A CRMLA licensee closes a residential mortgage loan in 2024 and asks how long the loan documents must be retained. What minimum retention period applies, subject to longer document-specific requirements?
Correct Answer
C) At least 36 months, unless some other rule sets a longer period here
Residential mortgage loan documents and related business records are kept for at least 36 months unless a longer rule applies, and federal rules add their own periods for particular documents. Other choices: 12 months is a Regulation Z period for some records; payoff or sale does not end the retention; and 84 months is an accounting convention. Source: Cal. Fin. Code § 50314
Why This Is the Correct Answer
Residential mortgage loan documents and related business records are kept for at least 36 months unless a longer rule applies, and federal rules add their own periods for particular documents. Other choices: 12 months is a Regulation Z period for some records; payoff or sale does not end the retention; and 84 months is an accounting convention. Source: Cal. Fin. Code § 50314
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