What documentation must mortgage brokers maintain regarding their loans?

Mortgage brokers are required to maintain proper documentation of all loan transactions and communications to comply with legal and regulatory standards. This comprehensive documentation serves multiple purposes: it ensures transparency and accountability in the lending process, provides a clear audit trail for regulatory reviews, and protects both the lender's and borrower's interests.

By maintaining detailed records of all transactions, mortgage brokers can effectively manage their operations, respond to inquiries from regulatory bodies, and handle any disputes that may arise. This includes not just the initial loan origination paperwork, but also all communications with the borrower, underwriting decisions, and any modifications made to the loan throughout its lifecycle.

On the other hand, limiting record-keeping to just borrower financial statements, loan origination paperwork, or only interactions with borrowers would not fulfill the necessary regulatory requirements and could put brokers at risk of non-compliance with state and federal laws. Comprehensive documentation is essential for ensuring that all aspects of the lending process are properly recorded and can be reviewed as needed.