For Regulation Z compliance evidence covered by the general retention rule, excluding advertising and records with special retention periods, what is the minimum required retention period after the required disclosure or action date?
Correct Answer
C) At least two years
C. At least two years under the specified general rule. Measure from the date disclosure or action is required, not automatically from closing. The question excludes special record categories, and enforcement agencies may require longer retention. Scope and exceptions: Do not use this as an instruction to delete every loan record after two years. Special mortgage-record rules, other laws and applicable preservation requirements must be checked. Source: Section 1026.25(a); contrast (c) — https://www.consumerfinance.gov/rules-policy/regulations/1026/25/
Why This Is the Correct Answer
C. At least two years under the specified general rule. Measure from the date disclosure or action is required, not automatically from closing. The question excludes special record categories, and enforcement agencies may require longer retention. Scope and exceptions: Do not use this as an instruction to delete every loan record after two years. Special mortgage-record rules, other laws and applicable preservation requirements must be checked.
Why the Other Options Are Wrong
Option A: Exactly seven years in every case
Neither an exact seven-year period nor a universal ceiling follows.
Option B: At least one year in every case
One year is insufficient for this rule.
Option D: No retention period applies
The rule expressly requires retention.
Exam Tip
Identify the record category and triggering date before calculating retention.
More UST Questions
A Washington broker provides the federal settlement service estimates and booklet in 2026 and no separate state itemization. Can disclosures compliant with RESPA and Regulation X satisfy the state third-party itemization subsection?
Priya is comparing pre-license education providers before applying for a Florida mortgage loan originator license. How many hours of approved pre-license education must she complete in total?
An applicant is budgeting for a Florida MLO license and asks what the state application fee comes to at filing. Which figure is correct?
A newly sponsored Florida MLO is told she must buy an individual surety bond in her own name before she can originate. Is that correct?
A Washington consumer loan act licensee also brokers loans in 2026 outside the authority of that act. Does the consumer-loan-act exemption extend to mortgage brokerage outside that act’s authority?
A $200,000 Texas home equity loan has $3,700 in fees subject to the constitutional cap and a separate $600 fee for an appraisal performed by a third-party appraiser. Do the capped fees exceed the limit?
An owner applies for a Texas home equity loan on 4 May 2026 and the lender delivers the required notice on 8 May. Which date starts the constitutional 12-day waiting period for closing?
An owner closed a Texas home equity loan on 3 February 2026 and wants a second one on the same homestead in November 2026. Assuming no declared-emergency exception applies and the earlier home equity lien will be paid off, may the new loan close in November?
A Texas home equity loan forecloses and the sale leaves the lender $62,000 short of the balance owed. Absent actual fraud in obtaining the credit, may the lender recover the shortfall personally from the owner or spouse?
A Washington real estate broker helps a 2026 buyer arrange financing and takes only the usual sales commission. Does financing assistance incidental to a bona fide sale for only the customary real-estate commission fall within the exemption?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam