Important Terms of the Compass Equity
Optimizer Line of Credit
Date of Disclosure:
Please read carefully the following disclosure information regarding the Compass Bank Home Equity
Line of Credit Account ("Account") you are considering. Retain this disclosure for your records.
1. Availability of Terms:
The terms described below are subject to change. You should submit your application within 10 days of the
date of this disclosure to obtain these terms. The date of this disclosure is shown at the top of this page.
If these terms change (other than the annual percentage rate) prior to opening the Account and you decide,
as a result, not to enter into an agreement with us, you are entitled to a refund of any fees you paid to us or
anyone else in connection with your application.
2. Security Interest:
Compass Bank will take a security interest in your home as collateral for the Account. If you do not meet the
obligations in your agreement with us, you could lose your home. To qualify for BBVA Compass' home equity
products, the home securing your loan or line of credit cannot be undergoing any type of renovation,
construction or remodeling at the time of your application for a home equity loan or line of credit with BBVA
Compass.
3. Possible Actions:
Compass Bank can terminate your Account and require you to pay the entire outstanding balance in one
payment, refuse to make additional extensions of credit, and charge you certain fees if:
You do not meet the repayment terms;
You engage in fraud or material misrepresentation in connection with the Account; or
Your actions or any inaction adversely affects the collateral or Compass Bank's rights in the
collateral.
Compass Bank can refuse to make additional extensions of credit or reduce the credit limit if:
The value of the dwelling securing the Account declines significantly below the appraised value
used in establishing your Account.
Compass Bank determines that you will probably not be able to meet the repayment requirements
due to a material change in your financial condition.
You are in default in the performance of any obligation in your Account agreement.
Compass Bank is prevented by government action from imposing the annual percentage rate
provided in your Account agreement.
Compass Bank's security interest is adversely affected by government action to the extent that the
value of the security interest is less than 120% of the credit line.
A regulatory agency has notified us that continued advances constitute an unsafe and unsound
practice.
The maximum annual percentage rate established in your Account agreement is reached.
The initial agreement permits Compass Bank to make certain changes to the terms of the agreement at
specified times or upon the occurrence of specific events. For example, if you are in default under the
Account agreement, Compass Bank immediately and without notice to you, may increase your annual
percentage rate by a specified amount.
4. Minimum Payment Requirements:
Advances of credit can be obtained for the initial 1year period (the "draw period"). Advances of credit up to
your Account's credit limit may be obtained and monthly payments are required during the draw period.
Monthly interest-only payments- Under this method of payment, your payments will be due monthly and
will equal the finance charge that accrued on the outstanding balance during the billing cycle, plus any
principal balance in excess of the credit limit, with a minimum payment of $75.00.
The draw period may be extended pursuant to the renewal terms of the Account agreement. The minimum
payment of interest only may not reduce the principal that is outstanding on your line. After the draw period
ends you will no longer be able to obtain advances and you must repay the outstanding balance (the
"repayment period"). At the Commencement of the repayment period you will then be required to pay the
outstanding balance at the monthly payment amount (based on the current interest rate) necessary to
amortize the principal and interest on the outstanding balance in monthly installments over either a 10 or 15
year term.
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The length of the repayment period will depend on the amount of your line of credit at the time of repayment.
For accounts that have an outstanding balance less than $20,000, the repayment period will be ten (10)
years. For accounts that have an outstanding balance of $20,000 or greater, the repayment period will be
fifteen (15) years. During the repayment period, payments will be in an amount necessary to amortize the
principal and interest in equal monthly installments over the term of the loan based on the interest rate in
effect at the commencement of the repayment period. You will continue to incur finance charges until the
Account is paid in full.
During the repayment period, your monthly payment amount will remain fixed but the annual percentage
rate can change. A change in the annual percentage rate can cause the balance to be repaid more quickly or
more slowly. When rates decrease, less interest is due, so more of the payment repays the principal balance.
When rates increase, more interest is due, so less of the payment repays the principal balance. If this
happens, and a balance remains at the end of the repayment period, you will be required to pay in a
single "balloon" payment the entire unpaid account balance that is outstanding on the maturity date.
5. Minimum Payment Example:
If you took a single $10,000 advance and the ANNUAL PERCENTAGE RATE was 4.50 % (most recent rate
shown in the historical example):
Under the monthly interest-only payment method: it would take 10 years to pay off an advance of
$10,000. During that period you would make 12 payments of $75.00. Then you would make 119 payments of
$98.87.
