Adjustable Rate Mortgage (ARM) Application Kit

Transcription

1 Adjustable Rate Mortgage (ARM) Application Kit Thank you for your interest in Columbia Bank s mortgage products. To help expedite the processing of your loan application, please be sure that: You review the application instructions carefully, Your application package is fully completed and signed, All of the forms and disclosures in the application kit are completed and signed, The required documentation (as outlined in the Application Instructions) is included with your application submission, You download and review the following booklet: Federal Reserve Brochure: Consumer Handbook on Adjustable Rate Mortgages If you would prefer us to mail you a copy of this booklet, please contact us at Your completed application package is forwarded to: Columbia Bank Attn: Mortgage Dept Route 208 North Fair Lawn, NJ References to other resources that you may find useful are included below: Federal Reserve Brochure: 5 Tips for Shopping for a Mortgage Federal Reserve Brochure: A Consumer's Guide to Mortgage Refinancings Federal Reserve Brochure: A Consumer's Guide to Mortgage Lock-Ins Federal Reserve Brochure: A Consumer's Guide to Mortgage Settlement Costs If you have any questions, please contact us at and we will be happy to assist you. Thank you for the opportunity to serve you.

2 APPLICATION INSTRUCTIONS IF YOU HAVE ANY QUESTIONS PLEASE CONTACT US AT: IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: 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. To help expedite the processing of your loan application, please complete the following checklist and provide the required documentation with your application submission. Please check the corresponding box indicating that the information is enclosed or mark the box with a N/A if the item is not applicable. We will not be able to process an incomplete loan application. 1 Your application should be completed in its entirety and signed. Please print clearly or type. 2 You should review, sign and date the appropriate adjustable rate mortgage (ARM) Disclosure Form. Please note that you only need to complete the ARM Disclosure Form for the product that you are applying for. 3 Please complete, sign and date all of the enclosed forms. To help expedite the processing of your application, if you wish for us to communicate electronically, you must complete the Consent to Receive Electronic Communications form and return with your application submission. 4 Please sign the Verification Authorization (in all three sections). 5 Please sign and date the Interest Rate Lock-In Policy and Agreement Acknowledgement. Please note this form needs to be completed regardless of whether you wish to lock in your interest rate. 6 Please complete the Property Description Sheet. Please be sure to furnish all of the necessary information. Please advise the Contact Person that the appraiser will be contacting him / her about the appraisal (as access to the property may be required). 7 Please submit an executed final copy of the sales contact (including all addendums and attachments). This requirement is only applicable if you are purchasing a property. If the transaction is a refinance, and you do not currently have your mortgage with Columbia Bank, please submit a copy of your tax bill and homeowner s insurance bill. 8 If you are selling your current residence, please submit a executed final copy of the sales contract. 9 If you are self employed please submit complete and signed copies of your federal tax returns (both personal and business returns) for the two most recent years. Please be sure that the tax returns are signed and that they include all schedules and addendums. 10 If you are not self employed please submit copies of your W-2 s for the two most recent years. Please note that if your employer participates in the work number for employment verification services, you will be required to provide us with a salary key code in order to verify your income. If you have retirement income or investment income, we will require proof of that income. 11 Please submit consecutive copies of your pay stubs for the two most recent pay periods. 12 Please be sure that each applicant and co-applicant signs the enclosed IRS 4506T form. This form will be used to request transcripts of your tax returns from the IRS. If the applicant and co-applicant did not file a joint tax return, you will need to print and complete an additional copy of this form. 13 Please submit complete copies of your two most recent statements for all accounts (e.g., bank, brokerage, 401K, etc.) listed on your application. 14 If you own additional properties including a vacation residence or investment property please submit a copy of your tax bill and insurance bill for each property. V 1/11 Page 1 of 3

3 15 Please forward all of the above noted information to: Columbia Bank Attn: Mortgage Dept Route 208 North Fair Lawn, NJ Columbia Bank reserves the right to request additional information to process your loan application. FEE INFORMATION Single Family Properties 2-4 Family Properties Payable When Application Fee $0.00 $0.00 N/A Flood Certification Fee $10.00 $10.00 Once you receive your disclosures and provide us with your Intent to Proceed with the application. Appraisal Fee (1) $ (Except FHA Loans) $ (for FHA Loans) $ (Except FHA Loans) $ (for FHA Loans) Lock in or commitment, whichever occurs first. Credit Report Fee (2) $18.70 Joint (Same Address) $18.70 Joint (Same Address) Lock in or commitment, Real Estate Tax Service Fee (3) (Not applicable for FHA loans) $10.35 Individual $10.70 Individual whichever occurs first. $88.00 $88.00 Payable at closing. (1) For loan amounts of $750,000 to $1,500,000, the fee will be $ For loan amounts greater than $1,500,000, 2 appraisals will be ordered. The appraisal fee for loan amounts greater than $1,500,000 will be $1, (2) For each additional applicant beyond an individual or married joint, an additional Credit Report Fee will be charged as noted above. For each business credit report, the fee is $ (3) Or $44.00 if you are refinancing your Columbia Bank first mortgage. For the Tax Service Fee on loans greater than $499,999.99, please ask your mortgage representative. There is no Tax Service Fee for FHA loans. The above fees are not refundable and subject to change at any time. V 1/11 Page 2 of 3

