Feds to lenders: keep records 10 years.

• Position: COMPLIANCE

According to the U.S. Department of Justice (DOJ), shady business practices by mortgage lenders and servicers have been hard to prosecute so far because of poor recordkeeping by the industry.

But the DOJ has asked Congress to change that by requiring the mortgage industry to retain borrower records up to 10 years. That would make it easier for regulators and law enforcement to prosecute fraud and pursue lenders for wrongdoing, according to Rita Glavin, acting head of the DOJ's criminal division, who testified before a House Judiciary Committee in April. To investigate fraud, she said, the DOJ needs settlement records and other loan documents.

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