Under the Truth in Lending Act (TILA) Regulation Z, lenders are generally required to retain evidence of compliance for two years after disclosures are made or action is taken. However, specific document types require longer retention, such as five years for Closing Disclosures and three years for loan originator compensation records.
Except as provided under paragraph (c)(1)(ii) of this section, a creditor shall retain evidence of compliance with the requirements of § 1026.19(e) and (f) for three years after the later of the date of consummation, the date disclosures are required to be made, or the date the action is required to be taken.
In general, the BSA requires that a bank maintain most records for at least five years. These records can be maintained in many forms including original, microfilm, electronic, copy, or a reproduction.
(ii) Closing disclosures. (A) A creditor shall retain each completed disclosure required under § 1026.19(f)(1)(i) or (f)(4)(i), and all documents related to such disclosures, for five years after consummation, notwithstanding paragraph (c)(1)(ii)(B) of this section.
A 7-year retention policy generally refers to legal requirements for keeping certain financial, audit, and specific organizational records for seven years, commonly seen with the IRS for tax records (especially for bad debt/worthless securities), SEC for audit workpapers (SOX), and Title IX for educational records, ensuring compliance and audit readiness, though specific document types vary. It's a common benchmark, but other periods (like 3, 6 years, or indefinite) might apply depending on the document and jurisdiction.
About 5-7 years. Each bank is different. Also, most branches don't keep physical records very long. You have to reach out to customer service for records over a year or two.
Records Retention Guideline #3: Keep tax records for 6 years
The IRS may go back 6 years to audit your tax returns for errors or incorrectly claimed deductions – so it's important that you keep all tax-related documents for that length of time, including: Bank records. Personnel and payroll records.
This is why you'll often hear experts talk about the 5-year rule, which is the idea that new homeowners should stay put for at least five years before selling a home or risk losing money. While this guideline doesn't apply to every situation, it is a helpful rule of thumb for many buyers who are thinking long term.
How far back do mortgage lenders look? Mortgage lenders will usually assess the last six years of your credit history. Your credit report contains information on your financial behaviour (including any missed payments or defaults) from the last six years.
Since federal tax returns can generally be audited for up to three years after filing and up to six years if the IRS suspects underreported income, it's wise to keep tax records at least seven years after a return is filed.
Title I, codified at 12 U.S.C. § 1829(b) and §§ 1951 to 1959 (with effectuating regulations contained at 31 C.F.R. §§ 103.31 to 103.37), requires banks and other financial institutions to retain certain financial records for periods of up to five years.
You need to keep tax-related documents, bank/credit card statements, payroll records, sales records, and investment purchase/sale slips for 7 years to cover potential IRS audits, while records supporting tax deductions (like receipts, bills) should also go with your tax returns for that period; however, tax returns themselves and certain long-term asset records might need to be kept permanently.
The Truth in Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans.
It's partly true: most negative items like late payments and collections are removed from your credit report after about seven years, but the underlying debt often still exists, and bankruptcies (Chapter 7) last 10 years, so your credit isn't entirely "clear" but mostly refreshed from old negatives. The 7-year clock starts from the date of the original delinquency, not when you paid it off or sent to collections, and the debt itself can still be pursued by collectors.
The 5-Year Rule states the investor must own the property for at least 2 of the 5 years preceding the sale before they can claim the § 121 exclusion and of those 5 years they must have lived in it as their primary residence for at least 2 years.
By Celia Meagher, CFP® | Aug 27, 2025 | When selling your primary residence, understanding capital gains is crucial. If you have owned the home for at least two years and lived in it for at least two out of the five years before the sale, you may be eligible for certain tax benefits. This is the “2 out of 5-year rule.”
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
It's best to keep the most recent mortgage documents for at least three to seven years, even after the home is sold. If you received a certificate of satisfaction for paying off a mortgage, then this document should be kept as well. These documents may become necessary in the case of an IRS audit or estate settlement.
The following retention periods apply. Mortgage files that have been satisfied through payment in full will be retained for a minimum of three years from the date of the final payment or foreclosure. liquidation must be retained for at least six years from the date the claim proceeds were received.
The broker must retain a true and correct copy of the disclosures as acknowledged by the borrowers for three years.
Keep Forever
You need to keep tax-related documents, bank/credit card statements, payroll records, sales records, and investment purchase/sale slips for 7 years to cover potential IRS audits, while records supporting tax deductions (like receipts, bills) should also go with your tax returns for that period; however, tax returns themselves and certain long-term asset records might need to be kept permanently.
How far back can the IRS go to audit my return? Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years.