4 FREQUENTLY ASKED QUESTIONS WHAT TO DO NOW? Please review your entire application package making sure that all of the required forms are properly completed and that all of the requested information (as outlined in the Application Instructions) is included in your application submission. This will help us process your loan request in a timelier manner. WHAT IS THE NEXT STEP? Shortly after we receive your loan application package, we will issue you a Good Faith Estimate (GFE) and Truth in Lending (TIL) disclosure. If you would like to proceed with your loan application, once you receive these disclosures you should: 1. Review these disclosures carefully, 2. Sign the Certificate of Receipt of Good Faith Estimate and Intent to Proceed (Intent to Proceed) form, 3. Return the signed form with the required fees. IMPORTANT: Please be advised that we will not be able to process your loan request unless you return the Intent to Proceed form along with the required fees. The earliest you may submit these items is seven (7) business days from Columbia Bank s receipt of the application. WHEN CAN I LOCK MY RATE? Columbia Bank will set your interest rate on the day that we receive your application. The earliest that you may lock your interest rate is the 7 th business day (Saturday is considered a business day) from the date we receive your application. If you do not choose to lock in your rate by the 10 th business day of the date that we received your application, your interest rate will float. You may then elect to lock in your interest rate at any time prior to commitment. HOW CAN I LOCK MY RATE? To lock in your rate please perform the following actions: 1. Review the enclosed Interest Rate Lock-In Policy and Agreement. 2. Complete page three (3) signing where indicated, 3. Please be sure to submit the required lock-in fee 4. Please return the form and the required fees to Columbia Bank. WHO CAN I CALL FOR HELP? If you have any questions, or need any assistance in completing your loan application package, please contact us at to speak with someone in our customer service area. Monday through Friday Saturday and Sunday 7:00 am to 9:00 pm (EST) 8:00 am to 4:00 pm (EST) V 1/11 Page 3 of 3

5 Uniform Residential Loan Application This application is designed to be completed by the applicant(s) with the Lender s assistance. Applicants should complete this form as Borrower or Co-Borrower, as applicable. Co-Borrower information must also be provided (and the appropriate box checked) when the income or assets of a person other than the Borrower (including the Borrower s spouse) will be used as a basis for loan qualification or the income or assets of the Borrower s spouse or other person who has community property rights pursuant to state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person has community property rights pursuant to applicable law and Borrower resides in a community property state, the security property is located in a community property state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan. If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below). Borrower Mortgage VA Conventional Other (explain): Applied for: FHA USDA/Rural Housing Service Amount $ Interest Rate % Co-Borrower I. TYPE OF MORTGAGE AND TERMS OF LOAN Agency Case Number No. of Months Amortization Fixed Rate Other (explain): Type: GPM ARM (type): II. PROPERTY INFORMATION AND PURPOSE OF LOAN Subject Property Address (street, city, state, & ZIP) County: Legal Description of Subject Property (attach description if necessary) Lender Case Number No. of Units Year Built Purpose of Loan: Purchase Construction Other (explain): Property will be: Refinance Construction-Permanent Primary Secondary Investment Residence Residence Complete this line if construction or construction-permanent loan. Year Lot Acquired Original Cost $ Amount Existing Liens $ (a) Present Value of Lot $ (b) Cost of Improvements $ Total (a+b) $ Complete this line if this is a refinance loan. Year Acquired Original Cost Amount Existing Liens Purpose of Refinance Describe Improvements made to be made $ $ Cost $ Title will be held in what Name(s) Manner in which Title will be held Source of Down Payment, Settlement Charges and/or Subordinate Financing (explain) Estate will be held in: Fee Simple Leasehold (show expiration date) Borrower III. BORROWER INFORMATION Co-Borrower Borrower s Name (include Jr. or Sr. if applicable) Co-Borrower s Name (include Jr. or Sr. if applicable) Social Security Number Home Phone (incl. area code) DOB (MM/DD/YYYY) Yrs. School Social Security Number Home Phone (incl. area code) DOB (MM/DD/YYYY) Yrs. School // // Married Unmarried (include single, Dependents (not listed by Co-Borrower) Married Unmarried (include single Dependents (not listed by Borrower) divorced, widowed) no. ages divorced, widowed) Separated Separated no. ages Present Address (street, city, state, ZIP) Own Rent No. Yrs. Present Address (street, city, state, ZIP) Own Rent No. Yrs. Mailing Address, if different from Present Address Mailing Address, if different from Present Address If residing at present address for less than two years, complete the following: Former Address (street, city, state, ZIP) Own Rent No. Yrs. Former Address (street, city, state, ZIP) Own Rent No. Yrs. Name & Address of Employer Borrower IV. EMPLOYMENT INFORMATION Co-Borrower Self Employed Yrs. on this job Yrs. employed in this line of work/profession Name & Address of Employer Self Employed Yrs. on this job Yrs. employed in this line of work/profession Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code) If employed in current position for less than two years or if currently employed in more than one position, complete the following: Uniform Residential Loan Application Freddie Mac Form 65 7/05 (rev.6/09) Page 1 of 5 Fannie Mae Form /05 (rev.6/09) 1003 Page 1 (Letter) ~ 04/2010 ~ Encompass360 TM

6 Borrower IV. EMPLOYMENT INFORMATION Co-Borrower Name & Address of Employer Self Employed Dates (from-to) Name & Address of Employer Self Employed Dates (from-to) Monthly Income Monthly Income $ $ Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code) Name & Address of Employer Self Employed Dates (from-to) Name & Address of Employer Self Employed Dates (from-to) Monthly Income Monthly Income $ $ Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code) V. MONTHLY INCOME AND COMBINED HOUSING EXPENSE INFORMATION Gross Monthly Income Borrower Co-Borrower Total Combined Monthly Housing Expense Present Proposed Base Empl. Income* $ $ $ Rent $ Overtime First Mortgage (P&I) $ Bonuses Commissions Dividends/Interest Net Rental Income Other (before completing, see the notice in describe other income, below) Other Financing (P&I) Hazard Insurance Real Estate Taxes Mortgage Insurance Homeowner Assn. Dues Total $ $ $ Total $ $ * Self Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements. Described Other Income Notice: Alimony, child support, or separate maintenance income need not be revealed if the Borrower (B) or Co-Borrower (C) does not choose to have it considered for repaying this loan. B/C Other: $ Monthly Amount VI. ASSETS AND LIABILITIES This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-Borrowers if their assets and liabilities are sufficiently joined so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise separate Statements and Schedules are required. If the Co-Borrower section was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed about that spouse or other person also. Completed Jointly Not Jointly ASSETS Description Cash deposit toward purchase held by: $ List checking and savings accounts below Name and address of Bank, S&L, or Credit Union Cash or Market Value Liabilities and Pledged Assets. List the creditor s name, address and account number for all outstanding debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support, stock pledges, etc. Use continuation sheet, if necessary. Indicate by (*) those liabilities which will be satisfied upon sale of real estate owned or upon refinancing of the subject property. LIABILITIES Name and address of Company Monthly Payment & Months Left to Pay $ Payment/Months $ Unpaid Balance Acct. no. Acct. no. $ Name and address of Company Name and address of Bank, S&L, or Credit Union $ Payment/Months $ Acct. no. Acct. no. $ Name and address of Company Name and address of Bank, S&L, or Credit Union $ Payment/Months $ Acct. no. Uniform Residential Loan Application Freddie Mac Form 65 7/05 (rev.6/09) Page 2 of 5 Fannie Mae Form /05 (rev.6/09) 1003 Page 2 (Letter) ~ 04/2010 ~ Encompass360 TM

7 VI. ASSETS AND LIABILITIES (cont.) Acct. no. $ Name and address of Company Name and address of Bank, S&L, or Credit Union $ Payment/Months $ Acct. no. Acct. no. $ Name and address of Company Stocks & Bonds (Company name/number & description) $ $ Payment/Months $ Life insurance net cash value $ Face amount: $ Subtotal Liquid Assets $ Acct. no. Name and address of Company $ Payment/Months $ Real estate owned (enter market value $ Acct. no. from schedule of real estate owned) Name and address of Company $ Payment/Months $ Vested interest in retirement fund $ Net worth of business(es) owned (attach financial statement) Automobiles owned (make and year) $ Other Assets (itemize) $ $ Acct. no. Alimony/Child Support/Separate Maintenance Payments Owed to: Job-Related Expense (child care, union dues, etc.) $ $ Total Monthly Payments $ Total Assets a. $ Net Worth (a minus b) Schedule of Real Estate Owned (If additional properties are owned, use continuation sheet.) Property Address (enter S if sold, PS if pending sale or R if rental being held for income) Type of Property Present Market Value Amount of Mortgages & Liens $ Total Liabilities b. $ Gross Rental Income Mortgage Payments Insurance, Maintenance, Taxes & Misc. Net Rental Income $ $ $ $ $ $ Totals $ $ $ $ $ $ List any additional names under which credit has previously been received and indicate appropriate creditor name(s) and account number(s): Alternate Name Creditor Name Account Number VII. DETAILS OF TRANSACTION VIII. DECLARATIONS a. Purchase Price $ If you answer Yes to any questions a through i, please use continuation Borrower Co-Borrower b. Alterations, improvements, repairs sheet for explanation. Yes No Yes No c. Land (if acquired separately) d. Refinance (incl. debts to be paid off) e. Estimated prepaid items f. Estimated closing costs g. PMI, MIP, Funding Fee a. Are there any outstanding judgments against you? b. Have you been declared bankrupt within the past 7 years? c. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? d. Are you a party to a lawsuit? h. Discount (if Borrower will pay) e. Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment? i. Total costs (add items a through h) (This would include such loans as home mortgage loans, SBA loans, home improvement loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation, j. Subordinate financing bond, or loan guarantee. If Yes, provide details, including date, name and address of Lender, FHA or VA case number, if any, and reasons for the action.) k. Borrower s closing costs paid by Seller Uniform Residential Loan Application Freddie Mac Form 65 7/05 (rev.6/09) Page 3 of 5 Fannie Mae Form /05 (rev.6/09) 1003 Page 3 (Letter) ~ 04/2010 ~ Encompass360 TM

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9 Use this continuation sheet if you need more space to complete the Residential Loan Application. Mark B for Borrower or C for Co-Borrower. Continuation Sheet/Residential Loan Application Borrower: Co-Borrower: Agency Case Number: Lender Case Number: I/We fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq. Borrower s Signature: Date Co-Borrower s Signature: Date X X Uniform Residential Loan Application Freddie Mac Form 65 7/05 (rev.6/09) Page 5 of 5 Fannie Mae Form /05 (rev.6/09) 1003 Page 5 (Letter) ~ 04/2010 ~ Encompass360 TM

10 ADDENDUM TO APPLICATION FOR ADDITIONAL REAL ESTATE OWNED Property Address * Original Loan Amount Name & Address of Lender Loan Number Current Balance Market Value Gross Rent Mortgage Payment Taxes & Insurance Net Rental Income / Loss $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Totals: $ $ $ $ $ $ Applicant Signature Applicant Signature *INDICATE S IF SOLD, PS IF PENDING SALE, R IF RENTAL PROPERTY, OR PR IF PRIMARY RESIDENCE. Rev 01/08

11 CONSENT TO RECEIVE ELECTRONIC COMMUNICATIONS The following disclosures are required by the federal Electronic Signatures in Global and National Commerce Act ( ESIGN ). In order for you to receive Communications electronically in connection with your residential mortgage application, you must consent to Columbia Bank s Residential Mortgage Department providing you these communications electronically. Your consent to receive electronic communications includes but is not limited to: loan documents, disclosures, and the appraisal report. By providing your address and your signature below, you consent to receiving communications by . Each borrower must provide this form even if all borrowers may share the same address. How to Withdraw Consent. You may withdraw your consent to receiving communications electronically, at no charge by calling (800) How to Update Your Records. It is your responsibility to provide us with true, accurate, and complete address, contact, and other information related to this disclosure and your residential mortgage application, and to maintain and update promptly any changes in this information. You can update information by calling (800) or ing your designated loan representative. Hardware and Software Requirements. In order to access, view, and retain electronic communications that we make available to you, you must have: A computer with Internet connectivity, sufficient storage space, and a supported Internet browser capable of 128-bit encryption; A supported PDF viewer, such as the current version of Adobe Reader ( and a browser that can print PDF documents; A valid address including an account with an service provider compatible with your software. Requesting Paper Copies. During the residential mortgage application process, you can obtain a paper copy of the electronic communications by printing them yourself or by requesting that we mail you a paper copy. To request a paper copy, please call us at (800) or your designated loan representative. Name: address: I consent to receiving Communications electronically from Columbia Bank s Residential Mortgage Department. Borrower s Signature Date

12 PLEASE READ CAREFULLY THREE-ONE (3/1) ADJUSTABLE RATE MORTGAGE DISCLOSURE IMPORTANT INFORMATION ABOUT THE ADJUSTABLE RATE MORTGAGE This disclosure describes the features of this Adjustable Rate Mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. GENERAL DESCRIPTION OF THE ARM PROGRAM Your interest rate and payment can change annually after three years. Your interest rate at each adjustment will be equal to the index plus a margin, rounded to the nearest 1/8 of 1%, subject to the limitations ("caps") described below. The "margin" is the amount which will be added to the index to determine the interest rate at each adjustment. Once the margin is established for your loan, the margin will not change throughout the term of the loan. Ask us for our current interest rate and margin. Your index will be the Weekly Average Yield on U.S. Treasury Securities Adjusted to a Constant Maturity of One Year ("index"). Information on the index is published weekly in The Wall Street Journal. The Federal Reserve Board's Statistical Release H.15 is another source of information on the index. If this index is not available, a comparable index will be used. HOW YOUR INITIAL INTEREST RATE AND INITIAL PAYMENT AMOUNT WILL BE DETERMINED Your initial interest rate may or may not be based on the index and margin used to make later adjustments. Market conditions will affect how this product is priced. There are three ways this product may be priced. The product may be priced at a discount, at a premium, or at par. These terms are explained below. The amount by which the initial interest rate is less than the rate that would be determined by adding the margin to the index (and then rounded) is called the "Initial Interest Rate Discount". Ask us for the amount of the initial interest rate discount which is currently applied to our adjustable rate mortgages. The amount by which the initial interest rate is greater than the rate that would be determined by adding the margin to the index (and then rounded) is called the "Initial Interest Rate Premium". Ask us for the amount of the initial interest rate premium which is currently applied to our adjustable rate mortgages. When the initial interest rate is equal to the rate that would be determined by adding the margin to the index (and then rounded), this is called "PAR". Ask us for the current initial interest rate for the Three-One (3/1) Adjustable Rate Mortgage. Your initial payment will be based on the initial interest rate, loan balance, and loan term. This initial payment will be determined by calculating the amount required to repay the amount of the loan in substantially equal monthly payments over the term at the initial interest rate. HOW YOUR INTEREST RATE CAN CHANGE Your interest rate can change yearly, beginning 35 months after the first payment is due. The dates when the interest rate can change are called "interest rate change dates." Your interest rate cannot increase or decrease more than 2.00 percentage points at each adjustment. This is sometimes referred to as the "periodic interest rate cap." Your interest rate cannot increase more than 6.00 percentage points over the term of the loan. This is sometimes referred to as the "lifetime interest rate cap." The interest rate which will be effective on the change date (new interest rate) will be based on the index plus the margin. The new interest rate will be calculated by adding the margin to the most recent index figure available 45 days before the interest rate change date. The result will be rounded to the nearest.125% and then adjusted, if necessary, according to the periodic and lifetime interest rate caps. HOW YOUR PAYMENT CAN CHANGE Your payment can increase or decrease substantially based on annual changes in the interest rate. Such changes can begin 36 months after the first payment is due. If the interest rate changes on an interest rate change date, the payment change will become effective starting with the payment due one month later. The new payment will be based on the new interest rate, the loan balance on the change date, and the remaining loan term. This new payment will be determined by calculating the amount required to repay the remaining loan balance in substantially equal monthly payments over the remaining loan term at the new interest rate. 3/1 ARM (2/6 Caps) 01/13 1 of 3

