I am wanting to confirm if there a record retention requirement for the Reg-B Notice of Right to Receive a copy of Appraisal (NORA) on originated, withdrawn, or declined applications? I do not see a requirement specific to that disclosure in Reg-B, however, the closest I come is the section of Reg-B below which addresses "other applications" (ie: withdrawn applications) and it uses general language stating we should retain "all" written or recorded information...

I'm trying to conclude if it's even a regulatory violation if we do NOT retain an image of the NORA on either originated, withdrawn, or declined applications?

Section 1002.12(b)(3)-Preservation of Records
(3) Other applications. For 25 months (12 months for business credit, except as provided in paragraph (b)(5) of this section) after the date that a creditor receives an application for which the creditor is not required to comply with the notification requirements of § 1002.9, the creditor shall retain all written or recorded information in its possession concerning the applicant, including any notation of action taken.

COMMENTARY ON THIS:
1. Withdrawn and brokered applications. In most cases, the 25-month retention period for applications runs from the date a notification is sent to the applicant granting or denying the credit requested. In certain transactions, a creditor is not obligated to provide a notice of the action taken. (See, for example, comment 9-2.) In such cases, the 25-month requirement runs from the date of application, as when:

i. An application is withdrawn by the applicant.

ii. An application is submitted to more than one creditor on behalf of the applicant, and the application is approved by one of the other creditors.

Well my gut was "oh, it's 25 months." But the reality is this is a notice you must give to the consumer which they may retain. It isn't required to be signed, returned or a copy retained other than a general one you keep for audit which represents what you give out. You also need a procedure so that if anyone who should be doing this is aware of the requirement and that they do it, and they can say they do when asked.

End of the day - there is no specific retention requirement for proof of disclosure.

And in reality, the only transactions you have to worry about are the non-TRID transactions, as the notice is on the LE and I am not really aware of banks getting rid of those any too soon and even if denied or withdrawn, they would be maintained for the 25 months in the file before the normal 25 months destruction date.