6. Fees and Charges:
To open and maintain an Account you must pay an annual fee of $75. You must carry insurance on the
property that secures this line of credit. You will also pay certain fees (or "closing costs") when opening an
Account. These charges will be itemized on the Schedule of Fees, Charges or Disbursements, and usually
range from $300 to $1,000. You may request more specific information about these charges from Compass
Bank.
7. Closing Costs:
Home equity line customers must normally pay closing costs to open a line of credit. However, Compass
Bank will pay all closing costs on new home equity products with amounts ranging from $10,000 to
$500,000. Any closing costs paid on behalf of the borrower by the lender will be recovered by the lender if
the borrower (1) pays the loan in full or closes the line of credit within two years or (2) fails to make the
minimum advance ($10,000) within 30 days of closing or (3) fails to maintain that balance for at least 90
days. For credit requests less than $10,000 or more than $500,000, all applicable closing costs incurred
and permitted by law shall be borrower-paid.
Home Equity Line of Credit Increases Closing Costs: Compass Bank will pay all closing cost on existing home
equity products ranging from $10,000 to $250,000. Lender has agreed to forebear from collecting payment
by Borrower of certain specified closing costs incurred by Lender in providing these amendments to modify
and increase the credit line amount available under the original Agreement. However, closing costs
associated with the Modification Agreement will be recouped from Borrower if Borrower does not keep the
line of credit open for not less than two years from the closing date of the Modification Agreement and if
Borrower fails to advance an additional $10,000, based on the existing line of credit limit, within 30 days of
executing the Modification Agreement" which must remain outstanding for not less than 90 days.
8. Minimum Advance Requirements:
The initial advance on your Account must be at least $300 unless the borrower was eligible for bank-paid
closing costs, in which case the initial advance must be $10,000 or more, of which $10,000 must remain
outstanding for 90 days. Any subsequent advances have minimum requirements based on the method used
to access the Account. Compass Bank Equity Line of Credit checks must be written in amounts of $300 or
more (up to your credit limit) and cash advances obtained by using the AccountÆs Visa Platinum Card must be
$50 or more.
9. Negative Amortization:
Under some circumstances, your payments during the repayment period may not cover finance charges that
accrue and "negative amortization" could occur. Negative amortization would increase the amount that you
owe us and reduce the equity in your home. Each time the annual percentage rate increases during the
repayment period, we will review the effect the increase has on your credit line account to see if your
payment is sufficient to pay the interest due. If it is not, your payment may be increased by an amount
necessary to repay the balance at the new annual percentage rate within the original amortization period in
order to prevent negative amortization.
10. Tax Deductibility:
You should consult your tax advisor regarding the deductibility of interest and charges on your Account.
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11. Variable Rate Information:
The Account has a variable rate, and the annual percentage rate (corresponding to the periodic rate) and the
minimum payment can change as a result. The annual percentage rate is based on the value of an index and a
margin. The index is the prime rate published in the Wall Street Journal "Money Rates" table. If multiple rates
are quoted in the table then the highest rate will be used. We add a margin to the value of the index to
determine the annual percentage rate that will apply to your Account.
We may increase the amount of this margin, as provided in the Account agreement, if you are in default. The
annual percentage rate includes only interest and not other costs. Ask us for the current index value, margin,
discount and annual percentage rate. After you open your Account, rate information will be provided on your
periodic statement.
12. Rate Changes:
The annual percentage rate may change monthly. The maximum ANNUAL PERCENTAGE RATE applicable to
your Account is 18%, while the minimum ANNUAL PERCENTAGE RATE is 3.50%. Except for this 18% "cap" and
3.50% "floor", there is no limit on the amount by which the rate can change during any time period.
13. Maximum Rate and Payment Example:
If the ANNUAL PERCENTAGE RATE during the draw period equaled the 18% maximum and you had an
outstanding balance of $10,000, the minimum monthly payment would be $150. The maximum ANNUAL
PERCENTAGE RATE could be reached during the first month of the draw period. If you had an outstanding
balance of $10,000 at the start of the repayment period, the minimum monthly payment at the maximum
ANNUAL PERCENTAGE RATE of 18% would be $180.19. This annual percentage rate could be reached during
the first month of the repayment period.
14. Historical Example:
The following table shows how the annual percentage rate and the minimum payments for a single $10,000
credit advance would have changed based on changes in the index over the past 15 years. The index values
are from the last business day in July of each year. While only one payment amount per year is shown during
the draw period, the minimum payments would have varied during the draw period based on the monthly
interest-only payments. The table assumes that no additional credit advances were taken, that only minimum
payments were made, and that the rate remained constant during each year. This table does not necessarily
indicate how the index or your minimum payment will change in the future.
YEAR
INDEX %
MARGIN %*
ANNUAL
PERCENTAGE
RATE
MONTHLY
PAYMENT
Draw Period
2002
4.75
1.00
5.75
$75.00
Repayment
Period
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
4.00
4.25
6.25
8.25
8.25
5.00
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.50
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
5.00
5.25
7.25
9.25
9.25
6.00
4.25
4.25
4.25
4.25
4.25
4.25
4.25
4.50
$102.53
$102.53
$102.53
$102.53
$102.53
$102.53
$102.53
$102.53
$102.53
$102.53**
$ 0.00
$ 0.00
$ 0.00
$ 0.00
* This is a margin we have used recently.
** A final payment of $1,040.85 would be due in the 120th month.
For additional information, see the federal booklet titled When Your Home is on the Line: What You Should
Know About Home Equity Lines of Credit.
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15. Fixed Option Loan Rules and Restrictions:
A Fixed Option Loan is an advance that has a fixed term and scheduled monthly payments. Fixed Option
Loans, in the minimum amount of $2,500.00, may be requested during the draw period, only by phone or in
person at a Compass Bank office.
Number of Fixed Option Loans: Borrower is limited to two (2) Fixed Option Loan requests in a 365 day
period and to a maximum of three (3) Fixed Option Loans outstanding at any time.
Term: The term of each Fixed Option Loan will be the period selected by the Borrower at the time of that
Loan, with a maximum term of fifteen (15) years.
Conversion Period: You can access your option to convert to a fixed rate and fixed payment at any time
during the draw period.
Fixed Option Loan Fee: A $75.00 loan fee will be assessed for each Fixed Option Loan made under this
agreement. This fee is a finance charge.
ANNUAL PERCENTAGE RATE FOR FIXED OPTION LOANS: Each Fixed Option Loan will have a fixed
interest rate. The ANNUAL PERCENTAGE RATE will not exceed 18% and will be determined at the time of the
Fixed Option Loan request by adding the applicable margin to the index rate for Fixed Option Loans. To get
the periodic rate on the Fixed Option Loans, Lender divides the ANNUAL PERCENTAGE RATE by 12.
Fixed Rate Determination: The fixed rate will be determined by adding a margin to the Index. The index
rate for each Fixed Option Loan will be the prime rate published in the Wall Street Journal "Money Rates"
table. The Wall Street Journal prime is readily available to Borrower and beyond the control of Compass Bank.
INSURANCE DISCLOSURES FOR CONSUMERS
An insurance or annuity product is NOT a deposit or other obligation of Compass Bank; is NOT guaranteed
or insured by Compass Bank or any of its affiliates; and is NOT insured by the FDIC or any other agency of
the United States. Compass Bank may NOT condition the approval of the consumer's loan application on
the consumer's purchase of an insurance or annuity product from the bank or any of its affiliates.
Compass Bank also may NOT condition the approval of the consumer's loan application on the
consumer's agreement not to obtain, and Compass Bank does not prohibit the consumer from obtaining
an insurance product from an unaffiliated entity.
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The Housing Financial Discrimination Act Of 1977
Fair Lending Notice
It is illegal to discriminate in the provision of or in the availibility of financial assistance because of
the consideration of :
1. 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
2. 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 fo the purpose of 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 questions about your rights, or if you wish to file a complaint, contact the
management of this financial institution or:
Department of
Financial Institutions
45 Fremont Street, Suite 1700
San Francisco, CA 94105-2219
Department of
Financial Institutions
300 S. Spring Street, Suite 15513
Los Angeles, CA 90013-1204
Acknowlegement of Receipt
I (WE) RECEIVED A COPY OF THIS NOTICE.
Signature of Applicant
Date
Signature of Applicant
Date
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CALIFORNIA CREDIT SCORE NOTICE
Applicant Name: _
Property Address:
In evaluating your application for a home mortgage loan, BBVA Compass may consider one or more of your
credit scores. Your credit scores, which are found on your credit report, assist us in evaluating your credit
history in an efficient and objective manner. The range of possible credit scores is from 300 to 850.
