Home Improvement Checklist (To be complete at receipt of application)

Account Number:

Applicant’s Name:

Joint Applicant’s Name:

Home Number:

Work Number:

Cell Number:

Email address:

Property Address:

Home Improvement Application Branch Number: Operator:

Application:

No Early Start Acknowledgement:

Construction Notice:

Servicing Disclosure:

Copies to Member:

Term of Loan:

Interest Rate:

Total Loan Amount:

Date Application Received at Branch

Comments:

FR O

FFICE U

SE ONL

Right to Receive Copy of Appraisal:

JSC Federal Credit Union Home Improvement Loan Application Cover Sheet

The following documents should be submitted at time of application:

Completed and signed application (If married both spouses need to sign) Proof of Income (W2s, check stubs, or two years of tax returns for self employed applicants) Proof of Hazard Insurance and Proof of Flood/Wind Insurance if applicable Copy of the Deed of Trust to the property Statement from mortgage company showing current balance Bid from your contractor

Additional Considerations:

Property must be located in Harris or adjacent counties. There may only be one lien on a Homestead, be it a 1st Mortgage or a Home Equity. Loan must be approved and processed before construction begins.

A Formal Appraisal maybe required, if so your loan officer will order this from a creditunion approved appraiser.

Home Improvement Worksheet

Appraised value of your home

Multiplied by 90% (x 0.90) x Subtract any Liens (such as 1st Mortgage or Home Equity Loans) - Equals the amount you my qualify to borrow =

Example: Home with a $100k value, with $50k left of mortgage 100k x .9 (90%) = 90k – 50k = $40k (available to borrow)

Upon request, the Credit Union will provide you a copy of the appraisal used to determine the value of the collateral securing your real estate loan.

For questions or help please call (281)488·7070 or (800)940·0708 Please request to speak with one of the following:

Robin Pavalonis ext. 1143 Melinda Smith ext. 1160 Stacey Horton ext. 1145

1330 GEMINI · P.O. BOX 58346 · HOUSTON, TEXAS 77258 · (281)488-7070 www.jscfcu.org

Dear Member,

The following is a general outline of the procedure the Credit Union will follow in processing your loan. This process is designed to be as efficient as possible considering the many federal and state regulations governing this loan product.

Application: To correctly submit an application, you will need to provide the Credit Union a signed original of the following: (Provided in application package)

A. Application B. No Early Start AcknowledgementC. Construction NoticeD. Right to Receive Copy of AppraisalE. Servicing Disclosure Statement

To help expedite the process, please provide the following:

A. Proof of Income B. Proof of Homeowners Insurance and Windstorm/Flood Insurance (if applicable) C. Deed of Trust D. Final bid/contract (provided by a licensed contractor)

Prequalification: Credit and income are reviewed -can take up to three business days

Once Pre-qualified, we will provide you with a Good Faith Estimate that outlines: rate, term, payment and closing costs.

Preapproval: If you decide to proceed with the loan, you will sign and return the Good Faith Estimate acceptance letter. We then will proceed by ordering the following reports on your behalf: (fees apply)

A. Property Report B. Flood Certification C. County Tax Appraisal (no charge)

A Formal Appraisal may also be required when: a) When equity is insufficientb) At the discretion of the Credit Union

Next, we will send you a second group of disclosures that must be signed and returned. These include:

A. The FACT Act Notice B. The Standard Flood Hazard Determination Form C. Truth and Lending Early Disclosure Statement – must be signed by applicant seven business days before closingD. RESPA Homeownership Counseling Disclosure

Approval: At this time you will be contacted to set an appointment for closing. The following document must be signed at least 24 hours before closing:

A. Preliminary Settlement Statement (HUD-1A) B. Deposit/Prepaid Acknowledgment

You will also receive a complete loan package for you to review prior to closing.

Loan Closing: At this point you and your loan officer have scheduled a closing appointment at a JSC Branch and a time convenient for you. For documents needing a Contractor’s signature; the contractor may sign anytime between closing and funding. (The State requires a minimum of 3 days before funding) This is a good time to contact your contractor to make him aware of your closing date.

