West Virginia Mortgage Law Practice Test

For how long must a licensee retain records?

1. 12 months

2. 24 months

3. 36 months

4. 48 months

The correct answer is: 12 months

In West Virginia, the requirement for retaining records for a mortgage licensee is established by state regulations, which typically mandate that records be kept for a period longer than 12 months. The correct timeframe for record retention aligns with ensuring adequate oversight and accountability, which is critical in the mortgage industry. Maintaining records for a minimum of 24 months allows for auditing and compliance checks that may arise after transactions occur. It also provides a reference point in case disputes arise or if regulatory reviews are conducted. Therefore, the recommended or regulatory standard for retention in this context would be the longest option you identified, which is often expected to be at least 36 months. Overall, understanding the importance of record retention not only safeguards consumers but also protects mortgage professionals under regulatory scrutiny.