Important Terms of the Compass Equity Optimizer Line of Credit

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1 Important Terms of the Compass Equity Optimizer Line of Credit Date of Disclosure: 1. Availability of Terms: 2. Security Interest: Please read carefully the following disclosure information regarding the Compass Bank Home Equity Line of Credit Account ("Account") you are considering. Retain this disclosure for your records. The terms described below are subject to change. You should submit your application within 10 days of the date of this disclosure to obtain these terms. The date of this disclosure is shown at the top of this page. If these terms change (other than the annual percentage rate) prior to opening the Account and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees you paid to us or anyone else in connection with your application. Compass Bank will take a security interest in your home as collateral for the Account. If you do not meet the obligations in your agreement with us, you could lose your home. To qualify for BBVA Compass' home equity products, the home securing your loan or line of credit cannot be undergoing any type of renovation, construction or remodeling at the time of your application for a home equity loan or line of credit with BBVA Compass. 3. Possible Actions: Compass Bank can terminate your Account and require you to pay the entire outstanding balance in one payment, refuse to make additional extensions of credit, and charge you certain fees if: You do not meet the repayment terms; You engage in fraud or material misrepresentation in connection with the Account; or Your actions or any inaction adversely affects the collateral or Compass Bank's rights in the collateral. Compass Bank can refuse to make additional extensions of credit or reduce the credit limit if: The value of the dwelling securing the Account declines significantly below the appraised value used in establishing your Account. Compass Bank determines that you will probably not be able to meet the repayment requirements due to a material change in your financial condition. You are in default in the performance of any obligation in your Account agreement. Compass Bank is prevented by government action from imposing the annual percentage rate provided in your Account agreement. Compass Bank's security interest is adversely affected by government action to the extent that the value of the security interest is less than 120% of the credit line. A regulatory agency has notified us that continued advances constitute an unsafe and unsound practice. The maximum annual percentage rate established in your Account agreement is reached. The initial agreement permits Compass Bank to make certain changes to the terms of the agreement at specified times or upon the occurrence of specific events. For example, if you are in default under the Account agreement, Compass Bank immediately and without notice to you, may increase your annual percentage rate by a specified amount. 4. Minimum Payment Requirements: Advances of credit can be obtained for the initial 1year period (the "draw period"). Advances of credit up to your Account's credit limit may be obtained and monthly payments are required during the draw period. Monthly interest-only payments- Under this method of payment, your payments will be due monthly and will equal the finance charge that accrued on the outstanding balance during the billing cycle, plus any principal balance in excess of the credit limit, with a minimum payment of $ The draw period may be extended pursuant to the renewal terms of the Account agreement. The minimum payment of interest only may not reduce the principal that is outstanding on your line. After the draw period ends you will no longer be able to obtain advances and you must repay the outstanding balance (the "repayment period"). At the Commencement of the repayment period you will then be required to pay the outstanding balance at the monthly payment amount (based on the current interest rate) necessary to amortize the principal and interest on the outstanding balance in monthly installments over either a 10 or 15 year term. Page 1 of 5

2 5. Minimum Payment Example: The length of the repayment period will depend on the amount of your line of credit at the time of repayment. For accounts that have an outstanding balance less than $20,000, the repayment period will be ten (10) years. For accounts that have an outstanding balance of $20,000 or greater, the repayment period will be fifteen (15) years. During the repayment period, payments will be in an amount necessary to amortize the principal and interest in equal monthly installments over the term of the loan based on the interest rate in effect at the commencement of the repayment period. You will continue to incur finance charges until the Account is paid in full. During the repayment period, your monthly payment amount will remain fixed but the annual percentage rate can change. A change in the annual percentage rate can cause the balance to be repaid more quickly or more slowly. When rates decrease, less interest is due, so more of the payment repays the principal balance. When rates increase, more interest is due, so less of the payment repays the principal balance. If this happens, and a balance remains at the end of the repayment period, you will be required to pay in a single "balloon" payment the entire unpaid account balance that is outstanding on the maturity date. If you took a single $10,000 advance and the ANNUAL PERCENTAGE RATE was 4.50 % (most recent rate shown in the historical example): Under the monthly interest-only payment method: it would take 10 years to pay off an advance of $10,000. During that period you would make 12 payments of $ Then you would make 119 payments of $ Fees and Charges: 7. Closing Costs: To open and maintain an Account you must pay an annual fee of $75. You must carry insurance on the property that secures this line of credit. You will also pay certain fees (or "closing costs") when opening an Account. These charges will be itemized on the Schedule of Fees, Charges or Disbursements, and usually range from $300 to $1,000. You may request more specific information about these charges from Compass Bank. Home equity line customers must normally pay closing costs to open a line of credit. However, Compass Bank will pay all closing costs on new home equity products with amounts ranging from $10,000 to $500,000. Any closing costs paid on behalf of the borrower by the lender will be recovered by the lender if the borrower (1) pays the loan in full or closes the line of credit within two years or (2) fails to make the minimum advance ($10,000) within 30 days of closing or (3) fails to maintain that balance for at least 90 days. For credit requests less than $10,000 or more than $500,000, all applicable closing costs incurred and permitted by law shall be borrower-paid. Home Equity Line of Credit Increases Closing Costs: Compass Bank will pay all closing cost on existing home equity products ranging from $10,000 to $250,000. Lender has agreed to forebear from collecting payment by Borrower of certain specified closing costs incurred by Lender in providing these amendments to modify and increase the credit line amount available under the original Agreement. However, closing costs associated with the Modification Agreement will be recouped from Borrower if Borrower does not keep the line of credit open for not less than two years from the closing date of the Modification Agreement and if Borrower fails to advance an additional $10,000, based on the existing line of credit limit, within 30 days of executing the Modification Agreement" which must remain outstanding for not less than 90 days. 8. Minimum Advance Requirements: 9. Negative Amortization: 10. Tax Deductibility: The initial advance on your Account must be at least $300 unless the borrower was eligible for bank-paid closing costs, in which case the initial advance must be $10,000 or more, of which $10,000 must remain outstanding for 90 days. Any subsequent advances have minimum requirements based on the method used to access the Account. Compass Bank Equity Line of Credit checks must be written in amounts of $300 or more (up to your credit limit) and cash advances obtained by using the AccountÆs Visa Platinum Card must be $50 or more. Under some circumstances, your payments during the repayment period may not cover finance charges that accrue and "negative amortization" could occur. Negative amortization would increase the amount that you owe us and reduce the equity in your home. Each time the annual percentage rate increases during the repayment period, we will review the effect the increase has on your credit line account to see if your payment is sufficient to pay the interest due. If it is not, your payment may be increased by an amount necessary to repay the balance at the new annual percentage rate within the original amortization period in order to prevent negative amortization. You should consult your tax advisor regarding the deductibility of interest and charges on your Account. Page 2 of 5