Documents that will be provided at your closing appointment:

A. A copy of the Final bid/contract B. Note & Truth in Lending Disclosure C. Texas Mortgage Fraud Notice D. Mechanic’s Lien Contract E. Affidavit of Debits and Liens F. Document Correction Agreement G. Loan Agreement Notice H. Disclosure regarding review of loan documents I. HUD-1 Settlement Statement (Final) J. Letter to the Insurance Company K. Supplemental Mortgage Insurance Provision L. Notice of Right to Cancel Cover Sheet M. Notice of (3 day) Right to Cancel -No funds can be disbursed, nor can work begin until 3 days has passed N. Draw Request

For an explanation of these documents please refer to the Explanation of Home Improvement Closing Documents included with this package.

After Closing: After your loan closes, you have three business days to cancel your loan application. If after three business days you still wish to continue with the process you will return to the Credit Union the Statement of Non-cancellation (provided at closing) indicating that you do not wish to cancel your loan. Loan proceeds cannot be disbursed nor can work begin prior to the receipt of this notice by the Credit Union and the required three days has elapsed.

Draw Requests: Draw request are made to loan officer (24hr request is greatly appreciated). Draws are disbursed in the form of a check; the checks will be made payable to member and the Contractor, but will only be given to member.

If you need further assistance, please contact a mortgage specialist at 281-488-7070.

Robin Pavalonis ext. 1143 Stacey Horton ext. 1145 Melinda Smith ext. 1160

Home Improvement Loan FAQ’s

Definition: A home improvement loan is any dwelling-secured loan to be used, for repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which the dwelling is located, and that is to be used for one or more of those purposes and that is classified as a home improvement loan by the institution.

What is the maximum time that you can finance a Home Improvement loan for? The maximum term you can finance a Home Improvement loan for is 15 years.

How is the interest rate determined? The interest rate varies depending upon if the loan will become first or second lien, and how long the term of the loan is for i.e. 5yr, 10yr, and 15 yr.

How long does the process take to finalize a Home Improvement loan? Certain time restrictions are mandated by Texas Law, and can not be shortened. The closing of this loan cannot be scheduled before 7 business days after the Truth and Lending Disclosure has been signed. Then, an additional 3 business days must pass before funds can be distributed. The process usually takes between 10 and 15 business days. However, the loan could take longer due to reasons outside the norm. (e.g., the timing of receipt of signed documents, legal disposition of the property, unpaid taxes, unreleased lien, timing of formal appraisal or title commitment)

Is a spouse required to be on the loan? Texas is a community property state, therefore, a spouse and anyone who is listed on the deed of trust is required to be a joint applicant and must occupy the property.

Does the property have to be homestead exempt? Property used to secure a Home Improvement loan must be the borrower's homestead.

What are the closing costs associated with a Home Improvement loan? The standard cost for closing a Home Equity loan is $203.00-$217.00. The break-down of these fees are as follows:

The property report is $140.00. Flood certification is $15.00. Recording fees $48.00 to $62.00. Appraisal

Most often we use the tax appraisal (no cost).However, if a formal appraisal is requiredthe cost ranges from $425.00- $600.00.

Title commitment fees (determined by the title company)

How much can be borrowed for a Home Improvement loan? The amount borrowed for a Home Improvement loan is 90% of the appraised market value minus any existing liens on the property. For example, on a property with a fair market value of $100,000, the maximum amount of debt against the property permitted by is $90,000. Assuming there is an existing debt of $30,000, the maximum amount of the Home Improvement loan can be is $60,000.

At the discretion of the Credit Union, an existing appraisal may be used, granted it is no older than one year and was prepared for another lender.

Is there a prepayment penalty on a Home Improvement loan? No. A lender may not charge a penalty to a borrower for paying all or a portion of an equity loan early.

Can you do the some of the improvement work your self? No. All work must be completed by a licensed contractor(s)

How will the Contractor(s) receive payment? Draw requests are made to the loan officer. (24 hr notice is greatly appreciated) Draws are then distributed in the form of a check(s). The check(s) will be made payable to the member and the contractor, but will only given to the member.

Is the contractor required to come in at closing?

No. The contractor is not required to come in at closing. However, a representative for the contractor will need to come in prior to funding and provide a copy of his/her driver’s license and business card. Then, the contractor will sign the mechanic’s lien, draw request slips, and final bid/contract. Per federal regulation, the contractor must pass approval from the Office of Foreign Access Currency (OFAC). If for some reason the representative does not clear OFAC the loan cannot be finalized.

Can a home owner have more than one Home Improvement Loan? Texas Law allows more than one Home Improvement Loan at a time; however JSCFCU will only hold 1st or 2nd lien Position.

