What is the minimum time frame for which a licensed mortgage entity must retain records?

The minimum time frame for which a licensed mortgage entity must retain records is five years. This duration is established to ensure that entities maintain adequate documentation for regulatory oversight and audits. Retaining records for five years provides a sufficient period for state and federal regulators to review transactions, ensure compliance with lending laws, and facilitate any necessary investigations into lending practices. It is crucial for maintaining transparency and accountability within the mortgage industry. This retention period aligns with various regulatory guidelines that aim to protect consumers and ensure proper record-keeping practices in the financial industry.