Fillable Letter Form EEX Application (American Savings Bank Hawaii)

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Letter Form EEX Application (American Savings Bank Hawaii)

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<Attach business card here>
20180706
Thank you for your interest in our Home Equity Line of Credit. To process your application as quickly as possible, please
provide us with the items marked below:
Completed and signed Home Equity Line of Credit application
Completed Schedule of Real Estate Owned -- If you own more than one property
Copy of current paystubs covering one full month and your last two years’ W2 -- If you are currently earning an
hourly wage or salary
Copy of Award Letter or most recent 1099 -- If you are receiving Social Security or Pension
Copy of most current 401K and/or IRA complete account statement(s) -- If you are retired
Annuity contract or statement with balance and term -- If you receive annuity income
Copies of last two years’ U.S. Individual Income Tax Returns with all schedules -- If any of the following apply:
• You are requesting a loan amount of $250,000 or more
• You are self-employed
• You receive rental income
• Your income from bonuses, commission or tips is 25% or more of your annual income
Copies of last two years U.S. Business Tax Returns with all schedules and K-1’s -- If you have ownership in a
Corporation or Partnership of 25% or more
Copy of the Long Form Trust, all amendments and restatements -- If the property you are using as collateral is
held in Trust
Copy of your current homeowners/hurricane insurance policies for the property you are using as collateral
Copy of current monthly statement for any mortgage(s) for the property you are using as collateral
Copy of Agreement – If the property has a financed or leased solar or PV system
Copy of the Final Closing Disclosure -- If any of the following apply:
• You sold a property in the last year
• You purchased a property or refinanced a mortgage within the last three months
Please provide the following if the property you are using as collateral for this loan is part of a Condominium
• Name of condo project: ________________________
• Amount of monthly maintenance fee: $_____________
As part of this loan a property inspector may need to photograph the exterior of your property. If your property is
not visible or accessible from a public street (gated community, private road, etc.), the property inspector will need
to contact you. Please provide:
• Contact Person: __________________________________
• Contact Number: _________________________________
We may require additional documentation or information. If we do, we will promptly let you know. Should you have any
questions, please feel free to call me. My business card is attached for your convenience.
•
Only Primary Applicant is allowed to use the
credit and is responsible for repayment.
•
Fill in information for Primary Applicant Only.
•
Only Primary Applicant must sign application.
Credit to be issued only to Primary Applicant.
INDIVIDUAL
•
Primary Applicant and Co-Applicant may use the credit without each other’s permission.
Each will be responsible for paying off the entire line, no matter who used the money
from the line.
•
Fill in information for both Primary Applicant and Co-Applicant.
•
Both Primary Applicant and Co-Applicant must sign application.
•
Credit to be issued to Primary Applicant and Co-Applicant.
JOINT–
we intend to apply for joint credit
Amount applying for:
(minimum $10,000)
Purpose:
Co-Applicant
Primary Applicant
Initial
below
Savings Bank
Home Equity Line of Credit Application
$
$$
1 of 4
Tell Us About Yourself
Primary Applicant Information
Last Name
Home Address
Previous Address
(if less than two years)
Home Phone
$
City State
ZIP
City State
ZIP
Mailing Address (if different from Home Address)
City State
ZIP
Years There?
Email
Work Phone
Cell Phone
First Name
Social Security No.
Date of BirthMiddle Name
Rent/Mortgage (Monthly)
£
Married
£
Unmarried (including single, divorced and widowed)
£ Full Time £ Part Time £ Self Employed £ OtherEmployment Type
Collateral Property Details (Hawaii properties only)
Property Address
Owner Occupancy
Estimated Value Property Type
Current Mortgage Balance
City State
ZIP
£
Investment/Rental
£
Owner Occupied
£
Second Home
£
1-Unit
£
2-Unit
£
3-Unit
£
4-Unit
£
Home Purchase
£
Home Improvement
£
Refinancing
£
Cash-out Refinancing
£
Personal Expenses
Sex
£ Female £ Male
£ I do not wish to provide this information
Demographic Information
Employer
Time in Line of Work?
Years There?
Years There?
Job Title / Military Rank
Job Title / Military Rank
Previous Employer (if less than two years)
*Alimony, child support or separate maintenance income received under: £ Court Order £ Written Agreement £ Oral Understanding
Gross Monthly Income
* NOTE: Alimony, child support, or separate maintenance income need not be
revealed if you do not wish to have it considered as a basis for repaying this
obligation.
$
$
Other Income* (Monthly) Source of Other Income*
Demographic Information of Borrower:
The purpose of collecting this information is to help ensure that all applicants are treated fairly and that the housing needs of
communities and neighborhoods are being fulfilled. For residential mortgage lending, federal law requires that we ask applicants for their demographic information (ethnicity, sex, and
race) in order to monitor our compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws. You are not required to provide this information, but are
encouraged to do so. The law provides that we may not discriminate on the basis of this information, or on whether you choose to provide it. However, if you choose not to provide
the information and you have made this application in person, federal regulations require us to note your ethnicity, sex, and race on the basis of visual observation or surname. The law
also provides that we may not discriminate on the basis of your age or marital status information you provide in this application.
Instructions: You may select one or more “Hispanic or Latino” origins and one or more designations for “Race.” If you do not wish to provide some or all of this information, select the
applicable check box.
Ethnicity
£ Hispanic or Latino
£ Mexican £ Puerto Rican £ Cuban
£ Other Hispanic or Latino -
Enter origin__________________________________________________
Examples: Argentinean, Colombian, Dominican, Nicaraguan,
Salvadoran, Spaniard, etc.
£ Not Hispanic or Latino
£ I do not wish to provide this information
Race
£ American Indian or Alaska Native - Enter name of
enrolled or principal tribe:
__________________________________________
£ Asian
£ Asian Indian £ Chinese £ Filipino £ Japanese £ Korean £ Vietnamese
£Other Asian - Enter race: __________________________________________
Examples: Hmong, Laotian, Thai, Pakistani, Cambodian, etc.
£ Black or African American
£ Native Hawaiian or Other Pacific Islander
£Native Hawaiian £ Guamanian or Chamorro £ Samoan
£Other Pacific Islander - Enter race:________________________________
Examples: Fijian, Tongan, etc.
£ White
£ I do not wish to provide this information
© 2017 American Savings Bank, F.S.B.
17G200 (7/17)
Home Equity Line of Credit Application
2 of 4
Assets (Please list all assets including checking, savings, IRA, 401K, money market, and investments.)
Bank / Financial Institution
Bank / Financial Institution
Bank / Financial Institution
Bank / Financial Institution
Account Balance
Account Balance
Account Balance
Account Balance
$
$
$
$
© 2017 American Savings Bank, F.S.B.
17G200 (7/17)
Member FDIC
asbhawaii.com
Savings Bank
Co-Applicant Information
Last Name
Home Address
Previous Address
(if less than two years)
Home Phone
$
City State
ZIP
City State
ZIP
Mailing Address (if different from Home Address)
City State
ZIP
Years There?
Email
Work Phone
Cell Phone
First Name
Social Security No.
Date of BirthMiddle Name
Rent/Mortgage (Monthly)
£
Married
£
Unmarried (including single, divorced and widowed)
Sex
£ Female £ Male
£ I do not wish to provide this information
Demographic Information
Employer
Time in Line of Work?
Years There?
Years There?
Job Title / Military Rank
Job Title / Military Rank Previous Employer (if less than two years)
*Alimony, child support or separate maintenance income received under: £ Court Order £ Written Agreement £ Oral Understanding
Gross Monthly Income
* NOTE: Alimony, child support, or separate maintenance income need not be
revealed if you do not wish to have it considered as a basis for repaying this
obligation.
