Under what condition must records regarding a mortgage loan be maintained for 12 months?

Prepare for the CFPB Mortgage Compliance Training Test. Study with flashcards and detailed questions and explanations. Master your knowledge and excel in your exam!

The requirement to maintain records regarding a mortgage loan for 12 months after the mortgage is discharged aligns with compliance regulations that ensure proper record-keeping practices are followed. When a mortgage is discharged, it signifies that the borrower has fulfilled their obligations under the loan agreement, and the lender has released any claims or interest in the property.

Maintaining records for this period helps to verify the discharge, provides a clear history of the loan for any potential disputes, and supports compliance with regulatory oversight. This period allows for any final audits or inquiries that may arise concerning the mortgage.

In contrast, the other conditions—revocation, renewal, and modification—typically involve different sets of documentation and timeframes based on the nature of the changes or alterations made to the loan agreement. These situations may have their own specific record-keeping requirements that do not necessitate a full 12-month retention period like that following a discharge.

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