KENTUCKY: CHOICE OF INSURANCE NOTICE

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1 Borrower: KENTUCKY: CHOICE OF INSURANCE NOTICE KY REVISED STATUTES CHAPTER If you are required to provide any form of insurance coverage as part of your obligation on the above-referenced loan, be aware that: You have the right to freely choose the agent and insurer through or by which your required insurance is placed. We will not interfere either directly or indirectly with your free choice of an agent and insurer and we will not refuse any adequate insurance policy that you provide. Your insurance agent: Insurance Company: Phone Number: Policy Number: We will not collect a separate charge for the handling of insurance required in connection with a loan or extension of credit based on your choice of agent or insurer. Hazard Insurance Policy term must be for at least one year. Amount of coverage must be at least equal to the loan amount. Insurance must be in effect on date of loan closing. Lender must not close loan with a binder. The following are acceptable: Declaration Page Certificate or Evidence of Insurance Full Policy Condominium Master policy listing individual unit. If a condominium is a free-standing unit, the lender must obtain complete coverage for at least the amount of the first mortgage. Monthly escrow for additional insurance is required. Maximum deductible equal to 5 percent of policy face amount, not to exceed $5,000. Your acknowledgment below signifies that the written statement was provided to you. Kentucky Disclosure Page 1 of 1 15October2013

2 KENTUCKY: FAIR HOUSING LAW DISCLOSURE Borrower: 332 W. Broadway, Suite 700 Louisville, Kentucky (502) (800) TDD: (502) Visit us on the web at Kentucky Commission on Human Rights Protector of Civil Rights. Voice for Equality. Catalyst for Positive Change. It is against the law to discriminate against any person who wants to rent or own housing. You have the right to fair housing regardless of your color, disability, familial status (whether you live with children under 18 years of age), national origin, race, religion or sex. WHAT KENTUCKY FAIR HOUSING LAW MEANS The U.S. and Kentucky Fair Housing acts are laws that provide equal opportunity to all people when buying, selling, renting, financing or insuring housing. You have the right to buy or rent where you choose a home, condominium, apartment, trailer or lot. Everyone must obey the law including property owners, real estate brokers, sales agents, operators, builders and developers, advertisers and advertising media, mortgage lenders, insurers, and banks or other financial institutions. THESE ACTIONS ARE ILLEGAL Among the practices prohibited by law, it is illegal to: refuse to sell, rent, lease or exchange real estate because of discrimination; deny a reasonable accommodation to a renter with a disability; coerce, intimidate, threaten or interfere with a person's enjoyment of his or her home because of discrimination; communicate that a property is unavailable when it is available; communicate that the racial makeup of a neighborhood may change or cause property values to go down or make other similar false and misleading statements; publish advertising that states a preference of one person over another based on discrimination; discriminate in the grant, rates, terms, conditions or services of financial assistance in real estate transactions; discriminate in the making or purchase of loans; discriminate in terms, conditions or privileges of housing-related insurance; or deny access or restrict membership of multiple-listing services or real estate organizations for discriminatory reasons. PROTECT YOUR RIGHTS If you believe you may be a victim of discrimination, contact our office. We will help you file a discrimination complaint. A housing discrimination complaint must be filed within one year of the alleged discrimination. After your complaint is filed, our officers will conduct a thorough investigation to determine whether discrimination has occurred. All findings go before the Commission Board, which acts with the authority of a court of law. If you believe discrimination may have occurred, save copies of all letters, advertisements or other relevant information. Write down your experiences including dates, significant conversations and incidents, and the names of the involved individuals. 104 KY ADMIN. CODE 1:010 Kentucky Disclosures Page 1 of 2 10October2013

