West Virginia Mortgage Law Practice Test

A mortgage broker must maintain records for at least 36 months after:

1. The borrower makes the first payment

2. The loan application is submitted

3. The loan is denied or made

4. The lender approves the mortgage

The correct answer is: The borrower makes the first payment

The correct answer is that a mortgage broker must maintain records for at least 36 months after the loan application is submitted. This requirement is in place to ensure that there is a reliable audit trail for all transactions and decisions related to the mortgage process. Maintaining records for this period allows for transparency, accountability, and the ability for regulatory bodies to review the broker's activities as necessary. While the other options mention events that are part of the loan process, they do not accurately reflect the specific requirement for record retention dictated by law. For instance, starting the clock at the first payment could overlook significant pre-closing documentation that needs to be retained. Similarly, relying on the loan being denied or made does not capture the full scope of records since many interactions occur prior to that decision. Finally, approval from the lender does not encompass the complete timeline of the mortgage transaction in the way that the loan application submission does. Hence, the 36-month record retention period is correctly tied to the submission of the loan application.