FinCEN Statement: In light of a federal court decision, reporting persons are not currently required to file real estate reports with FinCEN and are not subject to liability if they fail to do so while the order remains in force.

The Treasury Department’s reporting requirements for certain real estate transactions are illegal, a federal judge in Texas ruled, vacating the 2024 rule.

The rule, issued by Treasury’s Financial Crimes Enforcement Network in an effort to crack down on money laundering in the residential real estate sector, runs afoul of the Bank Secrecy Act, Judge Jeremy D. Kernodle of the US District Court for the Eastern District of Texas said Thursday.

 Every American seeking to buy a home should have access to a mortgage from a reliable lender, at a rate commensurate with his or her creditworthiness. Over the past two decades, however, statutory and regulatory changes — including rules adopted under the Dodd‑Frank Act, Public Law 111-203, and subsequent rulemakings — have increased the compliance costs of mortgage origination and servicing and distorted the structure of the mortgage market. These burdens have contributed to a significant decline in bank participation in mortgage lending. Community banks, generally institutions with fewer than $30 billion in assets, have been especially affected. The regulatory and rule changes have undermined community banks’ businesses, concentrated credit and liquidity risk outside the banking system, and resulted in reduced access to credit for some creditworthy borrowers, including rural households and low- and moderate-income households. My Administration will reduce these regulatory burdens to ensure that these creditworthy borrowers can access the capital required to purchase a home.

Mortgage Credit EO

Affordable Home Construction E.O.

On January 30, the CFPB published a notice in the Federal Register requesting that the Office of Management and Budget extend for a second time the CFPB’s request for public comment as part of its “Consumer Response Intake Form” information collection. As previously covered by InfoBytes, the CFPB, in November 2025, requested public comment regarding this information collection, as well as on its information collection titled “Consumer Complaint Intake System Company Portal Boarding Form.” Specifically, the CFPB sought feedback on: (i) whether collecting this information is necessary for the Bureau to carry out its responsibilities effectively; (ii) whether the CFPB’s estimation of the burden of the collection on respondents is accurate and based on sound methodology and assumptions; (iii) how the agency could improve the utility, quality, and clarity of the information it gathers; and (iv) suggestions for reducing the burdens of the information collection on consumers. Under the new extension, comments must be submitted by March 2.

As a reminder, the Financial Crime Enforcement Network’s (FinCEN) Residential Real Estate rule (the “Real Estate Rule”) is effective March 1, 2026. The Real Estate Rule was originally to take effect December 1, 2025, but FinCEN’s subsequently announced a temporary exemptive relief, extending the effective date until March. We have previously blogged about the Real Estate Rule here and here.

Summary: In this episode of Financial Services Focus, Kris Kully and EY Managing Director of Financial Services Brian Clark discuss the Consumer Financial Protection Bureau's proposed rule under the Equal Credit Opportunity Act (ECOA) and its implications for financial institutions. They explore the nuances of disparate impact, the role of special purpose credit programs, and the marketing practices that may discourage applicants. The conversation highlights the regulatory changes and the importance of understanding the underlying risks in lending practices.

The CFPB has received the funding it requested from the Federal Reserve, according to a January 15 letter submitted by the Justice Department to the court in the lawsuit filed against the CFPB by the National Treasury Employees Union.

On January 9, CFPB Acting Director Russell Vought notified Judge Amy Berman Jackson that, in response to her December 30, 2025 opinion in National Treasury Employees Union v. CFPB (DDC), he had requested $145 Million from the Federal Reserve Board to operate the CFPB from January through March of this year.

The CFPB has received the funding it requested from the Federal Reserve, according to a January 15 letter submitted by the Justice Department to the court in the lawsuit filed against the CFPB by the National Treasury Employees Union.

On January 9, CFPB Acting Director Russell Vought notified Judge Amy Berman Jackson that, in response to her December 30, 2025 opinion in National Treasury Employees Union v. CFPB (DDC), he had requested $145 Million from the Federal Reserve Board to operate the CFPB from January through March of this year.

Longtime First American vice chair and widely respected housing finance leader Kurt Pfotenhauer is remembered for his leadership, public policy influence, and commitment to family and service

Kurt Pfotenhauer, executive vice president and vice chairman of First American Title Insurance Company, has passed away according to a release from the firm. 

“Everyone within the First American family of companies mourns the passing of Kurt Pfotenhauer,” said Mark Seaton, CEO, First American Financial Corporation in a statement. “Our deepest sympathies go out to his wife, Nancy, children, and grandchildren. Kurt was a distinguished leader in our industry and a valued member of the First American team."

In Fiscal Year 2026, ending September 30, 2026, the CFPB will need $279.6 million just to maintain its activities that are required by law, Bureau Acting Director Russell Vought wrote in letters to House and Senate appropriators and President Trump.

