ANTI-COERCION NOTICE OF FREE CHOICE OF AGENT AND INSURER

Nexity Bank requires hazard insurance and flood insurance if it is determined that the property is located in a special flood hazard area.  Nexity Bank does not sell such insurance and does not and may not require that you to obtain this insurance through any particular insurance agent or company.

You may provide such insurance through an existing policy or policies or place such insurance with an insurance agent or company of your choice provided such company or agency meets the requirements of Nexity Bank.  Nexity Bank has the right, subject to applicable state laws and rules, to require certain licensure minimums, to require reasonable financial requirements as to the company and determine the adequacy of the coverage.  Nexity Bank may not unreasonably withhold its approval of the selected agency or company.

NO ESCROW NOTICE

Nexity Bank does not require that you pay additional money with your regularly scheduled payment to create an escrow account that Nexity Bank would use to pay real estate taxes and hazard and insurance on the property that secures your loan.

Your regular monthly payment will cover only principal and interest on your loan.  You are responsible for payment of real estate taxes and homeowner's and flood (if required) insurance policy premiums when they become due and payable.

STATE SPECIFIC DISCLOSURES

CALIFORNIA

RIGHT TO SEPARATE ACCOUNT

Regardless of your marital status, you may apply for credit in your own name.

THE HOUSING FINANCIAL DISCRIMINATION ACT OF 1977- FAIR LENDING NOTICE

It is illegal to discriminate in the provision of or in the availability of financial assistance because of the consideration of:

· Trends, characteristics or conditions in the neighborhood or geographic area surrounding a housing accommodation, unless the financial institution can demonstrate in the particular case that such consideration is required to avoid unsafe and unsound business practice; or

· Race, color, religion, sex, marital status, national origin or ancestry.

It is illegal to consider the racial, ethnic, religious or national origin composition of a neighborhood or geographic area surrounding a housing accommodation or whether or not such composition is undergoing change, or is expected to undergo change, in appraising a housing accommodation or in determining whether or not, or under what terms and conditions, to provide financial assistance.

These provisions govern financial assistance for the purchase, construction, rehabilitation or refinancing of one-­to-four-unit family residences occupied by the owner and for the purpose of the home improvement of any one-to-four-unit family residence.

If you have any questions about your rights, or if you wish to file a complaint, contact the management of this financial institution or:

Federal Deposit Insurance Corporation

Suite 1600

One Atlantic Center

1201 Peachtree Street NE

Atlanta, Georgia 30309-3449

CONNECTICUT

Interim Financing

Nexity Bank does not offer interim financing when an applicant is purchasing a one to four family residential property located in Connecticut.  Interim financing means a short term loan, the proceeds of which are to be used by an applicant to purchase one to four family residential real property, which is due and payable upon the sale of the applicant's current residence. (Connecticut General Statutes, Section 49-6a)

Right to Counsel

The Borrower may have legal interests that differ from the Nexity Bank's interests. Nexity Bank may not require that the Nexity Bank’s attorney represent the Borrower. The Borrower may waive the right to be represented by an attorney. Any complaints concerning violation of these rights may be directed to the Connecticut Department of Banking. (Connecticut General Statutes, Section 36a-726)

Mortgage Insurance

Nexity does not require mortgage insurance as a condition of obtaining this mortgage loan.

Appraisal

A copy of your appraisal once obtained by us, is available upon request.

GEORGIA

GEORGIA APPLICATION DISCLOSURE

This application disclosure of the estimate of fees and charges that you should expect is given in accordance with Georgia law.

You will incur no charges or fees from Nexity Bank or any third party provider in connection with a Nexity Bank home equity loan or line of credit

Nexity Bank does not guarantee approval of your loan application or acceptance into a particular loan program.

GEORGIA FORECLOSURE DISCLOSURE

IF YOU FAIL TO MEET ANY CONDITION OR TERM OF THE DOCUMENTS THAT YOU SIGN IN CONNECTION WITH OBTAINING A LOAN YOU MAY LOSE THE PROPERTY THAT SERVES AS COLLATERAL FOR THE MORTGAGE LOAN THROUGH FORECLOSURE.

MAINE

RIGHT TO OWN ATTORNEY DISCLOSURE

You have the right to select a qualified attorney to search the title and certify it to us. We may require that the attorney selected by you provide us written evidence of adequate insurance.  If your attorney meets our requirements no additional fee may be charged to you for review of title.

If you wish to select an attorney to act on your behalf, please immediately send the following information to the address below or telephone 1-800-800-LOAN:

Nexity Bank

3500 Blue Lake Dr. #330

Birmingham, Alabama 35243

MAINE NOTICE OF CHOICE OF AGENT OR INSURER

You have the right to select the agent and insurer to be used for any type of insurance required in connection with this loan.  The lender shall not interfere, either directly or indirectly, with this right of choice of an agent and of an insurer.

