Title Companies Are About to Require This from Every Buyer (March 2026)

Hey guys, welcome back to our 203rd episode of Mortgage Matters in Minutes. I'm your host as always, Brent Rasmussen, owner of Mortgage Specialists here. 25 plus years in lending, more certifications than any in the market of mortgage lending, understanding the forefront, the behind the scenes, and the real estate aspect of mortgage lending. So today, let's talk about a rule that goes into place on March 1st here and what title companies and buyers need to know about FinCEN. And that's a word that many people might not be understanding of and this could affect some individuals transactions, those that are not already working with the mortgage lender like myself. But we're going to chat about what those changes are and look like just to prepare anyone that's out there purchasing transaction or real estate and how those could affect the transaction as well. So we're going to talk today specifically about what is FinCEN and what is the rules that is going to change. So FinCEN stands for the Financial Crimes Enforcement Network which is a part of the US Treasury and they have established what's called an anti-money laundering. All banks, mortgage companies, credit unions abide by this anti-money laundering rules. We also have red flags rules, safeguard rules, all kinds of other rules in our offices to ensure that we're doing things properly per what federal law states. And really what this law is intended for is about transparency to track where money is coming from. There's been a lot of discussion through the past few years about shell companies and cash and illegal transactions and crypto being one of those that exists where illegal activities transfer through those different portals. So what is changing here in regards to transactions that are non financed or meaning cash based? Anybody that is a trust or an LLC or different entities that are using a different name than their own self as an individual. Now, the title companies are going to have to ask for the paperwork proving who the owners and who the people are involved in that particular company, corporation, trust, entity. We do that already currently as lenders. When individuals are going through a transaction and a property might be listed in an LLC, us as lenders are still going to want to assure the correct individual signed on behalf of the LLC. So, we will ask for that paperwork. You being a buyer has your own trust. We will receive a copy of that trust to verify who it is. So, transactions that have been cash based and aren't needing a lender haven't had to need that. And nowadays, they will. So, if you're going through a mortgage company and getting a standard loan, nothing is going to change for you. But if you're that real estate agent or that buyer or seller that's using trusts LLC's to purchase and sell properties, they're going to be required to ask more paperwork of you. Again, why is this happening? We're trying to, as the whole United States economy, prevent money laundering, whether that's here in the United States or globally. Also, prevent shell companies. if you remember a year or a year and a half ago that companies had to go in and register the individuals that were owners of that particular company. So again, they could track and trace where money gets transferred to and possibly try to stop financial crimes before they happen as well. Obviously, real estate is a big place that money can be passed through and there's much bigger numbers than your average checking and savings accounts. So because of that, they're enforcing these rules to stop everyone, not just certain players in the real estate market. So as we mentioned, the title companies are going to be asking those individuals for their beneficial ownership information or their EIN or any tax documents or possibly any filings that they have showing who is in charge and who is running that entity so they can work to stop any bad things from happening. bad things meaning financial illegal activities. I know currently in this times that we're in in 2026, we're still discussing talking about you know taking down drug lords and drug pins and making that happen just like that all started in the early 80s. So we're still working to finance or to stop financial crimes from happening. And this is just one of them. So, if you're a cash buyer, if you're an individual that handles an LLC or trust, or even a foreign national, be prepared to work with a title company on the documentation they ask for. So, any individual that's involved in real estate, do know that the paperwork is being asked for for a federal reason, not because they're just nosy and want to know what's going on. The paperwork is needed because the law says it is. So, real estate agents and buyers and sellers all be aware of the additional paperwork because if you don't have that, the transaction is not going to occur. And some people like to deal in what we call cash real estate transactions because those transactions can close much faster than a loan just because of the less paperwork. But now, if this paperwork is needed, be prepared to provide that. So, again, this doesn't affect anything on the mortgage side. Don't want to scare anyone, but this can affect investors, sellers, and buyers of real estate if you're using a trust, LLC, or other entities. In regards to that, here at Mortgage Specialists, we're here to help answer any questions you may have. Are we perfect? No. Do we try to be sure? But in regards to mortgage and planning ahead for your real estate needs, we would love you to contact and reach out to us. refer any clients that you may know and like and trust to us and we can assist with them. Just a phone call away at 402-991-5153. Check us out on our website at mtg-specialists.com or just Google us at mortgage specialists and check us out. Feel free to reach out anytime. We'll see you here next time. Have a great rest of your week. Mortgage specialists. Driven. Trusted. Reliable.