$
$
Other Income* (Monthly) Source of Other Income*
Demographic Information of Borrower:
The purpose of collecting this information is to help ensure that all applicants are treated fairly and that the housing needs of
communities and neighborhoods are being fulfilled. For residential mortgage lending, federal law requires that we ask applicants for their demographic information (ethnicity, sex, and
race) in order to monitor our compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws. You are not required to provide this information, but are
encouraged to do so. The law provides that we may not discriminate on the basis of this information, or on whether you choose to provide it. However, if you choose not to provide
the information and you have made this application in person, federal regulations require us to note your ethnicity, sex, and race on the basis of visual observation or surname. The law
also provides that we may not discriminate on the basis of your age or marital status information you provide in this application.
Instructions: You may select one or more “Hispanic or Latino” origins and one or more designations for “Race.” If you do not wish to provide some or all of this information, select the
applicable check box.
Ethnicity
£ Hispanic or Latino
£ Mexican £ Puerto Rican £ Cuban
£ Other Hispanic or Latino -
Enter origin___________________________________________________
Examples: Argentinean, Colombian, Dominican, Nicaraguan,
Salvadoran, Spaniard, etc.
£ Not Hispanic or Latino
£ I do not wish to provide this information
Race
£ American Indian or Alaska Native - Enter name of
enrolled or principal tribe:
__________________________________________
£ Asian
£ Asian Indian £ Chinese £ Filipino £ Japanese £ Korean £ Vietnamese
£Other Asian - Enter race: __________________________________________
Examples: Hmong, Laotian, Thai, Pakistani, Cambodian, etc.
£ Black or African American
£ Native Hawaiian or Other Pacific Islander
£Native Hawaiian £ Guamanian or Chamorro £ Samoan
£Other Pacific Islander - Enter race:________________________________
Examples: Fijian, Tongan, etc.
£ White
£ I do not wish to provide this information
£ Full Time £ Part Time £ Self Employed £ OtherEmployment Type
Home Equity Line of Credit Application
3 of 4
$$$
$$$$
$$$$
Other Real Estate Owned
(If additional space is needed use the attached schedule.)
Obligations
(We will pull information from your credit report. Please list obligations that may not appear on the report.)
$$$$
$$$$
Property Address (Physical Address)
Rental Income
(if applicable)
Maintenance,
Taxes & Insurance
Monthly PaymentBalance Owing
Lender
Child Support (Monthly Payment) Alimony (Monthly Payment)
Other Obligations (Monthly Payment)
Auto Pay Authorization
Yes, sign me up for Auto Pay from my American Savings Bank Personal Checking account.
Account # _______________________________________
Your payments will be automatically scheduled according to the scheduled payment date on your loan agreement.
Minimum Monthly Payment
Minimum Monthly Payment + Additional $
______________________________________________________________________
I (we) also authorize American Savings Bank to initiate adjustments to my account to correct any errors made in relation to these transfers. I
agree to have enough money in my account at least one (1) day before the transfer is scheduled. If I do not have enough money in my account
to make these transfers three (3) times during any 12-month period, I understand that American Savings Bank can unilaterally cancel this service
21 calendar days after sending written notice to me. This authorization shall remain in full force and effect, and shall be binding on my heirs,
personal representative, administrators, assignors and co-owners of the account above, unless an owner of the account to be withdrawn from
cancels in writing no less than seven (7) business days before the next scheduled transfer. An owner of the account to be withdrawn from can
revoke this authorization by writing to American Savings Bank, ATTN: ACH Services, PO Box 2300, Honolulu, HI 96804-2300.
Additional Information Required To Complete Home Equity Line of Credit Application
Is construction being performed on your home at this time?
YES NO
YES NO
YES NO
YES NO
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain,
verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will
ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license
or other identifying documents.
Important Information About Procedures For Opening A New Account
As part of your HELOC application we will order a property appraisal or a property
condition report (requires photos from the street).
Is the property visible from the street?
Will you be requesting American Savings Bank to pay off loans with proceeds of your Home Equity
Line of Credit account? (Please provide current account statements and complete account numbers.)
Will this loan be used to purchase the fee on your property?
© 2017 American Savings Bank, F.S.B.
17G200 (7/17)
Member FDIC
asbhawaii.com
Savings Bank
Applicant’s Signature Date
Home Equity Line of Credit Application
You are applying for a Home Equity Line of Credit account which will be secured by a mortgage on the property listed
on this application. You promise that the property will not be used for any illegal or restricted purpose and that all
statements made on this application are true and are made for obtaining the loan. You fully understand that it is a
federal crime punishable by fine or imprisonment, or both, to make intentional false statements concerning any of the
above facts as applicable under the provisions of Title 18, United States Code, Section 1014. You have read this
application and promise that everything you have stated in it is true. You are at least 18 years of age and either a U.S.
citizen or permanent resident. You agree to reimburse ASB for any expenses it incurs as a result of this loan request if
you should cancel before the loan closes or if this credit request is denied.
You (i) certify that all information provided in this application is correct and to the best of your knowledge, (ii) authorize
American Savings Bank (”ASB”) to verify your credit and employment history at any time, (iii) understand that ASB
retains this application whether or not approved.
By signing below, you also acknowledge that you have received the disclosures “Important Terms Of Our Home Equity
Line Of Credit” and “What you should know about home equity lines of credit” and had the opportunity to read them
before submitting this application form. You also acknowledge that if your application is approved, you must still sign
a Credit Agreement, a mortgage and other documents required by us and that ASB may keep some of its records in
digital or electronic format and that such records have the same legal effect as the paper version of those records.
X
Co-Applicant’s Signature Date
X
4 of 4
© 2017 American Savings Bank, F.S.B.
MKT-605W 17G200 (11/17)
Member FDIC
asbhawaii.com
Savings Bank
Property Address (Physical Address)
LenderCity State Zip
Balance
Owing
Monthly
Payment
Maintenance,
Taxes &
Insurance
Rental Income
(if applicable)
Savings Bank
Schedule of Real Estate Owned
Applicant’s Signature
X
Applicant’s Name
Member FDIC
asbhawaii.com
Date Co-Applicant’s Signature
X
Co-Applicant’s Name
Date
© 2017 American Savings Bank, F.S.B.
17G200 (7/17)
IMPORTANT TERMS of our HOME EQUITY LINE OF CREDIT
(Refinance Equity Express
SM
)
Retention of Information: This disclosure contains important information about our Equity Express Account Home Equity Line of Credit.
You should read it carefully and keep a copy for your records.
Availability of Terms: All of the terms described below are subject to change prior to opening your account. If these terms change (other
than the annual percentage rate) and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees
that you have paid to us or anyone else in connection with your application.
Security Interest: We will take a mortgage on your home. You could lose your home if you do not meet the obligations in your agreement
with us.
