Dear Clients and Friends:
On May 15, 2026, the Financial Crimes Enforcement Network (“FinCEN”) filed a notice of appeal to the Texas Eastern District Court’s order from March 19, 2026.
The Court’s March 26 Order stayed FinCEN’s Residential Real Estate Reporting Rule from going into effect. Following the filing of the notice of appeal, FinCEN has reaffirmed that no reporting is currently required under the Residential Real Estate Reporting Rule and that there will not be any liability for not reporting at this time. In addition, FinCEN has stated that if the Order is ultimately overturned on appeal, and the Residential Real Estate Reporting Rule is reinstated, there will be no retroactive enforcement of the Rule. This means that if the Order were to be overturned, the Residential Real Estate Reporting Rule would not be applied to transactions that would have been required to report prior to the date the order is overturned. FinCEN noted that they will provide further direction if and when reporting would be required.
|
With the clarification from FinCEN that there will be no retroactive enforcement of the Residential Real Estate Reporting Rule if the Order is overturned on appeal, the gathering and retention of the non-public, personal data required by the Residential Real Estate Reporting Rule currently does not need to be collected for any potential retroactive filing. |
For more detailed guidance and access to FinCEN’s official resources, visit FinCEN’s Residential Real Estate Rule page.
We are actively monitoring developments and will continue to keep you informed as additional guidance becomes available. If you have any questions about how this update may affect your business or specific transactions, please contact your relationship attorney at Hinman, Howard & Kattell.
▪ ▪ ▪ ▪
This information is not legal advice and may not be suitable for all client situations. This Client Alert provides general information and does not outline all of the important considerations related thereto.
This Client Alert is not a substitute for legal guidance regarding program details and how those may be applicable to your business. As always, if we can be of assistance with this topic or any other matters, please do not hesitate to contact your HH&K attorney.
Client Alert Date: May 28, 2026
 |
| John E. Jones Partner E: jjones@hhk.com |
 |
| Kenneth F. Tomko Partner E: ktomko@hhk.com |
Other Related Articles
April 9, 2026
FinCEN Residential Real Estate Reporting Rule Vacated: What You Need to Know
* * * *
Copyright © 2026 by Hinman, Howard & Kattell LLP. This Client Alert is provided as a general information service to clients and friends of Hinman, Howard & Kattell, LLP. It should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. These materials may be considered Attorney Advertising in some states.