Question

All revised GFEs must be documented with reasons for revisions and retained for how long?

1) 1 month
2) 3 months
3) 6 months
4) 1 year

Answer 1

According to RESPA, revised GFEs must be documented with reasons for revisions and retained for at least 3 years after settlement to comply with regulatory requirements.

Step-by-step explanation:

When dealing with Good Faith Estimates (GFEs), it's important for financial institutions and professionals in real estate to comply with regulatory requirements. According to the Real Estate Settlement Procedures Act (RESPA), all revised GFEs must be documented with reasons for revisions and retained for at least 3 years after settlement. This ensures that there's a clear record of any changes made to the estimate and the justification for those changes, which is crucial for regulatory oversight and consumer protection.