Possible Actions: We can terminate your account, require you to pay us the entire outstanding balance in one payment before the draw or
repayment periods end, and charge you certain fees if: 1) there is fraud or material misrepresentation by you in connection with your line;
2) you fail to make a payment when due or otherwise meet the repayment terms of your line for any outstanding balance; or 3) any action or
inaction by you adversely affects our security interest for your line or any right we have in the collateral (your home). Examples of acts by
you which may adversely affect our rights in the collateral including, but are not limited to, the following: if you transfer title to or sell the
collateral in a manner not permitted by the mortgage; if you fail to maintain or acquire insurance on your home; if you commit waste or other
destructive use or fail to maintain the collateral such that it adversely affects the value of the collateral; if you fail to pay property taxes or
assessments resulting in the filing of a lien senior to that of the mortgage; if you die; if the collateral is taken by condemnation: or if a prior
mortgage holder forecloses. We may suspend further advances or “freeze” your line or reduce your credit limit during the draw period if: 1)
the value of any dwelling that is part of the collateral declines significantly below its appraised value for purposes of your line; 2) we reasonably
believe that you will be unable to fulfill your repayment obligations under your line because of material change in your financial circumstances;
3) you are in default of any material obligations under the agreement; 4) we are prevented by government action from imposing the annual
percentage rate provided for in the agreement; 5) the priority of the lien of the mortgage is adversely affected by government action to the
extent that the value of our security is less than 120% of your balance under your line; or, 6) we are notified by our regulatory agency that
continued advances constitute an unsafe or unsound practice. The initial agreement permits us to make certain changes to the terms of the
agreement at specified times or upon the occurrence of specified events.
Draw Period: You can obtain credit advances two years from the date of your agreement unless your rights to obtain advances of credit are
otherwise suspended or canceled. The availability to obtain credit advances during the draw period is dependent on the amount of additional
principal payments made. During the draw period, payments will be due monthly. Your minimum monthly payment during the draw period is
described below. After the draw period ends, you will no longer be able to obtain credit advances and must repay the outstanding balance
as stated in the “Repayment Period” section of this disclosure.
Repayment Period: You will no longer be able to obtain credit advances two years from the date of your agreement. The length of the
repayment period will be eighteen years and begins immediately after the draw period expires. During the repayment period, payments will
be due monthly. Your minimum monthly payment during the repayment period is described below.
Minimum Payment Requirement Draw Period: Your minimum monthly payments will be equal to the sum of 0.25% of your outstanding
balance plus the finance charges, any credit insurance and any other charges that apply, including amounts past due, and late charges. The
minimum payment will not fully repay the principal that is outstanding on your line. You will then be required to pay the entire balance during
the repayment period.
Minimum Payment Requirement Repayment Period: Your minimum monthly payments will be equal to 1/216
th
of the outstanding
principal balance, determined as of the first day of the repayment period, plus all accrued finance charges, any credit insurance and any
other charges that apply, including amounts past due, and late charges.
Minimum Payment Example: If you made only the minimum payments and took no other credit advances, it would take twenty years to pay
off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE OF 5.75%. Because the line of credit has a draw period of two years
plus a repayment period of eighteen years, if your line was not renewed or extended and you make the minimum payments, you would make
24 monthly payments of $68.84 to $72.92 during the draw period, followed by 216 monthly principal and interest payments of about $43.81
to $88.72. An increase in the ANNUAL PERCENTAGE RATE may increase the amount of your monthly payment. Monthly payments are
approximations and vary due to minor variations in rounding.
Fees and Charges: To open and maintain a line of credit, you must pay certain fees to third parties. These fees generally total between $10.00
and $3,000.00 (American Savings Bank may waive any or all of these fees). If you ask, we will give you an itemization of the fees you will have
to pay to third parties. In addition to any third party fees, you must also pay us the following: (a) hazard/fire/flood insurance premiums for the
property if you do not obtain that insurance yourself and we elect at our option to obtain it for you as provided in the mortgage; (b) charges for
taxes, lease rent, assessments and other advances made at our option to protect the property as provided in the mortgage; (c) a fee paid to
each public official for the recordation of a release of mortgage of twenty-six to seventy-seven dollars ($26.00 - $77.00) (there may be more
than one public official); (d) Equity Express Card related charges such as statement reconciliation, research, replacement of lost, stolen, or
damaged cards, ATM fees and Visa International Service Assessment Fees; (e) if your line amount is more than $25,000.00, a fee of five
hundred ($500.00) will be charged if you request we close it within three (3) years from the Date of Agreement. We will not assess this fee if:
[i] your Credit Limit is $25,000 or less, [ii] you sell the Collateral to an unrelated/unaffiliated third-party, or [iii] you payoff your Agreement with
proceeds from a real estate secured loan from us; (f) a fee for notary service ($5.00 per signer); (g) a credit report fee ($2.48 per applicant);
(h) a recording of mortgage fee ($36.00 for land court/$41.00 for regular system/$77.00 for double-system); (i) a condo processing fee
($100.00); (j) a trust review and trust mortgage document preparation fee ($130.89 - $366.49); (k) a property valuation fee ($14.50) and
property condition report fee ($60.00). If a valuation is not available, the current tax assessed value and property inspection report or an
appraisal may be used. For home equity credit line requests over $250,000.00, in some situations an appraisal may be required. Appraisal
cost may vary from $500.00 - $1,500.00 depending on the property; (l) flood certification fee ($9.00); (m) mortgage/document preparation fee
($104.71); (n) title insurance fees based on the amount of the line of credit requested ($125-$3600); (o) Escrow services fee ($125.00 -
$1500.00); (p) Subordination fee ($300.00). Late Payment fee: 5% of the unpaid portion of the minimum amount due. The maximum late
charge is $30 per late payment. Returned Item Fee [due to insufficient funds] ($20.00). Replacement Card Fee ($20.00 per card). Expedited
Card Fee ($50 per request). Returned Mail Fee ($5 per month)
Escrow Payments: It is unlikely that we will require escrow payments. We may require escrow payments if they are not already collected by
another lender. We have the right to collect 1/12
th
of the yearly taxes, assessments, mortgage insurance, insurance and lease rent for your
property at the same time we collect your monthly payment. Collection of escrow payments allows us to make sure that these items are paid
and do not become liens on your property. We do not pay you interest on the amount of money in escrow. If you fail to make your escrow
payment, you will be in default and we can require immediate repayment of all money you owe us.
Property Insurance: You will be required to carry hazard insurance on the property that secures this plan. If your property is located in a
special flood hazard area, you will be required to maintain adequate flood insurance coverage.
Appraisal Report Delivery: We may order an appraisal or valuation to determine the property’s value and charge you for this appraisal. If
your application for credit is secured by a first lien on the property, we will promptly give you a copy of any appraisal/valuation, even if your
loan does not close. You will not be required to pay an additional amount to us to receive a copy of the appraisal/valuation report. Any
appraisal/valuation report used in connection with your loan application was prepared solely for our use in evaluating a request for an
extension of credit. The appraisal should not be relied upon by any other person or entity. We make no express or implied representation or
warranty of any kind, and we expressly disclaim any liability to any person or entity with respect to the property valuation. You can pay for
an additional appraisal for your own use at your own cost.
Minimum Draw and Balance Requirement: There is no minimum credit advance requirement. No minimum balance is required.
Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the line.
Variable-Rate Feature: This line has a variable-rate feature, and the annual percentage rate (corresponding to the periodic rate) and the
minimum payment can change as a result. The variable-rate feature applies to both the draw and repayment periods. Rate information will
be provided with each periodic statement. The annual percentage rate includes only interest and not other costs. The annual percentage rate
is based on the value of an index and is subject to a minimum and maximum rate as described in Rate Change, below. The index is computed
by us monthly as the highest prime rate on the last business day of the calendar month as published in the Money Rate section of the Wall
Street Journal. This index is used for the billing cycle beginning the following month. For example, the highest prime rate value on the last
business day of May would be used to determine the index for the billing cycle beginning in June and so on. To determine the annual
percentage rate that will apply to your line, we add a margin to the value of the index. The result of this addition will then be rounded up to
the nearest 1/8th of one percentage point (0.125%). Ask us for the current index value, margin, discount and annual percentage rate.
