Which of the following is not part of the book of records a mortgage broker must retain and make available for evaluation?

Which of the following is not part of the book of records a mortgage broker must retain and make available for evaluation?

• A. Advertisements
• B. Trust Accounting Record
• C. Mortgage Transaction records
• D. Continuing education course records

Answer: (D)

The key idea is what regulators require you to keep as part of the book of records that can be reviewed during an evaluation of a mortgage broker’s operations. Advertisements must be retained to demonstrate compliance with advertising rules—regulators need to see what was published, when, and in what form to ensure messages were truthful and not misleading. Trust accounting records are kept to prove proper handling of client funds, including deposits, disbursements, and reconciliations. This shows there’s no commingling or mismanagement of escrow or trust funds. Mortgage transaction records encompass the loan file itself—applications, disclosures, underwriting notes, fees, closing documents, and other loan-file documents. These are essential for verifying compliance with lending laws and the disclosed terms. Continuing education course records, while necessary for license maintenance, are not part of the book of records that regulators typically review during an evaluation. CE records are usually kept to demonstrate ongoing education compliance with the licensing authority, but they aren’t the core files regulators audit for a mortgage broker’s conduct and disclosure practices. So, continuing education course records are not part of the book of records a broker must retain and make available for evaluation.

The key idea is what regulators require you to keep as part of the book of records that can be reviewed during an evaluation of a mortgage broker’s operations.

Advertisements must be retained to demonstrate compliance with advertising rules—regulators need to see what was published, when, and in what form to ensure messages were truthful and not misleading.

Trust accounting records are kept to prove proper handling of client funds, including deposits, disbursements, and reconciliations. This shows there’s no commingling or mismanagement of escrow or trust funds.

Mortgage transaction records encompass the loan file itself—applications, disclosures, underwriting notes, fees, closing documents, and other loan-file documents. These are essential for verifying compliance with lending laws and the disclosed terms.

Continuing education course records, while necessary for license maintenance, are not part of the book of records that regulators typically review during an evaluation. CE records are usually kept to demonstrate ongoing education compliance with the licensing authority, but they aren’t the core files regulators audit for a mortgage broker’s conduct and disclosure practices.

So, continuing education course records are not part of the book of records a broker must retain and make available for evaluation.