560.170—Records for lending transactions.
In establishing and maintaining its records pursuant to § 563.170 of this chapter, each savings association and service corporation should establish and maintain loan documentation practices that:
(a)
Ensure that the institution can make an informed lending decision and can assess risk on an ongoing basis;
(b)
Identify the purpose and all sources of repayment for each loan, and assess the ability of the borrower(s) and any guarantor(s) to repay the indebtedness in a timely manner;
(c)
Ensure that any claims against a borrower, guarantor, security holders, and collateral are legally enforceable;