Under Section 1017 of Dodd Frank, the CFPB may be funded only from the “combined earnings” of the Federal Reserve System (see here, here, and here; see our Podcast here). In the past, under the leadership of then-Director Rohit Chopra, the Bureau requested funds from the Fed after September 2022, when the Fed started losing money on a combined basis, and the Fed provided those funds.

Ballard Spahr Article

December 15 Ballard Spahr Webinar

As the regulatory agenda at the Consumer Financial Protection Bureau (CFPB) continues to heat up, it has undertaken a series of rapid and varied actions that carry significant implications for regulated entities and warrant careful monitoring and engagement. In recent weeks, the CFPB advanced a series of deregulatory actions on Regulation B, the small business lending rule, nonbank registries and Federal Credit Reporting Act (FCRA) preemption. At the same time, the bureau has declined to request funding from the Federal Reserve for nearly the entire year and is on a pace to run out of funding after the new year. This approach could threaten current and future planned rulemaking efforts as outlined by the agency. With acting Director Russell Vought’s term near its expiration in early December, the Trump administration nominated Stuart Levenbach to serve as CFPB director on Nov. 18. Under the Federal Vacancies Reform Act, the submission of a nominee to the Senate will allow acting Director Vought to remain in his position for an additional 210 days. A CFPB spokesperson characterized the Levenbach nomination as a technical, procedural step to extend Vought’s tenure as acting director.

On October 29, 2025, CFPB withdrew its proposed rule titled Registry of Supervised Nonbanks That Use Form Contracts To Impose Terms and Conditions That Seek To Waive or Limit Consumer Legal Protections, which was published on February 1, 2023. The proposed rule would have required nonbanks to submit annual reports on the terms and conditions in their form contracts and on related court or arbitrator decisions on the enforceability of those terms and conditions. The proposed rule would have required the Bureau to publish such information and registrants’ identifying information. See our prior blog about the proposed rule.

The Consumer Financial Protection Bureau (“CFPB”) has issued its proposed rule scaling back the interpretation of and regulations under the Equal Credit Opportunity Act (“ECOA”). While the agency placed the proposal on its official regulatory agenda months ago, conventional wisdom indicated that the rule would address interpretations of the Act’s applicability to prospective applicants and to disparate impact claims. The proposal does address those topics, and significantly narrows the availability of special purpose credit programs (“SPCPs”). Comments are due on the proposal within a short 30 days (by December 15, 2025).

The CFPB has issued a proposed rule that would make substantial changes to Regulation B under the Equal Credit Opportunity Act (ECOA). In one of the most significant changes, the bureau has preliminary determined that disparate-impact claims are not authorized by ECOA. The proposal also addresses what constitutes prohibited discouragement of applicants or prospective applicants and would substantially revise the rules governing special purpose credit programs (SPCPs) offered by for-profit creditors, essentially eliminating many of such SPCPs. The comment period is short, as comments are due December 15, 2025.

FinCEN Announces Postponement of Residential Real Estate Reporting Until March 1, 2026

WASHINGTON––To reduce business burden and ensure effective regulation, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) today announced that it will postpone reporting requirements of the Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule (RRE Rule) until March 1, 2026. FinCEN is taking this step to provide industry with more time to comply—consistent with the Administration’s agenda to reduce compliance burden—while still adequately protecting the U.S. financial system from money laundering, terrorist financing, and other serious illicit finance threats.

To implement this extension, FinCEN issued a temporary order granting exemptive relief from the reporting requirements. In the interim, any Real Estate Geographic Targeting Orders will remain in effect.

FinCEN Announces Postponement of Residential Real Estate Reporting Until March 1, 2026 | FinCEN.gov

ll Title Insurance Companies, Title Insurance Agents, Entities Engaged in the Business of Title Insurance in Virginia and Interested Parties

RE: Title Insurance Alternatives

It has come to the attention of the Virginia Bureau of Insurance (“Bureau”) that products structured like Attorney Opinion Letters (“AOLs”) are being offered to consumers in the Commonwealth as a substitute for title insurance. It is important for consumers to understand the differing protections offered by AOLs and title insurance. Furthermore, it is important that consumers and those offering AOLs understand that AOLs are legally prohibited from providing the same or similar protections as title insurance. As long as the AOL does not offer coverage meeting the definition of “insurance” or “title insurance” found in the Code of Virginia (“Code”), the AOL would not be subject to the Bureau’s regulation. This Administrative Letter explains the applicable law, the differences in protections between AOLs and title insurance, the importance of understanding coverage, and where certain AOL offerings may violate the Code by crossing the line into the unlicensed business of insurance.

Virginia Letter

RESPRO Applauds MBA's Efforts

MBA's President and CEO Bob Broeksmit, CMB, released the following statement on President Donald Trump signing H.R. 2808, the Homebuyers Privacy Protection Act, into law:

“This new law is a major victory for mortgage borrowers that will protect them from the barrage of unwanted calls, texts, and emails they too often received immediately after applying for a mortgage. It will create a more efficient, responsible, and respectful home buying process when it goes into effect on March 5, 2026.