NOTICE REGARDING CONSUMER REPORTS

Nexity Bank may request a “Consumer Report” in connection with your application for credit. Upon your request you will be informed if a "Consumer Report" was actually requested and if so, the name and address of the reporting agency that furnished the report.

MARYLAND

Choice of Attorney and/or Title Company

If Lender agrees to make the loan to you, Lender will designate an attorney and/or title company to perform certain settlement services on behalf of Lender, and you will be required to pay for those services.  At present Nexity Bank charges no fees for non-purchase money first mortgage loans.

An attorney or title company of your choice may perform title search, examination of title, or closing if:

-  You notify Nexity Bank, within 7 days after you apply for the loan, of the name and business address of your choice of attorney or title company to perform the title search, examination of title, or closing; and

-  Nexity Bank does not reject your choice of attorney or title company for good cause within 7 days after receipt of your notice.

Please note that if you choose an attorney or title company to perform title search, examination of title, or closing, you will be obligated to pay the fees and costs of your attorney and/or title company, and also may be obligated to pay for preparation of loan closing documents; title insurance; review by Nexity Bank’s attorney of documents prepared by your attorney or title company; and attendance at settlement by Nexity Bank’s attorney.

If you wish to select an attorney or title company to act on your behalf, please contact us at:

Nexity Bank

3500 Blue Lake Dr. #330

Birmingham, Alabama 35243

Private Mortgage Insurance

IF PRIVATE MORTGAGE INSURANCE IS REQUIRED TO BE PURCHASED AS A CONDITION FOR MAKING THE LOAN, YOU MAY BE ELIGIBLE TO REQUEST THAT UNDER APPROPRIATE CIRCUMSTANCES THE PRIVATE MORTGAGE INSURANCE BE CANCELED.

MASSACHUSETTS

MORTGAGE LENDER DISCLOSURES REQUIRED BY THE ATTORNEY GENERAL'S CONSUMER PROTECTION REGULATIONS

Mortgage Lender Name:

Nexity Bank

3500 Blue Lake Dr. #330

Birmingham, Alabama 35243

You are placing a mortgage on your home. If you fail to make any payments, you may lose your home.

You have a legal right to cancel your mortgage loan, without paying any penalty, within three business days after you are legally committed on the loan, receive your truth-in lending disclosures or your notice of right to cancel, whichever occurs last. Make sure you get your "Notice of Right to Cancel".

If you have any questions about your legal rights you should consult your own lawyer, especially before you sign any documents or pay any money. If you are an elder, special services may be available for you.   Contact the Massachusetts Executive Office of Elder Affairs by calling 1 -617-727-7750 or 1-800-882-2003 for further information.

Do not sign any application forms with blank spaces or with incorrect information.

•  You will not pay an application fee.

•  You will not pay an origination fee or any points

•  You will not pay a prepayment penalty if you repay the loan early

•  You will not incur any other fees or costs in connection with the origination of this loan

APPLICATION ADDENDUM

Nexity Bank is providing you with the following information in compliance with Massachusetts law:

•   The responsibility of the attorney for Nexity Bank is to protect the interests of Nexity Bank

•   You may, at your own expense, engage an attorney of your own selection to represent your own interests in the transaction.

•   The expiration of your note is dependent upon the length of mortgage you select. For example:

1) A 15 year mortgage will expire approximately 180 months from the date you sign the note

2) A 20 year mortgage will expire approximately 240 months from the date you sign the note.

•   The rate of interest charged on your loan is dependent upon the loan type, term, amount of financing, program selected, and other economic conditions. Your rate will be provided to you upon completion of our evaluation of the items and other information we will request from you in our conditional approval.

•   As of the expiration date of your note, Nexity Bank may demand payment of said Note, may rewrite the note by agreement, or allow payments to be made on said Note at the same, or at a lesser or greater rate of interest.

NEW JERSEY

RIGHT TO OWN ATTORNEY DISCLOSURE

Nexity Bank is required to advise you of the following prior to you accepting a written offer:

•   The lender's attorney only represents the interest of the lender;

•   The interest of the lender and your interest may differ and could conflict; and

•   You should employ an attorney of your choice who is licensed to practice law in New Jersey and who will represent your interest.

If you wish to select an attorney to act on your behalf, please contact us immediately at:

Nexity Bank

3500 Blue Lake Dr. #330

Birmingham, Alabama 35243

NEW YORK

NOTICE REGARDING CONSUMER REPORTS

Pursuant to the requirements of the New York State Fair Credit Reporting Act, you are hereby notified that a “Consumer Report" as therein defined may be requested by Nexity Bank in connection with your application for credit and that subsequent reports may be requested in connection with an update renewal or further extension of credit; and you are further advised that upon your request you will be informed whether such "Consumer Report" was actually requested and if so, the name and address of the reporting agency.

