Federal Mortgage Law · 24% of the SAFE exameasy
Correct answer: No — Loan Estimates must be retained for 3 years after consummation, not 5
The colleague is WRONG. Loan Estimates = 3 years after consummation. The 5-year period applies to the Closing Disclosure, not the LE. This is one of the most common retention period errors in compliance. The distinction: LE is a preliminary estimate superseded at closing (3 years is sufficient), while the CD is the final binding document referenced throughout the loan's servicing life (5 years). Always verify which document before applying a retention period.
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