"We're more than a vendor; we're a partner committed to helping title & escrow companies overcome challenges, said Brian Thome, chief customer officer at Qualia. That's why we built these features directly into our platform, helping to reduce the manual work and compliance risk customers face from the FinCEN rule. Our goal is to empower our customers to confidently steer through this complexity and continue to provide the high-quality closing experience their clients expect."
"Qualia said the rule presents significant challenges for title and escrow firms, including: Operational burden: Staff must learn new procedures to collect beneficial ownership information and complete the Real Estate Report, which includes up to 111 data fields. Data security and delays: Collecting sensitive personal data increases the need for secure systems and may delay closings if information is not gathered promptly. Compliance risk: Incomplete or late reports could lead to fines of up to $1,400 per violation and $108,489 for patterns of negligence. Willful violations carry criminal penalties of up to five years in prison and a $250,000 fine."
FinCEN postponed the rule's effective date from Dec. 1 to March 1, 2026. Beginning March 1, companies handling residential real estate transactions must report details about beneficial owners or trustees of purchasing entities, along with payment information for each property transfer. The rule applies to non-financed or cash transfers involving legal entities and trusts. Title and escrow firms face operational burdens collecting up to 111 Real Estate Report data fields, increased data-security needs, potential closing delays, and significant civil and criminal penalties for noncompliance. Qualia introduced platform features to flag reportable orders, securely collect information via Qualia Connect, automate workflows, and monitor submission status.
Read at www.housingwire.com
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