3 EXEMPTIONS Exemptions from fair housing law are allowed for the rental of an owner-occupied duplex or rental of one room in a private home. The sale or rental of an owner-occupied home is exempt if the sale or rental takes place without a real estate agent or advertising. A religious organization may exercise a preference to rent to one of its members. It is allowable to refuse to rent on the basis of sex if the property is a single sex dormitory. A landlord may choose not to rent to unmarried couples. A gender-based exclusion from the law is allowed if the landlord can demonstrate that the exclusion is necessary for reasons of personal modesty or privacy. Exemptions are allowed if a landlord rents fewer than 10 units or to fewer than 10 persons in an owner-occupied facility. A landlord may refuse to rent on the basis of familial status if the property is intended for occupants 62 years of age or older or if 80 percent of the units have occupants 55 years of age or older and special services for older persons are provided. Call us if you need help or would like more information. Or, contact us by mailing the form below to The Kentucky Commission on Human Rights, 332 W. Broadway, Suite 700, Louisville, Kentucky Remember to visit our website at I may have experienced discrimination. Call me about filing a complaint. Add me to your newsletter list. Add me to invitation lists for panel discussions, Kentucky Civil Rights Hall of Fame and other special events. Other Name Address Phone 104 KY ADMIN. CODE 1:010 The work that provided the basis for this publication was supported by funding under a grant with the U. S. Department of Housing and Urban Development. The substance and findings of the work are dedicated to the public. The author and publisher are solely responsible for the accuracy of the statements and interpretations contained in this publication. Such interpretations do not necessarily reflect the views of the Federal Government. Kentucky Disclosures Page 2 of 2 10October2013

4 Borrower: KENTUCKY: LETTER OF COMMITMENT (BROKER) Mortgage Loan Originator: Originator s NMLS# Company: X Broker Lender PURSUANT TO KENTUCKY STAT & -270(2) You have engaged the above-named Mortgage Broker or Mortgage Lender ("we", "us" and "our") as an independent contractor your agent to advise you in obtaining a residential mortgage loan, repayment of which will be secured by real property you own or are purchasing, from a participating lender with which we from time to time contract, upon such terms and conditions as you may request or a lender may require. This agreement describes some of the services we will provide or perform and our compensation for such services. TYPE OF LOAN YOU ARE WILLING TO ACCEPT: Loan Type: Purchase Refinance Other Lien Position: First Second Other Loan Amount: $ Loan Term (Months): Balloon Payment: Yes No Negative amortization: Yes No Interest Rate: % Fixed Adjustable DESCRIPTIONOF THE NATURE OF OUR RELATIONSHIP AND THE SERVICES WE WILL PROVIDE OR PERFORM: You, the applicant(s), have applied with us for a residential mortgage loan. (Check one of the following:) We will submit your loan application to a participating lender which we may from time to time contract upon such terms as you may request or a lender may require. In connection with this mortgage loan, we are acting as an independent contractor and not as your agent. We will enter into separate independent contractor agreements with various lenders. While we will seek to assist you in meeting your financial needs, we do not distribute the products of all lenders or investors in the market and cannot guarantee the lowest or best terms available in the market. In connection with this mortgage loan, we are acting as an independent contractor and not as your agent. We will make your loan ourselves. We may either sell the loan to an investor or retain it. (You will receive a separate disclosure as to how we will handle servicing rights on any such loan.) We have a number of established independent contractor relationships with various investors to whom we sell closed loans. We are not an agent for any such investor in connection with the sale of a loan. While we will seek to assist you in meeting your financial needs, we cannot guarantee the lowest or best terms available in the market. We will submit your loan application to a participating lender which we may from time to time contract upon such terms as you may request or a lender may require. In connection with this mortgage loan, we are acting as your agent. We will enter into separate independent contractor agreements with various lenders. You understand that our services are advisory and administrative in nature and may include, but are not limited to, the following: Assist you in completing the loan application for the type of loan you are seeking. Inform you of the various types of loan programs available and the terms of such loans. Analyze your income and debt and pre-qualify you to determine the maximum mortgage loan you could afford. Assist the lender in originating and underwriting the loan by obtaining and verifying information needed by the lender to evaluate your loan application, including credit reports, appraisal reports, employment verifications, and deposit verifications. Coordinate with you and the lender in fulfilling conditions to your loan approval and in preparing for loan closing, if your loan application is approved. Other (describe): Please Initial Borrower Borrower Borrower Borrower Kentucky Disclosure Page 1 of 2 15October2013