Rate Change: The annual percentage rate can change on the first day of each billing cycle. The ANNUAL PERCENTAGE RATE will never
be less than 5.00%. The maximum ANNUAL PERCENTAGE RATE that can apply is 18.00%. Except for this 5.00% floor” and 18.00% “cap,”
there is no limit on the rate changes during any year.
Maximum Rate and Payment Examples:
If you had an outstanding balance of $10,000, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 18.00% would be
$175 to $165.21 during the draw period, followed by 216 monthly principal plus interest payments ranging from $31.40 to $142.29. This
annual percentage rate could be reached during the first month of the line.
Historical Example: The table below shows how the ANNUAL PERCENTAGE RATE and the minimum monthly payments (except for minor
variations in rounding) for a single $10,000 credit advance would have changed based on changes in the index over the past 15 years. The
index values are from June 1
st
of each year. While only one payment amount per year is shown, payments would have varied
during each year. The table assumes that no additional credit advances were taken, that only the minimum payments were made each month,
and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments will change in the
future.
Refinance Equity Express: Payments during the first two years are 0.25% of the outstanding balance plus accrued interest (during draw
period) while payments during years 3 – 18 are principal plus interest payments (during the repayment period)).
Year
Index
(%)
Margin*
(%)
Annual
Percentage
Rate (%)
Minimum
Monthly
Payment ($)
Draw Period
2012
3.25%
1.00%
4.50%+
$62.50
2013
3.25%
1.00%
4.50%+
$60.65
Repayment Period
2014
3.25%
1.00%
4.50%+
$78.91
2015
3.25%
1.00%
4.50%+
$76.95
2016
3.25%
1.00%
4.50%+
$74.99
2017
4.00%
1.00%
5.00%+
$76.29
2018
4.75%
1.00%
5.75%
$78.69
*This is a margin we have used recently.
+4.50% Floor Rate applies
Fixed Rate Equity Loan Option (FRELO) Feature: Your line may include a fixed rate feature that applies to Fixed Rate Equity Loan
Options. The Fixed Rate Equity Loan Options may be added upon your request and if you and all named borrowers on the Equity Express
account executes the American Savings Bank Conversion to Equity Express with Fixed Rate Equity Loan Options Addendum to Equity
Express Agreement. You may select Fixed Rate Equity Loan Options only during the Draw Period. You can request to convert all or a
portion of your balance under your variable rate line of credit to one or more Fixed Rate Equity Loans (up to five options at any one time).
Each Fixed Rate Equity Loan will have a fixed rate of interest and repayment term. The minimum amount to establish a Fixed Rate Equity
Loan is based on the loan term selected and/or conditions established during a FRELO promotion. You may request a Fixed Rate Equity
Loan by visiting any of our branches or by calling our Customer Banking Center at (808) 627-6900 or toll-free (800) 272-2566. We will offer
you a selection of current terms (3 years to 15 years) from which you may select a Fixed Rate Equity Loan at prevailing rates. In order to
establish a Fixed Rate Equity Loan, your account must meet all of the following requirements: 1) No default exists under the credit line
account at the time you request the Fixed Rate Equity Loan; 2) There are no more than five Fixed Rate Equity Loans in effect after you
have established a Fixed Rate Equity Loan; and, 3) You request the Fixed Rate Equity Loan during the Draw Period. Once established,
the Fixed Rate Equity Loan will remain at a fixed rate of interest until it is paid in full or a new Variable Rate Line of Credit advance is used
to pay off the Fixed Rate Equity Loan provided you have sufficient available credit. The ANNUAL PERCENTAGE RATE includes only
interest and no other costs. Credit reporting bureaus may report the FRELO on its own trade line that is separated from your Equity
Express account.
Interest Rate for Fixed Rate Equity Loan: Rates are based on the term being requested. You may contact any of our branches for prevailing
rates.
Minimum Payment Requirements for Fixed Rate Equity Loan: You will receive separate monthly billing statements for your Variable Rate
Line of Credit and any Fixed Rate Equity Loans that you establish. You will make monthly payments for each outstanding Fixed Rate Equity
Loan Option in addition to the monthly payments for the Variable Rate Line of Credit portion. Your total monthly minimum payment will equal
the sum of (i) the minimum payment due on your Variable Rate Line of Credit described in the applicable sections above, plus (ii) the minimum
payments due on all Fixed Rate Equity Loans you established. The minimum payment will include principal and interest based on an
amortization of the loan amount at the rate for the term you select when establishing the Fixed Rate Equity Loan. The following table shows
the number and amount of the payment for each repayment term at the ANNUAL PERCENTAGE RATE indicated if you converted a
$10,000.00 portion of the Variable Rate Line of Credit to the Fixed Rate Equity Loan Option and you made only the minimum payments.
Term
Number of
Payments
ANNUAL
PERCENTAGE
RATE (%)
Minimum
Payment ($)
3-Year Term
36
6.00% $304.22
5-Year Term
60
6.25% $194.49
7-Year Term
84
6.75% $149.71
10-Year Term
120
7.00%
$116.11
15-Year Term
180
7.50%
$ 92.70
The table shows the ANNUAL PERCENTAGE RATES for owner occupant in effect on 08/16/18. Contact ASB for
current APRs and monthly payment calculations for your specific situation.
Fees and Charges for Fixed Rate Equity Loan: A Loan Modification fee of $250 will be assessed for each request to modify any of the
terms made to Your existing Fixed Rate Equity Loan Option (such as, but not limited to, the rate, monthly payment, or duration of the loan).
If the modifications are approved, You must pay the fee before We make the changes. This fee will not be charged for early paydown or
payoff of a Fixed Rate Equity Loan Option. If using your Equity Express, it must have enough funds to paydown or payoff the loan.
CIL-037B Rev. 08/16/2018
January 2014
What you should know
about home equity
lines of credit
Consumer Financial
Protection Bureau
2
This booklet was initially prepared by the Board of Governors of the Federal Reserve System. The
Consumer Financial Protection Bureau (CFPB) has made technical updates to the booklet to
reflect new mortgage rules under Title XIV of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act). A larger update of this booklet is planned in the
future to reflect other changes under the Dodd-Frank Act and to align with other CFPB
resources and tools for consumers as part of the CFPB’s broader mission to educate consumers.
Consumers are encouraged to visit the CPFB’s website at consumerfinance.gov/owning-a-home
to access interactive tools and resources for mortgage shoppers, which are expected to be available
beginning in 2014.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
3 WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
Table of contents
Table of contents......................................................................................................... 3
1. Introduction ........................................................................................................... 4
1.1 Home equity plan checklist ...................................................................... 4
2. What is a home equity line of credit? ................................................................. 6
2. 1 What should you look for when shopping for a plan? ............................. 7
2. 2 Costs of establishing and maintaining a home equity line ...................... 8
2. 3 How will you repay your home equity plan? ............................................ 9
2. 4 Line of credit vs. traditional second mortgage loans ............................. 10
2. 5 What if the lender freezes or reduces your line of credit? ...................... 11
Appendix A: ............................................................................................................... 12
Defined terms .................................................................................................. 12
Appendix B: ............................................................................................................... 15
More information .............................................................................................15
Appendix C: ............................................................................................................... 16
Contact information ........................................................................................ 16
4
1. Introduction
If you are in the market for credit, a home equity plan is one of several options that might be
right for you. Before making a decision, however, you should weigh carefully the costs of a home
equity line against the benefits. Shop for the credit terms that best meet your borrowing needs
without posing undue financial risks. And remember, failure to repay the amounts you’ve
borrowed, plus interest, could mean the loss of your home.
1.1 Home equity plan checklist
Ask your lender to help you fill out this worksheet.