In addition to credit scores, your credit report lists the key reasons why your scores were less than the
maximum possible scores. Keep in mind; these factors are only reasons why you received less than the
maximum score possible, the listing of these reasons does not by itself indicate that you would not be
approved for the loan you have requested. BBVA Compass considers many factors in addition to your credit
score in making a decision on you application. If your application is not approved, you will receive a separate
notice from us stating the specific reasons for that action, which may or may not relate to your credit score(s).
BBVA Compass did not calculate your credit scores, nor did we develop the credit scoring models. The credit
score(s) BBVA Compass used in evaluating your application are on the credit report being provided to you. If
you have any questions about your credit scores or the information in the credit report from which the credit
scores were computed, you can reach the applicable credit bureau via the contact information provided.
TransUnion
PO Box 4000
Chester, PA 19016-4000
Phone: (866) 887-2673
www.transunion.com
INFORMATION REGARDING YOUR CREDIT SCORE IS LOCATED ON YOUR CREDIT REPORT
The date of the credit score is the Date Ordered, which is listed in the top left-hand corner of the report.
The score for each credit bureau is listed as such on the first page of your credit report.
The key factors affecting your credit score are located underneath Comments in the Risk Scoring Results
section of the report. The number you see correlates with the key factor and are not totals.
The range of possible credit scores is located directly beneath the scoring information. The score range
for the models used to score your credit is 300-850.
The contact information for each credit bureau is located above. EFX is Equifax, XPN is Experian, TUC is
TransUnion.
EXAMPLE:
*************************************** RISK SCORING RESULTS ****************************************************
XPN Fair Isaac Score: 610
COMMENTS/ KEY FACTORS
22 Account(s) not paid as agreed and/or legal item filed
18 number of accounts delinquent
10 Proportion of balance to high credit on bank revolving or all revolving accounts
02 Delinquency reported on accounts.
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NOTICE TO THE HOME LOAN APPLICANT
Pursuant to California Civil Code Section 1785.220.2
In connection with your application for a home loan, the lender must disclose to you the score that a credit
bureau distributed to users and the lender used in connection with your home loan, and the key factors
affecting your credit scores.
The credit score is a computer generated summary calculated at the time of the request and based on
information a credit bureau or lender has on file. The scores are based on data about your credit history and
payment patterns. Credit scores are important because they are used to assist the lender in determining
whether you will obtain a loan. They may also be used to determine what interest rate you may be offered on
the mortgage. Credit scores can change over time, depending on your conduct, how your credit history and
payment patterns change, and how credit scoring technologies change.
Because the score is based on information in your credit history, it is very important that you review the
credit-related information that is being furnished to make sure it is accurate. Credit records may vary from
one company to another.
If you have questions about your credit score or the credit information that is furnished to you, contact the
credit bureau at the address and telephone number provided with this notice, or contact the lender, if the
lender developed or generated the credit score. The credit bureau plays no part in the decision to take any
action on the loan application and is unable to provide you with specific reasons for the decision on a loan
application.
If you have questions concerning the terms of the loan, contact the lender.
Acknowledgement
This acknowledges that this Notice and the applicable credit report(s) have been
provided to the Applicant pursuant to California Civil Code Section 1785.20.2.
Signature (Applicant)
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Date
UEQLNE-QA-22.0-04/14/2017
HAZARD INSURANCE DISCLOSURE
Made Pursuant to California Civil Code Section 2955.5
IMPORTANT
DO NOT SIGN THIS FORM UNTIL YOU CAREFULLY
READ IT AND UNDERSTAND ITS CONTENT
You have applied for a loan or credit accommodation that will be secured by real property. As a condition of
the loan or credit accommodation, Lender may require you to maintain hazard insurance coverage for the
real property. California law provides that Lender cannot require you, as a condition of receiving or
maintaining a loan secured by real property, to provide hazard insurance coverage against risks to the
property (such as fire and other perils) in an amount exceeding the replacement value of the building or
structures attached to the property.
BY SIGNING BELOW, YOU ACKNOWLEDGE THAT YOU HAVE READ, RECEIVED AND UNDERSTAND THIS
HAZARD INSURANCE DISCLOSURE. THIS DISCLOSURE IS DATED ______________________________.