13 THIS IS A THREE-PAGE DISCLOSURE. SEE BELOW FOR MORE INFORMATION. PLEASE SIGN BELOW AND RETURN TO COLUMBIA BANK. PLEASE KEEP A COPY FOR YOUR RECORDS. BY SIGNING BELOW I/WE ACKNOWLEDGE THAT I/WE HAVE READ BOTH SIDES OF THIS DOCUMENT, KEPT A COPY FOR OUR RECORDS, AND VIEWED / RECEIVED THE CONSUMER HANDBOOK ON ADJUSTABLE RATE MORTGAGES BOOKLET. SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE THE FOLLOWING ARE EXAMPLES OF THE MAXIMUM INTEREST RATE AND MAXIMUM PAYMENT WHICH COULD BE REQUIRED. EXAMPLES ARE PROVIDED FOR THE THREE POSSIBLE PRICING SCENARIOS: DISCOUNTED RATE For example, on a $10,000 loan with an initial interest rate of (2.875% less an initial discount of.375%) in effect in December 2012, the maximum amount the interest rate can rise under this program is 6.00%, to an interest rate of 8.500% and the monthly payment can rise from a first year payment to a maximum payment as shown below. 15 year term 30 year term First year payment $ $ Maximum payment $ in year six (6) $ in year six (6) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term $60,000/$10,000 = 6 6 x $66.68 = $ per month 6 x $39.52 = $ per month PREMIUM RATE For example, on a $10,000 loan with an initial interest rate of 3.000% (2.875% plus an initial premium of.125%) in effect in December 2012, the maximum amount the interest rate can rise under this program is 6.00%, to an interest rate of 9.000% and the monthly payment can rise from a first year payment to a maximum payment as shown below. In December 2012, this product was not priced at a premium. We have chosen a.125% premium for illustrative purposes. 15 year term 30 year term First year payment $ $ Maximum payment $ in year six (6) $ in year six (6) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term $60,000/$10,000 = 6 6 x $69.06 = $ per month 6 x $42.17 = $ per month PAR PRICING For example, on a $10,000 loan with an initial interest rate of 2.875% (par) in effect in December 2012, the maximum amount the interest rate can rise under this program is 6.000%, to an interest rate of 8.875% and the monthly payment can rise from a first year payment to a maximum payment as shown below. In December 2012, this product was not priced at par. 15 year term 30 year term First year payment $ $ Maximum payment $ in year six (6) $ in year six (6) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term $60,000/$10,000 = 6 6 x $68.46 = $ per month 6 x $41.49 = $ per month 3/1 ARM (2/6 Caps) 01/13 2 of 3

14 NOTICE OF INTEREST RATE AND PAYMENT CHANGE If your interest rate and payment change on any Change Date, you will be notified at least 25, but no more than 76, calendar days before the due date of the payment at the new level. This notice will contain the following information. 1. The change in the index. 2. The change in your interest rate. 3. The change in your payments. 4. The loan balance. 5. The title and telephone number of an employee who can answer your questions about the notice. INITIAL INTEREST RATE The initial interest rate which will be charged on this loan is set by Columbia Bank as outlined in the Interest Rate Lock-In Policy Information and Agreement form. Please refer to that form for further details. THIS DISCLOSURE IS INTENDED FOR REFERENCE PURPOSES ONLY. IT IS NOT A COMMITMENT. IMPORTANT INFORMATION RELATING SPECIFICALLY TO YOUR LOAN WILL BE CONTAINED IN THE LOAN AGREEMENT (THE NOTE, MORTGAGE OR ANY OTHER PERTINENT LEGAL DOCUMENT). 3/1 ARM (2/6 Caps) 01/13 3 of 3

15 PLEASE READ CAREFULLY FIVE-ONE (5/1) ADJUSTABLE RATE MORTGAGE DISCLOSURE IMPORTANT INFORMATION ABOUT THE ADJUSTABLE RATE MORTGAGE This disclosure describes the features of this Adjustable Rate Mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. GENERAL DESCRIPTION OF THE ARM PROGRAM Your interest rate and payment can change annually after five years. Your interest rate at each adjustment will be equal to the index plus a margin, rounded to the nearest 1/8 of 1%, subject to the limitations ("caps") described below. The "margin" is the amount which will be added to the index to determine the interest rate at each adjustment. Once the margin is established for your loan, the margin will not change throughout the term of the loan. Ask us for our current interest rate and margin. Your index will be the Weekly Average Yield on U.S. Treasury Securities Adjusted to a Constant Maturity of One Year ("index"). Information on the index is published weekly in The Wall Street Journal. The Federal Reserve Board's Statistical Release H.15 is another source of information on the index. If this index is not available, a comparable index will be used. HOW YOUR INITIAL INTEREST RATE AND INITIAL PAYMENT AMOUNT WILL BE DETERMINED Your initial interest rate may or may not be based on the index and margin used to make later adjustments. Market conditions will affect how this product is priced. There are three ways this product may be priced. The product may be priced at a discount, at a premium, or at par. These terms are explained below. The amount by which the initial interest rate is less than the rate that would be determined by adding the margin to the index (and then rounded) is called the "Initial Interest Rate Discount". Ask us for the amount of the initial interest rate discount which is currently applied to our adjustable rate mortgages. The amount by which the initial interest rate is greater than the rate that would be determined by adding the margin to the index (and then rounded) is called the "Initial Interest Rate Premium". Ask us for the amount of the initial interest rate premium which is currently applied to our adjustable rate mortgages. When the initial interest rate is equal to the rate that would be determined by adding the margin to the index (and then rounded), this is called "PAR". Ask us for the current initial interest rate for the Five-One (5/1) Adjustable Rate Mortgage. Your initial payment will be based on the initial interest rate, loan balance, and loan term. This initial payment will be determined by calculating the amount required to repay the amount of the loan in substantially equal monthly payments over the term at the initial interest rate. HOW YOUR INTEREST RATE CAN CHANGE Your interest rate can change yearly, beginning 59 months after the first payment is due. The dates when the interest rate can change are called "interest rate change dates." Your interest rate cannot increase or decrease more than 2.00 percentage points at each adjustment. This is sometimes referred to as the "periodic interest rate cap." Your interest rate cannot increase more than 5.00 percentage points over the term of the loan. This is sometimes referred to as the "lifetime interest rate cap." The interest rate which will be effective on the change date (new interest rate) will be based on the index plus the margin. The new interest rate will be calculated by adding the margin to the most recent index figure available 45 days before the interest rate change date. The result will be rounded to the nearest.125% and then adjusted, if necessary, according to the periodic and lifetime interest rate caps. HOW YOUR PAYMENT CAN CHANGE Your payment can change increase or decrease substantially based annual changes in the interest rate. Such changes can begin 60 months after the first payment is due. If the interest rate changes on an interest rate change date, the payment change will become effective starting with the payment due one month later. The new payment will be based on the new interest rate, the loan balance on the change date, and the remaining loan term. This new payment will be determined by calculating the amount required to repay the remaining loan balance in substantially equal monthly payments over the remaining loan term at the new interest rate. 5/1 ARM (2/5 Caps) 01/13 1 of 3

