VARIABLE RATE MORTGAGE PROGRAM DISCLOSURE

TriStar Finance Inc. VARIABLE RATE MORTGAGE PROGRAM DISCLOSURE (This is neither a contract nor a commitment to lend.) LENDER VARIABLE RATE MORTGAGE PROGRAM This disclosure describes the features of the adjustable rate mortgage (ARM) you are considering. Information on other ARM programs is available upon request. __________________HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED_________________    Your interest rate will be based on an index plus a margin. This variable rate mortgages loan has a ______________ feature, and your initial interest rate will not be based on the index used for later adjustments. Please ask about our current discount or premium amount. This type of ARM loan carries a provision for a change in: Interest Rate Monthly Payment Loan Term Your payment will be based on the interest rate, loan balance and loan term. The index used to determine your initial interest rate and/or adjustments is: ___________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ Note: if the index for your variable mortgage loan is no longer available, the lender will choose a new index which is based on comparable information. Information about the index can be found: _____________________________________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ Your interest rate will be equal to: ____________________________________________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ Ask us for our current interest rate and margin. ____________________________HOW YOUR INTEREST RATE CAN CHANGE___________________________ Your interest rate can change ________________________, and every ____________________________ thereafter. Your interest rate cannot increase more than ____________________ percentage point(s) at the initial adjustment. Your interest rate cannot decrease more than ____________________ percentage point(s) at the initial adjustment. Your interest rate cannot increase more than _____________________ percentage point(s) at each periodic adjustment. Your interest rate cannot decrease more than _____________________ percentage point(s) at each periodic adjustment. Your interest rate cannot increase more than _____________________ percentage point(s) over the term of the loan. Your interest rate cannot decrease more than _____________________ percentage point(s) over the term of the loan. Your interest rate will never be greater than ___________________% or less than ______________________% over the term of the loan. Your interest rate will be rounded off to: The nearest ________________% at each adjustment. Next highest ________________% at each adjustment. Next lowest ________________% at each adjustment. This variable rate loan utilizes interest rate carryover. EXAMPLE: ___________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ Page 1 of 3 Initials:____ How your payment can change Your _______________ payment can increase or decrease substantially based on _________________ changes in the interest rate. Your payment will not increase more than ___________________ percentage point(s) or $_____________, at each adjustment. You will be noticed in writing _________ days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount and the loan balance. EXAMPLE: On a $10,000, _____________ year loan with an initial interest rate of ________ percent, (the rate shown in the interest rate column for the year ____________), the maximum amount that the interest rate can rise under this program is ________ percentage points, to ________%, and the __________ payment can rise form a first year payment of $________________ to a maximum of $ __________ in the __________ year. a larger amount due at maturity higher payment amount or more payments of the same amount This variable rate loan program has a negative amortization feature. An increase in your interest rate will result in you loan being negatively amortized, and the following will apply: ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ Any increase in interest will take the form of ___________________________YOUR INTEREST RATE CONVERSION OPTION__________________________ This variable rate mortgage loan program has an option for you to convert your variable interest rate to a fixed interest rate. You should be aware that if you exercise this option, the interest rate may be increased form the variable rate you have been paying. If you choose this conversion option you may only convert if certain conditions are met. These conditions are: 1. 2. 3. 4. You may only convert to a fixed interest rate on __________________, and only during the following time period, ___________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ Your new fixed interest rate will be determined by: ______________________________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ ____________ADDITIONAL FEATURES OF YOUR VARIABLE RATE MORTGAGE PROGRAM___________ Someone buying this property cannot assume the remaining balance due under original mortgage terms. may assume, subject to lender’s conditions, the remaining balance due under original mortgage terms. This Variable Rate Mortgage Program Diclosure Does have a demand feature. Does NOT have a demand feature. The Demand Feature is subject to the following: ________________________________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ Other additional features: ___________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ ______________________________________HISTORIC EXAMPLE_______________________________________ The example below shoes how your payments would have changed under his variable rate mortgage program based on actual changes in the index from __________ to __________ . This does not necessarily indicate how your index will change in the future. The example is based on the following assumptions: Amount ……………………………….. $10,000 caps______________________ periodic interest rate cap Term …………………………............... ____________ ______________________ lifetime interest rate cap. Change Date …………………............... ____________ ______________________ lifetime cap Payment Adjustment …………………. ____________ Interest rate carryover ____________________________ Interest Adjustment …………………... ____________ Negative amortization ____________________________ Margin* ………………………………. ____________ Interest rate ____________ **** ____________________ Index ___________________________________________ ________________________________________________ Page 2 of 3 Year (as of) Index ~%~ Margin (percentage pts.) Interest rate ~%~ Monthly Payment ($) Remaining Balance ($) To see what your payments would have been during that period, divide your mortgage amount by $10,000; then multiply the _____________ payment by that amount. (For example, in _________ the ___________ payment for a mortgage amount of $ _______________ taken out in ____________ would be $ ____________ + $10,000 = _____________ ; _____________ x _____________= ____________________ * This is a margin we have sued recently ; your margin may be different. ** This interest rate reflects a ______________ percentage point annual interest rate cap. *** This interest rate reflects a ______________ percentage point lifetime interest rate cap. **** This is a discount we have used recently; your discount may be different. I/We hereby acknowledge receipt of this Variable Rate Mortgage Program Disclosure and a copy of the Consumer Handbook on Adjustable Rate Mortgages on the date indicated