Is the record retention the same as in 1026.25 even for sold consumer loans?

If you are the originating creditor, then you must have the records to demonstrate that you complied with all regulatory responsibilities up to the point you sell a loan.

So for our sold correspondent residential mortgage loans we only have to retain the file until we sell the mortgage? We do not service these loans either. Please clarify. Thank you.
Dusty

As Richard indicated, if you are the creditor (closed in your name), you must retain the records to comply with 1026.25. Selling the loans does not exempt you from retention requirements.

Plus, any statute of limitation for any sort of lawsuit within your jurisdiction or any period of time the purchaser may be able to put-back the loan.

If you think selling the loan closes the door on any and all liability, whether regulatory related or not, you need to re-think that. You need these records.

This is a point that needs to be underscored. Civil liability is based on the number of times you violated a law or regulation--not the number of loans you still have in your pipeline.

That's what I thought, but it's nice to get confirmation. Thank you.