INSURANCE DISCLOSURE

Under NY Code of Rules and Regs Section 38.9, Nexity Bank is required to advise you of the following at the time of commitment:

•   Hazard insurance is required if the loan is approved.

•   Replacement cost of the improvements on the property securing the loan is the maximum coverage the lender can require.

SENIOR LIEN DEFAULTS

You should check with your legal advisor and with other mortgage lien holders as to whether any prior liens contain acceleration clauses that would be activated by a junior encumbrance.

OHIO

NONDISCRIMINATION NOTICE

Ohio laws against discrimination require that all creditors make credit equally available to all creditworthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request The Ohio Civil Rights Commission administers compliance with this law.

RHODE ISLAND

APPLICATION DISCLOSURE

You have applied to Lender today for a loan to be secured by the Property. In connection with your application, you have received or will receive a number of forms and disclosures that describe the loan transaction.  This Disclosure discusses the responsibilities of the Closing Attorney and describes the different types of title insurance available in connection with your loan. This Disclosure also notifies you of certain rights under Rhode Island law.

CLOSING ATTORNEY AND TITLE INSURANCE DISCLOSURE

Closing Attorney

Nexity Bank requires that its attorney, who is called the "Closing Attorney", supervise the closing of your loan, if your application is approved. The Closing Attorney will:

•   Advise Lender as to the marketability of title to the Property;

•   Review and approve, prior to issuance, all title insurance policies and commitments to be issued in favor of Lender and all exceptions to coverage;

•   Review and approve all loan documents;

•   Conduct the closing of the loan;

•   Disburse or supervise the disbursement of all loan proceeds.

The responsibility of the Closing Attorney is to represent the interest of the Lender. You may, at your own expense, engage an attorney of your own selection to represent your interest in the transaction.

The Closing Attorney for your loan will be: Not known at this time.

Title Attorney

You are entitled to select a qualified title attorney or title insurance company, called the 'Title Attorney", of your own choice to conduct the title examination of the Property.  In order to serve as Title Attorney, an attorney you select must provide Nexity Bank with an insured closing letter from a title insurance company that is in form and substance acceptable to Nexity Bank. If you select one, the responsibilities of the Title Attorney will include the following:

•   Examining the title to the Property.

•   Providing the Closing Attorney, not less than 7 days prior to closing, a commitment for a title insurance policy in favor of Lender in form and substance, and issued by a company, acceptable to Lender, together with a municipal lien certificate, a legal description of Property and certified copies of any instrument that may affect title to the Property.

•   Providing title insurance policy in favor of Lender in form and substance, and issued by a company, acceptable to Lender on the same day as the recording of the mortgage or such later date as Lender may permit in writing.

•   Recording any deed or other instrument necessary to convey title to you and, if requested by the Closing Attorney, recording a mortgage in favor of Lender.

•   Obtaining payoff information for any liens on the Property that are to be discharged in connection with your loan and, if requested by the Closing Attorney, obtaining and recording discharges of the same.

YOU WILL PAY ALL FEES AND EXPENSES OF ANY TITLE ATTORNEY SELECTED BY YOU AND OF LENDER'S CLOSING ATTORNEY.

If you have no preference, you may waive your right to select a Title Attorney.  If you do not select a Title Attorney, the Closing Attorney will handle those elements of the transaction that would otherwise be the responsibility of the Title Attorney.   If you wish to name a Title Attorney, please contact us at:

Nexity Bank

3500 Blue Lake Dr. #330

Birmingham, Alabama 35243

Title Insurance

A title insurance policy may be required on this transaction in the amount of your loan. This policy will insure the title to the Property to Lender and must be in the form and substance acceptable to Lender in its sole discretion.  The policy of title insurance that will insure your equity in the Property up to the amount of the purchase price, and both policies will be issued simultaneously.

A title insurance policy will contain a number of exceptions and limitations on what risks it insures. For example, a title search and title insurance policy will not cover matters that would be revealed by a survey of the Property.

A survey shows a number of things not shown in the title records, including whether or not the boundaries of the particular lot meet with the description in the deed, whether or not the buildings are properly located on the Property and do not encroach upon other property and whether or not there are easements that do not appear of record. (If you wish to have the Property surveyed, you must engage and pay for a surveyor of your choosing. Nexity Bank may obtain a plot plan of the Property for its use, but a plot plan is not the same as a survey.) You should review the exceptions and limitations contained in the title policy.

Appraisal

A copy of your appraisal, once obtained by us, is available upon request.

© 1989 BANKERS SYSTEMS, INC., ST. CLOUD, MN FORM HE-DISC-2PT 7/12/90 BFK445 CUSTOMIZED

Home Equity Disclosures | Good Faith Estimate of Closing Costs | Servicing Settlement | Program Description - Nexity Bank Variable Rate Home Equity Line | "When Your Home Is On The Line" | Home Equity Disclosures | State Specific Application Disclosures