Can an existing appraisal be used to determine property value?

Explanation of Home Improvement Closing Documents

Final Contract with contractor The member and the contractor will both need to sign the final bid at closing, by signing they are confirming its accuracy.

Note & Truth-in-Lending Disclosure This is the first disclosure that will be reviewed at closing. This document is a review of the monthly payment, APR, Finance Charge, etc.

Texas Mortgage Fraud Notice This Notice states that the member did not knowing or intentionally give any false or misleading information in order to obtain this loan. By signing they are stating that all statements regarding identity, employment, annual income, and property occupancy are true at the time of closing.

Mechanic’s lien contract This is the security instrument that is filed with the county to establish JSC Federal Credit Union’s lien on the borrower’s property. The borrower and the borrower’s contractor will need to sign this document. The contractor does not have to be present at the closing but can come in anytime after the member has closed their loan. When the contractor comes in to sign he will need to present picture ID and a business card stating his position with the company. You will need a copy of both to sent back with the loan packet.

Affidavit of Debits and Liens The borrower is swearing to the best of their knowledge the liens listed on this form are the only encumbrances on the property.

Document Correction Agreement This agreement states that the borrower and JSCFCU will comply with any request to correct any inaccuracy, and or replace any lost documents.

Loan Agreement Notice The rights and obligations of borrower and lender are determined solely from the written loan agreement, and any prior oral agreements between borrower and lender are superseded by loan agreement. This notice pertains to loans in the amount of $50k or more.

Disclosure regarding review of loan documents A borrower must receive and review the entire closing packet at least 24 hours before closing. By signing this document the borrower acknowledging that they have done so.

HUD-1 Settlement Statement (Final) This Statement goes over all the closing cost due by the member. This will contain the charge for a Property Report, Flood Determination, Recoding fees, and Appraisal if applicable.

Supplemental Mortgage Insurance Provision The borrower is stating that they will provide the Credit Union with evidence of insurance and maintain JSCFCU as loss payee. The borrower understands that if the fail to provide us with acceptable evidence of insurance the lender may purchase hazard insurance for the Lender’s protection only at the borrower’s expense.

Right to Cancel Cover Sheet This letter will accompany the member’s copies of the Notice of Right to Cancel. This lets the member know what steps need to be taken if they wish to NOT cancel their loan after their three-day right to cancel.

Right to Cancel This notice provides the borrower the right to cancel their loan within three business days after closing. After the three-day right to cancel has expired, the borrower has the option to cancel the loan or proceed with funding.

Draw Request On Home Improvement loans the disbursements are taken in “Draws,” usually which are specified in the final contract with the contractor. The contractor and the member will need to sign the desired number of draw request to satisfy all necessary payments.

Home Equity - Home Improvement - Unimproved Property Application

EMPLOYMENT INFORMATION

CUNA Mutual Group 91, 2003, 08, 12, 13 All Rights Reserved KTXAH1 (EST519)-ePage 1 of 2

OTHERNAME (Last - First - Initial)

CELL PHONE

ACCOUNT NUMBER

INCOME INFORMATION

SOCIAL SECURITY NUMBER

BIRTH DATE

HOME PHONE BUSINESS PHONE/EXT.

APPLICANT INFORMATION

MILITARY: IS DUTY STATION TRANSFER EXPECTED DURING NEXT YEAR

PER

NAME (Last - First - Initial)

ACCOUNT NUMBER SOCIAL SECURITY NUMBER

Alimony, child support, or separate maintenance income need not be revealed if you do notchoose to have it considered.

$ PER

BIRTH DATE

$EMPLOYMENT INCOME

OTHER INCOMEGROSS

SOURCE

NET

NOTICE:

START DATE

NAME AND ADDRESS OF EMPLOYER

YOUR TITLE/GRADE SUPERVISOR'S NAME

START DATE IF SELF EMPLOYED, TYPE OF BUSINESS

IF EMPLOYED IN CURRENT POSITION LESS THAN FIVE YEARS, COMPLETEPREVIOUS EMPLOYER NAME AND ADDRESS

ENDING DATESTARTING DATE

NAME AND ADDRESS OF EMPLOYER

YOUR TITLE/GRADE SUPERVISOR'S NAME

HOURS AT WORK

ENDING/SEPARATION DATEMILITARY: IS DUTY STATION TRANSFER EXPECTED DURING NEXT YEAR

ENDING DATESTARTING DATE

IF EMPLOYED IN CURRENT POSITION LESS THAN FIVE YEARS, COMPLETEPREVIOUS EMPLOYER NAME AND ADDRESS

YES NO

IF SELF EMPLOYED, TYPE OF BUSINESSHOURS AT WORK

ENDING/SEPARATION DATE

YES NO

WHERE WHERE

CO-APPLICANT SPOUSE

Individual Credit: Complete Applicant section. Complete Co-Applicant, Spouse, (referred to as "Other") section: (1) about your spouse if you live in acommunity property state (AZ, CA, ID, LA, NM, NV, TX, WA, WI), or (2) if your spouse will use the Account. Please check box to indicate whomthe information is about.Joint Credit: Each Applicant must individually complete the appropriate section below. If Co-Borrower is spouse of the Applicant, mark theCo-Applicant box.

Amount Requested $ Purpose:

WISCONSIN RESIDENTS ONLY: (1) No provision of any marital property agreement, unilateral statement under Section 766.59, or count decree underSection 766.70 will adversely affect the rights of the Credit Union unless the Credit Union is furnished a copy of the agreement, statement or decree, orhas actual knowledge of its terms, before the credit is granted or the account is opened. (2) Please sign if you are not applying for this account or loanwith your spouse. The credit being applied for, if granted, will be incurred in the interest of the marriage or family of the undersigned.

NOTE AND COMPLETE

PER

Alimony, child support, or separate maintenance income need not be revealed if you do notchoose to have it considered.

$ PER$EMPLOYMENT INCOME

OTHER INCOMEGROSS

SOURCE

NET

NOTICE:

APPLICANT

SIGNATURE FOR WISCONSIN RESIDENTS ONLYX

DATE

DRIVER'S LICENSE NUMBER/STATE

PROPERTY ADDRESS IF DIFFERENT FROM PRESENT ADDRESS

PRESENT ADDRESS (Street - City - State - Zip)

DRIVER'S LICENSE NUMBER/STATE

CELL PHONEHOME PHONE BUSINESS PHONE/EXT.

MARRIED SEPARATED UNMARRIED (Single - Divorced - Widowed)LIST AGES OF DEPENDENTS NOT LISTED BY OTHER APPLICANT(Exclude Self)

COMPLETE FOR JOINT CREDIT, SECURED CREDIT OR IF YOU LIVE IN ACOMMUNITY PROPERTY STATE:

OWN RENT

OWN RENT

LENGTH AT RESIDENCE

LENGTH ATRESIDENCE

PROPERTY ADDRESS IF DIFFERENT FROM PRESENT ADDRESS

PRESENT ADDRESS (Street - City - State - Zip)

MARRIED SEPARATED UNMARRIED (Single - Divorced - Widowed)LIST AGES OF DEPENDENTS NOT LISTED BY OTHER APPLICANT(Exclude Self)

COMPLETE FOR JOINT CREDIT, SECURED CREDIT OR IF YOU LIVE IN ACOMMUNITY PROPERTY STATE:

OWN RENT

LENGTH AT RESIDENCE

LENGTH ATRESIDENCE

OWN RENT

Type of Loan Request: Home Equity Home Improvement Unimproved Property

Not Hispanic or Lantino

I DO NOT WISH TO FURNISH THIS INFORMATION

INFORMATION FOR GOVERNMENT MONITORING PURPOSESThe following information is requested by the Federal Government for certain types of loans related to a dwelling in order to monitor the lender's compliance with equalcredit opportunity, fair housing and home mortgage disclosure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that alender may not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity andrace. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note theinformation on the basis of visual observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the boxbelow. (Lender must review the above material to assure that the disclosures satisfy all requirements to which the lender is subject under applicable state law for theparticular type of loan applied for.)

BORROWER CO-BORROWERI DO NOT WISH TO FURNISH THIS INFORMATION

Ethnicity: Hispanic or LatinoEthnicity:

White

Male Sex:

Native Hawaiian or Other Pacific Islander

Not Hispanic or LantinoHispanic or Latino

Female

American Indian or Alaska Native Black or African American Asian

White Male Sex:

Native Hawaiian or Other Pacific Islander

Female

American Indian or Alaska Native Black or African American AsianRace: Race:

APPLICANT OTHER (CO-APPLICANT, SPOUSE)NAME AND ADDRESS OF DEPOSITORYSHARE DRAFT OR

CHECKING AMOUNT

*LIST EVERY LIEN AGAINST YOUR HOME -- This section must be completed for the property which will be given as security, if applicable.A lien is a legal claim filed against property as security for payment of a debt. Liens include mortgages, deeds of trust, land contracts, judgments and past due taxes.

