(a) General rule. A creditor shall retain evidence of compliance with this part (other
than advertising requirements under sections 1026.16 and 1026.24,
and other than the requirements under section 1026.19(e) and (f))
for two years after the date disclosures are required to be made or
action is required to be taken. The administrative agencies responsible
for enforcing the regulation may require creditors under their jurisdictions
to retain records for a longer period if necessary to carry out their
enforcement responsibilities under section 108 of the Act.
(b) Inspection of records. A creditor
shall permit the agency responsible for enforcing this part with respect
to that creditor to inspect its relevant records for compliance.
(c) Records related to certain requirements
for mortgage loans.
(1) Records related to requirements for
loans secured by real property or a cooperative unit.
(i) General
rule. Except as provided under paragraph (c)(1)(ii) of this section,
a creditor shall retain evidence of compliance with the requirements
of section 1026.19(e) and (f) for three years after the later of the
date of consummation, the date disclosures are required to be made,
or the date the action is required to be taken.
(ii) Closing
disclosures.
(A)
A creditor shall retain each completed disclosure required under section
1026.19(f)(1)(i) or (f)(4)(i), and all documents related to such disclosures,
for five years after consummation, notwithstanding paragraph (c)(1)(ii)(B)
of this section.
(B) If a creditor
sells, transfers, or otherwise disposes of its interest in a mortgage
loan subject to section 1026.19(f) and does not service the mortgage
loan, the creditor shall provide a copy of the disclosures required
under section 1026.19(f)(1)(i) or (f)(4)(i) to the owner or servicer
of the mortgage as a part of the transfer of the loan file. Such owner
or servicer shall retain such disclosures for the remainder of the
five-year period described under paragraph (c)(1)(ii)(A) of this section.
(C) The Bureau shall have the right to
require provision of copies of records related to the disclosures
required under section 1026.19(f)(1)(i) and (f)(4)(i).
(2) Records related to requirements for loan originator
compensation. Notwithstanding paragraph (a) of this section,
for transactions subject to section 1026.36:
(i) A creditor shall maintain records
sufficient to evidence all compensation it pays to a loan originator,
as defined in section 1026.36(a)(1), and the compensation agreement
that governs those payments for three years after the date of payment.
(ii) A loan originator organization,
as defined in section 1026.36(a)(1)(iii), shall maintain records sufficient
to evidence all compensation it receives from a creditor, a consumer,
or another person; all compensation it pays to any individual loan
originator, as defined in section 1026.36(a)(1)(ii); and the compensation
agreement that governs each such receipt or payment, for three years
after the date of each such receipt or payment.
(3) Records related to minimum standards for transactions secured by
a dwelling. Notwithstanding paragraph (a) of this section, a
creditor shall retain evidence of compliance with section 1026.43
of this regulation for three years after consummation of a transaction
covered by that section.
