The American Land Title Association is reporting that a federal judge in the Eastern District of Texas issued a ruling vacating the FinCEN Residential Real Estate Rule in its entirety. ALTA says the ruling found that FinCEN exceeded its statutory authority under the Bank Secrecy Act and ordered the rule be set aside. They say 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.
In addition, FinCEN.gov has issued guidance confirming that reporting persons are not currently required to file reports under the rule. Alta says this shows FinCEN has acknowledged the court’s ruling and is not requiring compliance with reporting obligations at this time. Stay tuned and talk
“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.” – ALTA
In addition, FinCEN has issued guidance confirming that reporting persons are not currently required to file reports under the rule. Click here to read the guidance.
Click here to read the full story at ALTA.
Click here to read the summary judgement.
Click here to read the guidance from FINCEN.
Click here to see previous articles and coverage on Real Estate Investing Today.