NAME AND ADDRESS OF DEPOSITORY

$

CREDIT UNION INFORMATION

$

SAVINGS AMOUNT

NAME AND ADDRESS OF DEPOSITORYSHARE DRAFT ORCHECKING AMOUNT

Page 2 of 2 KTXAH1 (EST519)-e

OTHER LIENS (Describe)

NAME AND ADDRESS OF DEPOSITORY

FIRST MORTGAGE HELD BY

PRESENT BALANCEIS THE PROPERTY DESCRIBED IN THIS SECTION: YOUR PRINCIPAL DWELLING?LISTED AS THE APPLICANT'S ADDRESS IN THE "APPLICANT INFORMATION" SECTION?

IS ANYONE OTHER THAN YOUR SPOUSE A PART OWNER OF YOUR HOME? NOYESNONO

YESYES

DEBTS

HOME*

report on you. You understand that it is a crime to willfully and deliberately provideincomplete or incorrect information in this application.

If there are any important changes, you will notify us in writing immed- iately. Youalso agree to notify us of any change in your name, address or employment within areasonable time thereafter.

$

$

$

SAVINGS AMOUNT

APPLICANT OTHERLIST HOME AND ALL OTHER ITEMS YOU OWN AND LOCATION OF PROPERTYFor Example: Auto, Boat, Stocks, Bonds, Cash, Household Goods, Real Estate, etc. MARKET VALUE

PLEDGED AS COLLATERALFOR ANOTHER LOAN

YES

YES

YES

NO

NO

NO$

$

$

LIST ANY NAMES UNDER WHICH YOUR CREDIT REFERENCES AND CREDIT HISTORY CAN BE CHECKED

LOAN OFFICERCREDIT COMMITTEE OR OTHER

ADVANCE APPROVED: YES NO

OUTSIDE INFORMATION CONSIDERED: YES NO

COUNTER OFFER WILL BE MADE, IF ACCEPTED, ADVANCE APPROVED

IF YES, ATTACH ADDITIONAL SHEET AND DESCRIBE

REFERRED TO/REASON(S) FOR REFERRAL:

DESCRIBE COUNTER OFFER:

SPECIFIC REASON(S) FOR REJECTION:

SIGNATURES:LOAN OFFICER

CREDIT COMMITTEE

DATE DATE

DATE DATE

ECOA NOTICE AND REASON FOR REJECTION SENT OR DELIVERED ON (DATE) BY (INITIALS)

XX

X X

DEBT RATIO$ APPROVED LIMIT

Check box for Applicant/Other. List all assets and account number(s)-- Attach other sheets if necessary.

You promise that everything you have stated in this application is correct to thebest of your knowledge and that the above information is a complete listing of allyour debts and obligations. You authorize the credit union to obtain credit reportsin connection with this application for credit and for any update, renewal orextension of the credit received. If you request, the credit union will tell you thename and address of any credit bureau from which it received a credit

In addition to Rent/Mortgage list all other debts (for example, auto loans, credit cards, second mortgage, home assoc. dues, alimony, childsupport, child care, medical, utilities, auto insurance, IRS liabilities, etc.) Please use a separate line for each credit card and auto loan. Attachother sheets if necessary.

ASSETS/PROPERTY

SIGNATURES

LOAN ORIGINATOR ORGANIZATION NMLSR ID NUMBER

LOAN ORIGINATOR NMLSR ID NUMBER

OTHER SIGNATUREAPPLICANT'S SIGNATURE DATE

XDATE

(SEAL) (SEAL)X

RENTMORTGAGE

(incl. Tax & Ins.)

PAST DUEMONTHLY PAYMENTPRESENT BALANCEORIGINAL BALANCEACCOUNT NUMBERCREDITOR NAME AND ADDRESS

TOTALS

APPLICANT OTHER

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

NO EARLY START ACKNOWLEDGEMENT

I/WE do hereby state that there has been no site clearing, construction work or construction equipment or materials on the Property listed below.

__________________________________

__________________________________

__________________________________

DATED this _________day of___________, 20____.

