Eastern District of Texas Vacates FinCEN Residential Real Estate Rule

March 20, 2026


TitleNews Online

A significant legal development has impacted the Financial Crimes Enforcement Network (FinCEN) Residential Real Estate Rule, which went into effect on March 1, 2026. 

Yesterday, a judge in the Eastern District of Texas issued a ruling vacating the FinCEN Residential Real Estate Rule in its entirety. In the ruling, the court found that FinCEN exceeded its statutory authority under the Bank Secrecy Act and ordered the rule be set aside. This is inconsistent with the U.S. District Court for the Middle District of Florida, which last month issued a decision in Fidelity National Financial v. Bessent. 

As a result, there is considerable uncertainty regarding the immediate and long-term impact of this ruling. An appeal of the Texas decision is likely, and in similar cases, it has been common for courts to stay their ruling while an appeal works its way through the judicial system.

In the meantime, ALTA is actively monitoring developments. We reached out to FinCEN immediately upon reviewing the court’s decision, and we expect guidance on how FinCEN will implement the ruling. If the court’s ruling is stayed, the rule will be back in full effect. This is consistent with what occurred during litigation surrounding the Corporate Transparency Act. While each company will have to make its own business decisions following yesterday’s ruling, the cautious approach is to continue collecting information as if you will need to report. We are assessing potential implications for you and the broader industry and will continue to update you as we learn more. 


Contact ALTA at 202-296-3671 or [email protected].