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2.2 LENDER RECORD MAINTENANCE
Lenders must maintain loan origination records and keep record of all payments and disbursements in which the Agency has an interest. Upon written request from the Agency, the lender must provide any mortgage records or documents requested by the Agency.
A. Loan Origination Records
Loan origination records must be retained by the lender. If the lender sells the loan, the selling lender must retain copies of the loan origination documents for a minimum of two years after selling the loan. In addition, the purchasing lender must receive copies of the loan origination documents from the selling lender and retain those copies for a minimum of two years after the lender sells the loan. Retention of origination documents for a minimum of two years after selling a loan is required for each succeeding lender. Each selling lender is required to transfer copies of the origination documents to the purchasing lender.
Loan origination records retained by the lender include:
x Loan application, including any preliminary (handwritten) application and
the final typed application signed at loan settlement;
x Summary of program eligible income and repayment income calculations,
verification of employment and income, including documentation of any oral contact or correspondence with an employer for all adult members of the household;
x All credit reports, including explanations for adverse credit;
x Uniform Underwriting and Transmittal Summary or loan approval form;
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x All inspection reports, plan certifications, builder warranties, including
lender certifications to the Agency;
x All Agency forms submitted to the Agency or received from the Agency;
x Closing documents, including original security instruments; and
x All residential real estate appraisals and supporting documents.
B. Payment and Disbursement Records
Lenders must maintain a record of all payments received and disbursements paid on the obligation while the Agency has potential liability. The lender should also maintain a record of all servicing actions, relevant post-closing documents, and all borrower notices and correspondence. The following retention periods apply:
x Mortgage files that have been satisfied through payment in full will be retained
for a minimum of three years from the date of the final payment or foreclosure.
x Mortgage files that have been satisfied through voluntary or involuntary
liquidation must be retained for at least six years from the date the claim proceeds were received.