a real estate report. The following post appears on the FinCEN RRE website:
“In light of a federal decision, reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.”
What’s next?
FinCEN has not addressed what might happen going forward with regard to any GTO or other reporting requirements. It is expected, however, that FinCEN will appeal the court’s decision.
While this guidance provides near-term clarity, uncertainty remains. Future action by FinCEN or the courts could reinstate or modify reporting requirements.
We will continue to engage with FinCEN, monitor legal and regulatory developments and keep you informed as this situation evolves.
