12 CFR § 1026.25 Record Retention
12 CFR § 1026.25 of Truth in Lending Act (TILA) and Regulation Z outlines the requirements for creditors to retain evidence of compliance with the regulation. This section is crucial for demonstrating adherence to TILA's provisions and for regulatory oversight.
Specifically, for loans secured by a dwelling, creditors must retain compliance documentation for 12 CFR 1026 43 Refinancing Non Standard Mortgages (ATR) and prepayment-penalty-restrictions for three years after loan consummation (§ 1026.25(c)(3)). This requirement ensures that regulators can verify that lenders made a reasonable, good-faith determination of a consumer's ability to repay and that any prepayment penalties were disclosed and structured in accordance with the rules.
General record retention requirements under § 1026.25 apply to all transactions covered by Regulation Z, ensuring that creditors can provide evidence of compliance with all applicable disclosure and substantive requirements.
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