3 11. Variable Rate Information: 12. Rate Changes: The Account has a variable rate, and the annual percentage rate (corresponding to the periodic rate) and the minimum payment can change as a result. The annual percentage rate is based on the value of an index and a margin. The index is the prime rate published in the Wall Street Journal "Money Rates" table. If multiple rates are quoted in the table then the highest rate will be used. We add a margin to the value of the index to determine the annual percentage rate that will apply to your Account. We may increase the amount of this margin, as provided in the Account agreement, if you are in default. The annual percentage rate includes only interest and not other costs. Ask us for the current index value, margin, discount and annual percentage rate. After you open your Account, rate information will be provided on your periodic statement. The annual percentage rate may change monthly. The maximum ANNUAL PERCENTAGE RATE applicable to your Account is 18%, while the minimum ANNUAL PERCENTAGE RATE is 3.50%. Except for this 18% "cap" and 3.50% "floor", there is no limit on the amount by which the rate can change during any time period. 13. Maximum Rate and Payment Example: 14. Historical Example: If the ANNUAL PERCENTAGE RATE during the draw period equaled the 18% maximum and you had an outstanding balance of $10,000, the minimum monthly payment would be $150. The maximum ANNUAL PERCENTAGE RATE could be reached during the first month of the draw period. If you had an outstanding balance of $10,000 at the start of the repayment period, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 18% would be $ This annual percentage rate could be reached during the first month of the repayment period. The following table shows how the annual percentage rate and the minimum payments for a single $10,000 credit advance would have changed based on changes in the index over the past 15 years. The index values are from the last business day in July of each year. While only one payment amount per year is shown during the draw period, the minimum payments would have varied during the draw period based on the monthly interest-only payments. The table assumes that no additional credit advances were taken, that only minimum payments were made, and that the rate remained constant during each year. This table does not necessarily indicate how the index or your minimum payment will change in the future. YEAR INDEX % MARGIN %* ANNUAL MONTHLY PERCENTAGE PAYMENT RATE Draw Period $75.00 Repayment $ Period $ $ $ $ $ $ $ $ $102.53** $ $ $ $ 0.00 * This is a margin we have used recently. ** A final balloon payment of $1, would be due in the 120th month. For additional information, see the federal booklet titled When Your Home is on the Line: What You Should Know About Home Equity Lines of Credit. Page 3 of 5

4 15. Fixed Option Loan Rules and Restrictions: A Fixed Option Loan is an advance that has a fixed term and scheduled monthly payments. Fixed Option Loans, in the minimum amount of $2,500.00, may be requested during the draw period, only by phone or in person at a Compass Bank office. Number of Fixed Option Loans: Borrower is limited to two (2) Fixed Option Loan requests in a 365 day period and to a maximum of three (3) Fixed Option Loans outstanding at any time. Term: The term of each Fixed Option Loan will be the period selected by the Borrower at the time of that Loan, with a maximum term of fifteen (15) years. Conversion Period: You can access your option to convert to a fixed rate and fixed payment at any time during the draw period. Fixed Option Loan Fee: A $75.00 loan fee will be assessed for each Fixed Option Loan made under this agreement. This fee is a finance charge. ANNUAL PERCENTAGE RATE FOR FIXED OPTION LOANS: Each Fixed Option Loan will have a fixed interest rate. The ANNUAL PERCENTAGE RATE will not exceed 18% and will be determined at the time of the Fixed Option Loan request by adding the applicable margin to the index rate for Fixed Option Loans. To get the periodic rate on the Fixed Option Loans, Lender divides the ANNUAL PERCENTAGE RATE by 12. Fixed Rate Determination: The fixed rate will be determined by adding a margin to the Index. The index rate for each Fixed Option Loan will be the prime rate published in the Wall Street Journal "Money Rates" table. The Wall Street Journal prime is readily available to Borrower and beyond the control of Compass Bank. INSURANCE DISCLOSURES FOR CONSUMERS An insurance or annuity product is NOT a deposit or other obligation of Compass Bank; is NOT guaranteed or insured by Compass Bank or any of its affiliates; and is NOT insured by the FDIC or any other agency of the United States. Compass Bank may NOT condition the approval of the consumer's loan application on the consumer's purchase of an insurance or annuity product from the bank or any of its affiliates. Compass Bank also may NOT condition the approval of the consumer's loan application on the consumer's agreement not to obtain, and Compass Bank does not prohibit the consumer from obtaining an insurance product from an unaffiliated entity. Page 4 of 5

