U.S. District Court for Eastern Division of Texas Vacates FinCEN Residential Real Estate Reporting Rule
The federal court set aside FinCEN's rule and reporting requirements. We expect FinCEN to appeal. We're hopeful that FinCEN will issue a statement or provide further guidance soon. We will keep you updated as this breaking story develops.
March 20, 2026
On Thursday, March 19, the U.S. District Court for the Eastern District of Texas, Tyler Division, issued an opinion 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 used statutory construction principles to determine that FinCEN failed “to explain or show how non-financed residential real estate transactions are categorically “suspicious.” Moreover 31 USC 5318(a)(2) allows only the authority to require procedures to comply to be maintained “and not the authority to require the reports covered by the Rule.” In connection with the remand, FinCEN must limit the reporting to “any suspicious transaction.”
What Happens Now?
This is a District Court ruling and if FinCEN appeals, the Fifth Circuit could stay the decision or otherwise address the ruling. But for the moment the RRE Rule is vacated and remanded to FinCEN. We are hopeful that FinCEN will issue a statement or provide further guidance very soon. TLTA's Advocacy Team is monitoring these developments closely and will report additional news and analysis as they are available.
Background
More information on the development of this FinCEN rule »
More information on legal challenges to the rule »
Questions? We'll continue to keep you updated on developments.
TLTA will continue to keep you informed of any developments related to this ruling. If you have questions, please don’t hesitate to reach out to Aaron Day at
[email protected] or 512.472.6593.