Who holds responsibility for record keeping according to Division of Real Estate rule?

The mortgage loan originator's sponsoring entity is responsible for record keeping according to the Division of Real Estate rule. This designation emphasizes the importance of accountability and oversight in the lending process. By placing this responsibility on the sponsoring entity, it ensures that there is a centralized and organized system for maintaining necessary documentation related to mortgage transactions, which is crucial for regulatory compliance and consumer protection.

This responsibility typically includes retaining records of loan applications, disclosures, communications with clients, and other pertinent documentation. Such a framework allows for greater consistency and adherence to regulations that govern the mortgage industry, providing an added layer of security and transparency in transactions. This is vital for audits, reviews, and in maintaining a good standing within the industry.

The role of the lender, borrowers, and state licensing board is different. While lenders may keep certain records, the overarching responsibility is on the sponsoring entity. Borrowers are expected to keep their own copies of documents but are not tasked with the complete record keeping. The state licensing board regulates and oversees practices but does not manage record keeping directly.