16 THIS IS A THREE-PAGE DISCLOSURE. SEE BELOW FOR MORE INFORMATION. PLEASE SIGN BELOW AND RETURN TO COLUMBIA BANK. PLEASE KEEP A COPY FOR YOUR RECORDS. BY SIGNING BELOW I/WE ACKNOWLEDGE THAT I/WE HAVE READ BOTH SIDES OF THIS DOCUMENT, KEPT A COPY FOR OUR RECORDS, AND HAVE VIEWED / RECEIVED THE CONSUMER HANDBOOK ON ADJUSTABLE RATE MORTGAGES BOOKLET. SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE THE FOLLOWING ARE EXAMPLES OF THE MAXIMUM INTEREST RATE AND MAXIMUM PAYMENT WHICH COULD BE REQUIRED. EXAMPLES ARE PROVIDED FOR THE THREE POSSIBLE PRICING SCENARIOS: DISCOUNTED RATE For example, on a $10,000 loan with an initial interest rate of 2.500% (2.875% less an initial discount of.375%) in effect in December 2012, the maximum amount the interest rate can rise under this program is 5.00%, to an interest rate of 7.500% and the monthly payment can rise from a first year payment to a maximum payment as shown below. 15 year term 30 year term First year payment $ $ Maximum payment $ in year eight (8) $ in year eight (8) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term $60,000/$10,000 = 6 6 x $66.68 = $ per month 6 x $39.52 = $ per month PREMIUM RATE For example, on a $10,000 loan with an initial interest rate of 3.000% (2.875% plus an initial premium of.125%) in effect in December 2012, the maximum amount the interest rate can rise under this program is 5.000%, to an interest rate of 8.000% and the monthly payment can rise from a first year payment to a maximum payment as shown below. In December 2012, this product was not priced at a premium. We have chosen a.125% premium for illustrative purposes. 15 year term 30 year term First year payment $ $ Maximum payment $ in year eight (8) $ in year eight (8) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term $60,000/$10,000 = 6 6 x $69.06 = $ per month 6 x $42.17 = $ per month PAR PRICING For example, on a $10,000 loan with an initial interest rate of 2.875% (par) in effect in December 2012, the maximum amount the interest rate can rise under this program is 5.000%, to an interest rate of 7.875% and the monthly payment can rise from a first year payment to a maximum payment as shown below. In December 2012, this product was not priced at par. 15 year term 30 year term First year payment $ $ Maximum payment $ in year eight (8) $ in year eight (8) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term 5/1 ARM (2/5 Caps) 01/13 2 of 3

17 $60,000/$10,000 = 6 6 x $68.46 = $ per month 6 x $41.49 = $ per month NOTICE OF INTEREST RATE AND PAYMENT CHANGE If your interest rate and payment change on any Change Date, you will be notified at least 25, but no more than 76, calendar days before the due date of the payment at the new level. This notice will contain the following information. 1. The change in the index. 2. The change in your interest rate. 3. The change in your payments. 4. The loan balance. 5. The title and telephone number of an employee who can answer your questions about the notice. INITIAL INTEREST RATE The initial interest rate which will be charged on this loan is set by Columbia Bank as outlined in the Interest Rate Lock-In Policy Information and Agreement form. Please refer to that form for further details. THIS DISCLOSURE IS INTENDED FOR REFERENCE PURPOSES ONLY. IT IS NOT A COMMITMENT. IMPORTANT INFORMATION RELATING SPECIFICALLY TO YOUR LOAN WILL BE CONTAINED IN THE LOAN AGREEMENT (THE NOTE, MORTGAGE OR ANY OTHER PERTINENT LEGAL DOCUMENT). 5/1 ARM (2/5 Caps) 01/13 3 of 3

