Important Terms of our Choice Home Equity Loan

Please read and accept the following terms in order to begin the application process. This disclosure contains important information about our Home Equity Line of Credit. You should read it carefully and keep a copy for your records.  (10/08)

RESPA SERVICING DISCLOSURE

Notice to first lien mortgage loan applicants: the right to collect your mortgage loan payments may be transferred. Federal law gives you certain related rights. If you loan is made, save this statement with your loan documents.

Because you are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. Section 2601 et seq.) you have certain rights under that Federal law.

This statement tells you about those rights. It also tells you what the chances are that the servicing for this loan may be transferred to a different loan servicer. "Servicing" refers to collecting your principal, interest and escrow account payments, if any. If your loan servicer changes, there are certain procedures that must be followed. This statement generally explains those procedures.

TRANSFER PRACTICES AND REQUIREMENTS

If the servicing of your loan is assigned, sold, or transferred to a new servicer, you must be given written notice of that transfer. The present loan servicer must send you notice in writing of the assignment, sale or transfer of the servicing not less than 15 days before the effective date of the transfer. The new loan servicer must also send you notice within 15 days after the effective date of the transfer. The present servicer and the new servicer may combine this information in one notice, so long as the notice is sent to you 15 days before the effective date of transfer. The 15 day period is not applicable if a notice of prospective transfer is provided to you at settlement. The law allows a delay in the time (not more than 30 days after a transfer) for servicers to notify you, upon the occurrence of certain business emergencies.

Notices must contain certain information. They must contain the effective date of the transfer of the servicing of your loan to the new servicer, and the name, address, and toll-free or collect call telephone number of the new servicer, and toll-free or collect call telephone numbers of a person or department for both your present servicer and your new servicer to answer your questions. During the 60-day period following the effective date of the transfer of the loan servicing, a loan payment received by your old servicer before its due date may not be treated by the new loan servicer as late, and a late fee may not be imposed on you.

COMPLAINT RESOLUTION

Section 6 of RESPA (12 U.S.C. Section 2605) gives you certain consumer rights, whether or not your loan servicing is transferred. If you send a "qualified written request" to your servicer, your servicer must provide you with a written acknowledgement within 20 Business Days of receipt of your request. A "qualified written request" is a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, which includes your name and account number, and the information regarding your request. Not later than 60 Business Days after receiving your request, your servicer must make any appropriate corrections to your account, or must provide you with a written clarification regarding any dispute. During this 60 Business Day period, your servicer may not provide information to a consumer reporting agency concerning any overdue payment related to such period or qualified written request. A Business Day is any day in which the offices of the business entity are open to the public for carrying on substantially all of its business functions.

DAMAGES AND COSTS

Section 6 of RESPA also provides for damages and costs for individuals or classes of individuals in circumstances where servicers are shown to have violated the requirements of that Section.

SERVICING TRANSFER ESTIMATES

1. The following is the best estimate of what will happen to the servicing of your mortgage loan:

( ) We may assign, sell or transfer the servicing of your loan while the loan is outstanding. (x) We are able to service your loan and we (x) will ( ) will not ( ) haven't decided whether to service your loan.
Or
( ) We do not service mortgage loans, ( ) and we have not serviced loans in the past three years.
( ) We presently intend to assign, sell or transfer the serving of your mortgage loan. You will be informed about your servicer.
( ) We assign, sell or transfer the servicing of some of our loans while the loan is outstanding depending on the type of loan an other factors.


For the program you have applied for, we expect to:
( ) sell all of the mortgage servicing.
( ) retain all of the mortgage servicing.
( ) assign, sell or transfer ____% of the mortgage servicing

2. For the first lien mortgage loans that we make in the 12-month period after your mortgage loan is funded, we estimate that the percentage of mortgage loans for which we will transfer servicing is between (x) 0-25% or None ( ) 26-50% ( ) 51-75% ( ) 76-100% or ALL.

This estimate (x) does ( ) does not include assignments, sales or transfers to affiliates or subsidiaries. This is only our best estimate and it is not binding. Business conditions or other circumstances may affect our future transferring decisions.

3. ( ) We have previously assigned, sold or transferred the servicing of first lien mortgage loans. or (x) This is our record of transferring the servicing of the first lien mortgage loans we have made in the past:

This information (x) does ( ) does not include assignments, sales or transfers to affiliates or subsidiaries.

GOOD FAITH ESTIMATES OF CLOSING COSTS

The information provided below reflects estimates of the charges which you are likely to incur at the settlement of your loan. The fees listed are estimates - the actual charges may be more or less. Your transaction may not involve a fee for every item listed.

The numbers listed beside the estimates generally correspond to the numbered lines contained in the HUD-1 or HUD-1A settlement statement that you will receive at settlement. The HUD-1 or HUD-1A settlement statement will show you the actual cost for items paid at settlement.

* These items would appear on a blank line in the 800 section.