Basic features for comparison Plan A Plan B
Fixed annual percentage rate % %
Variable annual percentage rate
% %
Index used and current value % %
Amount of margin
Frequency of rate adjustments
Amount/length of discount (if any)
Interest rate cap and floor
Length of plan
Draw period
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
5 WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
Basic features for comparison (continued) Plan A Plan B
Repayment period
Initial fees
Application fee
Appraisal fee
Up-front charges, including points
Closing costs
Repayment terms
During the draw period
Interest and principal payments
Interest-only payments
Fully amortizing payments
When the draw period ends
Balloon payment?
Renewal available?
Refinancing of balance by lender?
6
2. What is a home equity line of
credit?
A home equity line of credit is a form of revolving credit in which your home serves as collateral.
Because a home often is a consumer’s most valuable asset, many homeowners use home equity
credit lines only for major items, such as education, home improvements, or medical bills, and
choose not to use them for day-to-day expenses.
With a home equity line, you will be approved for a specific amount of credit. Many lenders set
the credit limit on a home equity line by taking a percentage (say, 75 percent) of the home’s
appraised value and subtracting from that the balance owed on the existing mortgage. For
example:
In determining your actual credit limit, the lender will also consider your ability to repay the
loan (principal and interest) by looking at your income, debts, and other financial obligations as
well as your credit history.
Many home equity plans set a fixed period during which you can borrow money, such as 10
years. At the end of this “draw period,” you may be allowed to renew the credit line. If your plan
Appraised value of home $100,000
Percentage x 75%
Percentage of appraised value = $75,000
Less balance owed on mortgage – $40,000
Potential line of credit $35,000
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
7
does not allow renewals, you will not be able to borrow additional money once the period has
ended. Some plans may call for payment in full of any outstanding balance at the end of the
period. Others may allow repayment over a fixed period (the “repayment period”), for example,
10 years.
Once approved for a home equity line of credit, you will most likely be able to borrow up to your
credit limit whenever you want. Typically, you will use special checks to draw on your line.
Under some plans, borrowers can use a credit card or other means to draw on the line.
There may be other limitations on how you use the line. Some plans may require you to borrow
a minimum amount each time you draw on the line (for example, $300) or keep a minimum
amount outstanding. Some plans may also require that you take an initial advance when the line
is set up.
2.1 What should you look for when
shopping for a plan?
If you decide to apply for a home equity line of credit, look for the plan that best meets your
particular needs. Read the credit agreement carefully, and examine the terms and conditions of
various plans, including the annual percentage rate (APR) and the costs of establishing the plan.
Remember, though, that the APR for a home equity line is based on the interest rate alone and
will not reflect closing costs and other fees and charges, so you’ll need to compare these costs, as
well as the APRs, among lenders.
2.1.1 Variable interest rates
Home equity lines of credit typically involve variable rather than fixed interest rates. The
variable rate must be based on a publicly available index (such as the prime rate published in
some major
daily newspapers or a U.S. Treasury bill rate). In such cases, the
interest rate you pay
for the line of credit will change, mirroring changes in the value of the index. Most lenders cite
the interest rate you will pay as the value of the index at a particular time, plus a “margin,” such
as 2 percentage points. Because the cost of borrowing is tied directly to the value of the index, it
is important to find out which index is used, how often the value of the index changes, and how
high it has risen in the past. It is also important to note the amount of the margin.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
8
Lenders sometimes oer a temporarily discounted interest rate for home equity lines—an
“introductory” rate that is unusually low for a short period, such as six months.
Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much your
interest rate may increase over the life of the plan. Some variable-rate plans limit how much your
payment may increase and how low your interest rate may fall if the index drops.
Some lenders allow you to convert from a variable interest rate to a fixed rate during the life of
the plan, or let you convert all or a portion of your line to a fixed-term installment loan.
2.2 Costs of establishing and maintaining a
home equity line
Many of the costs of setting up a home equity line of credit are similar to those you pay when
you get a mortgage. For example:
A fee for a property appraisal to estimate the value of your home;
An application fee, which may not be refunded if you are turned down for credit;
Up-front charges, such as one or more “points” (one point equals 1 percent of the credit
limit); and
Closing costs, including fees for attorneys, title search, mortgage preparation and filing,
property and title insurance, and taxes.
In addition, you may be subject to certain fees during the plan period, such as annual
membership or maintenance fees and a transaction fee every time you draw on the credit line.
You could find yourself paying hundreds of dollars to establish the plan. And if you were to draw
only a small amount against your credit line, those initial charges would substantially increase
the cost of the funds borrowed. On the other hand, because the lender’s risk is lower than for
other forms of credit, as your home serves as collateral, annual percentage rates for home equity
lines are generally lower than rates for other types of credit. The interest you save could oset
the costs of establishing and maintaining the line. Moreover, some lenders waive some or all of
the closing costs.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
9
2.3 How will you repay your home equity
plan?
Before entering into a plan, consider how you will pay back the money you borrow. Some plans
set a minimum monthly payment that includes a portion of the principal (the amount you
borrow) plus accrued interest. But, unlike with typical installment loan agreements, the portion
of your payment that goes toward principal may not be enough to repay the principal by the end
of the term. Other plans may allow payment of only the interest during the life of the plan, which
means that you pay nothing toward the principal. If you borrow $10,000, you will owe that
amount when the payment plan ends.
Regardless of the minimum required payment on your home equity line, you may choose to pay
more, and many lenders oer a choice of payment options. However, some lenders may require
you to pay special fees or penalties if you choose to pay more, so check with your lender. Many
consumers choose to pay down the principal regularly as they do with other loans. For example,
if you use your line to buy a boat, you may want to pay it o as you would a typical boat loan.
Whatever your payment arrangements during the life of the plan—whether you pay some, a
little, or none of the principal amount of the loan—when the plan ends, you may have to pay the
entire balance owed, all at once. You must be prepared to make this “balloon payment” by
refinancing it with the lender, by obtaining a loan from another lender, or by some other means.
If you are unable to make the balloon payment, you could lose your home.
If your plan has a variable interest rate, your monthly payments may change. Assume, for
example, that you borrow $10,000 under a plan that calls for interest-only payments. At a 10
percent interest rate, your monthly payments would be $83. If the rate rises over time to 15
percent, your monthly payments will increase to $125. Similarly, if you are making payments
that cover interest plus some portion of the principal, your monthly payments may increase,
unless your agreement calls for keeping payments the same throughout the plan period.
If you sell your home, you will probably be required to pay o your home equity line in full
immediately. If you are likely to sell your home in the near future, consider whether it makes
sense to pay the up-front costs of setting up a line of credit. Also keep in mind that renting your
home may be prohibited under the terms of your agreement.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
10
2.4 Line of credit vs. traditional second
mortgage loans
If you are thinking about a home equity line of credit, you might also want to consider a
traditional second mortgage loan. This type of loan provides you with a fixed amount of money,
repayable over a fixed period. In most cases, the payment schedule calls for equal payments that
pay o the entire loan within the loan period. You might consider a second mortgage instead of a
home equity line if, for example, you need a set amount for a specific purpose, such as an
addition to your home.
In deciding which type of loan best suits your needs, consider the costs under the two
alternatives. Look at both the APR and other charges. Do not, however, simply compare the
APRs, because the APRs on the two types of loans are figured dierently:
The APR for a traditional second mortgage loan takes into account the interest rate
charged plus points and other finance charges.
The APR for a home equity line of credit is based on the periodic interest rate alone. It
does not include points or other charges.