18 PLEASE READ CAREFULLY SEVEN-ONE (7/1) ADJUSTABLE RATE MORTGAGE DISCLOSURE IMPORTANT INFORMATION ABOUT THE ADJUSTABLE RATE MORTGAGE This disclosure describes the features of this Adjustable Rate Mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. GENERAL DESCRIPTION OF THE ARM PROGRAM Your interest rate and payment can change annually after seven years. Your interest rate at each adjustment will be equal to the index plus a margin, rounded to the nearest 1/8 of 1%, subject to the limitations ("caps") described below. The "margin" is the amount which will be added to the index to determine the interest rate at each adjustment. Once the margin is established for your loan, the margin will not change throughout the term of the loan. Ask us for our current interest rate and margin. Your index will be the Weekly Average Yield on U.S. Treasury Securities Adjusted to a Constant Maturity of One Year ("index"). Information on the index is published weekly in The Wall Street Journal. The Federal Reserve Board's Statistical Release H.15 is another source of information on the index. If this index is not available, a comparable index will be used. HOW YOUR INITIAL INTEREST RATE AND INITIAL PAYMENT AMOUNT WILL BE DETERMINED Your initial interest rate may or may not be based on the index and margin used to make later adjustments. Market conditions will affect how this product is priced. There are three ways this product may be priced. The product may be priced at a discount, at a premium, or at par. These terms are explained below. The amount by which the initial interest rate is less than the rate that would be determined by adding the margin to the index (and then rounded) is called the "Initial Interest Rate Discount". Ask us for the amount of the initial interest rate discount which is currently applied to our adjustable rate mortgages. The amount by which the initial interest rate is greater than the rate that would be determined by adding the margin to the index (and then rounded) is called the "Initial Interest Rate Premium". Ask us for the amount of the initial interest rate premium which is currently applied to our adjustable rate mortgages. When the initial interest rate is equal to the rate that would be determined by adding the margin to the index (and then rounded), this is called "PAR". Ask us for the current initial interest rate for the Seven-One (7/1) Adjustable Rate Mortgage. Your initial payment will be based on the initial interest rate, loan balance, and loan term. This initial payment will be determined by calculating the amount required to repay the amount of the loan in substantially equal monthly payments over the term at the initial interest rate. HOW YOUR INTEREST RATE CAN CHANGE Your interest rate can change yearly, beginning 83 months after the first payment is due. The dates when the interest rate can change are called "interest rate change dates." Your interest rate cannot increase more than 5.00 percentage points or decrease by more than 5.00 percentage points at the initial (first) adjustment period. This is sometimes referred to as the initial adjustment rate cap. Your interest rate cannot increase or decrease more than 2.00 percentage points at each adjustment after the initial (first) adjustment period. This is sometimes referred to as the "periodic interest rate cap." Your interest rate cannot increase more than 5.00 percentage points over the term of the loan. This is sometimes referred to as the "lifetime interest rate cap." The interest rate which will be effective on the change date (new interest rate) will be based on the index plus the margin. The new interest rate will be calculated by adding the margin to the most recent index figure available 45 days before the interest rate change date. The result will be rounded to the nearest.125% and then adjusted, if necessary, according to the initial adjustment rate cap, the periodic interest rate cap, or the lifetime interest rate cap. HOW YOUR PAYMENT CAN CHANGE Your payment can increase or decrease substantially based on annual changes in the interest rate. Such changes can begin 84 months after the first payment is due. If the interest rate changes on an interest rate change date, the payment change will become effective starting with the payment due one month later. 7/1 ARM (5/2/5 Caps) 01/13 1 of 3

19 The new payment will be based on the new interest rate, the loan balance on the change date, and the remaining loan term. This new payment will be determined by calculating the amount required to repay the remaining loan balance in substantially equal monthly payments over the remaining loan term at the new interest rate. THIS IS A THREE-PAGE DISCLOSURE. SEE BELOW FOR MORE INFORMATION. PLEASE SIGN BELOW AND RETURN TO COLUMBIA BANK. PLEASE KEEP A COPY FOR YOUR RECORDS. BY SIGNING BELOW I/WE ACKNOWLEDGE THAT I/WE HAVE READ BOTH SIDES OF THIS DOCUMENT, KEPT A COPY FOR OUR RECORDS, AND VIEWED / RECEIVED THE CONSUMER HANDBOOK ON ADJUSTABLE RATE MORTGAGES BOOKLET. SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE THE FOLLOWING ARE EXAMPLES OF THE MAXIMUM INTEREST RATE AND MAXIMUM PAYMENT WHICH COULD BE REQUIRED. EXAMPLES ARE PROVIDED FOR THE THREE POSSIBLE PRICING SCENARIOS: DISCOUNTED RATE For example, on a $10,000 loan with an initial interest rate of % (2.875% less an initial discount of.250%) in effect in December 2012, the maximum amount the interest rate can rise under this program is 5.000%, to an interest rate of 7.625% and the monthly payment can rise from a first year payment to a maximum payment as shown below. 15 year term 30 year term First year payment $ $ Maximum payment $ in year eight (8) $ in year eight (8) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term $60,000/$10,000 = 6 6 x $67.27 = $ per month 6 x $40.17= $ per month PREMIUM RATE For example, on a $10,000 loan with an initial interest rate of 3.000% (2.875% plus an initial premium of.125%) in effect in December 2012, the maximum amount the interest rate can rise under this program is 5.000%, to an interest rate of 8.000% and the monthly payment can rise from a first year payment to a maximum payment as shown below. In December 2012, this product was not priced at a premium. We have chosen a.125% premium for illustrative purposes. 15 year term 30 year term First year payment $ $ Maximum payment $ in year eight (8) $ in year eight (8) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term $60,000/$10,000 = 6 6 x $69.06 = $ per month 6 x $42.17 = $ per month 7/1 ARM (5/2/5 Caps) 01/13 2 of 3

20 PAR PRICING For example, on a $10,000 loan with an initial interest rate of 2.875% (par) in effect in December 2012, the maximum amount the interest rate can rise under this program is 5.000%, to an interest rate of 7.875% and the monthly payment can rise from a first year payment to a maximum payment as shown below. 15 year term 30 year term First year payment $ $ Maximum payment $ in year eight (8) $ in year eight (8) To see what your monthly payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a loan amount of $60,000 would be: 15 year term 30 year term $60,000/$10,000 = 6 6 x $68.46 = $ per month 6 x $41.49 = $ per month NOTICE OF INTEREST RATE AND PAYMENT CHANGE If your interest rate and payment change on any Change Date, you will be notified at least 25, but no more than 76, calendar days before the due date of the payment at the new level. This notice will contain the following information. 1. The change in the index. 2. The change in your interest rate. 3. The change in your payments. 4. The loan balance. 5. The title and telephone number of an employee who can answer your questions about the notice. INITIAL INTEREST RATE The initial interest rate which will be charged on this loan is set by Columbia Bank as outlined in the Interest Rate Lock-In Policy Information and Agreement form. Please refer to that form for further details. THIS DISCLOSURE IS INTENDED FOR REFERENCE PURPOSES ONLY. IT IS NOT A COMMITMENT. IMPORTANT INFORMATION RELATING SPECIFICALLY TO YOUR LOAN WILL BE CONTAINED IN THE LOAN AGREEMENT (THE NOTE, MORTGAGE OR ANY OTHER PERTINENT LEGAL DOCUMENT). 7/1 ARM (5/2/5 Caps) 01/13 3 of 3