5 2017 BBVA Compass HELOC Introductory Variable Rate Promo Offer Eligibility: An applicant's eligibility for the Special Introductory Rate Offer of Prime minus 1.51% for 12 months (the "Offer") is subject to the below requirements. Applicants may be approved for a Home Equity Line of Credit (HELOC) but determined to be ineligible for the Offer. Application must be received between April 19 and October 31, 2017, and the HELOC must close on or before December 15, 2017; Maximum HELOC amount of $1,000,000; Minimum HELOC amount of $25,000; Minimum FICO score of 720 at the time of application; Combined loan-to-value (CLTV) for the property securing the HELOC cannot exceed: (i) 85% for HELOCs in California in amounts of $300,000 or less; or (ii) 80% for HELOCs in California in amounts between $300,001 and $1,000,000 and HELOCs in Texas, New Mexico, Arizona, Colorado, Alabama and Florida in amounts between $25,000 and $1,000,000. Applicant must have a BBVA Compass checking account and auto debit all monthly payments on the HELOC from such account; Approved borrowers must take advances totaling at least $25,000 within 15 days of the closing date and must have at least $25,000 outstanding on the HELOC at the end of the 15th calendar day after closing (not applicable if the property securing the HELOC is located in Texas); Applicant must be a California, Texas, New Mexico, Arizona, Colorado, Alabama or Florida resident. If you qualify, you'll receive the special introductory variable rate listed above for 12 months. After the initial introductory variable rate period is completed, the variable APR will range from Prime Rate plus a margin of 0.38% to Prime Rate plus a margin of 2.74% depending on the characteristics of your HELOC transaction and credit history. Additional Terms of Offer: Offer is not available for Purchase Money Seconds, line increases on existing BBVA Compass HELOCs or to refinance existing BBVA Compass HELOCs or Home Equity loans. The Annual Percentage Rate (APR) for the first 12 billing cycles on HELOCs qualifying for the Offer is variable and is based on the Wall Street Journal U.S. Prime Rate (as of 06/15/17, Prime Rate was 4.25%) minus the designated margin of 1.51%. After the initial introductory rate period is completed, in no event will the APR be less than 3.50%, which is the floor rate for HELOCs not qualifying for the Offer or not in the introductory rate period. The maximum APR for all HELOCs, including those qualifying for the Offer, will not exceed 18%. The Offer's promotional APR is subject to forfeiture upon borrower becoming 60 or more days past due or upon failing to meet one of the above requirements after closing. The Offer may not be combined with any other promotional discount, but may be combined with Bank-paid closing costs. HELOC: All HELOC applications are subject to program eligibility, underwriting, and collateral requirements and approval, including credit approval. BBVA Compass must receive a valid first or second real estate lien on a primary or secondary residence occupied by the borrower, provided that HELOCs secured by non-homesteaded properties are not available in Texas. Property insurance required, including flood insurance where applicable. Minimum required periodic payment is $75 or total line amount outstanding, whichever is less. A $75 annual fee is charged on the first anniversary of the line and every year thereafter (not applicable in Texas). A $75 fee is charged for each fixed rate conversion option that is exercised, waived for the first transaction. Texas HELOCs: Maximum credit line cannot exceed 50% of appraised value of property securing the line of credit. BBVA Compass must receive a valid first or second real estate lien under Article XVI, Section 50(a)(6) of the Texas Constitution on a primary residence occupied by the borrower. Minimum draw in Texas is $4,000. In order to use convenience checks to make draws, borrower must submit request for convenience checks to BBVA Compass. VISA Platinum Credit Card is not available to make draws in Texas. Closing Costs: BBVA Compass will pay for all closing costs on new home equity products with amounts ranging from $10,000 to $500,000. Credit requests for less than $10,000 or more than $500,000 shall be subject to actual closing costs incurred and permitted by law. To qualify for Bank-Paid Closing Costs, the borrower must complete a $10,000 draw requirement within 30 days which must remain outstanding for 90 days (not applicable to Texas HELOCs due to Texas law). Bank-paid closing costs are subject to recoupment from borrower(s) if the line of credit is paid off and closed within 2 years (not applicable in Texas). Closing costs vary by state and typically range from $675 on a $10,000 credit line to $6,250 on a $500,000 credit line. Texas closing costs typically range from $935 to $4,165 depending on credit line amount. Important: Please sign below to indicate your acknowledgment of these terms and conditions Member FDIC Page 5 of 5