Our bank is starting a mortgage loan department for mortgage loans to be sold on the secondary market. The loans will be closed in our bank's name. We will not be making the credit decision, the investor will. I have 2 questions.

These loans would not be on our bank's HMDA LAR since we are not making the credit decision. They would be on the HMDA LAR for the mortgage company that made the decision, did the underwriting, is that correct?

What record retention requirements will we have in TN? How long will we need to keep a copy of the loan file? Is a scanned copy ok?

I do have a quick comment. I previously worked for a bank that also has a similar program. I want to caution you - if an MLO takes an application and you KNOW it doesn't meet the secondary market requirements (i.e. credit score of 450, DTI of 75%, etc.) and deny this loan - it will be required to be on your HMDA LAR as you made the credit decision.

Of course this could be a moot point if all applications will be going to the investor.

Thank you Skittles!