The event that starts the clock on the record retention period for mortgage professionals is:

• A. Signing of the loan estimate
• B. Closing
• C. Funding
• D. Final payoff

Answer: (B)

The clock for keeping mortgage records starts when the loan is consummated, at the closing. That moment finalizes the transaction and makes the borrower legally obligated, so all related documents—disclosures, application materials, underwriting notes, and funded disbursements—are kept for the required period from that date. Signing the loan estimate happens early in the process and isn’t the anchor for retention; final payoff marks the end of the loan, not the start of retention; and funding, while often occurring at closing, isn’t the official starting point on its own. Keeping the file from closing ensures regulators and borrowers can be supported throughout the entire retention window.