8-K

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                          UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                        _________________

                            FORM 8-K

                         CURRENT REPORT
             Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934

                        _________________


               Date of Report: September 20, 2004
                (Date of earliest event reported)


                       TEMPLE-INLAND INC.
     (Exact Name of Registrant as Specified in its Charter)

      Delaware             001-08634             75-1903917
  (State or Other         (Commission           (IRS Employer
    Jurisdiction          File Number)       Identification No.)
 of Incorporation)

        1300 MoPac Expressway South, Austin, Texas 78746
            (Address of Principal Executive Offices)

                         (512) 434-5800
      (Registrant's telephone number, including area code)

                         Not Applicable
  (Former Name or Former Address, if Changed Since Last Report)


Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

[ ]  Written communications pursuant to Rule 425 under the
     Securities Act (17 CFR 230.425)
[ ]  Soliciting material pursuant to Rule 14a-12 under the
     Exchange Act (17 CFR 240.14a-12)
[ ]  Pre-commencement communications pursuant to Rule 14d-2(b)
     under the Exchange Act (17 CFR 240.14d-2(b))
[ ]  Pre-commencement communications pursuant to Rule 13e-4(c)
     under the Exchange Act (17 CFR 240.13e-4(c))

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Item 8.01.     Other Events

     On September 20, 2004, Temple-Inland Inc. (the "Company")
issued a press release announcing that its wholly-owned
subsidiary, Guaranty Residential Lending, Inc., plans to sell its
third party mortgage servicing portfolio.  Copies of the press
release are furnished as exhibit 99.1 of this report.

Item 9.01.     Financial Statements and Exhibits.

     (c)  Exhibits.

     99.1 Press release issued by the Company on September 20,
          2004, announcing that its wholly-owned subsidiary,
          Guaranty Residential Lending, Inc., plans to sell its
          third party mortgage servicing portfolio



                            SIGNATURE

     Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.


                                   TEMPLE-INLAND INC.


Date: September 20, 2004           By:  /s/ M. Richard Warner
                                      -------------------------
                                   Name:  M. Richard Warner
                                   Title: President




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                          EXHIBIT INDEX

Exhibit   Description                                        Page
- -------   ------------------------------------------------   ----
99.1      Press release issued by the Company on August 4,     4
          2004, announcing that its wholly-owned
          subsidiary, Guaranty Residential Lending, Inc.,
          plans to sell its third party mortgage servicing
          portfolio.

EX-99

                   [TEMPLE-INLAND LOGO]



NEWS
RELEASE------------------------------------------------------

FOR IMMEDIATE RELEASE
CONTACT: Chris L. Nines
         (512) 434-5587


    TEMPLE-INLAND INC. TO SELL THIRD PARTY MORTGAGE SERVICING

     AUSTIN, TEXAS, September 17, 2004-As a part of the
previously announced repositioning of the mortgage origination
activities conducted by its wholly-owned subsidiary Guaranty
Residential Lending (GRL), Temple-Inland announced today that GRL
plans to sell its third party mortgage servicing portfolio.  The
sale of this asset will further reduce costs, earnings
volatility, and exposure to changing market conditions.

     On an ongoing basis, these actions are not expected to have
a significant affect on Temple-Inland earnings.  The sale of the
third party mortgage servicing portfolio is expected to be
completed by first half 2005.

     Temple-Inland Inc. is a major manufacturer of corrugated
packaging and building products, with a diversified financial
services operation.  The Company's 2.0 million acres of
forestland are certified as managed in compliance with ISO 14001
and in accordance with the Sustainable Forestry Initiativer (SFI)
program of the American Forest & Paper Association to ensure
forest management is conducted in a scientifically sound and
environmentally sensitive manner.  Temple-Inland's common stock
(TIN) is traded on the New York Stock Exchange and the Pacific
Exchange.  Temple-Inland's address on the World Wide Web is
www.templeinland.com.

     This release contains forward-looking statements that
     involve risks and uncertainties.  The actual results of
     Temple-Inland may differ significantly from the results
     discussed in the forward-looking statements.  Factors
     that might cause such differences include general
     economic, market, or business conditions; the
     opportunities (or lack thereof) that may be presented
     to and pursued by Temple-Inland; the availability and
     price of raw materials; competitive actions by other
     companies; changes in laws or regulations; the accuracy
     of judgments and estimates concerning the integration
     of acquired operations and Temple-Inland's
     consolidation and supply chain initiatives; and other
     factors, many of which are beyond the control of Temple-
     Inland.