(a) The disclosures contained in this section shall be provided where applicable to the borrower in person or via fax at least three (3) business days before the date of closing, if delivered by overnight mail sent at least four (4) business days before the date of closing, or mailed five (5) business days before closing if delivered by regular mail.
(1) Mandatory Arbitration Warning. This loan contains a mandatory arbitration clause which means your right to seek relief in case of violation of law has occurred are limited. You may not be able to protect your rights by filing a court action against your lender.
(2) Prepayment Penalty Warning. This loan contains a prepayment penalty. If you pay your loan off within _______ you will owe your lender an additional amount of money up to $________.
(3) Finance of Prepaid Credit Insurance Warning. You are financing:
_____ credit life insurance
The total cost of the premium is $_____. This insurance term is _____ months.
_____ credit disability insurance
The total cost of the premium is $_____. This insurance term is _____ months.
_____ credit unemployment insurance
The total cost of the premium is $_____. This insurance term is _____ months.
_____ other insurance
The total cost of the premium is $_____. This insurance term is _____ months.
The insurance premium will be prepaid out of the loan proceeds. This insurance premium is being financed at the same interest rate as your mortgage. You are not required to purchase credit life, credit disability or credit unemployment insurance as a condition of this loan and you may cancel such insurance within thirty (300) days of closing..
(4) Balloon Payment Warning. This loan will not be paid off by your regular periodic payments. On __________ you will still owe a balance of approximately $___________ (this amount may be effected by prepayment, escrow or various other factors and is therefore intended only as a good faith estimate of the balance owed on that date). If you do not have the amount of money due on that date you may have to get another loan. If you fail to make the final payment, your loan will be in default.
(5) Adjustable Rate Warning. Your loan includes an adjustable interest rate. This means that the interest rate on your loan may change as described in your note. Your payment may increase.
(6) Release of Lender Warning. The purpose of this loan is to pay for a home improvement contract. The lender shallnot be liable for any non-performance on the part of the home improvement contractor unless the lender has engaged in an act or practice prohibited by Section 795.21.
(7) Notice of Representation. Please be aware that the lender is not providing you with legal representation in this transaction. You are fully encouraged to seek legal representation in this transaction.
(8) Third Party Cost Warning. This loan contains fees payable to third parties which fees may still be payable by the borrower in the event this loan does not close provided that the lender has not engaged in an act or practice prohibited by Section 795.21.
(b) If you do not understand any part of this disclosure or any of the terms of your home loan, please seek mortgage counseling prior to your date of closing. Your lender can supply a current list of mortgage counseling agencies approved by the City of Toledo to be developed by the Department of Economic and Community Development.
(Ord. 765-03. Passed 10-14-03.)