APPLICANT SIGNATURE:
Applicant
Applicant
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2017 BBVA Compass HELOC Introductory Variable Rate Promo
Offer Eligibility: An applicant's eligibility for the Special Introductory Rate Offer of Prime minus 1.51% for 12 months (the "Offer")
is subject to the below requirements. Applicants may be approved for a Home Equity Line of Credit (HELOC) but determined to
be ineligible for the Offer.
Application must be received between April 19 and October 31, 2017, and the HELOC must close on or before
December 15, 2017;
Maximum HELOC amount of $1,000,000;
Minimum HELOC amount of $25,000;
Minimum FICO score of 720 at the time of application;
Combined loan-to-value (CLTV) for the property securing the HELOC cannot exceed 80%;
Applicant must have a BBVA Compass checking account and auto debit all monthly payments on the HELOC
from such account;
Approved borrowers must take advances totaling at least $25,000 within 15 days of the closing date and must
have at least $25,000 outstanding on the HELOC at the end of the 15th calendar day after closing (not applicable
if the property securing the HELOC is located in Texas);
Applicant must be a California, Texas, New Mexico, Arizona, Colorado, Alabama or Florida resident.
If you qualify, you'll receive the special introductory variable rate listed above for 12 months. After the initial introductory
variable rate period is completed, the variable APR will range from Prime Rate plus a margin of 0.38% to Prime Rate plus a
margin of 2.74% depending on the characteristics of your HELOC transaction and credit history.
Additional Terms of Offer: Offer is not available for Purchase Money Seconds, line increases on existing BBVA Compass
HELOCs or to refinance existing BBVA Compass HELOCs or Home Equity loans. The Annual Percentage Rate (APR) for the first
12 billing cycles on HELOCs qualifying for the Offer is variable and is based on the Wall Street Journal U.S. Prime Rate (as of
03/16/17, (Prime Rate was 4.00%) minus the designated margin of 1.51%. After the initial introductory rate period is completed,
in no event will the APR be less than 3.50%, which is the floor rate for HELOCs not qualifying for the Offer or not in the
introductory rate period. The maximum APR for all HELOCs, including those qualifying for the Offer, will not exceed 18%. The
Offer's promotional APR is subject to forfeiture upon borrower becoming 60 or more days past due or upon failing to meet one
of the above requirements after closing. The Offer may not be combined with any other promotional discount, but may be
combined with Bank-paid closing costs.
HELOC: All HELOC applications are subject to program eligibility, underwriting, and collateral requirements and approval,
including credit approval. BBVA Compass must receive a valid first or second real estate lien on a primary or secondary
residence occupied by the borrower, provided that HELOCs secured by non-homesteaded properties are not available in Texas.
Property insurance required, including flood insurance where applicable. Minimum required periodic payment is $75 or total
line amount outstanding, whichever is less. A $75 annual fee is charged on the first anniversary of the line and every year
thereafter (not applicable in Texas). A $75 fee is charged for each fixed rate conversion option that is exercised, waived for the
first transaction. Texas HELOCs: Maximum credit line cannot exceed 50% of appraised value of property securing the line of
credit. BBVA Compass must receive a valid first or second real estate lien under Article XVI, Section 50(a)(6) of the Texas
Constitution on a primary residence occupied by the borrower. Minimum draw in Texas is $4,000. In order to use convenience
checks to make draws, borrower must submit request for convenience checks to BBVA Compass. VISA Platinum Credit Card is
not available to make draws in Texas.
Closing Costs: BBVA Compass will pay for all closing costs on new home equity products with amounts ranging from $10,000
to $500,000. Credit requests for less than $10,000 or more than $500,000 shall be subject to actual closing costs incurred
and permitted by law. To qualify for Bank-Paid Closing Costs, the borrower must complete a $10,000 draw requirement within
30 days which must remain outstanding for 90 days (not applicable to Texas HELOCs due to Texas law). Bank-paid closing
costs are subject to recoupment from borrower(s) if the line of credit is paid off and closed within 2 years (not applicable in
Texas). Closing costs vary by state and typically range from $675 on a $10,000 credit line to $6,250 on a $500,000 credit line.
Texas closing costs typically range from $935 to $4,165 depending on credit line amount.
Important: Please sign below to indicate your acknowledgment of these terms and conditions
Member FDIC
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