Hello, I have a few questions that I need your help with. Under RESPA, I understand that we must keep the settlement disclosures for 5 years and the penalties for non-compliance are based on who governs you. (We're a CU, so NCUA tells us.) My questions is, what sort of policy or procedure should we require for when we are auditing a loan file and discover one of these forms is not in the file??

My next question: It is my understanding that Reg Z requires the GFE to be retained for 2 years. If this is so, what should we do about the exceptions when the disclosure is not in the file?

Thanks for your help and suggestions.

Your procedure is going to be based on your FI's processing and documentation storage policy and procedures. If one is not in the file I would hope that you can accurately reproduce the disclosure from your system.

Reg Z has nothing to do with the GFE, Reg. Z would have retention requirements for the TILs.

BTW, if you sell the loan servicing released the purchaser now takes on the responsibility of retaining the Settlement Statement for the remainder of the 5 years.