Important TDI guidance on reporting costs that agents incur as they fulfill new FinCEN residential real estate reporting requirements
New FinCEN requirements became effective March 1. Here are instructions directly from TDI for how to report associated costs on settlement statements and statistical reports/em>
If you have questions about the TDI guidance below, please contact TLTA Vice President of Government Relations and Counsel Aaron Day at [email protected] or 512.810.8800
March 2, 2026
The following instructions were provided by TDI in response to questions from TLTA's regulatory team. TDI's answers are provided below verbatim:
Title Examinations
"A title agent or direct operation may charge and collect for a FinCEN charge. TDI has determined that the new FinCEN reporting is not included in the business of title insurance and therefore is not covered by the title premium. As a result, if a title agent or direct operation decides to handle the FinCEN reporting rather than utilizing a third party, they may charge and collect for the charge through either their escrow account or operating account. If the ultimate payee will be an affiliated third-party vendor, the affiliated business disclosure form must be signed by the buyer and included in the escrow file. This decision does not modify any previous department determinations regarding the prohibition of billing for in-house labor under SAP 5.
"If a title agent or direct operation decides to use a third-party vendor, the FinCEN charge should go through the escrow account. The title agent or direct operation may pay the third-party through their operating account. If the buyer provides a separate check for the FinCEN charge, the agent should deposit the funds into the operating account, and then pay the third-party from the operating account."
Agent Stat Plan Reporting
"For title agents, the instructions are:
"Report all FinCEN revenue on Exhibit E (Other Income), allocated fully to the <Escrow> column.
"Report all FinCEN expenses on Exhibit J (Other Expense), allocated fully to the <Escrow> column.
"We will add fixed-label rows for “FinCEN RER” or an otherwise agreeable term in Exhibits E and J. Full allocation of the revenue or expense will be categorized into the <Escrow> column, ensuring no FinCEN revenue or expense is included in the title rate base."
Underwriter Stat Plan Reporting
"For title companies, the instructions are:
"Report all FinCEN revenue on Form 4 in the <Services Charges> category, allocated fully to the <Escrow, Abstract & Other Business> column. The service charge will be specifically labeled “FinCEN RER”.
"Report all FinCEN expenses on Form 2 in the <Other> category (line 27), allocated fully to the <Escrow, Abstract, & Other Business> column."