Posted By: Chelsea C
HMDA Adverse Action File Retention - 03/22/19 09:40 PM
In Reg C it states "The financial institution shall retain a copy of its annual loan/application register submitted for its records for at least three years." The Reg B requirement states "For 25 months (12 months for business credit, except as provided in paragraph (b)(5) of this section) after the date that a creditor notifies an applicant of action taken on an application or of incompleteness, the creditor shall retain in original form or a copy thereof: (i) Any application that it receives, any information required to be obtained concerning characteristics of the applicant to monitor compliance with the Act and this part or other similar law, any information obtained pursuant to § 1002.5(a)(4), and any other written or recorded information used in evaluating the application and not returned to the applicant at the applicant's request."
Is there any concern from an exam stance if we get rid of information after 25 months and yet we're expected to keep LAR information for 3 years? Would safe practice be to keep all information for 3 years?
Is there any concern from an exam stance if we get rid of information after 25 months and yet we're expected to keep LAR information for 3 years? Would safe practice be to keep all information for 3 years?