5 YOU ACKNOWLEDGE THAT WE HAVE ADVISED YOU OF THE FOLLOWING: We are not the lender. We may not execute a lock-in agreement or issue a commitment on our own behalf. We cannot guarantee acceptance into any particular loan program or promise any specific loan terms or conditions. While we seek to assist you in meeting your financial needs, we do not distribute the products of all lenders or investors in the market and cannot guarantee the lowest price or best terms available in the market. We will continue to provide our services until your loan is closed, your loan request is denied or you terminate our services for any reason, whichever occurs earlier. This agreement does not create an exclusive relationship between you and us; if you obtain a mortgage loan during the term of this agreement through your own efforts or the efforts of another mortgage broker, you will not be required to pay us the compensation set forth in this agreement. OUR COMPENSATION: The lenders whose loan products we distribute generally provide their loan products to us at a wholesale rate. The retail price we offer you - your interest rate, total points and fees - will include our compensation. In some cases, we will receive all of our compensation from you, to be paid in cash or from the loan proceeds at the time of settlement. In other cases, we will receive all of our compensation from the lender. You may be able to obtain a lower interest rate by paying higher points and fees. (A "point" is 1% of the loan amount.) Alternatively, you may be able to finance the payment of our compensation or other costs that you would otherwise be required to pay directly by paying a higher interest rate. Having discussed the specific effects these alternatives may have on your interest rate, points, fees and other loan terms, and the various payment options that are available to you, you agree our compensation will be paid as follows: (1) Borrower Compensation: As compensation for our services under this Agreement, you agree to pay us a mortgage brokerage fee in the amount of % of the loan amount or $. You may pay the mortgage brokerage fee either with funds you bring to the loan closing or from the loan proceeds at the time of settlement. You will be obligated to pay us only if your loan closes. (2) Lender Compensation: The compensation we will receive from the lender will be $. Compensation received from the lender may not be based on the terms or conditions of your loan, such as your interest rate or loan program. Compensation will be calculated according to the terms of our agreement with the lender, which may provide for payment based on a percentage of your loan amount, the quality of the loans we have submitted to the lender in the past, or other factors that are permitted by applicable law. While our compensation may not be based on the terms of your loan, the interest rate on your loan may be higher than would be the case if you paid our compensation directly. At any time prior to closing, please feel free to ask us about other loan options that may be available to you. OTHER FEES AND CHARGES: In addition to this agreement, we will provide you with a good faith estimate of settlement charges. The good faith estimate of settlement charges discloses the fees and costs you may be obligated to pay in connection with your application for a mortgage loan. Generally, costs shown on the Good Faith Estimate of settlement charges are refundable prior to settlement only if the services to which the costs relate have not been ordered. NO ORAL MODIFICATION: Any modifications to or extensions of the terms of this agreement must be in writing and signed by both you and us. Mortgage Broker or Mortgage Lender: By: By signing below, you acknowledge that you have received, read and accept the terms of this origination agreement. This origination agreement is not a commitment to lend. Its: Kentucky Disclosure Page 2 of 2 15October2013

6 Borrower: KENTUCKY: MORTGAGE LOAN BROKER/AGENCY DISCLOSURE PURSUANT TO KY. REV. STAT (Mortgage loan broker as agent for individuals applying for residential mortgage loan) (1) A mortgage loan broker shall comply with the following duties: (a) A mortgage loan broker shall exercise good faith and fair dealing, shall act in the best interest of the borrower, and shall not compromise a borrower's right or interest in favor of another's right or interest; (b) A mortgage loan broker shall disclose to borrowers all material facts of which the mortgage loan broker has knowledge that might reasonably affect the borrower's rights, interests, or ability to receive the borrower's intended benefit from the residential mortgage loan; and (c) A mortgage loan broker shall provide a written accounting to a borrower for all the borrower's money and property received by the broker. (2) Nothing in this section shall prohibit a mortgage loan broker from contracting for or collecting a fee for services rendered from the borrower or lender if the fee has been properly disclosed to the borrower in advance of providing of such services. Your Mortgage Loan Originator, is acting as a mortgage loan broker and not as the Lender. As a mortgage loan broker, is is not acting as your agent in conjunction with your application to obtain a mortgage loan. Mortgage Loan Originator: Broker Company Name: Broker Company Address: Telephone Number: Facsimile Number: I/We have read the above information and acknowledge receiving a copy by signing below. Kentucky Disclosure Page 1 of 1 15October2013