Texas Home Equity Affidavit and Agreement

Texas Home Equity Affidavit and Agreement (First Lien)

After Recording Please Return To:

Texas Home Equity Affidavit and Agreement

(First Lien)

Do not sign this Texas Home Equity Affidavit and Agreement until you have executed an Acknowledgment Regarding Fair Market Value, and received and reviewed the Texas Home Equity Note and the Texas Home Equity Security Instrument.

State of TEXAS

Before me, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared

I. REPRESENTATIONS AND WARRANTIES:

A. I am a borrower named in the Texas Home Equity Note or the owner or spouse of an owner of the property described in the Texas Home Equity Security Instrument, both bearing date of and , and providing for a lien on the following described property located in County, Texas:

which has the address of:

, Texas (“Property Address”).

B. I understand that the lender making the Extension of Credit is (the “Lender”).

C. The undersigned includes all owners and spouses of owners of the Property and all borrowers named in the Note.

D. The Extension of Credit is secured by a voluntary lien on the Property created under a written agreement with the consent of all owners and all spouses of owners, and execution of this Texas Home Equity Affidavit and Agreement is deemed evidence of such consent.

E. The Extension of Credit is of a principal amount that, when added to the aggregate total of the outstanding principal balances of all other indebtedness secured by valid encumbrances of record against the Property, does not exceed eighty percent (80%) of the fair market value of the Property on the date the Extension of Credit is made.

F. I have not paid any fee or charge that is not disclosed in the HUD-1 or HUD-1A Settlement Statement.

G. Neither the Lender nor any other party has required any additional collateral (real or personal property), other than the Property described in the Security Instrument, to secure the Extension of Credit.

H. The Property is not designated for agricultural use as of the date of closing as provided by statutes governing property tax, unless such Property is used primarily for the production of milk.

I. The Extension of Credit is the only loan made pursuant to Section 50(a)(6), Article XVI of the Texas Constitution that will be secured by the Property at the time the Extension of Credit is funded.

J. The Note and Security Instrument have not been signed before the twelfth (12th) day after the later of the date the owner of the Property submitted a loan application or the date the Lender provided the Notice.

K. The Note and Security Instrument have not been signed before one business day after delivery of the final itemized disclosure or a bona fide emergency or other good cause exists.

L. I received the Notice in English and, if applicable, translated notice was provided.

M. The Extension of Credit is being closed at the office of the Lender, an attorney at law, or a title company.

N. It has been at least one year since the closing date of any other extension of credit secured by the Property, unless a stated exception applies.

O. No owner of the Property has been required to apply the proceeds of this Extension of Credit to repay another debt, unless permitted.

P. No owner of the Property has been required to assign wages as security for the Extension of Credit.

Q. No owner has signed an instrument with substantive blanks left to be filled in.

R. No owner has signed a confession of judgment or given a power of attorney to confess judgment.

S. To the best of my knowledge and belief, all owners will sign a receipt acknowledging delivery of copies.

T. I have been notified of the right to rescind within three (3) days after closing.

U. The Lender and each owner have signed a written acknowledgment as to fair market value.

V. The Property is not being purchased with any part of the proceeds of the Extension of Credit.

W. Unless Lender otherwise agrees in writing, all borrowers shall occupy the Property as their homestead.

X. I understand that the Extension of Credit is not an open-end account.

Y. I understand that the Note, Security Instrument, and this Affidavit define the terms of the Extension of Credit and are to be construed as an entirety.

II. AGREEMENT PROVISIONS:

A. No Personal Liability in the Absence of Actual Fraud. The Extension of Credit is without recourse for personal liability except as stated.

B. Inducement and Reliance. Execution of this Affidavit is made to induce the Lender to make or purchase the Extension of Credit.

C. Remedies in the Event of Actual Fraud. If actual fraud occurs, indemnification may apply and borrowers may become personally liable.

D. Opportunity for Lender to Comply. The Lender may correct noncompliance within the time period stated by law.

E. Tax Advice. Borrower is responsible for determining tax considerations and should seek independent tax advice.

III. STATEMENT UNDER OATH

I hereby swear under oath that the representations and warranties referred to and set forth in Section I above are true and correct. I understand that this Texas Home Equity Affidavit and Agreement is part of the Extension of Credit documentation.

DO NOT SIGN IF THERE ARE BLANKS LEFT TO BE COMPLETED IN THIS DOCUMENT. THIS TEXAS HOME EQUITY AFFIDAVIT AND AGREEMENT MUST BE EXECUTED AT THE OFFICE OF THE LENDER, AN ATTORNEY AT LAW, OR A TITLE COMPANY BY ALL OWNERS OF THE PROPERTY, SPOUSES OF OWNERS, AND BORROWERS NAMED IN THE NOTE. YOU MUST RECEIVE A COPY OF THIS DOCUMENT AFTER YOU HAVE SIGNED IT.

Sworn to and subscribed before me on this day of , .

Advisory Notice

All statements in the foregoing Texas Home Equity Affidavit and Agreement are made under oath. If any such statement is made with knowledge that such statement is false, the person making such false statement may be subject to civil and criminal penalties under applicable law, may be personally liable on the note and may cause all other borrowers named in the note to be personally liable on the note.