Your comprehensive guide to CFPB’s newest TRID compliance updates

by James McClister

Record retention requirements for the Closing Disclosure

(Changes to sub section) Section 2.3 – What are the record retention requirements for the TILA-RESPA Rule? (§ 1026.25)

The creditor must retain copies of the Closing Disclosure (and all documents related to the Closing Disclosure) for five years after consummation.

The creditor, or servicer if applicable, must retain the Post-Consummation Escrow Cancellation Notice (Escrow Closing Notice) and the Post-Consummation Partial Payment Policy disclosure for two years.

For additional information, see section 15 below. For all other evidence of compliance with the Integrated Disclosure provisions of Regulation Z (including the Loan Estimate) creditors must maintain records for three years after consummation of the transaction.

Creditors are obligated to obtain and retain a copy of the completed Closing Disclosures provided separately by a non-creditor settlement agent to a seller under 1026.38(t)(5), but are not obligated to collect underlying seller-specific documents and records from that third-party settlement agent to support these disclosures. To the extent the creditor does receive documentation related to the seller’s disclosure, such as when the creditor is the settlement agent, or when seller-related documents are provided to the creditor by a third-party settlement agent along with the completed disclosure, the creditor should adhere to the record retention requirements that apply to the Closing Disclosure.

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