2.4.1 Disclosures from lenders
The federal Truth in Lending Act requires lenders to disclose the important terms and costs of
their home equity plans, including the APR, miscellaneous charges, the payment terms, and
information about any variable-rate feature. And in general, neither the lender nor anyone else
may charge a fee until after you have received this information. You usually get these disclosures
when you receive an application form, and you will get additional disclosures before the plan is
opened. If any term (other than a variable-rate feature) changes before the plan is opened, the
lender must return all fees if you decide not to enter into the plan because of the change.
Lenders are also required to provide you with a list of homeownership counseling organizations
in your area.
When you open a home equity line, the transaction puts your home at risk. If the home involved
is your principal dwelling, the Truth in Lending Act gives you three days from the day the
account was opened to cancel the credit line. This right allows you to change your mind for any
reason. You simply inform the lender in writing within the three-day period. The lender must
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
11
then cancel its security interest in your home and return all fees— including any application and
appraisal fees—paid to open the account.
The Home Ownership and Equity Protection Act of 1994 (HOEPA) addresses certain unfair
practices and establishes requirements for certain loans with high rates and fees, including
certain additional disclosures. HOEPA now covers some HELOCs. You can find out more
information by contacting the CFPB at the website address and phone number listed in the
Contact information appendix, below.
2.5 What if the lender freezes or reduces
your line of credit?
Plans generally permit lenders to freeze or reduce a credit line if the value of the home “declines
significantly” or when the lender “reasonably believes” that you will be unable to make your
payments due to a “material change” in your financial circumstances. If this happens, you may
want to:
Talk with your lender. Find out what caused the lender to freeze or reduce your credit
line and what, if anything, you can do to restore it. You may be able to provide additional
information to restore your line of credit, such as documentation showing that your
house has retained its value or that there has not been a “material change” in your
financial circumstances. You may want to get copies of your credit reports (go to the
CFPB’s website at consumerfinance.gov/askcfpb/5/can-i-review-my-credit-report.html
for information about how to get free copies of your credit reports) to make sure all the
information in them is correct. If your lender suggests getting a new appraisal, be sure
you discuss appraisal firms in advance so that you know they will accept the new
appraisal as valid.
Shop around for another line of credit. If your lender does not want to restore
your line of credit, shop around to see what other lenders have to oer. If another lender
is willing to offer you a line of credit, you may be able to pay o your original line of
credit and take out another one. Keep in mind, however, that you may need to pay some
of the same application fees you paid for your original line of credit.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
12
APPENDIX A:
Defined terms
This glossary provides general definitions for terms commonly used in the real estate market.
They may have different legal meanings depending on the context.
DEFINED TERM
ANNUAL
MEMBERSHIP OR
MAINTENANCE FEE
An annual charge for access to a financial product such as a line of credit,
credit card, or account. The fee is charged regardless of whether or not
the product is used
ANNUAL
PERCENTAGE RATE
(APR)
The cost of credit, expressed as a yearly rate. For closed-end credit, such
as car loans or mortgages, the APR includes the interest rate, points,
broker fees, and other credit charges that the borrower is required to pay.
An APR, or an equivalent rate, is not used in leasing agreements.
APPLICATION FEE
Fees charged when you apply for a loan or other credit. These fees may
include charges for property appraisal and a credit report.
BALLOON PAYMENT
A large extra payment that may be charged at the end of a mortgage loan
or lease.
CAP (INTEREST
RATE)
A limit on the amount that your interest rate can increase. Two types of
interest-rate caps exist. Periodic adjustment caps limit the interest-rate
increase from one adjustment period to the next. Lifetime caps limit the
interest-rate increase over the life of the loan. By law, all adjustable-rate
mortgages have an overall cap.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
13
CLOSING OR
SETTLEMENT COSTS
Fees paid when you close (or settle) on a loan. These fees may include
application fees; title examination, abstract of title, title insurance, and
property survey fees; fees for preparing deeds, mortgages, and
settlement documents; attorneys’ fees; recording fees; estimated costs of
taxes and insurance; and notary, appraisal, and credit report fees. Under
the Real Estate Settlement Procedures Act, the borrower receives a good
faith estimate of closing costs within three days of application. The good
faith estimate lists each expected cost as an amount or a range.
CREDIT LIMIT
The maximum amount that may be borrowed on a credit card or under a
home equity line of credit plan.
EQUITY
The dierence between the fair market value of the home and the
outstanding balance on your mortgage plus any outstanding home equity
loans.
INDEX
The economic indicator used to calculate interest-rate adjustments for
adjustable-rate mortgages or other adjustable-rate loans. The index rate
can increase or decrease at any time. See also Selected index rates for
ARMs over an 11-year period
(consumerfinance.gov/f/201204_CFPB_ARMs-brochure.pdf) for examples
of common indexes that have changed in the past.
INTEREST RATE
The percentage rate used to determine the cost of borrowing money,
stated usually as a percentage of the principal loan amount and as an
annual rate.
MARGIN
The number of percentage points the lender adds to the index rate to
calculate the adjustable-rate-mortgage interest rate at each adjustment.
MINIMUM PAYMENT
The lowest amount that you must pay (usually monthly) to keep your
account in good standing. Under some plans, the minimum payment may
cover interest only; under others, it may include both principal and
interest.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
14
POINTS (ALSO
CALLED DISCOUNT
POINTS)
One point is equal to 1 percent of the principal amount of a mortgage
loan. For example, if a mortgage is $200,000, one point equals $2,000.
Lenders frequently charge points in both fixed-rate and adjustable-rate
mortgages to cover loan origination costs or to provide additional
compensation to the lender or broker. These points usually are paid at
closing and may be paid by the borrower or the home seller, or may be
split between them. In some cases, the money needed to pay points can
be borrowed (incorporated in the loan amount), but doing so will increase
the loan amount and the total costs. Discount points (also called discount
fees) are points that you voluntarily choose to pay in return for a lower
interest rate.
SECURITY INTEREST
If stated in your credit agreement, a creditor, lessor, or assignee’s legal
right to your property (such as your home, stocks, or bonds) that secures
payment of your obligation under the credit agreement. The property that
secures payment of your obligation is referred to as “collateral.”
TRANSACTION FEE
Fee charged each time a withdrawal or other specified transaction is
made on a line of credit, such as a balance transfer fee or a cash advance
fee.
VARIABLE RATE
An interest rate that changes periodically in relation to an index, such as
the prime rate. Payments may increase or decrease accordingly.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
15
APPENDIX B:
More information
For more information about mortgages, including home equity lines of credit, visit
consumerfinance.gov/mortgage. For answers to questions about mortgages and other financial
topics, visit consumerfinance.gov/askcfpb. You may also visit the CFPB’s website at
consumerfinance.gov/owning-a-home to access interactive tools and resources for mortgage
shoppers, which are expected to be available beginning in 2014.
Housing counselors can be very helpful, especially for first-time home buyers or if you’re having
trouble paying your mortgage. The U.S. Department of Housing and Urban Development (HUD)
supports housing counseling agencies throughout the country that can provide free or low-cost
advice. You can search for HUD-approved housing counseling agencies in your area on the
CFPB’s web site at consumerfinance.gov/find-a-housing-counselor or by calling HUD’s
interactive toll-free number at 800-569-4287.
The company that collects your mortgage payments is your loan servicer. This may not be the
same company as your lender. If you have concerns about how your loan is being serviced or
another aspect of your mortgage, you may wish to submit a complaint to the CFPB at
consumerfinance.gov/complaint or by calling (855) 411-CFPB (2372).
When you submit a complaint to the CFPB, the CFPB will forward your complaint to the
company and work to get a response. Companies have 15 days to respond to you and the
CFPB. You can review the company’s response and give feedback to the CFPB.
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
16
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
APPENDIX C:
Contact information
For additional information or to submit a complaint, you can contact the CFPB or one of the
other federal agencies listed below, depending on the type of institution. If you are not sure
which agency to contact, you can submit a complaint to the CFPB and if the CFPB determines
that another agency would be better able to assist you, the CFPB will refer your complaint to
that agency and let you know.
Regulatory agency Regulated entities Contact information
Consumer Financial
Protection Bureau (CFPB)
P.O. Box 4503
Iowa City, IA 52244
Insured depository institutions and
credit unions with assets greater
than $10 billion (and their affiliates),
and non-bank providers of
consumer financial products and
services, including mortgages, credit
cards, debt collection, consumer
reports, prepaid cards, private
education loans, and payday
lending
(855) 411-CFPB (2372)
consumerfinance.gov
consumerfinance.gov/
complaint
Board of Governors of the
Federal Reserve System
(FRB)
Consumer Help
P.O. Box 1200
Minneapolis, MN 55480
Federally insured state-chartered
bank members of the Federal
Reserve System
(888) 851-1920
federalreserveconsumerhelp.gov
17
Regulatory agency Regulated entities Contact information
Office of the Comptroller
of the Currency (OCC)
Customer Assistance Group
1301 McKinney Street
Suite 3450
Houston, TX 77010
National banks and federally
chartered savings
banks/associations
(800) 613-6743
occ.treas.gov
helpwithmybank.gov
Federal Deposit Insurance
Corporation (FDIC)
Consumer Response Center
1100 Walnut Street,
Box #11
Kansas City, MO 64106
Federally insured state-chartered
banks that are not members of the
Federal Reserve System
(877) ASK-FDIC or
(877) 275-3342
fdic.gov
fdic.gov/consumers
Federal Housing Finance
Agency (FHFA) Consumer
Communications
Constitution Center
400 7th Street, S.W.
Washington, DC 20024
Fannie Mae, Freddie Mac, and the
Federal Home Loan Banks
Consumer Helpline
(202) 649-3811
fhfa.gov
fhfa.gov/Default.aspx?Page=3
69
ConsumerHelp@fhfa.gov
National Credit Union
Administration (NCUA)
Consumer Assistance
1775 Duke Street
Alexandria, VA 22314
Federally chartered credit unions
(800) 755-1030
ncua.gov
mycreditunion.gov
Federal Trade
Commission (FTC)
Consumer Response Center
600 Pennsylvania Ave, N.W.
Washington, DC 20580
Finance companies, retail stores,
auto dealers, mortgage companies
and other lenders, and credit
bureaus
(877) FTC-HELP or
(877) 382-4357
ftc.gov
ftc.gov/bcp
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
18
Regulatory agency Regulated entities Contact information
Securities and Exchange
Commission (SEC)
Complaint Center
100 F Street, N.E.
Washington, DC 20549
Brokerage firms, mutual fund
companies, and investment advisers
(202) 551-6551
sec.gov
sec.gov/complaint/select.shtml
Farm Credit
Administration Office of
Congressional and Public
Affairs
1501 Farm Credit Drive
McLean, VA 22102
Agricultural lenders
(703) 883-4056
fca.gov
Small Business
Administration (SBA)
Consumer Affairs
409 3
rd
Street, S.W.
Washington, DC 20416
Small business lenders
(800) U-ASK-SBA or
(800) 827-5722
sba.gov
Commodity Futures
Trading Commission
(CFTC)
1155 21
st
Street, N.W.
Washington, DC 20581
Commodity brokers, commodity
trading advisers, commodity pols,
and introducing brokers
(866) 366-2382
cftc.gov/consumer-protection
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
19
Regulatory agency Regulated entities Contact information
U.S. Department of
Justice (DOJ)
Civil Rights Division
950 Pennsylvania Ave, N.
W.
Housing and Civil
Enforcement Section
Washington DC 20530
Fair lending and housing issues
(202) 514-4713
TTY–(202) 305-1882
FAX–(202) 514-1116
To report an incident of
housing discrimination:
1-800-896-7743
fairhousing@usdoj.gov
Department of Housing
and Urban Development
(HUD) Office of Fair
Housing/Equal Opportunity
451 7
th
Street, S.W.
Washington, DC 20410
Fair lending and housing issues
(800) 669-9777
hud.gov/complaints
WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT
PID 20160301
PUBLIC INFORMATION NOTICE PURSUANT TO
HAWAII REVISED STATUTES SECTION 667-41
WHAT IS FORECLOSURE?
This notice informs you regarding a lender's right to foreclose in the event of a default on the
loan you have applied for or are considering if your home is used to secure its repayment.
The mortgage agreement or contract that you may enter into states that in the event the
amounts due under the loan are not paid when they are due, or for other reasons you do not
perform your promises in the note and mortgage, all of which are known as defaults, the
lender shall have the option to foreclose the mortgage, which will result in a sale of your
home.
The entity or person who holds your mortgage ("Mortgagee") may send you a notice
informing you that the Mortgagee is starting foreclosure proceedings. You should not wait for
that to happen; take steps to prevent a foreclosure as soon as you are having trouble paying
your mortgage. You should contact your lender or your lender's loan servicer, or you may
contact a budget and credit counselor or housing counselor, to discuss your situation.
STEP ONE: NOTICE OF DEFAULT. The first step in the foreclosure process is the
Mortgagee usually sends you a written notice of default, which occurs after you are past due
on your mortgage payment. The Mortgagee will tell you in the notice how much time you
have to pay the required amount that is past due and, by paying, will return your loan to good
standing.
STEP TWO: PROCEEDING TO FORECLOSURE. If you do not pay the required amount
past due by the deadline in the notice of default, the Mortgagee may elect to proceed to
collect the balance due on your loan through foreclosure. In Hawaii, there are two types of
foreclosures: judicial and nonjudicial.
In a JUDICIAL FORECLOSURE, the Mortgagee files a lawsuit against you in order to obtain
a court judgment that you owe the balance due under your loan and to obtain an order to sell
the property. The initial legal document you will receive in the lawsuit is called the complaint.
You should consult an attorney of your choice who can advise you as to the steps needed to
protect your rights. Judicial foreclosure involves the sale of the mortgaged property under the
supervision of the court. You will receive notice of the foreclosure case hearings and the sale
date and the judicial decision is announced after a hearing in court. The sale of the property
must be approved by the court before it can be completed.
In a NONJUDICIAL FORECLOSURE, the process follows the procedures spelled out in
Chapter 667 of the Hawaii Revised Statutes and in your mortgage. The nonjudicial
procedures allow a Mortgagee to foreclose on and sell the property identified in the mortgage
without filing a lawsuit or court supervision. This nonjudicial foreclosure is also called a
power of sale foreclosure. The Mortgagee starts the process by giving you a written notice of
default and of the Mortgagee's intent to sell the property.
After the required time has elapsed, you will be sent a notice of nonjudicial foreclosure sale,
which will tell you the date and location of the sale.
In a NONJUDICIAL foreclosure, if you own an interest in the property you may have the right
to participate in the Mortgage Foreclosure Dispute Resolution Program or to convert the
nonjudicial foreclosure into a judicial foreclosure. The non-judicial foreclosure may not
proceed during the dispute resolution process or after it has been converted to a judicial
foreclosure.
PLEASE NOTE: Even if a judicial or nonjudicial foreclosure has commenced, you may be
able to reinstate the loan and keep your home if you pay the delinquent amount then due
PID 20160301
and the foreclosure expenses that your Mortgagee has incurred. You must contact the
Mortgagee as soon as possible to determine whether reinstatement is possible.
