ALTA Submits Letter to FinCEN Based on Survey Results

A FinCEN reporting requirements survey, conducted by the ALTA, made it clear that the reporting requirements added significant complexity and consumer resistance into real estate transactions, particularly in collecting required information, determining when transactions were reportable and integrating new processes into existing workflows. 

​More than half of respondents reported that FinCEN reporting requirements had delayed real estate closings. Unsurprisingly, consumer resistance was widespread. Approximately 84 percent of respondents reported that buyers or sellers expressed privacy or data security concerns, according to the data. Some clients refused to provide the information, and in other cases buyers restructured purchases to avoid reporting or conditioned offers based on whether or not a transaction would trigger reporting. 
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Building on industry feedback, ALTA submitted a letter to FinCEN outlining recommendations to reduce the burden on the title industry, specifically calling for practical adjustments to its scope and guidance and for FinCEN to provide adequate lead time for the industry should reporting resume.