How long must lenders retain records related to finalized loan applications under ECOA?

Under the Equal Credit Opportunity Act (ECOA), lenders are required to retain records related to finalized loan applications for a period of 25 months. This is to ensure compliance with the law, which protects applicants from discrimination in credit transactions and provides a framework for monitoring lending practices.

By keeping these records for 25 months, lenders facilitate oversight and accountability, allowing regulatory bodies to review lending decisions for fairness. This timeframe also allows applicants to have the opportunity to challenge any adverse actions that may be related to their applications, ensuring that their rights are upheld in the lending process.

Other timeframes, such as 12, 36, and 48 months, do not align with the specific requirements set by the ECOA, reinforcing why 25 months is the correct retention period.