F
idelity National Financial (FNF) has had enough of the back-and-forth with FinCEN over reporting requirements for all-cash residential real estate transactions. The company, along with its subsidiary Fidelity National Title Insurance Co., has filed a lawsuit against the Department of the Treasury and FinCEN.

    The suit targets the Anti-Money Laundering Regulations for Residential Real Estate Transfers rule, set to take effect in December 2025. This rule requires title firms to report detailed information on all-cash home purchases, including personal data on buyers and sellers, payment details, and information about trusts and entities involved.

    FNF argues that the rule is "arbitrary and capricious," citing a massive increase in disclosure reports – from approximately 20,000 to 800,000 per year. This would result in significant costs, estimated at $428 million to $690 million in the first year, with annual costs ranging from $401 million to $663 million.

    FNF claims that FinCEN is overstepping its authority by requiring title firms to report all transactions, not just suspicious ones. The company also argues that the rule violates its Fourth and First Amendment rights, as it amounts to an unconstitutional search and requires companies to collect and report personal information against their will.

    Furthermore, FNF alleges that the rule violates the Commerce Clause and nondelegation doctrine by regulating local real estate transactions, which are outside FinCEN's authority. The company is seeking a court declaration that the rule is unlawful and a permanent block on its implementation.

    The American Land Title Association (ALTA) had previously noted that FinCEN incorporated industry recommendations to streamline the regulation and reduce burdens on real estate professionals. However, FNF estimates that the rule will still add $472 to $829 to each covered residential home sale.