West Virginia Mortgage Law Practice Test

For how long must a licensee retain records?

1. Five years

2. Three years

3. Four years

4. Two years

The correct answer is: Five years

In West Virginia, licensees are required to retain records for a period of five years. This duration is established to ensure that there is sufficient time to review any transactions or practices in the event of an audit, investigation, or dispute. The five-year retention period aligns with various regulatory standards and industry practices, allowing for a comprehensive review of a licensee's activities. Maintaining records for this length of time helps to ensure accountability and transparency in the lending process, protecting both the licensee and consumers. Other potential options, like three, four, or two years, do not meet the established regulatory requirement, making them insufficient for complying with the law. Such shorter time frames would not provide the necessary historical record for proper oversight or to address any potential legal issues that could arise.