New FinCen requirements for Residential Real Estate starting March 1, 2026
I recently had a Title agent mention the upcoming FinCen Residential Real Estate (RRE) requirements starting March 1, 2026 and asked if I was a "lender with a regulated AML program." This was something that was unfamiliar to me so I had to do a little research. I am still trying to digest how this may impact me, a small private lender, lending my own personal funds (qualified and non-qualified), lending short term on typically 1-4 unit properties.
This was the first time I heard of these new reporting requirements and wondering if lenders like myself, have any information or guidance to help be better understand what I may need to do or if this is something that likely doesn't pertain to me.
Thanks,
Steve
Most Popular Reply
As a licensed mortgage company, we've had to have a formal Anti-Money Laundering (AML) program complete with annual training forever. The reference here is to FinCEN's new Residential Real Estate Reporting Rule taking effect March 1, 2026, which requires reporting of certain residential property transfers made to an entity or trust when the transaction is considered "non‑financed." A transfer is treated as non‑financed if it does not involve a loan from a financial institution that is subject to federal AML and Suspicious Activity Report obligations, which is why title agents are asking whether a lender has a regulated AML program. Many private lenders, hard money lenders, and individuals lending personal funds do not fall under those AML/SAR requirements, so deals involving their loans may be treated the same as cash transactions for this rule. Importantly, the reporting obligation does not fall on the lender but on the settlement agent, title company, or closing attorney handling the transaction. The rule primarily targets purchases where the buyer is an LLC or trust, not purchases by individuals. For lenders, the practical impact is increased questions and documentation at closing rather than a new licensing or AML compliance requirement. Does that help explain it or does that make it as "clear as mud?"