________________________________ Signature

________________________________ Signature

CONSTRUCTION NOTICE 

KNOW YOUR RIGHTS AND REPSONSIBILITIES UNDER THE LAW. You are about to enter into a transaction to build a new home or remodel existing residential property. Texas law requires your contractor to provide you with this brief overview of some of your rights, responsibilities, and risks in this transaction.

CONVEYANCE TO CONTRACTOR NOT REQUIRED. Your contractor may not require you to convey your real property to your contractor as a condition to the agreement for the construction of improvements on your property.

KNOW YOUR CONTRACTOR. Before you enter into your agreement for the construction of improvements to your real property, make sure that you have investigated your contractor. Obtain and verify references from other people who have used the contractor for the type and size of construction project on your property.

GET IT IN WRITING. Make sure that you have a written agreement with your contractor that includes: (1) a description of the work the contractor is to perform; (2) the required or estimated time for completion of the work; (3) the cost of the work or how the cost will be determined; and (4) the procedure and method of payment, including provisions for statutory retainage and conditions for final payment. If your contractor made a promise, warranty, or representation to you concerning the work the contractor is to perform, make sure that promise, warranty, or representation is specified in the written agreement. An oral promise that is not included in the written agreement may not be enforceable under Texas law.

READ BEFORE YOU SIGN. Do not sign any document before you have read and understood it. NEVER SIGN A DOCUMENT THAT INCLUDES AN UNTRUE STATEMENT. Take your time in reviewing documents. If you borrow money from a lender to pay for the improvements, you are entitled to have the loan closing documents furnished to you for review at least one business day before the closing. Do not waive this requirement unless a bona fide emergency or another good cause exists, and make sure you understand the documents before you sign them. If you fail to comply with the terms of the documents, you could lose your property. You are entitled to have your own attorney review any documents. If you have any question about the meaning of a document, consult an attorney.

GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. Before construction commences, your contractor is required to provide you with a list of the subcontractors and suppliers the contractor intends to use on your project. Your contractor is required to supply updated information on any subcontractors and suppliers added after the list is provided. Your contractor is not required to supply this information if you sign a written waiver of your rights to receive this information.

MONITOR THE WORK.  Lenders and governmental authorities may inspect the work in progress from time to time for their own purposes.  These inspections are not intended as quality control inspections.  Quality control is a matter for you and your contractor.  To ensure that your home is being constructed in accordance with your wishes and specifications, you should inspect the work yourself or have your own independent inspector review the work in progress. 

MONITOR PAYMENTS.  If you use a lender, your lender is required to provide you with a periodic statement showing the money disbursed by the lender from the proceeds of your loan.  Each time your contractor requests payment from you or your lender for work performed, your contractor is also required to furnish you with a disbursement statement that lists the name and address of each subcontractor or supplier that the contractor intends to pay from the requested funds.  Review these statements and make sure that the money is being properly disbursed. 

CLAIMS BY SUBCONTRACTORS AND SUPPLIERS.  Under Texas law, if a subcontractor or supplier who furnishes labor or materials for the construction of improvements on your property is not paid, you may become liable and your property may be subject to a lien for the unpaid amount, even if you have not contracted directly with the subcontractor or supplier.  To avoid liability, you should take the following actions:  (1) If you receive a written notice from a subcontractor or supplier, you should withhold payment from your contractor for the amount of the claim stated in the notice until the dispute between your contractor and the subcontractor or supplier is resolved.  If your lender is 

disbursing money directly to your contractor, you should immediately provide a copy of the notice to your lender and instruct the lender to withhold payment in the amount of the claim stated in the notice. If you continue to pay the contractor after receiving the written notice without withholding the amount of the clam, you may be liable and your property may be subject to a lien for the amount you failed to withhold. (2) During construction and for 30 days after final completion, termination, or abandonment of the contract by the contractor, you should withhold or cause your lender to withhold 10 percent of the amount of payments made for the work performed by your contractor. This is sometimes referred to as “statutory retainage.” If you choose not to withhold the 10 percent for at least 30 days after final completion, termination, or abandonment of the contract by the contractor and if a valid claim is timely made by a claimant and your contractor fails to pay the clam, you may be personally liable and your property may be subject to a lien up to the amount that you failed to withhold. If a claim is not paid within a certain time period, the claimant is required to file a mechanic’s lien affidavit in the real property records in the county where the property is located. A mechanic’s lien affidavit is not a lien on your property, but the filing of the affidavit could result in a court imposing a lien on your property if the claimant is successful in litigation to enforce the lien claim.

