During audits, what records should a PLM ensure are current and readily available?

• A. Licensing records and verification documentation.
• B. Employee vacation schedules.
• C. Marketing campaign results.
• D. Real estate listings.

Answer: (A)

Licensing compliance and verification records are what auditors focus on to confirm a PLM is authorized to practice and that the firm is operating under valid, up-to-date credentials. Keeping current licenses on file means the PLM and any loan originators are properly licensed, with active license numbers, status, expiration dates, and any disciplinary actions or required continuing education documented. Verification documentation supports that the licenses are truly in good standing—this includes proof of education, background checks or fingerprints if required, and confirmations of authorization to work in the states where business is conducted. When these records are current and readily available, audits proceed smoothly and the firm clearly demonstrates regulatory compliance.

Other items like employee vacation schedules, marketing campaign results, or real estate listings are useful for internal operations or performance tracking, but they don’t establish licensing or regulatory standing and aren’t the primary focus of audits concerning a PLM’s authority to operate.