21 ONE (1) YEAR ADJUSTABLE RATE MORTGAGE CONSTRUCTION/ PERMANENT DISCLOSURE IMPORTANT INFORMATION ABOUT THE ADJUSTABLE RATE MORTGAGE - PLEASE READ CAREFULLY This disclosure describes the features of this Adjustable Rate Mortgage (ARM) Construction program you are considering. GENERAL DESCRIPTION OF THE ARM PROGRAM This Construction/Permanent ARM provides for monthly interest only payments during the period of time known as the construction period and monthly principal and interest payments during the permanent period. The construction period shall end in 12 months or at the end of the month in which the final advance is made, whichever occurs first. The loan converts to the permanent period after the construction period. Your interest rate can change twelve months from the date the first interest payment is due and annually thereafter. Your interest only payment can change each month during the construction period. If principal and interest payments begin before the interest rate change date, that payment may adjust one month after the interest rate change date and annually thereafter. Your interest rate at each adjustment will be equal to the index plus a margin, rounded to the nearest 1/8 of 1%, subject to the limitations ("caps") described below. The "margin" is the amount which will be added to the index to determine the interest rate at each adjustment. Once the margin is established for your loan, the margin will not change throughout the term of the loan. Ask us for our current interest rate and margin. Your index will be the Weekly Average Yield on U.S. Treasury Securities Adjusted to a Constant Maturity of One Year ("index"). Information on the index is published weekly in The Wall Street Journal. The Federal Reserve Board's Statistical Release H.15 is another source of information on the index. If this index is not available, a comparable index will be used. The construction period shall end in twelve months or at the end of the month in which the final advance is made, whichever occurs first. During the construction period, interest will be billed and payable monthly based on the amount outstanding. Your interest rate will not change during the first twelve months. Funds will generally be advanced in four payments. Funds will be advanced only after the work has been completed for each phase of the schedule. Ask us for a copy of our current construction schedule. You must request each advance in writing and submit a cost of labor performed and materials used, along with an updated title search. Columbia will inspect the property and determine in its own discretion (a) whether the work completed to the date of the inspection has been done satisfactorily and (b) the cost of the work completed since the date of the previous requisition and (c) the dollar amount to be advanced (if any). At the end of the 12 month construction period or after the end of the month in which the final advance is made, whichever occurs first, the loan will convert to the permanent period. Upon conversion to the permanent period, the monthly principal and interest payment will be calculated on the total amount advanced to amortize over 30 years less the number of months of the construction period. At the end of the construction period, you will be permitted to modify to one of our other loan products at the no point rate in effect on the final advance date. HOW YOUR INITIAL INTEREST RATE AND INITIAL PAYMENT AMOUNT WILL BE DETERMINED Your initial interest rate may or may not be based on the index and margin used to make later adjustments. Market conditions will affect how this product is priced. There are three ways this product may be priced. The product may be priced at a discount, at a premium, or at par. These terms are explained below. The amount by which the initial interest rate is less than the rate that would be determined by adding the margin to the index (and then rounded) is called the "Initial Interest Rate Discount". Ask us for the amount of the initial interest rate discount which is currently applied to our adjustable rate construction/permanent mortgage. The amount by which the initial interest rate is greater than the rate that would be determined by adding the margin to the index (and then rounded) is called the "Initial Interest Rate Premium". Ask us for the amount of the initial interest rate premium which is currently applied to our adjustable rate mortgages construction/permanent mortgage. When the initial interest rate is equal to the rate that would be determined by adding the margin to the index (and then rounded), this is called "PAR". Ask us for the current initial interest rate for the adjustable rate construction/permanent mortgage. Your initial interest only payment will be based on the initial interest rate and principal amount outstanding. Your initial principal and interest payment will be based on the initial interest rate, loan balance and loan term if this payment is due on or before the date when your interest rate can change. If your first principal and interest payment is due after the date your interest rate may change, the payment will be based on the new interest rate, loan balance and loan term. The initial principal and interest payment will be determined by calculating the amount required to repay the amount of the loan is substantially equal monthly payments over the term at the initial interest rate. HOW YOUR INTEREST RATE CAN CHANGE Your interest rate can change yearly, beginning 11 to 12 months after the first payment is due, depending upon the day of the month in which your loan closes. The dates when the interest rate can change are called "interest rate change dates." Your interest rate cannot increase or decrease more than 2.00 percentage points at each adjustment. This is sometimes referred to as the "periodic interest rate cap." Your interest rate cannot increase more than 6.00 percentage points over the term of the loan. This is sometimes referred to as the "lifetime interest rate cap." The interest rate which will be effective on the change date (new interest rate) will be based on the index plus the margin. The new interest rate will be calculated by adding the margin to the most recent index figure available 45 days before the interest rate change date. The result will be rounded to the nearest.125% and then adjusted, if necessary, according to the periodic and lifetime interest rate caps. THIS IS A TWO-PAGE DISCLOSURE. SEE THE NEXT PAGE FOR MORE INFORMATION. PLEASE SIGN BELOW AND RETURN A COPY WITH YOUR APPLICATION. BY SIGNING BELOW I/WE ACKNOWLEDGE THAT I/WE HAVE READ THIS DOCUMENT, KEPT A COPY FOR OUR RECORDS, AND HAVE VIEWED THE CONSUMER HANDBOOK ON ADJUSTABLE RATE MORTGAGES BOOKLET. SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE Construction/Perm (2/6 Caps) 02/12 Page 1 of 2