STEP THREE: PUBLIC SALE. The sale of a foreclosed home is usually made through a
public auction, where the highest bidder who can make a cash deposit of up to 10% of the
bid can buy the property. In a judicial foreclosure, the court appoints a third party
commissioner to advertise and conduct the sale. In a nonjudicial foreclosure, the Mortgagee
advertises and conducts the sale. In both types of sales, the Mortgagee has the right to buy
the property by submitting a credit bid based upon the balance owed on the mortgage, so
long as its bid is higher than any other bids. If the Mortgagee buys the property, the
Mortgagee has the right to re-sell it in a private sale at a later date.
STEP FOUR: DISBURSEMENT OF PROCEEDS; POTENTIAL DEFICIENCY JUDGMENT.
After the foreclosure sale is completed, the proceeds are paid out to lien holders, including
the Mortgagee, in the order set by law and lastly to you if there are any proceeds left.
In a JUDICIAL FORECLOSURE, the court tells the commissioner whom to pay and how
much. If the property did not sell for enough to pay off the balance due under your loan, the
Mortgagee has the right to ask the court for a deficiency judgment against you for the
difference.
In a NONJUDICIAL FORECLOSURE, the Mortgagee distributes the proceeds from the sale.
If you are an owner-occupant, the law prohibits a deficiency judgment against you unless the
debt is secured by other collateral.
READ THE NOTE AND MORTGAGE CAREFULLY TO UNDERSTAND WHAT IS
REQUIRED AND HOW TO AVOID FORECLOSURE, AND CONSULT WITH AN
ATTORNEY REGARDING YOUR LEGAL RIGHTS.
Rev. 9/2010
FACTS
WHAT DOES AMERICAN SAVINGS BANK, F.S.B.,
DO WITH YOUR PERSONAL INFORMATION?
Why?
Financial companies choose how they share your personal information. Federal law gives
consumers the right to limit some but not all sharing. Federal law also requires us to tell
you how we collect, share, and protect your personal information. Please read this notice
carefully to understand what we do.
What?
The types of personal information we collect and share depend on the product or service
you have with us. This information can include:
Social Security number and income
Account balances and account transactions
Payment history and wire transfer instructions
When you are no longer our customer, we continue to share your information as described
in this notice.
How?
All financial companies need to share customers’ personal information to run their everyday
business. In the section below, we list the reasons financial companies can share their
customers’ personal information; the reasons American Savings Bank chooses to share;
and whether you can limit this sharing.
Reasons we can share your personal information
Does American Savings
Bank share?
Can you limit this
sharing?
For our everyday business purposes –
such as to process your transactions, maintain your
account(s), respond to court orders and legal
investigations, or report to credit bureaus
Yes No
For our marketing purposes –
to offer our products and services to you
Yes No
For joint marketing with other financial companies
Yes No
For our affiliates’ everyday business purposes –
information about your transactions and experiences
No We don’t share
For our affiliates’ everyday business purposes –
information about your creditworthiness
No We don’t share
For nonaffiliates to market to you
No We don’t share
Questions?
Call: 808-627-6900 (Oahu) or 1-800-272-2566 (Neighbor Islands and Mainland)
Rev. 9/2010
Page 2
What we do
How does American Savings Bank
protect my personal information?
To protect your personal information from unauthorized access and use,
we use security measures that comply with federal law. These measures
include computer safeguards and secured files and buildings.
How does American Savings Bank
collect my personal information?
We collect your personal information, for example, when you
Open an account or give us your income information
Apply for a loan or give us your contact information
Make deposits or withdrawals from your account
We al
so collect your personal information from others, such as credit
bureaus, affiliates, or other companies.
Why can’t I limit all sharing?
Federal law gives you the right to limit only
Sharing for affiliates’ everyday business purposes – information about
your credit
worthines
s
Affiliates from using your information to market to you
Sharing for nonaffiliates to market to you
State laws an
d individual companies may give you additional rights to
limit sharing.
Definitions
Affiliates
Companies related by common ownership or control. They can be
financial and nonfinancial companies.
American Savings Bank does not share with our affiliates.
Nonaffiliates
Companies not related by common ownership or control. They can be
financial and nonfinancial companies.
American Savings Bank does not share with nonaffiliates so they can
mark
et to you.
Joint marketing
A formal agreement between nonaffiliated financial companies that
together market financial products or services to you.
Our joint marketing partners include insurance companies and
financi
al services companies.
MKT015 (09/10)
HOMEOWNERSHIP COUNSELING NOTICE
Housing counseling agencies approved by the U.S. Department of Housing and Urban Development
(HUD) can offer independent advice about whether a particular set of mortgage loan terms is a good fit
based on your objectives and circumstances, often at little or no cost.
If you are interested in contacting a HUD-approved housing counseling agency in your area,
you can visit the Consumer Financial Protection Bureau’s (CFPB) website,
www.consumerfinance.gov/find-a-housing-counselor, and enter your zip code.
You can also access HUD’s housing counseling agency website via
www.consumerfinance.gov/mortgagehelp.
For additional assistance with locating a housing counseling agency, call the CFPB at 1-855-411-CFPB
(2372).
Effective January 1, 2017
PREFERRED CREDITLINE
SM
Annual Fee $25
Late Payment Fee 5% of minimum amount due
Overlimit Fee $29
Stop Payment Fee $30
Returned Item
(due to insufficient funds) $25
Statement Reconciliation $10 per half hour
Research Request $10 per half hour
Returned Mail Fee $5 per month
INSTALLMENT LOAN Personal Unsecured Loan, Savings Secured Loan, Equity PowerLoan
SM
& Auto Loan
Late Payment Fee 5% of minimum amount due
Returned Item
(due to insufficient funds) $25
Statement Reconciliation $10 per half hour
Research Request $10 per half hour
Returned Mail Fee $5 per month
6-MONTH CLEAN ENERGY LOAN (for new accounts opened November 22, 2013)
Early Loan Payoff Fee $500 (if loan is paid off within the first 12 months of the Agreement Date)
Returned Mail Fee $5 per month
EQUITY EXPRESS
SM
HOME EQUITY LINE OF CREDIT
Late Payment Fee $30 or 5% of the unpaid portion of the minimum amount due, whichever is lesser
ATM Transaction Fee FREE (transaction at American Savings Bank Money ExpressSM ATMs*)
Overlimit Fee $29
Stop Payment Fee $30
Returned Item
(due to insufficient funds) $25
Statement Reconciliation $10 per half hour
Research Request $10 per half hour
Replacement Card Fee $20 per card
Expedited Card Fee $50 per request
Early Closing Fee $500
(if your line is more than $25,000 and you close it within 3 years of your
Agreement Date; the fee is not charged if your line is (i) $25,000 or less, (ii) you sell
your home, or (iii) in the event of an American Savings Bank refinance)
Subordination Fee $300
Returned Mail Fee $5 per month
PERSONAL LINE OF CREDIT
Annual Fee $25
Late Payment Fee $26 or 5% of minimum amount due, whichever is less
ATM Transaction Fee FREE
(transaction at American Savings Bank Money Express
SM
ATMs*)
Stop Payment Fee $30
Returned Item (due to insufficient funds) $25
Statement Reconciliation $10 per half hour
Research Request $10 per half hour
Replacement Card Fee $20 per card
Expedited Card Fee $50 per request
Returned Mail Fee $5 per month
*Some ATM operators impose transaction fees that are separate from the ATM fee listed here. Applicable fees should be disclosed at the beginning of your
transaction.
Member FDIC asbhawaii.com
CONSUMER LOAN FEE SCHEDULE
MPD-004 (10I308.1) 01012017
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