Answer:
Yes. Thanks to an informed BOL user, Stephen Franke at Key Bank, we can point you to the federal regulation which spells out these record retention time frames. 34 CFR 682.414(a)(iii) and (a)(iv) state as follows:
(iii) Except as provided in paragraph (a)(4)(iv) of this section, a lender must retain the records required for each loan for not less than 3 years following the date the loan is repaid in full by the borrower, or for not less than five years following the date the lender receives payment in full from any other source. However, in particular cases, the Secretary or the guaranty agency may require the retention of records beyond this minimum period.
(iv) A lender shall retain a copy of the audit report required under
Sec. 682.305(c) for not less than five years after the report is issued.
To access the regulation, use our handy link to the CFRs. You'll find it on our main Launch Pad, under the category"Legal".
First published on BankersOnline.com 3/19/01
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