What is the required record retention period for mortgage professionals?

• A. 2 years from closing
• B. 7 years from closing
• C. 5 years from closing
• D. 4 years from closing

Answer: (D)

Four years from closing. This timeframe ensures mortgage files—everything from the loan application and disclosures to appraisals, underwriting notes, the closing package, and post-closing correspondence—are available for regulatory examinations, internal reviews, and any consumer inquiries or disputes that may arise within the typical claim window. Starting at closing, four years provides coverage for most civil or regulatory actions that could be brought, balancing compliance needs with practical record-keeping costs. Shorter periods like two years risk leaving records unavailable when claims surface later, while longer periods (five or seven years) are not generally required unless a specific rule or program calls for it.