Question

What records need to be retained by a lender for a 5 year period from the date of settlement under RESPA?

Answer 1

Under RESPA, lenders need to retain records such as the HUD-1 Settlement Statement, Good Faith Estimate, Loan Estimate, and Closing Disclosure for 5 years from the date of settlement.

Step-by-step explanation:

Under RESPA (Real Estate Settlement Procedures Act), lenders are required to retain certain records for a 5-year period from the date of settlement. These records include:

1. The HUD-1 Settlement Statement, which provides details on the loan terms, fees, and closing costs.
2. The Good Faith Estimate, which outlines the estimated costs associated with the loan.
3. The Loan Estimate, which provides information on loan terms, estimated monthly payments, and closing costs.
4. The Closing Disclosure, which details the final loan terms, fees, and closing costs.

These records help ensure transparency and accountability in the lending process.