How should a PLM handle record retention for loan files and communications?

• A. Delete documents after loan is funded
• B. Print only but do not store securely
• C. Store all documents indefinitely without schedule
• D. Implement a retention schedule and securely store documents for the required period

Answer: (D)

Record retention relies on a clear plan for what to keep, for how long, and how to protect and dispose of it. A retention schedule defines the specific document types, the exact retention periods (as required by laws, regulations, and policy), and the approved method for disposition once the period ends. Secure storage ensures borrower information stays confidential, intact, and retrievable for audits, regulatory examinations, and inquiries. Keeping records for the required period and storing them securely also supports disaster recovery and minimizes risk from improper destruction.

Deleting documents after funding leaves gaps in compliance and audit readiness. Printing without secure storage fails to protect privacy and maintain access. Storing everything indefinitely without a defined schedule wastes resources and creates confusion about what should be kept. Implementing a retention schedule and securely storing documents for the required period is the proper, compliant approach.