“We celebrate President Donald Trump signing this important bill into law and will work with our members and federal agencies to ensure a seamless transition over the next six months.”

MBA release

Raleigh Realty and CrossCountry Mortgage are accused in 6 separate lawsuits of operating an illegal 'pay-to-play' scheme in violation of the Real Estate Settlement Procedures Act (RESPA)

A North Carolina real estate brokerage is accused of requiring its agents to send their clients to a mortgage lender that was picking up half of its monthly digital marketing expenses — an illegal kickback, former clients allege in court.

Raleigh Realty and CrossCountry Mortgage are accused in six separate lawsuits of operating an illegal “pay-to-play” scheme in violation of the Real Estate Settlement Procedures Act (RESPA). The homebuyers who filed suit say they paid higher interest rates and discount points on their loans than if they’d shopped around.

It’s time for RESPA to get a refresh.

That’s what Richard Andreano, partner at Ballard Spahr LLP, and Brian Levy, Of Counsel for Katten & Temple, LLP, shared at the spring RESPRO conference in their session on the prospects for RESPA reform.

A lot has changed since RESPA was enacted in 1974. It was under the purview of the Department of Housing and Urban Development (HUD) until the Consumer Financial Protection Bureau (CFPB) was created and took over RESPA enforcement in 2011.

Summary

President Trump’s budget permanently extends numerous provisions of the Internal Revenue Code from the Tax Cuts and Jobs Act (TCJA) of 2017 scheduled to expire at the end of 2025 and includes several changes that will have significant tax consequences for housing and other sectors of the real estate industry.

Ballard Spahr Article

An Illinois federal district court judge presiding over a revived redlining case denied a joint motion to vacate a 2024 voluntary settlement between the Consumer Financial Protection Bureau (CFPB) and a Chicago-based non-bank lender.

In November 2024, the parties voluntarily entered into a settlement to resolve the CFPB’s allegations that the non-bank lender purportedly violated the Equal Credit Opportunity Act (ECOA) by engaging in discriminatory lending practices. The CFPB alleged that the company’s president and chief executive officer and his co-host made statements during the company’s radio show and podcast that allegedly discouraged prospective African-American applicants from applying for loans with the company. These alleged statements described majority African-American Chicago neighborhoods in an allegedly derogatory manner. As part of that settlement, the company had agreed to (i) pay a $105,000 fine; (ii) implement and maintain compliance policies and procedures relating to the ECOA; and (iii) submit to compliance monitoring for a five-year period. The court entered the stipulated settlement and terminated the case that same month.

Goodwin Article

The Consumer Financial Protection Bureau (CFPB) is a federal agency that was founded in 2010, after the United States went through a recession linked to abuses in the origination and sale of residential mortgage loans. The agency generally has enforcement, supervision, and rulemaking authority with respect to a variety of federal statutes that apply to offerors of consumer financial products (bank and nonbank alike), such as personal loans, credit cards, and checking and savings accounts. Under the Biden administration, the CFPB was very active. It increased the number of staff members employed by the agency. It also focused on discriminatory lending issues, bringing enforcement actions to recover large civil penalties, and announcing new consumer protection guidance and regulations. In contrast, the current Trump administration is very critical of the CFPB and has sought to rein in nearly all its activity.

Jenner and Bock Article

The first 100 days of the Trump administration have included dramatic changes at the Consumer Financial Protection Bureau. The agency has retreated from many of its enforcement litigations, initiated reductions in force currently subject to legal challenges in federal court, and most recently, explained its shifting priorities for consumer protection in a detailed internal memorandum.

Specifically, on April 16, 2025, the CFPB’s Chief Legal Officer, Mark Paoletta, sent an internal memorandum (“the Memo”) to employees detailing the agency’s supervision and enforcement priorities moving forward. According to the Memo, the Bureau’s focus will be on “pressing threats to consumers, particularly service members and their families, and veterans.” The Memo rescinded all previously issued priority documents and noted that, to focus on what Paoletta referred to as tangible harms to consumers, the Bureau would be shifting resources away from all supervision and enforcement that can be accomplished by the States.

Goodwin Article

Proposed legislation includes permanent lower rates and incentives for affordability and development

The National Association of Realtors (NAR) said a new draft tax reform bill from the House Ways and Means Committee includes key provisions that would benefit the real estate industry, particularly in terms of housing affordability and small business support.

Calling the bill a “strong opening bid,” NAR chief advocacy officer Shannon McGahn said many of the proposals align with the association’s long-standing priorities.

“This draft language preserves or strengthens a raft of provisions vital to housing affordability, including making the current lower income tax brackets permanent,” McGahn said in a message to NAR members. “These are all measures we have worked tirelessly to advocate for on behalf of our members.”

MPA Article