Final answer:
RESPA requires certain documents to be retained for 5 years from settlement, including the HUD-1 settlement statement, Good Faith Estimate, Truth-in-Lending Act (TILA) disclosure, and Servicing disclosure statement.
Step-by-step explanation:
RESPA
RESPA, or the Real Estate Settlement Procedures Act, is a federal law in the United States that regulates the real estate settlement process. Under RESPA, certain documents must be retained for 5 years from settlement.
Documents to retain
Some of the documents that must be retained for 5 years from settlement under RESPA include:
- HUD-1 settlement statement
- Good Faith Estimate
- Truth-in-Lending Act (TILA) disclosure
- Servicing disclosure statement
Importance of retention
Retention of these documents is important as they provide evidence of the terms and conditions of the loan transaction and help protect the interests of both the lender and the borrower.