Loan Officer Practice Exam 2025 – Complete Preparation Guide

Question: 1 / 415

To comply with Regulation N, how long must a lender keep documents related to mortgage credit products?

36 months

12 months

6 months

24 months

A lender must maintain documents related to mortgage credit products for a duration of 24 months to comply with Regulation N. This regulation was established to promote transparency and ensure that lenders provide consumers with sufficient information regarding their mortgage credit offers. The 24-month requirement ensures that lenders retain the necessary documentation to support their compliance with the regulation and to address any consumer inquiries or disputes that may arise within that timeframe.

Additionally, this period allows regulatory bodies to oversee lenders’ practices effectively by being able to review documentation for a reasonable time following the extension of credit. Retaining records for 24 months assists in the evaluation of lender practices, fostering accountability and consumer protections in the mortgage lending process.

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