For loans secured by real property, how long must application disclosures be retained?

Application disclosures for loans secured by real property must be retained for three years. This requirement is based on federal regulations, specifically the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), which mandate lenders to keep disclosure documents as a record of compliance with the laws. The three-year retention period allows for accountability and transparency in the lending process, ensuring that borrowers can access important information regarding their loan terms and conditions if needed in the future.

Retaining this documentation is essential for resolving any potential disputes or inquiries that may arise after the loan has been closed. It provides a clear record of the borrower’s understanding of the loan, including fees, interest rates, and other essential terms that were disclosed at the time of application.