SOME CLAIMS MAY NOT BE VALID. When you receive a written notice of a claim or when a mechanic’s lien affidavit is filed on your property, you should know your legal rights and responsibilities regarding the claim. Not all claims are valid. A notice of a claim by a subcontractor or supplier is required to be sent, and the mechanic’s lien affidavit is required to be filed, within strict time periods. The notice and the affidavit must contain certain information. All claimants may not fully comply with the legal requirements to collect on a claim. If you have paid the contractor in full before receiving a notice of a claim and have fully complied with the law regarding statutory retainage, you may not be liable for that claim. Accordingly, you should consult your attorney when you receive a written notice of a claim to determine the true extent of your liability or potential liability for that claim.

OBTAIN A LIEN RELEASE AND A BILLS‐PAID AFFIDAVIT. When you receive a notice of claim, do not release withheld funds without obtaining a signed and notarized release of lien and claim from the claimant. You can also reduce the risk of having a claim filed by a subcontractor or supplier by requiring as a condition of each payment made by you or your lender that your contractor furnish you with an affidavit stating that all bills have been paid. Under Texas law, on final completion of the work and before final payment, the contractor is required to furnish you with an affidavit stating that all bills have been paid. If the contractor discloses any unpaid bill in the affidavit, you should withhold payment in the amount of the unpaid bill until you receive a waiver of lien of release from that subcontractor or supplier.

OBTAIN TITLE INSURANCE PROTECTION. You may be able to obtain a title insurance policy to insure that the title to your property and the existing improvements on your property are free from liens claimed by subcontractors and suppliers. If your policy is issued before the improvements are completed and covers the value of the improvements to be completed, you should obtain, on the completion of the improvements and as a condition of your final payment, a “completion of improvements” policy endorsement. This endorsement will protect your property from liens claimed by subcontractors and suppliers that may arise from the date the original title policy is issued to the date of the endorsement.

BY SIGNING BELOW YOU ACKOWLEDGE RECEIPT OF PAGES 1 AND 2 OF THIS CONSTRUCITON NOTICE.

Signature________________________________________________ Date____________________________________________________ 

Signature________________________________________________ Date____________________________________________________ 

NOTICE TO FIRST LIEN MORTGAGE LOAN APPLICANTS: THE RIGHT TO COLLECT YOUR MORTGAGE LOANPAYMENTS MAY BE TRANSFERRED.

You are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. Section 2601 etseq.) RESPA gives you certain rights under Federal law.

This statement describes whether the servicing for this loan may be transferred to a different loan servicer. "Servicing" refers tocollecting your principal, interest and escrow account payments, if any, as well as sending monthly or annual statements, trackingaccount balances, and handling other aspects of your loan. You will be given advance notice before a transfer occurs.

CUNA MUTUAL GROUP, 2007, 11, ALL RIGHTS RESERVED RM0022-e

Servicing Disclosure Statement

APPLICANT 4 NAME:

APPLICANT 1 NAME:

APPLICANT 2 NAME:

APPLICANT 3 NAME:

PROPERTY ADDRESS:

ACCOUNT NUMBER:

I/We have read this disclosure form, and understand its contents, as evidenced by my/our signature(s) below.

XAPPLICANT 1 SIGNATURE DATE

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NOTICE

SERVICING TRANSFER INFORMATION

We may assign, sell or transfer the servicing of your loan while the loan is outstanding.

We do not service mortgage loans of the type for which you applied. We intend to assign, sell, or transfer the servicing of yourmortgage loan before the first payment is due.

The loan for which you applied will be serviced at this financial institution and we do not intend to sell, transfer, or assign theservicing of this loan.

SIGNATURES

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Right To Receive Copy Of Appraisal

RM0041-e

Applicant's Address: ________________________________________________________________________________________________________________________________________________________________________

Applicant's Name : _____________________________________________________Account Number: ___________________

CUNA Mutual Group 2007, 13 All Rights Reserved

APPRAISAL NOTICE

Property Address:

We may order an appraisal to determine the property's value and charge you for this appraisal. We will promptlygive you a copy of any appraisal, even if your loan does not close.

You can pay for an additional appraisal for your own use at your own cost.

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