below. ___________________________________________________ Borrower Date ______________________________________________________ Borrower Date Page 3 of 3 National Credit Score Disclosure _____________________________ Applicant _____________________________ Applicant _____________________________ Applicant In evaluating your application for a home mortgage loan, one factor your lender will consider is one or more of your credit scores because they assist the lender in evaluating your credit history in a faster, more objective manner. Your credit scores are found on your credit report, a copy of which was provided to you with this disclosure. The range of possible scores is from 300 to 850. Your lender may also obtain and consider other credit scores in making its decision on your application from the consumer reporting agencies listed below. In addition to the credit scores, your credit report lists the key reasons why your scores were less than the maximum possible scores. Please keep in mind that these reasons are provided based on variables, where you received less than the maximum number of points possible. The listings of these reasons, does not by itself indicate that you would not be approved for the loan you have requested. The lender considers many factors in addition to your credit score in making a decision on your application. If your application is not approved, you will receive a separate notice stating the specific reasons for that action which may or may not relate to your credit scores. The originator or lender did not calculate your credit scores, nor did they develop the scoring models. If you have any questions about your credit scores or the information in the credit report from which the credit scores were computed, you can contact the consumer reporting agencies at the addresses listed below: __________________ Loan # Equifax PO Box 740258 Atlanta, GA 30374-0258 Phone: 800-685-1111 www.equifax.com TransUnion PO Box 1000 Chester, PA. 19016-4000 Phone: 800-888-4213 www.transunion.com/direct Experian POBox 2104 Allen, TX 75013 Phone: 888-397-3742 www.experian.com Notice to the Home Loan Applicant (Pursuant to the Fair Credit Report Act [15 U.S.C. 1681g Sec 609(g)(l)(D)] as amended 12/04/2003) In connection with your application for a home laon, the lender must disclose to you the score that a consumer reporting agency distributed to users and the lender used in connection with your home loan, and the key factors affecting your scores. The credit score is a computer-generated summary calculated at the time of the request and based on the information a consumer reporting agency or lender has on file. The scores are based on data about your credit history and payment patterns. Credit scores are important because they are used to assist the lender in determining whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and payment patterns change, and how credit scoring technologies change. Because the score is based on information in your credit, your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from one company to another. If you have questions about your credit score or the credit information that is furnished to you, contact the consumer reporting agency at the address and telephone number provided with this notice, or contact the lender, if the lender developed or generated the credit score. The consumer reporting agency plays no part in the decision to take any action on the loan application and is unable to provide you with specific reasons for the decisions on a loan application. If you have any questions concerning the terms of the loan, contact the lender. This acknowledges that this Disclosure, along with a copy of my/our credit report, has been provided to each applicant/client pursuant to 15 U.S.C. 1681g Sec 609(g)(l)(D) as amended 12/04/2003 and effective 12/04/2004 _____________________________ Applicant Date _____________________________ Applicant Date PATRIOT ACT INFORMATION FORM Loan Number: ____________________________ To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, and record information that identifies every customer. When applying for a loan, applicants will be asked for their name, address, date of birth, and other information that will allow lenders to identify them. Applicants will also be asked to show their driver’s license or other identifying documents. COMPLETION OF THIS FORM IS REQUIRED IN ORDER TO COMPLY WITH THE PATRIOT ACT. A COPY OF THIS COMPLETED FORM MUST BE PLACED IN THE LOAN FILE. Required Information: Borrower Name _________________________________________________________________ Co-Borrower Name: ______________________________________________________________ Borrower Date of Birth: _______________________________________________________________ Co-Borrower Date of Birth: ____________________________________________________________ Borrower Current Physical Address: __________________________________________________ Co-Borrower Current Physical Address: _______________________________________________ Method Of Identification For Borrower (Only One Form Of Verification Is Required): (1) (2) (3) (4) (5) (6) (7) (8) Driver’s License: State____ #________________ Issue Date: _________ Expir. Date: __________ Passport: #_____________________ Country: _______________________ Expir. Date: ________ Military ID: Country: ____________________________________ Expir. Date: _______________ State ID: # _______________________ Issue Date: _____________ Expir. Date: ______________ Green Card: Country: ______________________ # ________________ Expir. Date: ___________ Immigration Card: Country: ______________ # _________________ Expir. Date: _____________ Gov’t ID (VISA): # ________________ Expir. Date: ______________ Gov’t Branch: __________ Other Document: _____________________ Issue Date: __________________ Expir. Date: ______ Method Of Identification For Co-Borrower (Only One Form Of Verification Is Required) (1) (2) (3) (4) (5) (6) (7) (8) Driver’s License: State_____ #______________ Issue Date: __________ Expir. Date: __________ Passport: #____________________ Country: __________________ Expir. Date: ______________ Military ID: Country: ___________________________ Expir. Date: ________________________ State ID: # _______________________ Issue Date: _____________ Expir. Date: ______________ Green Card: Country: ___________________ # ________________ Expir. Date: ______________ Immigration Card: Country: ______________ # _________________ Expir. Date: _____________ Gov’t ID (VISA): # ________________ Expir. Date: ______________ Gov’t Branch: __________ Other Document: _____________________ Issue Date: __________________ Expir. Date: ______ Resolution Of Any Discrepancy: __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Completed By: __________________________________ PATRIOT Act Information Form Date: _____________________ Borrower Acknowledgement I/we having executed a Mortgage Loan Application with TriStar Finance, Acknowledge that i/we have received a copy of the following: _____ Good Faith Estimate _____ Truth in Lending Statement _____ Servicing Disclosure _____ Privacy Policy Statement _____ Settlement Costs and Helpful Information disclosure _____ When Your Home is on the Line Booklet (if applicable) _____ C.H.A.R.M. disclosure (if applicable) _____________________________________ Borrower’s Signature: ____________________ Date: _____________________________________ Co-Borrower’s Signature: ____________________ Date: