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PLAINTIFF! RELATOR
FILED UNDER SEAL
15CVOI,,,
DEFENDANT
QUI TAM COMPLAINT
of accountability only to
Comes now RELATOR BEATRIZ HUML who brings this "Qui Tam" action
(hereinafter the "action") in the name of Texas homeowners and the United States of
America, by and through her attorney Richard A. Roman and alleges as follows.
SUMMARY! INTRODUCTION:
This Qul Tam action is brought by Relator Beatriz Humi on her own behalf, on behalf
of the United States of America and other individuals (homeowners) similarly situated
against Defendant, a participant in the state attorneys general collectively comprising the
plaintiffs in the so-called 49-state National Mortgage Settlement a/k/a "Joint
State-Federal Mortgage Settlement". This consortium of states successfully sought
homeowners' redress against 5 nationally chartered banks and mortgage servicers for,
touted settlement.
Relator HumI posits that Texas (and the other defendant attorneys general
respectively) as a state sovereign made, at-best, ambiguous and irregular statements
and/or actions; Or, at worst, deceptive and fraudulent actions and declarations with
respect to the receipt, disbursement and illegal diversion of settlement funds by
legislative fiat. This was to the detriment of the intended Texas recipients.
Precedent, necessity and authority exists for this type of complaint. The complaint is
timely and ripe. As proof reference is made to a pending Texas criminal court review of
the state constitutional authority regarding recent executive actions by Texas Governor
Rick Perry (Exhibit "1").
he is accused of 'violating his oath of office to uphold the laws of the state" (Dallas
ACTS. (1)
IN
GENERALSubject to paragraph
(2), any
a false or fraudulent
claim for payment or approval; (B) knowingly makes, uses, or causes to be made or used,
a false record or statement material to a false or fraudulent claim; (C) conspires to commit
a violation of subparagraph (A), (B), (D), (E), (F), or (G); (D) has possession, custody, or
delivers, or causes to be delivered, less than all of that money or property; (E) is
authorized to make or deliver a document certifying receipt of property used, or to be
used, by the Government and, intending to defraud the Government, makes or delivers
the receipt without completely knowing that the information on the receipt is true.
This Court maintains subject matter jurisdiction over this action pursuant 31 U.S.C.
3732(a) (False Claims Act) and 28 U.S.C. 1331 (Federal Question.). Jurisdiction is also
Venue is proper in this honorable court located within the Western District of Texas
pursuant to 31 U.S.C. 3732(a) because: (I) The lead, negotiating attorney general is the
State of Texas; (ii) The State of Texas transacted negotiations and other business in this
district and did so at all times relevant to this complaint; and, as averred below, (iii) the
named defendant committed acts proscribed by 28 U.S.C. 3729acts giving rise to this
actionwithin this district, particularly in El Paso County, Texas..
Relator Huml served a copy of same upon the United States, together with a written
disclosure statement setting forth and enclosing relevant material evidence she
possesses, pursuant to the requirements of 31 U.S.C. 3730(b)(2) before filing this
complaint. Relator HumI has, thus, complied with all other conditions precedent to
independent knowledge of, any or all pubhcly disclosed information upon which any
allegations herein might be deemed based. To the extent possible or necessary, Relator
has voluntarily provided such information to the Government before filing this action.
lv.
1, 2a & 2b, 3, 4, 5, 6,
7a - 7b - 7c 7d - 7e, 8, 9,
10 and 11.
V.
RELATOR'S BACKGROUND:
Relator Humi is herself a victim of wrongful foreclosure. She was owner of
purchase-money, homestead real estate located within El Paso County, Texas identified
municipally as (1) 4312 Hueco, El Paso, Texas 79930 and (2) 4318 Hueco, El Paso,
Humi litigated her complaints extensively in state and federal forums. Relator
unsuccessfully argued that she was subjected to illegal and wrongful foreclosure,
wrongful evictions and actions by national banks, servicers and other banking-related
entities e.g., MERS (the "Mortgage Electronic Registration Service"). HumI buttressed her
claims with probative evidence (a power point presentation) to the courts that, among
VI.
PARTIES:
Relator Beatriz Humi is a citizen of the State of Texas (El Paso County, Texas).
Defendant State of Texas is represented by elected attorney general, The Honorable
Ken Paxton, with a principal office located at 300 W. 15th Street, Austin, Texas 78701.
VII.
BACKGROUND:
In 2008 the United States found itself immersed in a economically driven financial
homeowners. The result: the nation's five largest banks agreed to a 2.5 billion dollar
settlement on charges of "fraudulent foreclosure practices", etc. (Exhibit "4" & "5").
The State of Texas' portion of the $2.5 billion ("in direct state payments stemming
from the historic settlement") was 134 million. Texas reportedly received the third largest
of all state payments, behind only California and Florida. The reason provided was
because of the "extent of the damage Texans homeowners suffered".
Texas homeowners were given the impression through releases from the Texas
Attorney General's Office that relief was "on the way". The reality could not have been
more illusory. Homeowner relief and foreclosure prevention programs was clearly the last
thing on the minds of Texas officials as Texas instead diverted these funds into the Texas
General Fund. Specifically, 10 million went to the Texas Judicial Fund and 124 million to
As curious and shameful as this diversion by the Texas Legislature was, it was not
an isolated event. Other states similarly shortchanged their homeowners or "tax-paying
constituents". Texas' actions though, put it among the worst settlement violators.
Others include: (1) The State of Georgia devoted its $99 million for "corporate tax
incentives"; (2) South Carolina used $10 million for corporate "tax incentives" with the rest
of its $31 million going into its "general fund"; (3) Missouri used all of its $40 million
settlement to fill the "gap" initially made after large cuts to higher education; and (4) New
Jersey used "creative accounting" to put its money into, like Texas, the "general fund".
In fairness note: Alabama, Colorado Illinois and North Dakota did utilize funds for
foreclosure-relief programs towards the state budget. Then, in 2014 California incurred a
budget surplus. Governor Brown was pressed by housing advocates to redirect the funds
to foreclosure programs. When Governor Brown would not relent, he was sued. California
now faces a real budget quagmire in the form of a severe, statewide drought.
The State of New York found itself in a similar situation. A well-known nonprofit
organization called "Habitat for Humanity" and "LiveOn NY" sounded similar complaints
and threatened legal action. More recently, New York Governor Cuomo and Attorney
General Eric Schneiderman waged a very public battle over New York's portion of a $613
million settlement with JP Morgan Chase Bank. That settlement articulated that 85
percent of these funds were earmarked for foreclosure prevention, to ameliorate the
effects of the foreclosure crisis, and for financial fraud prosecution (deceptive trade
practices). The results have yet to be seen.
lix.
Arizona Governor Jan Brewer and the state legislature appropriated $50 Million
from its portion of the settlement to build new prisons. Critics argue that the funds were
subjected to a legislative "shell game" to disguise this action. They state that new,
unnecessary prisons will be built in the face of competent data showing Arizona's prison
population on the decline. How many families will suffer at the hands of the misguided
Arizona leadership is clearly an afterthought in the Grand Canyon State..
Other settlements with like questions involve Ocwen Financial Corporation ($100
million), Citigroup ($92 million) and Bank of America ($300 million). All describe how the
recovery."
The Bank of America settlement reads: "The payment to the State of New York
shall be used, to the maximum extent possible, for purposes of redeveloping and
revitalizing housing and home ownership and rebuilding communities in the State, and for
programs intended to avoid preventable foreclosures, to ameliorate the effects of the
foreclosure crisis, to provide funding for housing counselors and legal assistance,
housing remediation and anti-blight projects, to enhance housing code compliance efforts
aimed at addressing blight and disinvestment, and to enhance efforts to remediate the
effects of financial fraud or unfair or deceptive acts or practices."
(which will be performed over a three year period) borrowers will not immediately know if
they are eligible for relief. Generally speaking, for loan modifications and refinance
options, borrowers may be contacted directly by one of the five participating mortgage
servicers.
of the El
Paso, Texas office was on the Executive Committee in over a dozen multi-state cases.
The cases ran the gamut of mortgage complaints including deceptive trade practices,
predatory lending and mortgage servicing. Matters were successfully concluded against
Ameriquest, Countrywide, Wells Fargo, Ocwen Financial and others, which together
brought in over $185 million in attorney's fees, restitution to consumers, civil penalties and
other payments to the State of Texas. Some "$400 million in non-cash benefits to Texas
consumers" was touted.
Daross explains how, when and why Texas' funds were diverted (Exhibit "7a" and
Daross and this same El Paso office received the US Attorney General's Award for
Distinguished Service (the first time that award has been given to non-employees of the
US Department of Justice) for having represented the State of Texas in the
multi-state, DOJ and HUD negotiating team for the $26 billion National Mortgage
Servicing Settlement against Ally Bank, Bank of America, Citibank, JP Morgan Chase,
and Wells Fargo. The settlement amount was publicized as "the largest joint state-federal
settlement in history".
Yet, Texas continues to have a high number of completed foreclosures. Countless,
faceless Texans continue to be at risk at an alarming rate to lose their homes to
foreclosure. This alarming rate combined with high mortgage delinquency rates and
chronically low credit scores signals that Texas' (and the national) foreclosure crisis is far
from over.
dollar lawsuits and settlements were filed and settled in a incredible, miniscule amount
of time (see "7c, 7d and 7e"). The Texas Attorney General's El Paso Office was the lead
negotiator for plaintiffs in other matters (Exhibit "8").
If the above was not enough cause for concern regarding transparency in this
litigation, consider the following.
Outside counsel for AHMI, Robert ("Rob") Mowrey of the Locke Lord law firm and
AHMI General Counsel Eric J. Spett were present at a March 24, 2014 hearing in El
Paso's 448th district court sitting alongside with Assistant Texas Attorney General James
Daross. Opposite them was opposing counsel Roman. During said hearing Mr. Mowrey
had the audacity to mock Judge Sergio Enriquez's finding of judicial notice that both
defense counsel for AHMI (the target of a large lawsuit by the Texas Attorney General)
and Mr. Daross were seated at the same table - even though they were opponents in the
very same litigation (see "Exhibit 8" and 448th district court transcript March 24, 2015).
Mr. Lowery's lack of professionalism towards Judge Enriquez, a dignified, qualified
"Arrogance
housing trust fund, provide homeless services, assist veterans repay loans, foreclosure
assistance and affordable housing (Exhibit "9").
the opportunity to do any different Le., mandate settlement dollars be placed into
programs to help people injured by the foreclosure crisis rather than subject the funds to
the appropriation process (Exhibit "10").
However, on this issue "The jury is out".
So far Texas' hardworking families have not received the assistance they need.
There is no debate that the mortgage crisis has been and continues to be a drain on the
Texas economy.
The upshot: These settlement funds offer stop-gap cash that does not come from
taxpayers. Rather, the funds are for the taxpayer.
Ix
THE NATURE OF DEFEDANT'S SCHEME:
Marking of the inception of the timeline;
Falsity of the defendants actions and how the Relator discovered this;
xl.
"The probability that we may fail in the struggle ought not to deter us from the
respective state government foreclosure settlement funds to the detriment of the intended
recipients (the affected party) Texas homeowners under false or fraudulent pretenses
and without prior approval; (ii) knowingly made, used, or caused to be made or used, a
false statements, records or utterances in order to divert settlement funds in the manner
herein described; and (iii) knowingly made, used, or caused to be made or used, a false
The United States Government, homeowners and the public's fiscal status have
been damaged as a result of Defendant's violations of the False Claims Act.
PRAYER:
times the amount of damages homeowners and the United States has sustained as a
result of Defendant's violations of the False Claims Act;
(ii.)
That America receive all relief to which either or both may be entitled at law or in
equity;
(iii.) That this Court enter a judgment against Defendant for a civil penalty of $10,000 for
(iv.) That Relator Bea Huml recover all costs of this action, with interest, including the cost
to the United States Government for its expenses related to this action;
(v.) That Relator HumI be awarded reasonable attorneys' fees in bringing this action;
(vi.) That in the event the United States Government proceeds with this action, Relator
Humi be awarded an amount for bringing this action of at least 15% but not more than
25% of the proceeds of the action;
(vii.) That in the event the United States Government does not proceed with this action,
Relator Huml be awarded an amount for bringing this action of at least 25% but not more
than 30% of the proceeds of the action;
(ix.) That a trial by jury be held on all issues so triable such that that Relator, homeowners
Richard A.
Roman
CERTIFICATE OF SERVICE
hereby certify that on May
, 2015 a true and correct copy of the foregoing
instrument has been forwarded to the attention of Office of the Attorney General of the
United States, The United States Department of Justice, The United States Attorney for
the Western District of Texas (askdojusdoj.com) and via the CMI ECF electronic filing
and
system,
the
Texas
Attorney
General's
Office
at
ken. paxtontexasattorneygeneral.org and regular mail.
I
Esci.
STATE OF TEXAS
COUNTY OF EL PASO
VERIFICATION
Before me, a Notary Public, in and for El Paso County, Texas, on this day personally
Appeared
XCIfTTL
Hu c'-1
who being by me first duly sworn, says that he/she has read the
above and foregoing and that it is in every particular true and correct to his/her own personal
i,tt,72
,4,i'4Print Name
Signature
*TO
[Notary's typed or printed name]
My commission expires:
t"\(
iCh iL2-O) tp
rhJ
otaPCc,SeofTexai"
My Commission Expires:
led
t
No.
ttC.V4
ICU2R
4tJ6
2014
INDICTMENT
Count I - Abuse of Official Capacity 39.02 DPS 23990064
Count II - Coercion of Public Servant 36.03 DPS 13990027
In the 39O Judicial District Court of Travis County, Texas
THE GRAND JURY for the County of Travis. State of Texas, duly selected.
empanelled, sworn, charged, and organized as such at the January 2014 Term, AD., of
the 39O
Judicial District Court for said County, upon its oath presents in and to said
Court at said term, that in Travis County, Texas, and anterior to the presentment of this
indictment, James Richard "Rick" Perry, committed the following offenses:
Count I
On or about June 14, 2013, in the County of Travis, Texas, James Richard "Rick" Perry.
with intent to harm another, to-wit, Rosemary Lehinberg and the Public Integrity Unit of
the Travis County District Attorney's Office, intentionally or knowingly misused
government property by dealing with such property contrary to an agreement under
which defendant held such property or contrary to the oath of office he took as a public
servant, such government property being monies having a value of in excess of $200,000
which were approved and authorized by the Legislature of the State of Texas to fund the
continued operation of the Public Integrity Unit of the Travis County District Attorney's
Echib4
Office, and which had come into defendant's custody or possession by virtue of the
Count 11
Beginning on or about June 10, 2013, and continuing through June 14, 2013, in the
County of Travis, Texas, by means of coercion, to-wit: threatening to veto legislation that
had been approved and authorized by the Legislature of the State of Texas to provide
finding for the continued operation of the Public Integrity Unit of the Travis County
District Attorney's Office unless Travis County District Attorney Rosemary Lehmherg
resigned from her official position as elected District Attorney, James Richard "Rick'
Perry, intentionally or knowingly influenced or attempted to influence Rosemary
Lehmberg, a public servant, namely, the elected District Attorney for Travis County.
Texas, in the specific perfonnance of her official duty, to-wit: the duty to continue to
carry out her responsibilities as the elected District Attorney for the County of Travis.
Texas through the completion
of her elected
Rosemary Lehmberg were not members of the same governing body of a governmental
entity, such offense having been committed by defendant, a public servant, while acting
in an official capacity as a public servant.
XkQcon. Ti,ws
11-19-'12
20! 10169$03P52
GRANTOR(S):
BEATRJZ HUM1
OI1GD4AL MORTGAGEE:
MORTGAGE ELECTRONIC REGISTRATiON 8YSTEM
C. ('4ERS), AS NOMIF.R
TIME OF SALR
/
PLACE OF SALE OF PROPERTY:,
_AMj)
CURRENT MORTGAGER
GEANrBFIBuy:
MORTGAGE SERWCER:
WELLS FARGO BANK, NA.
GRANTER'BUYER'S MAILINGADDRESS;
5000 PLANO PARKWAY
CARROLLTON, TX'15010
'''
RECORDED IN,
,1c3
A
TOPS ALE.$
CLERKSFILENO,20080061109
2- Z
PROPERTY COVNTY(LEGAL DFSCRIPTION: EL PASO
LOTS 25 AND 26, BLOCK 72, GOVERNMT HUL ADDITION
TO THE CITY OP EL PASO. EL PASO COUNTY, TEXAS,
ACCORDING TO TEE FLAT THEREOF ON PILE IN THE OFFICE OP
THE COUNTY CLERIC OF EL PASO COUNTY TEXAS.
Onuaaor conveyed the propetty to Trustee in oust to secure payneut f
the 'Iotc. Mortgagee, fl'xogli the Mortgage
Ser,'ieec. declared that
Grantor drfrnsltcd to perthrnung the obligations of the Deed of Trust.
Current Mortgages of the Notc through the Mortgage Servicer,
aeeordinr has eppcsintail Subuntute Tntstae artS requtoted Subetltrtic
Tnistccto enforce the trurt
Notices staag the tithe, place and trims ci sJc ci the property were
mailed, posted and filed, so tequired by law. Substitute
Trustee sold
the property to Buyer. who was the highest bidder as the public
auction, fbr amount of sale in the manner prcectibed by law.
The subject
talc was conducted no earlier thin I 1:00AM 55 act fosth In the Notice
it Substitute Trusteds Sale Mod was ccncludcd Within tisiec
(3)hourt
of such time. All batters, duties sod obligations of Mortgager were lawfUlly
pwfoimed
Substitute Tfljtcc, subject to any altos of record, sod for aniouist salt
it
paid by buyer ta consideration, ants. sells and conveys to
Buyer, Buyer's bcir, executors. administrators,
successors or assigns forever, the property together
wnb Ml) rights and BppIIrts'UtnCeO
belonging to Grantor. Sub1irutc Trustee hereby sells the above eeeuced
property AS IS without any exp eased or implied warrantieS,
except as to warmones it thie, and hereby conveys the property to
the prtrcharer at the purebaser'a own risi pursuant to the trsTh$
Texas Pmperty Code 51.002 ted 51,009.
ci
WITNESS
STATE OF TEXAS
COUNTY OP EL PASO
(I
NA'tOl4S-
Etembr,jdJQU.
My Cpanmission Expires
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19153516754
FROMP3@/O5
Case 3:15-cv-00126-DCG Document 1 Filed 05/01/15 Page 18
of 163
BEFOTtB MS, the undersigned authofity on this day personally appeared Joseph Weber, known to mc, who upon oath administered by me
of the law firm BARRETF DAPFIN FRAPPIER TUBNER & '1O!L, LLP in connection with the
admistiacration of foreclosure of that cc tarnDecd of Thist or Security Instrument ("Deed of Thist") dated July 28, 2001, recordedle
CLERK'S FILE NO, 20080061709, Reel Property Records, EL PASO County, TEXAS, executed by BEATPJZ HilIsfi. ("Qrentor").:
I am a :eprwtcntntic
am making this affidavit based upon cettain records maintained within the firm's files In the regular course of its business, which
may include hnugca of notices, certified mad forms. the signed Subtltute Thiatee's Deed, title sasiches, acid other documents and
records obtained end maintained in the usual course of buige. Together with m' general knowledge of mortgage servicer practices
for rsfberissg foreclosure maltese to the firm, the statements and information shown in these records form the basis for the following
statements made in this affldavtt which to the beti of my knowledge and belief are true.
2.
3,
WELLS FARQO BANK, NA. is the Mortgage Servicer for the Lender or its Nominee concerning the debt evidenced by the Deed of
Dust.
4,
The Mortgagee, through tire Mortgage Servicer deelarcd that the Orantor defaulted in performing the obligations of the Deed ofbrAst
and lawfuHy perfonned service of a proper notice of default and other obligations and duties of the Mortgage Servicer.
5.
All noticea of acceleratlois were san'ed on each debtor obligated on the debt according to records obtained feom the Mortgage Sejaee
by certified mail at the lait known address of each such debtor in accordance with law. Based upon these records, each morrgag was
alive at the thee of the Ibreclosare sale or j( deceased, title Was restored to the debt owner through a court judgment, '.an
underwriter's approval lettet obtained.
6.
Al the instrUctiOnS end on behalf of the Mortgage Scsvicee, Notices stating the time, piece end terms of sale of the property were
mailed, posted and Wed In accordance with law. Notices were served on each debtor obligated on the debt according to
records
obtained froat the Mortgage Servicer by certified mail at the lest known addrcs of each such debtor at least twenty one (21) days
before the date of the sale.
7.
Through my work at thc firm, I know that the firm follows a regular process in foreclosure masters to ascertain a Orantor's military
service status fOr purposes of the federal Service M.mb.r's Civil Rc]icf Act and state law. I am fomillar with this regular process,
which involves submitting Orantors' namer and idennling Isifonnailon obtained from the Mortgage Servicer or commercially
available records scarcheg to the federal Dc*rsee Manpower l)atss Ccntr ("DMDC") through that agency's official internet search
sits
(the "DMDC Site). Based upon say review of search returns obtained and maintained in the finn's tiles, no Grantor Is reported as
on
active dub' military service or as having concluded active duty miitasy service within the preceding nine month,s.
STATE OF
COTJNTYOF
TEXAS
DALLAS
dyof
SEP 072011
Nat[
Notary Seal:
of l'exs
Jod
State
er
Ity
Cn,n. Em.
02.10.5015
AppWAvrr. 44
RETURN TO:
BARRETr DAFFIN PItAJ'PIER
TURNER & ENGEL, 'It
15000 Surveyor Boulevard, Suite 100
Addlsoss,.Tst(aa 75001
&J04svir.statcb?rirtr,r
-lI4Qf2QIQ)/Vtr-17
STA2O11D1698O3P52
Fieo4Ss of 15S0
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Case 3:15-cv-00126-DCG Document 1 Filed 05/01/15 Page 19
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GRANTOR(S):
BEATRIZ HUML
ORIGINAL MORTGAGEE:
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS,
INC. ("MERS') AS NOMINEE
TIME OF SALE:
//.'23?
PLACE OF SALE OF PROPERTY:
(M
CURRENT MORTGAGEE:
GRANTEE/BUYER:
CITIMORTGAGE, INC.
MORTGAGE SERVICER:
CITIMORTGAGE, INC.
RECORDED IN:
AMOUNT OF SALE
/14
? cc9
,-'Z\
7,-i
..
Oi.
0L20l I.
&
(i
ITGAJS
tg State of
XAS
isd'
NO1
rIi,clT*a.
.M,MJARY22, 2013
'-,-,_.-u'.
i'JJTUWJ4g
RETURN TO:
BARRETF DAFFIN FRAPPIER
TURNER & ENGEL, L.L.P.
15000 Surveyor Boulevard, Suite 100
Addison, Texas 75001
STD2OI 10018800128
Substitute Trustees Deed (EQUITY)
SubTrusteeDeedCouni.rpt - (O6/04I20O
I Ver-19
BEFORE ME, the undersigned authority on this day personally appeared Derek Freita& known to me, who upon oath
administered by
me deposed and stated
am a representative of the law firm BARRETT DAFFIN FRAPPIER TURNER & ENGEL, LLP in connection
with the
administration of foreclosure of that certain Deed of Trust or Security Instrument ("Deed of Trust") dated October 05, 2007,
recorded in CLERK'S FILE NO. 20070098417, Real Property Records, EL PASO County, TEXAS, executed
by BEATRIZ
HUML ("Grantor'.
1
2.
I am making this affidavit based upon certain records maintained within the firm's files in the regular course of itS business,
which may include images of notices, certified mail forms, the signed Substitute Trustee's Deed, title searches, and other
documents and records obtained and maintained in the usual course of business. Together with my general knowledge of
mortgage servicer practices for referring foreclosure matters to the firm, the statements and information shown in these records
form the basis for the following statements made in this affidavit which to the best of my knowledge and belief are true
3.
CITIMORTGAGE, INC. is the Mortgage Servicer for the Lender or its Nominee concerning the debt evidenced by the Deed of
Trust
4.
The Mortgagee, through the Mortgage Servicer declared that the Grantor defaulted in perfonning the obligations of the Deed of
Trust and lawfully performed service of a proper notice of delimit and other obligations and duties of the Mortgage Servicer
5.
All notices of acceleration were served on each debtor obligated on the debt according to records obtained from the Mortgage
Servicer by certified mail at the last known address of each such debtor in accordance with law. Based upon these records, each
mortgagor was alive at the time of the foreclosure sale or if deceased, title was restored to the debt owner through a court
judgment or an underwriter's approval letter obtained
6.
At the instructions and on behalf of the Mortgage Servicer. Notices stating the time, place and terms of sale of the property were
mailed, posted and filed in accordance with law. Notices were served on each debtor obligated on the debt according to records
obtained from the Mortgage Servicer by certified mail at the last known address of each such debtor at least twenty one (21)
days before the date of the sale.
7.
Through my work at the firm, I know that the firm follows a regular process in foreclosure matters to ascertain a Grantor's
ntilitaiy service status for purposes of the federal Service Member's Civil Relief Act and state law. I am familiar with this
regular process, which involves submitting Grantors' names and identiliing information obtained from the Mortgage Servicer or
commercially available records searches to the federal Defense M
Data Center ("DMDC") through that agency's
official internet search site (the "DMDC Site). Based upon my
of ch returns obtained and maintained in the finn's
files, no Grantor is reported as on active duty military service r as hav
Co cluded active duty military service within the
preceding nine months
STATE OF
COUNTY OF
AFFIANT:
TEXAS
DALLAS
Notary Seal:
NO'I
day of
/'"\
Notary
03Z011
Camm.
AFFIDAViT- 496
RETURN TO:
BARRETT DAFFIN FRAPPIER
TURNER & ENGEL, LLP
15000 Surveyor Boulevard, Suite 100
Addison, Texas 75001
Aftldavit-BatchPrint.rpt - (123W2010) I Vet-I 7
IUHftIIL1IIIIflhIliN
STA2OI 10018800128
hereby certify that this instrument was filed on the date and dme stamped
hereon by me and was duly recorded by document number in the Official
Public Records of Real Property In El Paso County.
Doc* 20110078561
#Paes 2
*NFPaaes I
11/16/2011 2:2513 PM
Filed & Recorded in
Official Records of
El Paso County
Delia Briones
County Clerk
Fees $20,00
C)
Comptroller of the Currency
Administrator of National Banks
Case# 01943675
CITIBANK, NATIONAL ASSOCIATION
If the financial institution has satisfactorily addressed your issues and/or concerns no further
action on your part is required. However, if the financial institution failed to address any of your
issues and/or concerns or you disagree with their response, please contact the CAG in writing
ofTeceiptof the-financial institution's -letter. Please include-in-yourreply thespecific issues that the financial institution failed to address or, if applicable, the reasons you
disagree with the financial institution's assessment. Also, please include any additional
documentation that supports your position.
The 0CC examines national banks arid federal savings associations (thrifts) to ensure their safe
and sound financial condition and ensures compliance with applicable banking laws, rules and
regulations. The CAG was established to assist customers who have questions or complaints
involving national banks and federal savings associations (thrifts). For additional information on
the 0CC and CAG please visit www.helpwithmybank.gov.
Customer Assistance Group, 1301 McKinney Street, Suite 3450, Houston, Texas 77010-9050
Phone: (800) 613-6743, FAX: (713) 336-4301
Internet address: www.helpwithmybank.gov
2i.
The CAG offers guidance, and assists consumers in resolving complaints about national banks
and federal savings associations (thrifts) and their operating subsidiaries. The 0CC is an
administrative agency and does not have jurisdiction to resolve contractual and factual issues.
We do not have judicial authority and cannot award damages in excess of an institution's error.
While complaint processing times may vary, on average you should receive a written response
from CAG within 60 days after we have a complete file. If you would like to check the status of
your case online, please visit www.helpwithmybank.gov and click on the Check Case Status link.
Should you have questions, please contact this office at the number listed below.
Sincerely,
Customer Assistance Group, 1301 McKinney Street, Suite 3450, Houston, Texas 77010-9050
Phone: (800) 613-6743, FAX: (713) 336-4301
Internet address: www.helpwithniybank.gov
iIIJIIIJlIll!IlIl!IH
ID
Important Notice:
Your loan may be eligible for an Independent
Foreclosure Review that may result in
compensation or other remedy.
Please respond by April 30, 2012.
Loan Number:
2004733728
IlIIifluiiII.iii.ii,IIIIulIIihIIIHpIIsliIII1IWIJlrI.11hlIl
El Paso TX 79903-3021
Ifyou have more than one mortgage account that meets the initial
criteria for an independent rev/en; von in/i receive a separate
notice for each. You will need /0 submit a separate Request For
Review For,n for each account.
You are receiving this notice because the above property is or was active
in the foreclosure process between .January 1,2009 and December 31, 2010.
Si tisted habla espaflol, tenernos representantes que pueden asistirle en su idioma.
The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency
(federal bank regulators) have required an Independent Foreclosure Review to identify customers who may
have been financially injured as a result of errors, misrepresentations, or other deficiencies made during the
foreclosure process. Citimorigage's records indicate that your loan may meet the initial criteria:
Your mortgage loan was active in the foreclosure process between January
The property was your primary residence.
1,
if you believe that you niay have been financially injured, you may submit a Request for Review Form
for an Independent Foreclosure Review by a consultant outside of Citimortgage.
The independent Foreclosure Review will not have an impact on your credit report or any other options you
may pursue related to your foreclosure. If you filed a complaint about the foreclosure process prior to this
independent review, you are still eligible to submit a Request for Review Form.
Step 2: After reviewing the form, if you believe you may have been financially injured, complete and submit
a Request for Review Form describing your situation.
Return the completed form using the enclosed prepaid envelope by April 30, 2012.
You will be sent an acknowledgement letter within one week after your request is received.
Step 3: Your request will be evaluated to confirm eligibility for the Independent Foreclosure Review.
If your request meets the eligibility requirements, it will be reviewed by an independent consultant.
1CO1 -0051159
Subject:
From:
To:
rromanattorney@yahoo.com;
Date:
Thank you,
Consumer Response Team
Consumer Financial Protection Bureau
consumerfinance .gov
(855) 41 1-CFPB (2372)
Thank you for contacting the Consumer Financial Protection Bureau.
We have received your complaint (Case number: 120321-000552) that you filed on behalf of beatrize
hum! and will send it to your company as soon as possible.
Thank you,
Consumer Response Team
Consumer Financial Protection Bureau
consumerfinance.gov
(855) 411-CFPB (2372)
" /?
.
':
'/74.
BEATRIZ HUML
L'/A
09
PLAINTIFF,
CAUSE NO.
c\\iR.V
Pursuant to Texas Rules of Civil Procedure 4, 5, 21, 21a, 21b, 23-27 45 (d);
Texas Government Code, sec.31 1.014; TRAP 4.1, 5, 9, the attached documents are
filed for consideration in this matter.
This matter pertains to an eviction subsequent to a foreclosure. The attached
Exhibits 1-9 are evidence of "robo-signed" mortgage-related documents displaying at
least 4 different signatures for "Beverly Mitrisin". Other documents appear to be
executed utilizing a signature "stamp".
The Substitute Trustee's Deed in the foreclosure action against the defendant
was executed by Beverly Mitrisin (Exhibit 8).
Specifically:
1. SubstitUte
?/
2. Substitute Trustee's Deed through MERS with original signature; return to Barrett
Daffin law firm;
3. Substitute Trustee's Sale with different original signature, return to McCarthy,
Holthus & Ackerman law firm;
4. Notice of Trustee's Sale with signature stamp, return to Codilis & Stawiarski law
firm;
5.
refurn to
firm;
chik
3.
.1-
Richa d A. Roman
Attorney for Beatriz Humi
505 East Rio Grande
El Paso, Texas 79902
915.351.2679
Fax 351-6754
Email: rromanattorney yahoo.com
CERTIFICATE OF SERVICE
hereby certify that a true and correct copy of the above "Notice of FiIin" was
'day of
mailed (and sent via electronic means) to the Barrett Daffin law firm on this
December, 2011.
I
Case
3:15-cv-00126-DCG Document 1 Filed 05/01/15 Page 29 of 163
MR-3e-2g9 14:34
FROM:
TO:3516754
Doft
74-
20110169*90952
GRNTQ'
BRja.ItUML
ORIGINAL MORXGAGEE
MQP.TOACE ELECrEONIC gsoisratiios
SEMR
INC. (MgRr) AS
_AM
/
./
TiME OF SAl.5
LACE OP SALE OF PROPERTY
-' l.ORBY OPINE FIRST FLOOR ATTHENEW EL PASO
RY
COURTIIOUSE ORAS DESIA
CO
COUIITY COMMISSIONERS
GRANTEEIBUYUR:
FEDERAL HOME LOAN MORTGAGE CORPORATION
ORANTEEIRUVEIVS MMU$O ADDRESS
30110 PLANO PARKWAY
CURRENT MORTGAGEE:
MORTGAGE SERVICER:
WELLS FARGO RANK. NA.
CAIUWU.TON. TXTSOEO
=pij io
_?42. Z.
Monce
meTnhltac eald
Iaw The auilject
ode wia conduCted no earlier then I]OOAMee ci (ot*h itt the NoticscCSubRt cTrus1es Sale and was ccnludcd within tlwce(3)hOutt
of such time. All miners. duties and oblipttegsofMoitgagcc team lawOifly peiforetod
Subatinne TruStee. subject to any manors
cd sale
paid by buyer
eanl6reiion
wiw. sells
and esuweyi to
Duyen BvycYa beisi, wcuion. adminisuatore. anccvwom or smigni forever, tito pcopc' together with .11 gles md *ppwleeenccz
bdousjng to Grentor Substitute Tiu$Wo hereby ads the above reibtenced property AS iS without any expressed or iurp&d watmutler,
ccpt an to warranties of title. end
Texan Property Critic USLOOZ and
wmss MY NAND.
It
putCC!OW)JIek,.Pmaustts.IO.th. .tems
thin
-1'
/
STATE OP TEXAS
couNry of EL PASO
.j
Q.1'.
0N0an Subedluts
cfcsu mc, the undersigned Notary Public. on thu day penonally sppcatod BEVERLY MITIUSIN
ttuatem. heown to me or proved to mc dtjough it valid State drivofa license or other onInlaf Identification described an
to be the paean whose name is subscrftd to the forcgaln isaterunent and seknowledgcd So mc
prcsacd.
that be execuled the sum. fbr the purpoac, and considwallon therein
Given end
Sepimcbero&JQIL
REJ1JRN TO
(a'IIIlIIIHhIuhIII
S'PD2OI 19069503952
V.t..19
1(
'(
p5
201100785!
Dod
Pp
GRAN?OR(S)
ORIGINAL MORTGAGBIi-
TE4EOFSALE____________
eMERS.)ASNOhIINEE
.......................
aJRRENrMoRTGAGE
ClTlMORTGAGE INC
GRTHWBUYE
FEDERAL HOME LOAN MORTGAGE CORPORATION
MORTGAGE SERV10ER
CrTTh4ORTGAGE, IN
CARROLLTON,IX15oIo
RE
ouiirop si.a s
J/3 7C
PASO
PROPERTY COUNTY/LEGAL DESCRiPTION:
LOTS 22,23, AN!) 24 BLOac 72, GOVERNMENT HILL ADOIT!ON AN 4DDmON TO THE CiTY OP EL PASO, EL. PASO
FLAT RECORDS OF EL.
COUNTY, TEXAS ACCORDiNG TO THE FLAT THEREOF RECORDED IN VOLUME II, PAGE
ONlY NOWNAS43Z*NUECQ, ELPASO7EJlAS.
PASO COUNTY, TEXAS, MORE
Greater coevcyed the paopaty toTnistec in trust to seecrcp,ymestf the Not& Mongage thecughthe Mongage Servicer, dedared that
Grader defaulted in performing the obligations ef the Deed ef Trust Ourcat Mortgagee ef the Note, Uuucgh the Mortgage Savice
ecthe trust.
edSrdeTn
Irde Tn caud req
accerdteglybasappobged S
the pea ortywucmaihd,postcdandSje4aa required by law. SubathurcTnwtcc sold
ring the time, place and terms ef sale
N
thopestytoBrll,e,, who war theblgbarrbiddnaz the pobli udio foraurorrur ef sale in tire seamer preraibed by law. The rezbjecr
eandudedwithinibree(3)hoor
sale was conducted no cserrerth 1lOOAMarsctfoebinthe)imJceef
ucir 2mw. MI mstza durieraudobligasiorm, cfMc
ewarelawfi* performed
Trustee. subject to my matters ef record. mid (cranowitef sale paid by buyer ar consideta*iosr, grants, sells and conveys to
er mesgus forever, time peopay together with all rights and appurtenances
Buyer, Bayer's heirs, a consors, adnioistratou,
belonging to Grartor. Sob'titute Threree hereby sells the above referenced property AS IS without my cxoressed at lomoriedwarruntles,
jie
______-.
$ube
rams
cC
__LI
fl10'8
un Substitute
Before ame, the undersigned Notary Pubfle. un this day personally appeared BEVERLY M RISINQG.T.
Trustee. known to me or proved to are *Iuts* a valid Stoc drlvcm's Braise or other oc3ti Wanton drectibed as
to be the pamon whose twine is Msafoed to the fategoing kistruomerit sad xknowlodgsd to me
7yflL_
hSdthpddnadcnthueqprest
a.
Brplree
.L
ra
.ftflJ"ULWW -r-
fWLANVt
NDfp,jUtj
eeBaecI
S
5
4.
RETURN
RARRELTDApflN FRAPPIER
WRNER& ENGEL,LLP.
1S000 Surveyor Boukva4 Suitc 100
AddIse Tames 75001
Suheinte Thusces Dccl
IIII1111IIl
STD2O1 10018800328
(EQVffYJ
it
I
00000000097
4tNFPaqes I
*Paqes 1
l 2/12/2011 2 09:43
Filed & Recorded in
Official Records of
El Paso County
onventiona1 Residential
752 TEPIC DRIVE, EL PASO, TX 79912
PM
Delia Briones
Original Beneficiary/Mortgagee:
LONG BEACH MORTGAGE COMPANY, A
CORPORATION
Recorded in:
Volume:
Page:
Instrument No: 20040106248
Mortgage Servicer:
JPMorgan Chase Bank, National Association is
Grantor(s)/Mortgagor(s):
AMY C. PIRK AND HUSBAND, JONATHAN A.
'7"
Curr:nt Beneficiary/Mortgagee:
Deutsche Bank Nat'l Trust Co, as Trustee for Long
Beach Mortgage Loan Trust 2005-1
Property County:
EL PASO
Date of Sale:
1/3/2012
10:00 am
Place of Sale of Property: THE LOBBY OF THE FIRST FLOOR AT THE NEW EL PASO COUNTY
COURTHOUSE OR iN THE AREA DESIGNATED BY THE COMMISSIONER'S COURT,
PURSUANT TO SECTION 51.002 OF THE TEXAS PROPERTY CODE.
The Substitute Trustee will sell the property by public auction to the highest bidder for cash at the place
and date specified. The sale will begin at the earliest time stated above or within three (3) hours after that
time.
trisin
'yMi"TesThomasNatn*
or Cole D. Patto
d C an
or Melissa A. McKinney
or Karl Terwilliger
McCarthy, Hoithus & Ackerman, LLP
AiTh: SALES
1255 West 15th Street, Suite 1060
Piano, TX 75075
TII
2: 8:@7
in.
Records of
0 COUntY
Briones
C1erk
NOTICE OF TRUSTEE'S.
650 North
Grantor(s):
Texas 77060
November 14,2007
Original Trustee:
Original Mortgagee:
Recording Information: Volume , Page, or Clerk's File No.20070 109952 in the Official Public Records of EL
County, Texas
Current Mortgagee:
Mortgage Servicer:
JPMorgan Chase Bank, National Association, National Association whose address is C/O
Baytneadows Way Jacksonville, FL 32256 Pursuant to a Servicing Agreement between the Mortgage Servicer and Mongagee the Mo
Servicer is authorized to represent the Mortgagea Pursuant to the Servicing Agreement and Section 51.0025 of the Texas Property Code, the Mor
Servicer is authorized to colleer the debt and to administer any resulting foreclosure of the referenced pmperty.
Date of Sale:
1/3/2012
10:00:00 AM
The Substitute Trustee will sell the property by public auction to the highest bidder for cash at the place
specified. The sale will begin at the earliest time stated above, or within three (3) hours after that time.
If the sale is set aside for any reason, the Purchaser at the sale shall be entitled
For Information:
Codifis & Stawiarski, P.C.
650 N. Sam Houston Parkway E , Suite 450
Houston, TX 77060 / (281) 9256200
1
Doc* G25
*NFPanes
*Pages 1
1 .5.4q4053756
j%031415053
12/1/2011
Filed & Recorded of
Records
(.PAs724
County
,NOTICEOFSUBSTITUTETRUST1aI
Delia Briones
of the armed forces
oleasewad wrItten
ofthe U*Isst[$ airs
duty esdetary
comnteant
U * member ofe rescryt
of this notice Immediately.
service to the aeteder
Deed olTnjst
Date:
December 20,2007
Grantor(s):
MARIA GONZALEZ
SIMON GONZALEZ
SYSTEMS. INC.
Or cal Mortgager:
MORTGAGE ELECTRONIC
(7vRS'), AS NOMINEE
REGISTRATION
ERA
SERViCING, 12.
TO BAC HOME LOANS
MERGER
Morlgagcer
BY
Current
NA. SUCCESSOR
LOANS SERVICING,LP
BANK OF AMERICA, LOANS SERVICING 12
TO MC HOME
HOME
ORBY MERGER
COUNTRYWIDE
i&s
c/o-BA2OK ORA
TO SAC HOME
LOANS SERViCING,
LP
BY MERGER
Mortgage Scrvicet
NA. AS SUCCESSOR
BANKOF AMERICA.
FILE NO, 20070113570
Recordedin: CLERIC'S
Property Counxy:
EL PASO
PASO
EL PASO, ELTHE CITY OP
OF EL
RECORDS
ADDITION TO
AN
PLAT
FIVE,
12, PAGE 39
Legal Decripuoer
ADI)ITION UNIT
ON FILE IN BOOK
41, MILAGRO HILLS.
THE MAP THEREOF
LOT 22. BLOCK
TO
XAS ACCORDING
COUNTY
PAZOCOUNTY.TEXAS.
3,2012
I
1:00AM
BY ThE
OR AS DESiGNATED
COURTHOUSE
EL PASO COUNTY
Place of Sale ofProperty:
AT TEE NEW
FIRST FLOOR
The asic will
LOBBY OF ThE
and date spccillcd.
cash at Ote place
for
COMMISSIONERS.
biddet
COUNTY
to the lugleest
by public auction
Mortgage
sell the property
that time.
after
is acting as thc
Truatcewill
hours
(3)
The Substitute
SERVICING, LP SERVICING, 12, PICA
above or within three
LOANS
slred
ROME
tune
LOANS
TO BAC
above
begin at thecarliest
BY MERGER
TO SAC HOME of Trust associated with the
BY MERGER
NA., AS SUCCESSOR
and Dead
as Mortgage
LP
BANK OF AMERICA, OP AMERiCA, NA, SUCCESSORthe Mortgagee of the Note
SERVICING.
who is
SAC ROME LOANS
Servicer for BANK
SERVICING 12.
BY MERGER TO
HOME LOANS
SUCCESSOR
AS
N.A.,
COUNTRYWIDE
COUNTRYWIDE
I), PICA
BANK OF AMERICA. addressis
rcfececed im.
HOMELOANS SERVICING,
SAC
TO
Mostgagce,dtose
the
MERGER
Serviccr. 13 tepreenting
NA, SUCCESSORBY
SERVICING. LP
BANK OF AMERICA,
HOME LOANS
VICINOL?
SEE
MERGEIt TO SAC
BY
HOME LOANS
NA, AS SUCCESSOR
c/a BANK OF AMERICA,
die
CORPORATE
7105
PTX-C-32
with the Mortgagee.
any
asreesanu
sdminisk
to
75024
and
PLANO.TX
lftSFThTTmng
collect the debt
to
is authorized
is authorized to represeJJdoxtgaguc-b
the Mortgage Strsiccr
The Mortgage Servicer
-Co3E*51.0025.
Texas
and
loan.
theabove referenced
Scrveutg Agreement
ofthe property sccrflg
resulting foreclosure
01, 2011.
Dated this December
.....................
..........
& ENGEL.
Substitute Trustee
PRAPPIER TURNER
c/a BARREITDAPFFI1
100
ciii7&BduJr&Suite
Addison.Tcxas
75001
LLP
.
12/12/2011 3t13:41
& Recorded in
official Records of
OF FORECLOSUREFA County
County Clerk
Filed
NOTICE
Property to
follows:
PM
Fees $8. 00
LOT 3, BLOCK 12, PASEOS DEL SOL "UNIT TWO" AMENDING SUBDIVISION, AN ADDITION TO THE CITY OF
EL PASO, EL PASO COUNTY, TEXAS, ACCORDING TO MAP OR PLAT THEREOF RECORDED IN VOLUME 80,
PAGE(S) 6, OF THE FLAT RECORDS OF EL PASO COUNTY, TEXAS.
be Foreclosed. The instrument to be foreclosed is the Deed of Trust dated 05/15/2007 and recorded in
Document 20070053396 real property records of El Paso County, Texas.
2. Jns(rwne;;r to
3. Date, Time,
and Place 0/Sale. The sale is scheduled to be held at the following date, time, and place:
Date:
01/03/2012
Time:
The sale will begin no earlier than 11:00 AM or no later than three hours thereafter.
Place:
El Paso County Courthouse, Texas, at the following location: LOBBY OF FIRST FLOOR AT
4. Terms of Sale. The sale will be conducted as a public auction to the highest bidder for cash. Pursuant to the deed of trust,
the mortgagee has the right to direct the Trustee to sell the property in one or more parcels and/or to sell all or only part of the
property.
Pursuant to section 51.009 of the Texas Property Code, the property will be sold in AS IS, WHERE IS condition, without any
express or implied warranties, except as to the warranties of title, if any, provided for under the deed of trust. Prospective
bidders are advised to conduct an independent investigation of the nature and physical condition of the property.
Prospective bidders are reminded that by law the sale will necessarily be made subject to all prior matters of record affecting
the property, if any, to the extent that they remain in force and effect and have not been subordinated to the deed of trust. The
sale shall not cover any part of the property that has been released of public record from the lien of the deed of trust.
Prospective bidders are strongly urged to examine the applicable property records to determine the nature and extent of such
matters, if any.
Obligations Secured. The Deed of Trust executed by JULIO T. SOSA AND GUADALUPE E. SOSA, provides that it
securer the payment of the indebtednesses in the original principal amount of $188,800.00, and obligations therein described
including but not limited to (a) the promissory note; and (b) all renewals and extensions of the note. HSBC BANK USA, N.A.,
AS TRUSTEE FOR THE REGISTERED HOLDERS OF FIRST NLC TRUST 2007-1 MORTGAGE-BACKED
CERTIFICATES, SERIES 2007-1 is the current mortgagee of the note and deed of trust.
5.
6. Default and Request to Act. Default has occurred under the deed of trust and HSBC BANK USA, N.A., AS TRUSTEE
FOR THE REGISTERED HOLDERS OF FIRST NLC TRUST 2007-1 MORTGAGE-BACKED CERTiFICATES, SERIES
2007-I obtained a Home Equity Foreclosure Order from the County Court At Law No. 5 County Court of El Paso County on
12/01/2011 under Cause No. 2011 -DCV-02257. The mortgagee has requested a Substitute Trustee conduct this sale pursuant
to the Court's Order and notice is given that before the sale the mortgagee may appoint another person substitute trustee to
conduct the sale.
BEVERLY MITRI
O1 CHAJE THOMAS NATIONS
do AVT Title
Pacific Center I, Suite 660
14180 North Dallas Parkway
Dallas, TX 75254
10-001655.670
1508 PASEO UNIDO
EL PASO. IX 79928
Ic
Do*
*Paaes
17
1
I2/1
Filed &
NOTECE OF SUBSTITUTE TRUSTEE SUiaial
El Paso
aea -in
rds..of
.....
Delia B
Njrd$
Deed of Tnzst
Date:
Februaty 14,2009
Grantor(s):
LUIS JAVIER LOPEZ
MIRIAM LOPEZ
Original Mortgagee:
ROCKY MOUNTAIN MORTGAGE COMPANY
Current Mortgagee:
ROCKYMOUNTAIN MORTGAGE CO.
do ROCKY MOUNTAIN MORTGAGECO.
2244 TRAW000, SUITE 100
EL PASO, TX 79935
Mortgage Servicec
ROCKY MOUNTAINMORTGAGE CO.
Recorded in: CLERICS FILE NO. 200900)3032
51.0025, the
Servicing Agreement and Texas Property Code
bovc referenced loan.
resulting foreclosure ofthe property securing the
Dated this December11
201 1001880012g
GRANFOR(S)
BEATPJZ HUML
__
J/Z'
ORIGINAL MOR1UAGEE
TiME OF SALE:
PLACE OF SALE OF PROPERTY:
MORTAGEECIRONICREOIATIONsY5ThM
INC. eMERS') AS NOMINEE
CURRENT MORTGAGEE:
CUThIORTOAGE, fl
GRANTEE/BUYER
FEDERAL HOME LOAN MORTGAGE COItPORAUON
GRANTEEIBUYER'S MAILING ADDRESS:
MORTGAGE SERVICER
cmM0RTGAGE,D4C
S000FLANO PARKWAY
CARROU.TON.TX 75010
DIN
RE
/tMOUNT CF SALE S
DESCECN:
,
LOTE
63 7
EL PASO
TG TIffi CITY OF EL PASO. EL PASO
ADD1UOI AN ADD
RECOED IN VOWME 11. PAGE 5 AT RECOEDS OF EL
IL
T1P
ARDRIO TG TI
STATE OFTEXAS
Wnvernb01. 2011.
4z CoonniationExpitex
(JL
_AS
..$.
wpt_JQ
-I-
JLflS.iJUL
,r
I
te.abemsspmtom,
5
JWu
.MNUMV*ffl,$
rwnrunns1
kzruRNrn
-"-II"
BARREITDAIVIN VR.APPIER
TURNERR ENGEL,LLP.
15000 Surv-eyer Boukvs4 Suite 100
Adhoe,Texss 75001
STD2OI 10018800125
htdeaflonwisDcnt (EQUU)
SvbTrastecDcedCo-o64J4ralo9)IVu-t9
t(
t'I
c2
MAR-3O-29 14:34Case
FROM:
10:3516754
3:15-cv-00126-DCG Document 1 Filed 05/01/15
Page 37 of 163
Do
V1'E)VED,
PrIme eIng,
all beneficial interest under that certain Deed of Trust dated July 2S, 2008
executed by:
Beatrlz Hum), a single woman
Beneficiary:
Mortgage Electronic Registration Systems, Inc., as Nominee for Prlmelendlng, 3
Company Trustee; Allan B. PIunky
and recorded as Instrument No. 20080061709 on July30, 2008 in Book: N/A, Page: N/A of Official Records
the County Recorder's office of El Paso County, TX, describing land therein as:
legal Description;
Se Attached
loan Amount:
590,000.00
4312 Hueco Avenue, El Paso, Texas 79903-3021
G56999907Z07900
Property Address:
Parcel ID #
note or notes therein described or referred to, the money due and to become due thereon
with interest, and all rights accrued or to accrue under said Deed Of Trust.
Signed this_______________________
State of MINNESOTA
County of DAKOTA
i?k
1J
riVJ
)
)
Chtyi
On this.
Assistant Secretafl
i_
(___
,_. . v.
Notary:
NT1iOL.Ms0
----.'
Page
tt.1
of2
Joint State-Federal
Mortgage Servicing
Settlements
NationalMortgage
Settlement
Case National
3:15-cv-00126-DCG
Document
1 Filed
05/01/15 Page
38 of 163Page 1 of 2
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TAX INFO
SERVICEMEMBERS
Jft,/y
iAT)AL
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you may click on one of the settlement Icons to get more information.
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303-866-4500
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http://attomeygeneral.delaware.gov/
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http://occ.dc.gov
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(808) 586-1500
http:/!illinoisattomeygeneral govt
For additional help in Illinois
http:/!www.in.gov/attorneygeneral/
For additional hel in Indiana
http:/!www.iowaattomeygeneral.gov
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ittp:iiv'.A'w.ag.state.la. us!
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http://www. ohioattorneygeneral.gov/
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(401) 274-4400
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This Web site was developed and is hosted and maintained by the Attorneys General on the Executive Committee that
negotiated the settlement. For questions regarding the settlementsigned by 49 statesplease contact your state Attorney
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Iltp:Ilwww.naflanalmocgagesettlement.comlstates
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The National Association of Attorneys General will receive $15 million to create and
administer the "Financial Services and Consumer Protection Enforcement,
Education and Training Fund? The Conference of State Bank Supervisors will
receive $65 million$15 mtlion will establish the "State Financial Regulation Fund"
and $1 million will go to each state financial regulator who signed the consent
judgment. The state members of the executive committee who negotiated the
settlement and the Amenquest Financial Services Fund will split $10 million to cover
costs and attorneys' fees. Qualifying individuals whose homes were sold or taken in
foreclosure between Jan. 1,2008, and Dec.31, 2011, who submit claims, will
receive cash payments from the $1.5 billion set aside for that purpose
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The federal government will receive $912 million for five wtristleblowerlawsuits and
losses incurred by the FHA Capital Reserve Account, the Veterans Housing Benefit
Program Fund and the Rural Housing Service. The 49 partIcipating states will split
$2.5 billion based on criteria such as the number of foreclosures and otherfactors,
with California, Florida, Texas, New York and Illinois receiving the largest amounts
respectively. The settlement agreement allows each state to designate up to 11)
percent of the amount paid to each state as a civil penalty, fine or similar payment
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current market value. The remaining settlement money, approximately $17 billion, is dedicated to consumers for
mortgage modifications, short sales, deficiency waivers, anti-blight prevention activities and principal forbearance for
unemployed borrowers, along with specific short sale provisions for military borrowers. Each servicer will receive credit
for completing these consumer relief activities; however since only some count dollar-for-dollar, the banks will end up
providing consumer relief in excess of the neatly $17 billion specified in the consent judgment
Approved by U.S. District Judge Rosemary Collyeron April 4, the settlement is now effective. The five servicers have
seven daysuntil April 1
deposit their portions of the settlement into an escrow account. The consent judgment
remains in effect for three and a half years, but the servicers are required to earn 75 percent of the consumer relief
credits within the first two years or pay substantial cash penalties. Direct payments to mortgage borrowers will begin
once a settlement administrator is retained, within 90 days of the settlement's effective date.
1to
In addition to the payments, the servicers have agreed to follow new standards for handling mortgage loans and
foreclosures. During the term of the settlement agreement, the servicers will oversee and manage third-party providers,
such as foreclosure firms, law firms and independent contractors. The servicers must establish an easily accessible and
reliable single point of contact for each first lien mortgage borrower and develop an online site where borrowers can
check the status of their loan modifications.
"Dual tracking practices are restricted under the agreement. Servicers are also prohibited from adopting employee
compensation arrangements that encourage foreclosure over loss mitigation alternatives. The settlement also requires
more transparency in the mortgage servicing process, such as making the general requirements for short sales more
available. In addition, the settlement enhances protections for military personnel.
k..
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National Mortgage
Summary andDocument
Allocation 1
of Funds
Page 2 of 8
Case Settlement
3:15-cv-00126-DCG
Filed 05/01/15 Page 51 of 163
Joseph A. Smith. Jr., former North Carolina banking commissioner, will supervise the implementation of the settlement,
along with the monitoring committee comprised of representatives from the state attorneys general, state financial
regulators, the U.S. Department of Justice and the U.S. Department of Housing and Urban Development. He is
responsible for determining whether the five financial institutions are in compliance with the servicing standards and
have satisfied the relief requirements In accordance with the consent judgment.
Sf11111
NSL LegsLct
Although the settlement resolves some violations, the federal government and state attorneys general did not release all
the potential daims against these five servicers. The federal government and states can still pursue criminal
prosecutions for criminal offenses and violations of the fair lending laws based on discriminatory conduct. Secuntization
claims based on the offer, sale or purchase of mortgage securities are not released by the settlement. The states also
did not release any potential claims against Mortgage Electronic Registration Systems, Inc., MERSCORP, Inc. or any
tax claims relating to real estate transfer taxes. Mortgage borrowers can still file claims on an individual or class action
basis.
To review the settlement documents for each servicer, go to iw.NatonaMorlgageSetfement corn. The chart below
summarizes how states allocated their share of the settlement funds.
AL AK I AZ
NJ
AR CA
CO CT DE FL GA HI ID IL IN IA KS KY MD MA Ml MS MT NE NV NH
INY INC INC IOH IPA IRIISC ISD TN ITX UT IVT IVA IWA Wi
I
I
Agst3-&.2O
NOTE: If you have questions regarding an individual mortgage, please contact an attorney in your state or the
Office of Mortgage Overaight. NCSL is unable to provide assistance or advice in individual cases.
wht wiLl
find in
of Funds in the State
State
Dollar
Allocation
Alabama
$25,305,692
Alaska
$3,286,839
The funds are directed to the state General Fund to be earmarked for housing
development projects.
Arizona
$97,784,204
$50 million to state general fund to used for areas covered by the National Mortgage
Settlement, including agencies such as the state Real Estate Department,
Department of Insurance and attorney general - Department of Law, and for other
areas impacted by the alleged unlawful conduct of the defendants in the National
Mortgage Settlement;
$41 million for direct assistance to help keep people in their homes and consumer
restitution;
$5 million for enforcement and monitoring ($1.6 million per year for three years);
$5 million for housing counseling ($1.6 million per year for three years);
$4 million for legal services ($1.3 million for three years), and
$2 million for outreach, marketing and education ($566,000 per year for three years).
Arkansas
$12,830,241
Use
you
5eftle?
The remaining funds are directed to the state treasury for costs and fees associated
with the settlement agreement.
California
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Summary andDocument
Allocation 1
of Funds
Page 3 of 8
Case Settlement
3:15-cv-00126-DCG
Filed 05/01/15 Page 52 of 163
$550,000 to the California Rural Legal Assistance;
$700,000 to the Central California Legal Services;
$450,000 to the Community Housing Development Corporation;
$500,000 to the Community Housing Works San Diego;
$75,000 to El Concilio;
$200,000 to Fair Housing of Mann;
$225,000 to Habitat for Humanity Stanislaus County;
$250,000 to Housing and Economic Rights Advocates;
$35,000 to the Inland Empire Lalino Lawyers Association;
$850,000 to the Inland Fair Housing and Mediation Board;
$450,000 to the Legal Aid Foundation of Santa Barbara;
$725,000 to Legal Services of Northern California;
$550,000 to the Mission Economic Development Agency;
$100,000 to the National Telemarketing Victim Call Center;
$500,000 to Neighbortiood Housing Services of Los Angeles County;
$345,000 to NeighborWorks Orange County;
$50,000 to the Tn-Valley Housing Opportunity Center
$575,000 to the Unity Council;
$295,000 to the Watsonville Law Center and
10% of the total payment as civil penalties and deposited in the Unfair Competition
Law Fund.
Colorado
$50,170,188
Connecticut
$26,102,142
$7,913,923
District of
Columbia
$4,433,081
Florida
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Summary andDocument
Allocation 1
of Funds
Page 4 of 8
Case Settlement
3:15-cv-00126-DCG
Filed 05/01/15 Page 53 of 163
program to provide housing for homeless persons;
$10 million to the Department of Economic Opportunity to fund a competitive grant
program to provide housing for persons with developmental disabilities;
$5 million to the Office of the Attomey General to reimburse the office for costs and
fees;
The remaining funds are directed to the state General Fund as civil penalties.
Georgia
$99365105
The entire amount will be used for economic development, the money will be split
equally between regional economic business assistance grants and other wral
economic development efforts.
Hawaii
$7911883
$3 million to Legal Aid and its grant partners Consumer Credit Counseling Services
of Hawaii, Hale Mahaolu, The Hawaii HomeOwnership Center and Hawaiian
Community Assets
$2 million to the department of Commerce and Consumer Affairs
$1,176,293 to the state judicial system
$149,225 to the Kuikahi and West Hawaii Mediation Centers
$57,122 to the Mediation Center of the Pacific
Idaho
$13,305,209
Iflinois
Indiana
$43,803,419
$28.8 million for the Low Income Home Energy Assistance Program (LIHEAP);
The remaining funds are directed to the Consumer Protection Division and its
Homeowner Protection Unit (I-PU) and other efforts to prevent foreclosure.
Iowa
$14,651,922
Mortgage Servicing Settlement Fund created under the control of the state
Department of Justice;
Banking Division Mortgage Servicing Settlement Fund created under the control of
the Division of Banking of the Department of Commerce;
Any unencumbered or unobligated moneys remaining in the Mortgage Servicing
Settlement Fund or Banking Division Mortgage Servicing Settlement Fund on June
30, 2015, shall be transferred to the general fund of the state.
Kansas
$13,778,401
25% of the settlement to the Office of the Attorney General to 1) support the attorney
general's investigation and prosecution of suppliers in the housing and financial
sectors who violate the law; 2) to resolve consumer compliants regarding efforts to
prevent foreclosures and remedy mortgage servicing abuses; and 3) defraying the
investigative, administrative and consumer education costs associated with the
settlement.
The remaining funds are directed to the state General Fund as civil penalties.
Kentucky
$19,198,220
$1.5 million to the City of Louisville for the city's Vacant Abandoned Property
Initiative, the Targeted Demolition Program that addresses the problem of blight by
removing deteriorated structures that have been abandoned and the Affordable
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Summary andDocument
Allocation 1
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Case Settlement
3:15-cv-00126-DCG
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Housing Trust Fund, which provides grants to organizations dedicated to creating or
preserving affordable housing for low and moderate-income families;
$7.5 million to the Kentucky Housing Corporation (KHC);
$250,000 to each of the four regional Legal Aid centers in Kentucky to be used to
assist homeowners who are going through the foreclosure process or seeking to
avoid foredosure;
$4 million to update the Kentucky All Schedule Prescription Electronic Reporting
Program;
$5 million to the Office of the Altomey General to assist consumers and investigate
mortgage and securities issues. This includes potential litigation regarding MERS
involvement in wrongful foreclosures, and
$150,000 to the Cabinet for Health and Family Services for lead abatement through
the Division of Public Health.
Louisiana
$21,741,550
Maine
$6,gol,o23
Maryland
$59,697,470
$44,450,668
$16 million to be used to mitigate future impacts of the foreclosure crisis through the
HomeCorps Loan Modification Initiative, HomeCorps Borrower Representation
Initiative and the HomeCorps Borrower Recovery Initiative;
$10 million for Crisis Response Innovation grants and Municipal and Community
Restoration grants:
$4.4 mition to the state General Fund as civil penalties;
$1 million to the state General Fund for legal expenses;
$1.5 million for compliance and implementation of the consent judgment;
$1 million to the Supplement Local Consumer Aid Fund, and
The remaining funds are reserved for further implementation, HomeCorps
programming and grants.
Michigan
$97,209,465
Minnesota
$41,536,169
Mississippi
$13,580,374
Missouri
$39,583,212
Montana
$4,858,276
$863,000 to the Montana Legal Services Association to provide free advice and
representation to some homeowners experiencing legal problems in the foreclosure
process;
$450,000 to the State General Fund as civil penalties, and
The remaining funds to the Office of the Attorney General for ongoing enforcement
activities to prevent and prosecute financial fraud or deceptive practices, monitoring
of the settlement, public outreach and training.
Nebraska
$8,422,528
The entire amount will be deposited into the state's rainy day fund. The funds are
eligible to be transferred from the rainy day fund for future expenditure.
Nevada
$57,368,430
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Summary andDocument
Allocation 1
of Funds
Page 6 of 8
Case Settlement
3:15-cv-00126-DCG
Filed 05/01/15 Page 55 of 163
New
Hampshire
$9,575,447
New Jersey
$72,110,727
New Mexico
$11,174,579
New York
North Carolina
$60,852,159
North Dakota
$1,947,666
The entire amount will be spent to support housing projects in the state.
Ohio
$92,783,033
Oregon
$29,253,190
Pennsylvania
$66,527,978
90% is allocated to the Pennsylvania Housing Finance Agency for the purpose of
funding the Homeowners Emergency Mortgage Assistance Program;
5% is ailocated to the Office of the Attorney General for the purpose of funding
housing consumer protection programs, and
5% is allocated to the Access to Justice Account for civil legal assistance related to
housing issues.
Rhode Island
$8,500,755
The entire amount wit be used to fund the Rhode Island Foreclosure Protection
Program to prevent or reduce the number of initiated foreclosures in Rhode Island
and assist homeowners struggling with mortgage payments. The program will be
developed by the Office of the Attorney General in consultation with Rhode Island
Housing.
$3.5 million to New Hampshire Legal Assistance, Legal Advice Referral Center, and
the New Hampshire Bar Association;
$2.5 million to the New Hampshire I-lousing Finance Authority and
$1,006,616 to the Department of Justice for the creation of a Financial Fraud Unit.
The funds from the Mortgage Servicing Settlement Fund are to be transferred to the
General Fund as state revenue to be appropriated, subject to the approval of the
director of the Division of Budget and Accounting, for the following purposes:
attorneys fees, investigation and other expenses related to the investigation and
resolution of the mortgage servicing settlement, affordable housing, local planning
services, developmental disabilities residential services, state rental assistance
program, jomelessness prevention, shelter assistance, community-based senior
programs, mental health residential programs, social services for the homeless, and
Temporary Assistance for Needy Families, but only to the extent that the use of
these funds comports with the settlement for the use of these funds.
$10 million to the Department of Commerce Closing Fund for economic development
and
The remaining funds are directed to the state General Fund.
South Dakota
$2,886,824
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National Mortgage
Summaiy andDocument
Allocation 1
of Funds
Page 7 of 8
Case Settlement
3:15-cv-00126-DCG
Filed 05/01/15 Page 56 of 163
$120,000 to Luther Social Services of South Dakota for credit counseling services;
$50,000 to Beadle and Spink Enterprise Community to assist with collateral
expenses for four governor homes in Beadle and Spink Counties;
$40,000 to the Teton Coalition for the purpose of homebuyer education;
$30,000 to Consumer Credit Counseling of the Black Hills for housing and
foreclosure counseling, and
$15,000 to James Valley Housing Inc., for the purpose of housing, education,
counseling and closing cost loan assistance.
Tennessee
$41,207,810
Texas
$134,628,489
Utah
$21951641
Vermont
$2,552,240
$1,100,000 to fund affordable housing initiatives, including grants for foreclosure and
homeownership counseling, financing mobile homes, increasing the state's
affordable housing tax credit, capacity building among state and nonprofit agencies
to assist mobile home owners, and exemption from several taxes to replace homes
destroyed by recent flooding and natural disasters, and
The remaining funds are directed to the state General Fund.
Virginia
$66,525,233
Washington
$64,242,749
$5,748,915
Wisconsin
$30,191,806
$625,000
$625,000
$500,000
$750,000
coffldor
$750,000 to a WHEDA program for loan guarantees to Milwaukee small businesses;
$780,000 in tribal law enforcement grants and victim/witness program grants;
$496,050 in 2012-2013 support for foreclosure mediation in Milwaukee county and
expansion of mediation statewide;
$400,000 for future support for foreclosure mediation;
$100,000 for law enforcement and prosecutor training on white collar crime;
$139,000 for positions within the DOJ's DMsion of Legal Services' Consumer
Protection Unit to assist consumers and investigate and prosecute mortgage-related
fraud and white collar crime;
$185,000 for the DOJ's Division of Criminal Investigation (DCI) to focus on white
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Summary andDocument
Allocation 1
of Funds
Page 8 of 8
Case Settlement
3:15-cv-00126-DCG
Filed 05/01/15 Page 57 of 163
collar come and
$550,000 remains to be allocated.
Wyoming
$2,614,515
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IN THE
STATE OF TEXAS,
Plaintiff,
I)ef'cndant.
this
its
Motion
and
to Dismiss Robert
Marie Flossfld's "Texas Rules o Civil Procedure Rule 171 Motion for Appointment of a Master
In Chancery" and Robci't
or to Covene [sic]
a.
Hosskld's
"Motion to
Reurge an Appointment
oI:
a Master in Chancery
Court of inquiry" for lack of jurisdiction, and would show l:he Court as
follows:
PROCEI)URA ii J S"I'O RY
August30, 2010,
On
the State of
Holdings, Inc. f/kla American Home Mortgage Servicing, Inc. ("Defendant" or "Homeward"),
alleging that 1)eiBndant violated, among otJ.er laws 17.47 of the Texas Deceptive 1'radc
(the "DTPA")
........................................
State
oflcxw
?Ic.im!i//'s
V.
Aniciicin
..---------.-----------
Home Mortgage
Motiori Iv f.)ivnivsf?r
/.,ack
Servidng,
o[,Juristhcizon
Jnc.
Pog
o/8
FAX
Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 60 of 163
2.
flied a
l003/100
entitled "Texas Rules of Civil Procedure Rule 171 Motion for Appointment of a Master In
3.
il:s
R.obcrt and Marie liossleld, in which it ordered Robert and Marie lIossfeld severed from this suit
and ordered the District Clerk. to open a new action with a separate cause number. As of
l.)ecember 6, 201 3, Robert and Marie Hossfeld ceased being parties to this suit and as u result,
have no standing in this action.
4.
On December 19, 2013, Robert Hossfeld flied in this cause a "Motion to Reurge an
t.sic.l a
Motion")
5.
On January 23, 2014, the Clerk assigned Cause No. 2014-DCV-0180, styled Robert and
Miiie 1iossfcld
On February 24, 2014, Robert and Marie JIossfeld dismissed the federal court case.
AR(UMEN'J & AI.ITHOIUTIES
A. 'I'his Court. Lacks Jurisdiction Over
To render a binding judgment, the trial court must have (1) jurisdiction over the paii:ies
ol:
- ------------------------------- -
Inc.
l'oge
2 oJS
1522
03/19/2014 WED
1.
v,
994). Judgment may not be granted in favor of a party not named in the suit as a plaintiff
or a defendant.. Fuqua
9.
I004/100
FAX
v.
7y/or,
683 S.W.2d 735, 738 (Thx. App.-Dallas 984, writ ref'cl n.r.c.)
1
Once this court signed its Order (3ianting Motion to Strike Intervenors Robert and
Marie Flossfeld, Mr. and Mrs. Uoss1id were no longer partics to this suit. Because they are no
longer parties, the court does not have jurisdiction over them. Neither does it have jurisdiction
over any pleading tiled by them.
10.
separately.
Vein
Dyke
v.
iIo.vweli,
O'Tooie, Davis
&
Because the Ii ossfeld's case against Al-IMSI was severed from the instant cause, they have
fl()
Ii.
Even assuming Mr. Roman could find clients willing to file a lawsuit against the State
conl:ainhig the allegations in his Motions, and therefire bring a live case before this Court, they
1:0
"Now, serious factual concerns have rnai.eriaJied that: subsl:antiate doubts about
the efficacy of General Abbott's mortgage task i)rce on behalf of 'harmed
homeowners,! Indeed, an argument, exists that the appointment of a master in
chancery is essential to insure that the public interests and justice arc served."
13.
These "factual concerns," which arc not spcciiied or even vaguely described in any of
Hossield's pleadings, appear to relate to the manner in which the State of Texas or the Office of
----------------------------
- - ---.. -.. .
- ,- ..
I"a'c
- - -
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1522
03/19/2014 WED
005/100
FAX
the Attorney General have allocated funds recovered in several actions against moil:gagc
COJ11PUfliCS.
As such, these "concerns" seem to be about how the State or its agency, the Office of
14.
governmental acts.
Andracle
v.
A'A.AC]' o/Ausiin,
v.
7odd, 53
S.W.3d 297, 302 (Tex. 2001). TJ.us, "[standing doctrines reflect: in many ways the rule that
neither citizens nor taxpayers can appear in court simply to insist that, the government and
itS
off icals adhere to the requirements of law." Charles Alan Wright, Et Al., Federal i>raciice &
Procedure
3531.10 (3d
ed.
is a real need to
exercise the power of judicial review' in a particular ease, and ii he)ps guarantee that courts
ren.icdics 'no broader than required by the precise ficts to which the Court's ruling would
fashion
be applied." Lance
v.
Cojjnan,
549 U.S. 437, 441, 127 S. Ct. 1194, 167 .....J:d. 2d 29 (2007)
.1
of,
that other branches of government may more appropriately decide "abstract questions of wide
pub1i
significance,"
War/h
v.
Sc/din,
(1975).
Against the State or its Agency under the Doctrine of Sovereign Immunity
I
S.
J-ven assuming that there were a live lawsuit against the State, which there is not, this
Court lacks jurisdiction to hear a claim against the State or the Office of' the Attorney General by
reason of the doctrine of sovereign, immunity.
16.
Mr. Hosslld has asked this court to enter an order on an issue which has no bearing on
the ftcts of the underlying suit:. in essence, he is asking this Court to hale the Office of the
-.
S(aI.c
&1'lexas v American
1'Iai#iIi/f'.'
Motion
Home Mortgage
to 1)/sin iss/i'
ScivIcin,
Lack o/ ,Jurisdic(don
Inc.
- -................
.
-- -.-.
.
4 oJ8
006/100
FAX
Attorney General into this Court as a new party in a new ease, and render judgment against it
and/or the State of Texas for vague, unspeci:fied, unfounded allegations of wrongdoing.
17
Sovereign immunity protects the State of 'lexas and various divisions of the stale
government, including agencies, boards, hospitals, and universities. The Office of the Attorney
General
is
an agency
On
political subdivisions of the State, including counties, cities, and school districts. Wichita Falls
,State iio,sp.
v.
Taylor, 106
immunity embrace two separate and distinct principles: (1) immunity from suit; and (2)
immunity from liability.
Services Comm 'n
Slate iJo.vp.
Ru.vk
v.
v,
(;ai
from suit bars an action against the governmental entity unless immunity from suit has been
cf.
fDa/las v.
waivers
City of Mexia
v.
is a jurisdictional bar and is properly raised by a pica to the trial court's jurisdiction sec 'rex.
Dept. ofTranvp, v.
Jones,
S.W.3d 636, 638 (Tex. 1999)j The Texas Supreme Court stated that
if every citizen who concludes that a public ollicial has abused his
O.vbor,w
v.
SLICh
The Legislature has not given its consent to this action, so the Court lacks jurisdiction to
SUtte ot'J.'exas V.
1"Ia1nIi/J'
Amei'can
l-linrc
MurEgige S'rvie,ng,
Inc.
Page 5
q/'8
03/19/2014 WED
1522
FAX
Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 64 of 163
1).
19.
t)r
I0O7/100
Motnes
discretionary funds to distribute. With the exception of a $S0,00() payment to the State of Texas
which is specilically designated lbr attorney's fies in this case, there are no other funds to he
distril)uecl herein. And in the three cases ment:ioncd in the Hossftlds' Motion in which the
Office of the Attorney General recovered money
br
pursuant to Tex. (Jov't Codc 404.097, and $483,333.00 was deposited in the General
In the Wells Fargo case, $2,0]2,772.0() was distributed pro rata to consumers who had
lost. their homes to loreclosure.
in the Countrywide ease, $7.46 million was paid as compensation to Texans who lost
keys"
attorney's fees
402.006(c)
'Ihere are no funds herein (with the exception of the attorney's fees
tbr
:fbr
fur
a Master in
diScLLSsed
above) for
Chancerodo.
The doctrine
and stales that each ot the three branches of the State's government has defined powers and
............................................................................................................ --...
4loiv,i
,'
L.)i.v,nivx
I,igi
l00s/100
FAX
authority, and a power grantcd to one branch may not he usurped by another.! Generally, it is
said that the duty of the legislature is
(:0
and the duty of the judiciary is to construe, interpret, and uphold them. Sec Government Services
('J.'cx. 1963).
in litigation is to be
it has done so arid the money recovered in the actions at issue has
used.2
1:hat
the
statutory scheme is unconstitutional, which plaintiff does not make, the separation of powers
doctrine precludes this court, through the appointment of a Master in Chancery, iroin secondguessing that legislative determination.
CONC LU S1() N
19.
1:he
Muster in Chancery or a Court of Inquiry and the J:Jossilds lack standing to bring such claims.
PRAYER
For these reasons, Plaintiff asks the Court to dismiss the HossMds' "Texas Rules of
20.
J-Iossfl1d.'s
Inquiry."
IEX. CONST. art.. II, IThe l)0WCS Of thC Government of the Slate of....exas shall be divided into three
distinct departments, each of wh,eh shall be confided to a separate body of magistracy, to wit: Those which are
Legislative to one; those which arc !xceuiive to another, and those which are Judicial to another; and no person, or
colleetiu of persons, being of one ot these departments, shall exercise any power properly attached to eil:her of the
others, except in the insinnees herein expressly permJited.
Only the Legislature may designatc the pu poses and uses to which public moneys nay be devot:ed. 'lex.
Atty Gen. Letter Advisory No. 2 (1973); Sce 'J'EX. CONS').'. Ait III, 49a; Art. Ill, 49(j); Art. VIII, 22; See 1113
83rd
Texas Legislature, PP 1-3 to 1-12.
1,
Tex. Gov't Code Ann, 402(107; 404.094; and 494097(e); See S13 178, 7&" Texas I..cgislature, Art. 3,
3.01 (a)(2) and (b).
.1
............................................................
. ...
Slate
of 'I'cxas
v,
American 1'lome
PIaiiiiifI,s' Motion
to L)i,nIs.sf),'
LcIc
if.1u,'ixdwIion
............ -
' .'
--
.'
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03/19/2014 WED
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FAX
Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 66 of 163
Respeethilly submitted.
GRE(. ABBC'I"I'
Attorney General of 1cxas
DANIEL 1. flOi)GE
First Assistant. Attorney General
JOHN SCOTT
I)cputy Attorney General
br Civil LitIgation
TOM MY F.RUD'HOMME
Chiel, Coniirner Protection 1)ivision
MMES A. DAROSS
Assistant Attorney General
State Bar No. 05391500
RICHARD L. BJSCIIOFF
Assistant Attorney General
State I3ar No. 02343200
Consumer Protection l)ivision
401 E. Franklin Ave., Suite 530
El Paso, Texas 79901.
91 5-834-5800
Fax 915-542-1546
ATTORNEYS FOR PIJAINTIFF
CERTIFICATE OF SERVICE
hereby certify that a true and correct copy al' the fregoing document was lorwarded On
the 19th day of March, 2014 to I)cfcndant's attorney of record, Robert 1'. Mowery, Locke Lord
Bissell & Liddell LLP, 2200 Ross Avenue. Suite 2200, Dallas, Texas 75201-6776, and to
Richard Roman, 505 E. Rio Grnde, El Paso, Texas 79902, via fax number 915-35] -6754, in
accordance with the Texas Rules ol: Civil Procedure.
1
James A. Daross
James A. Daross
1sf
.,....'..--
State uI TexaN
J'lainii/Ps
v.
American
Mo/ion
- --
0J6
1522
03/19/2014 WE
FAX
010/100
IN THE 448'"
STATE OF TEXAS,
I' Ia intiff,
1)efend a lit.
("Plaintili') flles this its rcsponsc to Robert and Marie 1iossfeld's "Texas Rules of Civil
Procedure Rule
7'!
EXECUTIVE SUMMARY
Robert I"iossle]d, who is not a party in this case and has no standing, has filed with this
Court a request to appoint a Master to investigate the manner in which setliement funds have
been received and distributed by the State or the Office of the Attorney General, and to open a
criminal inquiry without specifying what criminal law he contends the Slate or the Office of the
2.
-.
State of
lxa
pIci;ntfs
v.
Ameriem
Rpnxe
ii)
),Iome
Mortgage Servicing,
Inc.
Pagc
.ftv!ostr
1b.
f ii
FAX
'l'exas has no involvement. Mr. Uossfcld apparently wants this Curt to conduct a criminal inquiry
in spite
of the fact that the Office of the Attorney General conducted its business as required by
Texas Jaw. 'i'he Motions have no basis in Jaw or in fact and should be dismissed.
PROCEi)URA1., IIIS'IORY
On August 30> 2010, the State of "l'exas Sued Defendant, Homeward Residential
3.
Holdings. Inc. f/k/a American Home Mortgage Servicing, Inc. ("Dcfcndant" or "1.-lomeward"),
alleging that Delendant violated, among other laws,
17.47
17.41,
(the ".D'I'PA")
4.
entitled
On November 26, 2013, Robert and Marie 1-lossfcld filed a pleading in this cause
"Texas
Motion
frr
Appointment: of a Master In
on December 6, 2013, this Court signed its Order Granting Motion to Strike Intervenors
Robert and Marie l-ossfeId, in which it ordered Robert and Marie Hossfeid severed from this suit
and ordered the l)istrict Clerk to open a new action with a separate cause number. As of
December 6, 2013, Robert and Marie Hossfeld ceased being parties to this suit and as
result,
()n December 19, 2013, Robert Hossfild tiled in this cause a "Motion to Reurge an
6.
7.
Robert and Marie i-l.ossfeid v. American Home Mortgage Servicing, Inc.. (l:he "Hossfcid Case")
Si:ii:c
of Jexa
I'Iaiiiiz/js
v.
American
Responsc' lo
Home Moitgac
/140f1(Jfl/f)?
Scrvicing, Inc.
Appoidp,un( of 1% 1axIc,'
Pug' 2 oJ13
011/100
03/19/2014 WED
1523
FAX
012/100
iiossfeld dismissed
t:he
and
A.
10.
Both of Mr. Hossfeld's Motions make vague allegations about the usc of funds which
were recovered by the State in actions by the Office of the Attorney General against mortgage
iflto
C.ountrywidc Financial Corporation. Mr. Hossfcld claims that "ts]pecificafly, settlement iunds
ol:
best interests of the cil:izcns of the State of Texas." implicit in this claim is the assumption thut
the State of Texas or the 011ice of the Attorney General has discretion over how funds from
settlements arc allocated and administcrccl, and abused that discretion to the detriment of Texas
consumers. However, the J.Iossfl.lds oftr rm tht:ual basis for these allegations, and do not
present any evidence to substantiate them or to meet Tex. R. Civ. F. Rule 171's requirement of
"good cause." In thct, thcrc could be no evidence of such allegations, because the Office of the
Attorney General has almost no discretion over how funds are allocated in cases brought under
(lie DT'PA. Rather, the disposition o: ftinds recovered by the Office
State
of Texas
J'Ia/nf?tJ',
v.
Ainericm
Home Mortgage
Servicing. Inc.
,f Master
/Wt
3 'f/3
I013/100
FAX
lEx. Gov'F
RECOVERED
(c)
All funds recovered by a state governmental entity in litigation
or in settlement of a matter that could have resulted in litigation, including
(a) Fees, fines, penalties, taxes, charges, gifts, grants, donations, and ol:her
funds collected or received by a state agency under law shall be deposited in. the
treasury, credited to a special ftmd or fimds, and subject to appropriation only Jor
the purposes for which they are otherwise authorized to he expended or
disbursed....
(b) "Money that is required by this subchapter or by another law to be
deposited in the treasury shall he deposited to the credit of the general revenue
fund unless the money is expressly required to be deposited to another fund, trust
ftmd, or special account not in the general revenue fund. This subsection does not
atleet: the authority of the comptroller to establish and use accounts necessary to
manage and account fir state revenues and expenditures."
(a) i'he attorney general shall immediately pay into the state treasury
Ir
- -
..
I?c's,on.c
1r programs
- Paj
of 13
FAX
lO14/1-OO
approved by the supreme court that provide basic civil legal services to the
indigent under Subsection (b) may not exceed $10 million per state Jiscal
biennium. Iniphasis added.
11
in summary, these statutes require that if the 0111cc cf the Attorney General obtains
money as the result of a ease brought under the DTPA, that money must be:
a.
h.
Third,
il:
the money is
then the money remains in the General Fund, to be allocated as the Legislature
sees fit;
ci.
ppa .. y
it.
be credited to the "judicial fund" about: which Mr. Hossfeld complains. That
shaU
fund
is to be used for 'programs approved by the supreme court that provide basic civil
legal services to the indigent" 'i'he fund can accept a maximum of $10 million in
These statutes have been followed by the Oflice ol' the Attorney General in all cases
brought under the IYIPA in which money was recovered from dcfindants. By operation of law,
there has been no "good cause" shown by the
Hossfelcis,
by the Legislature.
Stale of lexas v.
American
Jnc.
Pug S ,J/3
015/100
FAX
Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 72 of 163
13.
3,
J\40t:jon which
purportcdly
"conclusively, affirmatively and definitively demonstrate that the best interests of citizens
of Texas are not being overseen," only three were actually cases prosecuted by the Office of
the Attorney (3e.ieral: (1)
State of Texas
v.
State of
.,
Cause No.
20] 0-372, and (3) State of Texas v. Countrywide Financial Corporation, ci a!, Cause No. 2009717. Copies of the final order in each
and C.
'l'hc other live cases cited as rationale for appointing a Master have nothing whatsoever
14.
fiices Thxa
is a putative class
consumer. The State of Texas is not a party. The only connection to the Office of
the Altorney General is that the individual plaintiff apparently made allegations
against AlIMSI that were similar to the allegations made by the State in this suil:.
See
hll:.12.;.//w ww
.
cm'ncw
../.2..Q!.:,...
1t9l]caflhQIfl
...
s'uedly-hoi'neowncr-i.cxas-1.or-n.ortggc-practice.htnil
c.
Consunier b'inanciaI
sci/leinerli; " M .. flossfeld would have this Court believe that the federal
of financial institution
.............................
-. .
Stste of i'exa
JVwnn//
v.
Rxjxm,'e I
/Ma,vkr
...... ............
.
...
tfI3
FAX
Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 73 of 163
F016/100
delernimanon that the scttlernent between the State of Texas and Lender
Processing Service was somehow improper and should be investigated. However,
the flosselds present no evidence to substantiate such a claim, and the Stale
believes there is no such investigation. What the exhibits to the Hossfclds Motion
show s that Mr. Roman Iuled a complaint, with the CFPB in his own name, listing
the elements
Of'
t.o
ui1;"
f'
g.
"Repd-r1 q/
innocent
'diS/3Cl1'ate
homeownerc,
"
harm/ui lending
practices towards
Equal Credit opportunity Act, in which CFPB will use a "disparate impact" test
in assessing thirness in mortgage lending, credit card debt, student loans, auto
t:o
the OfJ.ice of
See
1Jfl:IIfi le.consumerJTinariec.gov
P!II
State
of
I'exu.s v.
P/t-unt,/J s
&'sporls
P:g
? i'/'I3
03/19/2014 WED
1523
FAX
h.
over
7(X)
issued an
servicing regulations. 'i'hese regulations are partially based upon the Nationa'
Mortgage Seulement against the five largest banks in the country, in which the
State
ol:
Texas and Office of thc Attorney General was a part, of the negotiatin
team. However, the mortgage servicing rules have no hearing on funds which may
be recovered by any state in a case against a mortgage servicer. See
hRj) /1w ww.consumedi nancc.gpv/newsroom/ncw-mortgae-ruk's-proteci-
_earn!; and
c.
1.5.
16.
While it is t:rue that the Office of the Attorney General has been involved in fighting
predatory lending and mortgage servicing abuses thr several years, there is in
Iuict
no "Tas]c,
Mr. Hossfeld may be mistakenly referring to the Texas Residential Mortgage Fraud 'lask Force,
which includes 'I'exas and federal regulatory and law enibreement agencies that track and
prosecute mortgage fraud. "i'his 'i'ask l:orce was eslal)lished by the l..cgis1ature in 2007 in House
Bill 716, but it has nothing to do with recovery of funds for consumers horn mortgage
................
Stic OITCXaS
/)/(flfl(fJ.
v,
Rxjunse
(0
.....
Arncrica
Pg: 8 vJ13
017/100
FAX
l018/100
by individuals, Or.
ii:
investigation that led to the National Mortgage Settlement, 'l.exas thd have a seat on the
executive conimittee in that case, but in fact the State leader of the dllort was the Office of the
Attorney General of iowa, Toni Miller, and the co-chair of' the executive committee was iowa
I\'lr.
"Lender Processing Services, Inc." (.LPS) was the target oi a fraud! deceptive
trade lawsuit by the State of Texas. The venue chosen for this "robosigning"
complaint was an El Paso district court, and was disposed in an 'Agreed linal
Judgment and Injunction" (Exhibit "A"). A settlement: payment in excess of
$5,000,000.00 dollars was deposited in the 'Texas .Judiciary Fund'"
18.
While it is true that. the State filed its suit against Lender Processing Services, Inc. in
F.1
Paso Counl:y, no funds from the settlement of that case were deposited in the "l'exas Judiciary
is
again confused
designated for any specific fund, was paid to the State of Texas fbi' deposit in the General lund
404.094. See
www .oag.si,ate.tx.us/oaewtheleasc.phi?id=4283
1
9.
in
the National Mortgage Settlement, in which the Office of t:he Attorney General was part of the
executive Committee of a 49 state multistate case against l3ank of America, JP Morgan Chase,
Citibank, Wells i'argo and Ally Bank. See
Ibis
investigation, done jointly with Iwo Federal agencies, the US Department of Justice and HiJO,
resulted in
a $26
la1e ol'I'axas v.
i'Iaiitu[s
.Rc'sp(J?1x: ,o
Inc.
Page
af'13
l019/100
FAX
Judgment in
that case,
i:he
49 States,
the State of I'cxas received $1 34628,49.00, of which the statutory maximum of $10 million in
civil penalties was allocaied to the Judicial Fund. The remainder, $124,628,489.00 was paid to
the State of 'iexas for deposit into the Genera] Revenue Fund pursuant to Texas Government
Code 404.094(b) and 404.097(c).
20.
sefl(1u)g
money
to
does not serve the interests of Texas citizens. The 'l'cxas Access to Justice Comj.nission has a
t the May
awards to "distinguished legal aid advocates" for their contributions in improving access to
Texas Attorney General Greg Abbott received the Star of Justice Award that
recognizes dedication to improving access to justice for low-income Texans.
Abbott W1S iecognized 10I his exemplary support of access to lustice in Texas and
partnershij) in serving the legal needs of Texars. Abbott has worked hard to
safeguard the solvency of the Ci-ime Victims' Compensation Fund, which among
other things, provides funding for civil legal services to victims of cime. Also,
the attorney general was instrumental in ensuring that $10 million from the
national mortgage settlement: was directed to civil legal aid.
Stale
21
Release,
May
1,
2013
The Texas Legislature also disagrees with Mr. l-Iossfcld, having in the last Session
increased the statutory limit on funds that are to be allocated to the Judicial Fund from $10
H.13
No.
1445,
83
in both the First and Second Motions, Mr. Hoss']cl complains that there was no media'
attention given tO the three settlements. In actual fact, in all three cases the Office of the Attorney
(d) The total amount credited to the judicial huind thr programs approved by the supreme court that provide basic
civil legal services to the indigent under Subsection (b) may not exceed IjQ [$10] million pci state fiscal biennium.
I
....
..
P
10 .if13
lo2o/1oo
FAX
attention by El Paso media, that is no fault of the State. Sec the loflowing
press re]eascs:
23.
a.
Countrywide:
b.
Wells Fargo:
C.
i.,PS:
oag. statc.tx.u.sgncws/relea
jj]2!jffl,i_&idQ
even commenting on the fact that the Court took judicial nOtice that
counsel for the State and
A) IMSI were sealed at the same table during the December 2,
2013 hearing. Mr.
Hoss1d
mistakes civility for collaboration, as there were only two tables in the
courtroom, where counsel
could sit. And the fact that the two parties agreed on
otherwise adversarial.
24.
whether a court of inquiry shouki be convened, he has not produced to this Court any
evidence or
facts, let alone "substantial facts," establishing probable cause that a
specific otlense has been
committed against the laws of this state. Therefore, this Court has no basis for the
affidavit
required by Tix.
CONCLIUS()N
25.
inquiry have no basis in law or in fact. Further, by virtue of the Order severing
their cause from
P/4' ii
of 13
03/19/2014 WED 15 24
FAX
l021/100
this One, the .Hossfclds lack sianding to present the Motions to this Court.
PRAYER
For these reasons, Plaintiff asks the Court to dismiss the llossfelds' "Texas Rules ot
2).
Civil Procedure Rule 171 Motion for Appointment of a Master In Chancery" and Mr. Hossf1cl's
hiquiry."
Respectful Jy submitted.
GREG ABBoTT
Attorney General of Texas
DANIEL T. HODCE
First Assistant Attorney General
JODN SCOT'E
1.)eputy Attorney General for Civil Litigation
10MM... PKUD'HOMME
Chiel Consumer Protection I)ivision
iLis
R.i(::HARi) L. BISCHOFF
Assistant Attorney General
State Bar No. 02343200
9l5-834-50()
I:ax
915-542-1546
S'tte
:t'exs v.
Pitiinii//.
I?eypuPl,)(
(C)
/I4(j()fl/Or
Inc.
Appoinlmiiil oJA'I,r/ei
rr
/i1.e /2 iJ,13
03/19/2014 WED 15 24
FAX
c:ER'r 1i(A'I'E
(.)F
l022/100
SERVI(1E
State
otTexzs
Piain//fJs
v.
/?C'cpOfr,S? (0
Pag /3 oJ13
03/19/2014 WED
1524
024/100
FAX
COUiy
TEXAS
JUDICIAL PISTRICT
STATE OF TEXAS
PJaMtiff,
vs.
rn
cr'
Company,
C::
t1
Th)
-4
.:j
Dellendants.
r)
nfll
1._a
Plaintiff State of Texas ("State"), acting by and through the Attorney General of Texas,
GREG ABBOTT, and Defendants Lender Processing Services, Inc., LPS Default Solutions, Inc.,
and DocX,; LLC (hereinafter collectively referred to as "LPS" or "Defendants"), by and through
the undersigned counsel, have requested entry of an Agreed Final Judgment and Injunction.
Therefbre, upon consideration of the papers filed and consent of the parties hereto, it is hereby
ORDERED and ADJUDGED as follows:
I.
JVZISDJCTION
.1
The parties agree that this Court has subject matter jurisdiction over this matter
and jurisdiction over the paities and agree to the continuing jurisdiction of this Court over this
mailer and' the parties. The Attorney General filed an Original Petition (the "Petition") against
LPS pursuant to the Texas Deceptive Trade Practices
COM. CODE ANN.
17.41 et seq.
E%hi
-1.c.
TEX.
Bus. &
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Case 3:15-cv-00126-DCG Document 1 Filed 05/01/15 Page 81 of 163
II.
GENERAL PROVISIONS
2.1
Agrernent
The. State and LPS axe represented by counsel and have agreed on
a basis for settlement
of the matters alleged in the Petition. The parties agree to entry of this Agreed Final
Judgment
and Injunction ("Judgment") without the need for trial, discovery in this action, or
adjudication
of any issue of law or fact. Defendants enter into this Judgment freely and without
coercion, and
without ad*itting any violation of the law. Defendants acknowledge that they are
able to abide
by the provisions of this Judgment. I)efendants further acknowledge that
a violation of t:his
DIM.
2.2
Deflnitios
a.
loan,
such
as the ownership
of the mortgage
note and mortgage or deed of trust, the amount of principal and interest
due, and the fees and
attorneys representing the Servicers and other third parties through the. Effective I)ate
of this
Judgment.
c.
"Effective Date" shall mean the date on which a copy of this Judgment, duly
executed by Defendants and by the State, is approved by and becomes a Judgment of the Court.
025/L00
FAX
d.
"Federal Banking Agencies" shall mean the Board of Governors of the Federal
Reserve System, The Federal Deposit Insurance Corporation, The Office of the Comptroller of
the
c.
States of Arizona, California, Connecticut, Florida, lUinois, Iowa, Oregon, New Jersey, North
"LPS" shall mean Defendants Lender Processing Services, Inc.; LPS Default
Solutions, Inc.; and DocX, LLC, including all of their parents, subsidiaries, and divisions.
g.
assigmnents of mortgages or
deeds
and satisfactions; (iv) notices of trustee sale; (v) notices of breach or default; and (vi) other
i.
"Servicer" shall mean any residential mortgage loan servicing entity to which
j.
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03/19/2014 WED
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2.3
Stipulated Facts
practices relating to the Covered Conduct, The Investigating Attorneys General found and the
Defendants stipulate to the following facts of the investigation:
a.
1,
subsidiaries of Lender Processing Services, Inc., on behalf of Servicers contain defects including,
but not limited to, unauthorized signatures, improper notarizations, or attestations of facts not
personally known to or verified by the affiant. Some of these Mortgage Loan Documents may
contain unauthorized signatures or may contain inaccurate information relating to the identity,
location, or legal authority of the signatory, assignee, or beneficiary or to the effective date of the
assignment.
c.
recorded Mortgage Loan Documents with these defects in local land records offices or executed
or facilitated execution on behalf
Documents would be filed in state courts or used to comply with statutory, non-judicial
foreclosure processes.
d.
At some time prior to November 1, 2009, employees and agents of DocX, LLC
("DocX") a wholly owned, indirect subsidiary of Lender Processing Services, Inc., were directed
by management of DoeX to initiate and implement a program under which some DocX
I027/100
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employees signed Mortgage Loan Documents in the name of other DoeX employees, who
were
or had been at one time authorizcd to sign on behalf of Serviccrs. DocX referred
to these
unauthorized signers as "Surrogate Signers."
e.
At the time the Surrogate Signers signed certain Mortgage Loan Documents, they
were not authorized by the applicable Servicer to sign their own names or
the names of those
persons
Documents in question.
f.
The Surrogate Signers executed certain Mortgage Loan Documents in the name
of
other DocX employees without indicating that the documents had been signed
by a Surrogate
Signer.
g.
statements on the Mortgage Loan Documents that were executed by Surrogate Signers
and slated
that those documents had been properly acknowledged, signed, and affirmed in
their presence by
the person whose name appeared on the document when in fact the Surrogate Signer
had signed
the name of another person or signed outside the presence of the notary, or
both.
h.
DocX presented and recorded certain Mortgage Loan Documents with local land
internal review of DoeX and identified certain Mortgage Loan Documents that
contained
Lender
Processing ServIccs Inc., has also identified certain other defects and deficiencies in
the
Mortgage Loan Documents executed by some of its other subsidiaries.
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I029/100
j.
On
April
13, 20]
1,
Agencies, which order contains similar allegations 01' deficiencies in Mortgage Loan Document
execution practices at certain subsidiaries of LI'S and management oversight of' these practices.
Pursuant to the Consent Order, LI'S has agreed to take further remedial action, including, but not
limited to, proposing a plan to enhance internal auditing and risk management, adopting a
comprehensive compliance program for activities relating to default management services, and
retaining an independent consultant to conduct an independent review of LI'S' document
execution services occurring between January
1,
existence and extent of the deficiencies and to assess LI'S' ability to identify affected Mortgage
Loan Documents, to remediate the deficiencies, as appropriate, and to assess whether any
financial injury to Servicers or borrowers resulted from the document execution services
described herein. To the extent the independent consultant identifies any such financial harm,
LI'S has agreed to prepare a remedjation plan under the Consent Order that will, as appropriate,
lothing herein precludes the Signatory Attorney General from enforcing the provisions
of this Judgment, or from pursuing any law enforcement action with respect to the acts
or
practices of the Defendants not covered by this Judgment or any acts or practices of the
Defendants conducted after the entry of this Judgment. The fact that such conduct is not
expressly prohibited by the terms of this Judgment shall not be a defense to any such
enfircement action.
03/19/2014 WED
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2.5
Notling herein relieves Defendants of their duty to comply with applicable laws of the
State and all federal or local laws, regulations, ordinances, and codes, nor constitutes
authorization by the Signatory Attorney General for the Defendants to engage in acts or practices
prohibited by such laws. If, subsequent to the Effective Date of this Judgment, any state, local,
or federal law is enacted or regulation promulgated with respect to the Covered Conduct of
this
Judgment and Defendants intend to comply with the newly enacted legislation or regulation and
that compliance may create a conflict with the terms of this Judgment, Defendants shall notify
the Signatory Attorney General of this intent. If the Attorney General agrees, the State
shall
consent to
consent to modify is appropriate if any conduct prohibited by this Judgment is required by State,
local, or federal law or regulation, or if conduct required by this Judgment is prohibited by such
State, local, or federal law or regulation. The State will give each request to modify based on
a
change in the applicable law reasonable consideration and will respond to the Defendant(s)
within 90 days. Nothing herein is intended to preclude Defendants from seeking modification of
this Judgmnt if the State does not consent to the request of the Defendant(s).
2.6
Non.Approva1 of Conduct
Nothing herein constitutes approval by the Signatory Attorney General of LPS' past or
future practices. LPS shall not make any representation to the contrary.
2.7
Release
The State hereby releases and discharges LPS and each and all current and former
officers, sktrcholders, and employees from civil or administrative claims that his or her State has
or may have had against them under the DTPA including clainis for damages, fines,
injunctive
030/100
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I03t/t00
relief, remedies, sanctions, or penalties resulting from the Covered Conduct on or before the
Effective Date (collectively, the "Released Claims").
Nothing herein shall be construed as a waiver or release of any private rights, causes of
tction, or remedies of any person against the Defendants with respect to the Covered Conduct.
2.8
This Judgment is not and shall not in any event be construed, deemed to be, and/or used
as an admission or evidence of the validity of any claim that the Stale has or could assert against
LPS, or an admission of any alleged wrongdoing or liability by LPS in any civil, criminal,
Or
The
agreement of LPS to comply with the provisions of this Judgment is not an admission that LPS
ever engaged in any activity contrary to any law. Moreover, by entering into this Judgment and
agreeing to the tenns and conditions provided herein, LPS does not intend to waive and does not
waive any defenses, counterclaims, third party claims, privileges or immunities it may have in
any other action or proceeding that has been or may be brought against ii by any other State,
Federal or local governmental agency, or any private litigant or class of litigants, arising from the
Titles or headings
The titles or headings to each section or provision of this Judgment are for convenience
purposes only and are not intended by the parties to lend meaning to the actual provisions of this
Judgment.
FAX
Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 88 of 163
2.10
Modifiation of Terms
binding unless made in writing, agreed to by both parties, and approved by this Court and then
only to the extent specifically set forth in such written waiver, modification, or amendment.
2.11
Severability of Terms
If any clause, provision, or section of this Judgment shall, for any reason, be held illegal,
invalid, or unenforceable, such illegality, invalidity, or unenforceability shall not affect any other
clause, provision, or section of this Judgment) and this Judgment shall be construed and
enforced as if such illegal, invalid, or unenforceable clause, section, or other provision had not
been contained herein.
2.12
TIme is of the essence with respect to each provision of this Judgment that requires action
to be taken by LPS within a stated time period or upon a specified date or event.
2.13
Execution in Counterparts
signatories on separate counterparts, each of which shall constitute an original counterpart hereof
and all of which together shall constitute one and the same document. One or more counterparts
of this Judgment may be delivered by facsimile or electronic transmission with the intent that it
or they shall' constitute an original counterpart thereof.
2.14
LPS 'shall not participate directly or indirectly in any activity or form a separate entity or
corporation for the purpose of engaging in acts or practices in whole or in part that are prohibited
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by this Judgment or for any other purpose that would otherwise circumvent any part of this
Judgment.
2.15
In the event that LI'S voluntarily enters into an agreement with the Attorney General
of
any state that is not participating in this Judgment ("non-participating Attorney General") to
resolve potential claims relating to the Covered Conduct in this Judgment on terms that are
different thin those contained in this Judgment, exclusive of LPS' payment to a non-participating
Attorney General of reasonable costs and attorneys' fees incurred by the non-participating
Attorney General in civil litigatIon or criminal investigation that is active and pending as of
November 29, 2012, then LPS shall provide a copy of such agreement to each Signatory
Attorney General for review. If, after review, the Signatory Attorney General determines those
alternative terms are materially more favorable than those contained in this Judgment, then LI'S
will join the State in petitioning the Court to amend this Judgment to reflect any such terms in
place of tcnts herein, without waiving its rights to a judicial determination as to materiality,
III.
LPS, and any person acting under the actual direction or control of LPS, are
hereby permanently restrained and enjoined from engaging in acts and practices prohibited by
federal, state, or local law. Further, LPS, and any person acting under the actual direction or
control of LPS, are hereby permanently restrained and enjoined from engaging in the following
acts and practices and shall comply with the following conduct requirements:
Document Exiu(Ign
a.
LPS shall not engage in, or authorize its empkyees to engage in, Sunogate
IF]
03/19/2014 WED
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b.
L1S shall not execute any Attesting Document unless the affiant or signatory has
personal knowledge of the accuracy and completeness of the assertions in the Attesting
Document.
c.
LPS shall ensure that any Mortgage Loan Document that is executed by LPS on
behalf of a Servicer is executed pursuant to proper and verifiable authority to sign on behalf of
the
Servicer and that assertions contained in the Mortgage Loan Document are supported by
accurately identify the name of the signatory, the date on which the document is signed, and the
authority upon which the signatory is executing the Mortgage Loan Document. If applicable or
permissible, each Mortgage Loan Document shall include the name and address of the entity for
which the signatory works.
e.
LPS shall ensure that the affiant or signatory to any Attesting or Mortgage Loan
Document shall sign by hand signature, except for pennilted electronic filings.
f.
LPS shall not notarize or cause to be notarized any Attesting or Mortgage Loan
o any Mortgage
Loan Document, LPS shall ensure that the notary procedures comply with all applicable laws
governing notarizations, including, but not limited to, ensuring that notaries verify the identity
and signature of the putative signatory.
notarization of any Mortgage Loan Document, LPS shall ensure that notaries maintain notary
logs that identify such Mortgage Loan Documents.
LW tirms
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l03/100
LPS shall not improperly interfere with the attorney-client relationship between
h.
accuracy.
If LPS provides technology or other services that assist law firms or their agents
j.
in handliig issues relating to processing a foreclosure, bankruptcy, or other legal action, LPS
will ensure that its technology and services do not impede, compromise, or otherwise interfere
with the activities of a law firm providing legal services to its client.
I.PS will ensure that fbreclosurc and bankruptcy counsel and foreclosure trustees
k.
an
LPS shall not negotiate any retainer agreements between the Servicer and its
For those attorneys who are using LPS' technology services to access information
from Servicers, LPS shall take no action to prevent legal counsel from having appropriate access
to information from the Servicer's books and records to perform their duties in compliance
with
applicable laws.
Incentives
o.
LPS shall not pay volume-based or other incentives to employees or other agents
for the purpose of encouraging undue haste or lack of due diligence to the detriment of accuracy.
I2
FAX
p.
shall
adopt
policies
and
independent contractors, entities and third parties (including subsidiaries and affiliates) retincd
by LPS that provide foreclosure, bankruptcy or mortgage-servicing activities relating to default
servicing (including loss mitigation) (eollectively such activities are "Servicing Activities" and
such providers are "Third-Party Providers"), including the following:
(i).
policies with Third-Party Providers comply with LI'S' applicable policies and procedures
(which will incorporate any applicable aspects of this Judgment) and applicable state and
federal laws and rules.
(iii).
obligations, and to ensure timely action with respect to Third-Party Provider performance
failures.
q.
LI'S shall conduct periodic reviews of Third-Party Providers. These reviews shall
COStS
ensure that such fees and costs are within the allowable fees authorized by the Servicers;
(ii).
13
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03/19/2014 WED
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(iii).
ation taken against them for misconduct related to performance of Servicing Activities.
r.
LPS shall require that all fees charged by Third-Party Providers for default,
foreclosure, and bankruptcy-related services performed shall be within the allowable fees
authorized by Servicers.
s.
LPS shall be prohibited from collecting any unearned fee, or giving or accepting
Other than reasonable fees charged by LPS to the Servicers for its oversight of
Third-Party Providers, LPS shall not impose additional mark-ups or other fees on Third-Party
services.
LPS' invoices to the Servicers shall label each fee or charge clearly and
accurately to denote the specific product or service for which each fee or charge is attributed.
LPS shall provide to consumers, and ensure that its Third-Party Providers provide
maintained by LPS that consumers can call concerning any issues related to document execution
and field services activities (property inspection, preservation, maintenance, and wiuterization)
LPS perbrms for Servicers. LIPS shall have adequate and competent staff to answer and respond
to consumer inquiries promptly, and LPS shall establish a process for dispute escalation and
l037/100
03/19/2014 WED
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direct contact with a Servicer at a nwnber designated by such Servicer, and methods for tracking
the resohtion or escalation of complaints.
3.2
Apphical4c Laws
LPS shall be faniliar with the settlement terms between the State Attorneys
a.
General and any Servicers, including those agreements and judgments already in force, such as
the consent judgments entered by United States District Judge Rosemary Collyer of the United
States District Court for the District of Columbia in case number
States e
al.
v.
I3ank of
:12-cv-00361-R.MC.
United
judgments entered subsequent to the entry of this Judgment that affect LIPS' acts or practices
relating to the Covered Conduct of this Judgment.
h.
provided by
LIPS
conditions, and standards imposed by those agreements and judgments as well as with any
LIPS will
will support the National Servicing Settlement standards and guidelines. LIPS will make these
technology solutions available to its clients, including, without limitation, the following:
Protections for Military Personnel under the Service members Civil Relief
Act (SCRA);
15
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to audit
LPS
with
functionality and implementation timelines for such technology solutions relating to the National
Servicing Settlement. This audit process is in addition to and does not limit LPS' obligations
under Section 3.2(e) herein.
d.
establish compliance with the provisions of this Judgment; however, nothing in this Judgment
requires L1S to retain any specific document or other information for longer than five (5) years.
e.
For a period of five (5) years from the Effective Date, upon a request from the
Signatory Attorney General, LPS agrees to provide to the Signatory Attorney General's Office
reasonable access to all non-privileged LI'S documents and other information without the need
Ibr
document or other information not protected by the attorney-client or attorney work product
privileges as defined by applicable state law
FAX
widerstading by LI'S and the Signatory Attorney Gencrals Office that U'S has a legal
obligatiofl to
the trade Secrets of LI'S from public disclosure. LI'S and the Signatory Attorneys General agree
to work cooperatively to ensure compliance with these legal obligations. In the event that LI'S
concludes' that specific information requested is not covered by this provision and cannot be
disclosed without a subpoena or other compulsory process, it will notify the Signatory Attorney
General within ten (10) days that a subpoena for the information will be required.
This provision is intended to supplement and does not supplant or in any way restrict the
Signatory Attorney General's subpoena power and investigatIve authority under state law.
Subject to the provisions above regarding non-privileged
information, and legal obligations to protect the privacy of personal identifying information and
trade secrets from public disclosure, LI'S agrees to cooperate with any Signatory Attorney
LI'S shall ensure that if it is appointed to act as a trustee or successor trustee, LI'S
will meet all applicable state requirements to act as a trustee or successor trustee.
g.
LI'S shall appoint its Chief Compliance Officer Sheryl L. Newman, or another
designee, to act as liaison to the Signatory Attorneys General to receive and respond to inquiries
relating to this Judgment.
IV.
REME1MAT0N TO HOMEOWNERS
4.1
January 1, 2008, and December 31, 2010, that may require reinediation and to remediate those
documents when LI'S has the legal authority to do so and when reasonably necessary to assist
any person r borrower or when required by state or local laws. If Mortgage Loan Documents
17
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executed by LI'S prior to January I, 2008, require remediation fhr compliance with
applicable
laws or when remediation of Mortgage l.oan Documents exectited by LI'S prior to January
2008,
1,
reasonably necessary to assist any person or borrower, LPS shall rernediate those
pursuafl to this paragraph, its obligations under Section 3.1(v) of this Judgment to address
consumer inquiries with respect to document execution are not limited to documents executed
between January I, 2008 and December 31, 2010. For twelve quarters immediately following
entry of this judgment, LPS shall provide each Signatory Attorney General with quarterly reports
MONETARYREJLEF
51
LPS shall pay a total of Five Million, Seven Hundred Fifty-Five Thousand, Fifty
dollars (5,755,0S0) as a settlement payment to the State, and in accordance with the amounts of
payments to each Signatory Attorney General set forth in the attached Exhibit A.
Said payment to the State of Texas in the amount of $5,755,050
shall
be paid, no latcr
than ten: (10) days after the entry of this Judgment, to the State of Texas for deposit pursuant to
Tex. Gov't Code Ann. 404 .094 (West 2005).
than
Defendants, Defendants agree to notify the Signatory Attorney General within thirty (30) days
and increase the payment to the State in accordance with the methodology used to calculate the
State payment described in Exhibit A.
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l042/100
5.2
of $7 million in
the
Ann.
VL
RIcTRT To REOPEN
6.1
Judgment, that
this Judgment shall remain in full force and effect, unless otherwise
ordered by the Court.
6.2
Proceedings to reopen this case instituted under this Section are in addition to,
and
VU.
COMPIJIANCJ ENFORCEMENT
7.1
The State may assert any claim that LPS has violated this
Judgment
in a
separate
FAX
law, provided that the State gives LPS written notice of the alleged violation and
affords LPS
thirty (30) days from receipt of the notice to respond to and remedy the violation, or
any other
period as.agreed to by the State and LPS. However, the Attorney General is not required
to
provide notice in advance of taking any enforcement action within his or her authority that
the
Attorney General believes is necessary to protect the health or safety of the public.
Viii N()TJCES
8.1
All notices under this Judgment shall be sent by overnight U.S. mail to the
addresses below
For the Plaintiff:
James A. 1)aross
Assistant Attorney General
Office of t}ie Attorney General of Texas
401 E. Franklin, Suite 530
El Paso, Texas 79901
IX.
RETENTION OF JURISDICTION
This Court shaH retain jurisdiction over this matter for all purposes.
20
this
day of
.20)3.
I043/100
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Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 100 of 163
Plaintiff State
of Texas
i3yJiZ
JaJA. Daross
State Bar No.
05391500
401
21
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Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 101 of 163
INC.:
For Defendant LENDER PROCESSING SERVICES,
Todd C. Johnson
Executive Vice President and General Counsel
Todd c; Johnson
Executive Vice President and General Counsel
Todd C. ohnson
Executive Vice President and General Counsel
Date:/
2t
22
I04/10O
FX
Andrew Weber
State Br No. 00797641
KELLY HART & HALLMAN LLP
301 Congress, Suite 2000
Austin, Texas 78701
Tel: 512.495.6400
Fax: 512.4956401
23
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WED
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1:27
Case 3:15-cv-00126-DCG Document 1 Filed 05/01/15 Page 103 of 163
1hi)iI I,:
,ffATE
Alabai,a
____
Arizom
$1,039,780
$79
___ __
$3288,62 I
$692,496
$35,592,284
Arkinas
CIifbrnht
onneceut
$1,404,186
litrkt of Columbia
-.
Irlorida
$7,659.1 76
-_________
iIvaii
_______________$Jj4j0
idaho
$890,995
______
Iidiana
____
________
$364,326
______
$1,652,280
kpwa
$603400
Ktmsas
Kcncky__________
iiana
_________
yInd
_____
iu1t___
_________
$581,665
$94
$395,801
$515,725
86
_______ ______-___________
$2,9,130
______ _____
Mntmm
Nbriska
$3,073,140
______
$410,865
_________________________,l90
New Hurnpslre
New Jersey
New Mexico
New York
Noh Carolina
$456l
$,904,356
$671,531
$1,883,826
$3 ,743.306
$219,961
$2,544,990
$930,020
Ohio_____________________
athornu
Orqgon
Pcnisylvania
Rhode 1lund
$5lL875
$2,890,741
$447,965
Crolinu
SouthDukota
Tenticsee
icxts
_____________________
$2,335,746
$5,755,050
___________jj.390,326
Verinoni
$371,000
$3,558,821
$4,062,940
Vinia
Washinjion
Wct Virginia
_____
___-.
_______
___________92
_____._
..........
$232,491
TOTAL
$113623678
24
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03/19/2014 WED
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127
Case 3:15-cv-00126-DCG Document 1 Filed 05/01/15 Page 104 of 163
IN
I049/100
?4tJM8ER_...I
EL PASO COUNTy
TEXAS
I.'
N TilE MATTER OF
STATE OF TEXAS
:1
ANI)
...........
N4
ASSURANCE
This Assurance, by and between the State of Texas and Wells Fargo Bank. N.A. C'Wells
Fargo"), is entered into under the Texas Uecc1)tivc Trade Practices-Consumer Protection Act
State
of Texas, by
of this
PARTIES
1.
of 'l'exas, by
A.
State
B.
and affilirues, including hut not limited to World Savings Bank, FSB, World Savings and Loan
Association, World Mortgage Company, World Savings Bank, FSB, World Savings Bank SSB,
as 44World
iflClu(ling
Savings.Bank")
hiii, not limited to
American Mortgage Network, LLC, Wachovia Mortgage, P813, Wachovia Bank:, FSB and
Wachovja Bank, N.A. (her&naftcr referred to
Financial Corporat:ion,
Fargo
& Company,
as
1,
2006. Wells
2008, including Wachovia's subsidiaries, including but. not. limited to Wachovia Bank.,
Vi'U.
I'iii.
A,urj,,,:c of
,,hi,ii,i,
(,.o!ll/llPsci
NA.
Pagi
u) 2
and
FAX
t050/100
ii.
s'npi 1LA'F1Q
A.
World SavIngs Bank and Wachovia originated payment Option mortgages ("Pick-a-
fliortgage
make a fully amortizing 30- or 15-year interest and principal paymcnt; an "interest-only"
payment;
pay
the interest
owed, unpaid interest, waS added to the loan balance and the outstanding loan balance increased,
B.
The Oflice of the Attorney Genera.l of 'l'exas opened an investigation into whether
vtolations of the DTPA were conu'niited by Goldkn West or Wachovia in the marketing
Wells Fargo
aru:l
currently does not originate or market Pick-a-Payment mortgage loans, but acquired
Wachovia's
l'ices, and rising unemployment, some Pick-a-Payment mortgage loan borrowers are unable
10
to
share concerns
repay their
framework through which Wells Fargo will oiler distressed Pick-a-Payment mortgage loan
borrowers affordable loan mochhcations that include significant principal forgiveness.
That
framework includes a reporting requirement, dscrihed below, whereby WlIs I:m.go will provide
/'ar',
of V(,!u?Iar) COiiip/iieii
Pa,'e 2 of 2/3
051/100
FAX
provide
ill.
I)EFINITI()NS
A.
Usage.
1 .
'I'hc
the singular includes the plural and the plural includes the singular;
2.
3.
the headings of the Sections and subsections are for convenience and shall
not constitute a pait of this Assurance, and shall not affect the meaning, construction,
or effect of the applicable provisions of this Assurance;
4..
words such as "hereunder,'' "hereto," "hereof," and "herein" and other Words
of like import. shall, unless the context. clearly indicates to the contrary, refer to the
whole of this Assurance and not to ally particular Section, subsection, or clause
hereof.
13.
"Accrued Inierest" means scheduled penodic interest owed in accordance with the
applicabic mortgage note.
"Borrower" means the obligor(s) on a Pick-a-Payment mortgage loan note and the title
holder(s) who signed the security investment subjecting certain real estate property as collateral for
such note.
"Com,nenet'p,c,,t L)atc" means December
18,
2010.
or cost assessed to a Borrower's account for expenditures such as attorney fees, statutory expenses,
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f 2.5
03/19/2014 WED
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FAX
l052/100
foreclosure tees and CostS, tees for PfoPcrtY valuations, property inspections, property preservation,
and protective advances.
"beferred ln.terex'
a rcsuh of
the Borrower making the minimum payment where the minimum payment did not
include all of the interest that had accrued on the Eligible Mortgage.
"i)eiinquenz !Iorrower" means a
:as(. due.
"i)TI" or "l)ebt-to-ncome Ratio"
Monthly Payment (including monthly amounts for prineipai, interest, escrow, taxes, hazard
iflSUfllflCC
condominium fees are escrowed) to the Borrower's gross monthly income, all determined in
accordance with HAMP, as defined in Treasury's Supplemental Directive 9.01: Introduction of the
Home Affordable Modification Program, April 6, 2009.
a 1-4
unit
"Escrow-related Advances" refers to advances for items such as POPCIY taxes, hazard
inSurance, homeowner association or condominium fees advanced on l.,ehalf of the Borrower by
Wells Fargo.
in
Monthly Payment fully covers the interest accrued and due that month, as well as paying a portion
Welix Iar,i
Axxrwu.e
ol VoIi,iler,' Co:plioisce
Pac 4
('1 28
1523
03/19/2014 WED
FAX
of the principal balance such that the balance of the loan should
the term
I053/100
be paid in
full
at.
the expiration
of
Borrower who is not currently and, since the effective (late of the
Borrower's M AP2R modification agreement:, has never been delinquent, by the equivalent of three
(3) full Monthly Payments at the end of the month in which the last of the three (3) delinquent
payments was due. Once lost, Good Standing cannot, be restored even
if the
borrower subsequent:ly
"HAMP"
Stales r)e1,artment
of the Treasury.
as
In assessing whether
iorrower
is
inoleced to Recast to
a 401
Borrower is facing
the (elms
of the Pick-a-
Payment mortgage loan within the upcoming four contractual Monthly Payments using the current
applicable interest, rate as determined under the terms of the note, and the resulting increase,
to the respective
I3OITOWCr's
l)'li,
shall be considered
as a
if any,
Default.
t(!.c 1'iii;
A.i,'iaiu
i)f
VUhfldly
&.IIH/)IIlf!(.P
'"A' S
28
FAX
l054/100
any amounts of principal forbearance, to the Market, Value of the residential property that secures
for
"MAP.!,' shall mean Wells Fargo's proprietary modification program in effect from January
I,
"MAP2R" means Wells Fargo's Mortgage Assistance Program 2 which is based on the
terms described in this Assurrnce.
"Market
Raft"
is the Freddie Mae Weekly Primary Mortgage 'Market Survey (PMMS) Rate
rate conforming loans, rounded to the nearest 0.125 percent, as of the date that the
the
mortgage loan as determined by Wells Fargo in reliance on an appraisal report prepared not more
than 180 days before the date of determination, broker price opinion prepared not more than 120
days before the date of determination or automated valuation model 1)repared not more than 90 days
before the date of determination. Notwithstanding the foiegoing, for the purposes of Section "X" of
this Assurance, Wells F'argo may rely on the most. recent value available in its system of record for
according to the note, and shall include any principal amounts, monthly accrued interest, monthly
arnount
condominium fees.
"Negative Amortization " has the same meaning as Deferred Interest.
"NI"V Test" means
4'e/Iv
Iaifi(i
of V(fd?lt(Ili
(,7l,,,?1i,Jil,',
Ji,i' (
'.
2'
FAX
modification versus .he NPV of conducting no modification as to the same mortgage loan. The
calculation of NPV is arrived at using a proprietary formula developed by Wells Fargo. If the NI'V
of tlic modification would be greater than the NPV if there was no modiheation, the result is
the
'Paymcnl Reset
means the
means an annual increase in the rate of interest such that the aggregate
scheduled payments of principal (if applicable) and interest in any year increases by up to 7.5%.
"Pick-a-Payment mnorIgafe
loan" means
acquired by World
Savings Bank or Wachovia. The Pick-a-Payment mortgage loan permitted the Borrower to select
and make a minimum
PYfl1Cflt
particular, for each payment, the borrower could choose from four options. Borrowers could (I)
make
fully amortized interest and principal payment such that the loan would he satisfied in the
i:raditiorml 30-year tei-m; (ii) make a 15-year fully amortized payment; (iii) make an "in(.crcstonly''
payment; or
(Iv)
make a lesser, minimum payment. l3orrowcrs could also choose any payment
amount between these numbers. When a payment was insufficient to pay the interest owed, unpaid
interest, was added to the loan balance and the outstanding loan balance increased. Wells Fargo
(which did not Originate any Pick-a-Payment mortgage loans) acquired Wachovia and its Pick-aPayment mortgage loan portfolio on DeCember 3
1,
2008.
"Reason for Rejec!ion" means the specihc reason a Borrower was not
l'.!/.v
at. a
offered a loan
bJow 31% DTL Borrower failed to make trial payments, Borrower rejected
CiiipIirir.r
Puic
of 25
055/100
FAX
05G/100
nioditication
iiOpoSal,
to
coin!nunicatic)ns, or other.
lrggered by the unpaid principal balances cap, or date certain, such that the payment increase as a
reuIt of such Recast exceeds 7.5%.
'Termination dale" means June 30, 2013, with the exCel)liofl of certain reporting
obligations outlined in Section "X. ft" of this Assurance.
IV.
A.
Rcpoi.ciFiiiity of Wellx Fargo. Wells Fargo is responsible to the State of 'I'cxas for
this
entities responsible
la11
for servicing Or
of its
Assurance.
Remedies for Failure of Wells Fargo to cause Performance. This Assurance shall
be binding upon Wells Fargo. In the event that the State believes that there ha.s been a material
of
this
Assurance, the
inay seek enforcement of this Assurance, or, in the alternative, terminate this Assurance, provided
that:
the State no(illcs Wells hugo in writing in advance ot ternunatiOn or the filing any
days
to
event. that. the State terminates this Assurance as a result, of a breach by Welts Fargo that has not
4'I1
However,
Iiiiq,
Ax.a,,',:cc
(1)
ii:
V,Ju,,tarv
1tgr 8
,f 28
FAX
l057/l00
or
Assurance or as a result ol this Asswance or a breach ihereol; (ii) the State's remedies in any
enforcement. action shall not include any criminal sanctions; and (iii) this Assurance and afi
nelzoualions. statements, and proeccdmgs in connection therewith shall not be constned as or
deemed to be evidence of an admission
Or COflCCSSiOfl
Ofl
(he pail
law, liability, or wrongdoing by ii, and shall not be offered or icceived in evidence in
any action or
proceeding, or used in any way as an admission, concession or evidence of any violation of law,
liability or wrongdoing of any nature on the part of Wells Fargo.
V.
...1
Starting with the Commencement. Date, Wells Fargo, on an ongoing hais, shalt otThr
Eligible r3orrowers affordable loan modilicatmns in accordance with the following provisions:
Loan Modifications
A.
to lIe Considered.
Eligible Borrower shall first be considered for a HAMP modification. Eligible Borrowers whc) do
not qualify for or elect not to accept. a HAMP modification shall be considered for a MAP2R
OX)dillICt.iOfl
on
MAP2R
13.
Modification.
Sl.i
modification shafl he considered for a MAP2R moditication on the terms in this Section "V.B." The
following proCess shall commence upon receipt of the documents described in Section V.13.4. and
to a fully amortizing loan and the negative amortization feature will be e!imnated.
1.
will
until an Eligible l3orrower's Monthly Payment reaches a DTJ of 31%. The DTI may be
4'tllx
irgo
UY,,fCi'
(,/
V.1ii,ii,
loiipfisct
0128
03/U/2014 WED
15 28
FAX
lO58/1OO
slightly higher than 31% if the next step or action within the waterfall will result in a
D'I bl
jq'
Oiice a
l'l'i as
not apply any additional steps in the waterfall, nor actions within a step. If any step in
the waterfall is already achieved, Wells Fargo will proceed to the subsequent. step.
steps of the waterfall have been exhausted and a
EYE'!
11
all
NTPV
befire
a. Waive all Accrued Interest, outstanding late charges, and outstanding fees.
b. Escrow-related Advances, and Corporate and I)efault-Related Advances will first
be capitalized, then
if this forgiveness
Iat.e
charges, and
(10) percent of the unpaid principal balance (calculated by multiplying the pre-
it.
exists will he waived until the total of the waived Accrued Interest, Escrow-related
Advances, outstanding late charges, outstanding Corporate Advances, and Deferred
interest result in number that represents ten (10) percent of the unpaid principal
balance. In the absence of Deferreci interest, only Accrued Interest., outstanding late
charges, outstanding fees, Escrow-related Advances, and Corporate and DefaultRelated Advances will he forgiven.
Faio A,Ig1glLt' of
VoIIlnl?ry Coiip1w,ic'
/'r4t
/0
of 28
FAX
JO59/1.00
(1.
15% is achieved;
in
e.
"V.8.2", until
iS
non-
interest hearing and non-amortizing, The amount of principal forbearance, that is not
givc
wilt
result in a balloon payment fully due and payable upon the earliest of
of:
principal balance, or maturity of the loan. Should Wells Fargo choose to participate
in FIAMP Principal Reduction Alternative
the LTV level of this sI:cp shall be ajusLed from 125% to 115% for modifications
(lone on a prospective basis from the date Wells Fargo elects to participate in the
PR A
f.
(1
irecti ye.
Reduce the interest rate in .125% increments. in all cases, the interest, rate
shall rtot be reduced below a floor of 2%. If the interest rate after the modification is
below the Market. Rate, this reduced rate will be in effect for the. first three years
i)llOwing the date of the loan modification.
maximum of one percent per year at each 12-month anniversary date. of the original
modification until it reaches the Market Rate, ai which time that rate shall he fixed
for the remaining loan term. If the interest rate after the modification is above or
equal
t(.)
the Market Rate, then that resulting rare shall become the peimanent rare for
(.?.Il)lf)Ii/iIu.
II oJ'2
FAX
l0E0/100
the remaining loan ei'in. In no event will a step rate increase result in a gieatcr than
1.5%
ainOUilt
and
interest. If it
rate such that. the increase in the monthly principal and interest portion of the
payment is no greater than 15%; thereafter, the rate will continue to increase
according to the terms above each year until the Market Rate is ultimately reached.
g.
U'V o: 100%
2.
is reached.
(:oidiiioi,ai Forgiveness.
Principal
loan modification.
is jn
Good Standing,
Oti
equal
prior to being offi-ed to a Borrower. Wells Fargo shall not be required to olTer
Borrower
t:he
However,
Wells Fargo, in its sole discretion, may off&r the NPV negative modification or, if
i)ocumen.tation
Requirements.
Eligible Ronowers to apply for MAP2R modification, Wells largo, consistent with
its need to obtain relevant, financial information, will seek to minimize the burden On
Eligible
iV,:IL' I"ar',o
A.
NI AP2R
Iic 12 of 21
FAX
BOITOWCIs to
I061/100
require more than one year's income tax return, but will require documentary
obligation for Well Fargo to offer MAP2R loan inoditeations to Eligible BolTowers
who cannot be cjualified under the HAMP or MAP2R guidelines.
Borrowers may
tCCCiVC
Deeds-in-Lieu of
Such Eligible
l-)i'CClOSUrC
Short Saks,
"viii:'
6.
Fargo will continue to evaluate Eligible BolTowers for potential loan workout
soIutins that arc coimnercially reasonable and are designed to help avoid
foreclosure. These solutions may or may not, be MAP2R modifications and their
terms
VL
will
sERvici.N(;
sEEIuN(;
MAP2R
outreach to Borrower.. On or before the Commencement 1)ate, Wells Fargo will send
l)eliiquent. Borrowers
with
lexas two lettei (;lescribing MAP2R'S eligibility requirements, teriiis, and application process and
its relationship with I-lAMP. These letters
t:o
will,
Spanish-speaking borrowers.
S''I/,c
/,,o
Ax.v,,,j,,,ec
of YoIu,kjn' ColIf/kIIuf;
20 ciays of
Pii,P
13 of 28
1529
03/19/2014 WED
FAX
062/100
Lbe
Market Rat:e to be
thirty (30) year terra ('Tixed Rate Conversion"). All such Borrowers eligible for
fatc Conversion
determine the Borrower's ability to repay the converted loan, There shall he no fcc for exercising
A.
a,propriate consideration for modifications or Fixed Rate Conversion options, Wells Fargo will:
Maintain a dedicated, adequately staffed help line to serve Eligible
1.
2.
MAP2R
theim
(iocumCrttatiOn from the Eligible Borrower, This notice may he included within any
notice required in Connection with the consideration of the Eligible Borrower for a
HAM? modification;
3.
Wells Fargo will assign a primary point of contact: at Wells Fargo to each
Eligible
4.
Second
Liens.
mod if med. under this Asswance, also has an equity line of credit second mortgage
loan that was
V.'IIx
(/I
Ur
itt_,
f.)/
V)t,Ir)'
F'ag' 14 ( 26
FAX
this
second
lien
for an
I063/100
appropriate
13.
on
the Foreclosure Process. Wells Fargo will apply HAMP rules under
Supplemental l)irect:ive 10-02, dated March 24, 2010, and any applicable state laws regarding
initiating or advancing foreclosures to Eligible Borrowers being considered for MAP2R
niodifications. In addition, Wells Fargo will ensure that each Eligible Borrower:
I..
Has notes in his or her electronic records accessible to all loss mitigation,
forcclosure
t.rusI:ec
foreclosure process.
Is notified in
(1.0) days
of submitting a modification
request. of any documents believed to be missing and necessary for evaluation for a
Who
is
denied a
clearly explains the reasons that the modification was denied and describes the steps
t/f.c /arIf,
ru,w,Ic1
a,!
Vahu:la!)
(::)lI,,.Ii,ncc
Iu,l.'
i.'
Of 2
FAX
064/100
VI.!.
REIi'INA NCING
A.
Modification Fees and Prepayment Penalties. Wclls Fargo will waive all
prepayment pcnaltics and assess no fees in connection with a modification of an Eligible Mortgage.
Wells Fargo shall not require a eLiStOifler to make any payment
01
arrearages as part of
Lhe
loan
modification process.
13.
D.
a
MAJ'
Borrowe,x
With
not be eligible to be
deSLgflate
Officer responsible for this Assurance. The Compliance Officer will he responsible for providing
agreed upon reporting and ensuring that. Wells Fargo reviews and responds to complaints from the
of'
this Assurance.
Within 30 days of receipt of a written consumer complaint sent through the Office of the Attorney
General, the Compliance (:)ffieci will reply in writing to the Attorney General
with
a response that.
fairly addresses the substance of the consumer's complaint, including a discussion of any corrective
ieasures thai may have been i.akcn to address issues raised by the complaint.
W'l/.c I
ii,
fl.v.uriorc,g,
of V,Iu,ua,y
Col1lp1kAs:.'
I'urc
1(1
(?f2
03/t9/2014 WED
1529
FAX
Borrower Consent.
Wells Fargo
for
1.0
Viii.
A.
itS
tjo65/1oo
V'el!s Fargo will offer the Home Affordable 1oreclosure Alternatives (1-IAFA'') or
Or Who
decide
tligihk Borrowers
tO leave
Who)
are
Eligible Borrowers who quality for HAFA will receive, an incentive payment of at
C.
FJigible l3orrowcrs who do not qualify for HAFA, but otherwise qualify for a short-
receive
paymen
of at
expenses.
LX.
will
t:he
with the State's efforts to prevent or mitigate foreciosures and to prevent mortgage Or loan
X.
REPORTINC REOU!REMENJ'
Wells F;.irgo
will
provide the Office Of the Attorney General with quarterly reports through
the Termination Date, setting forth the information outlined in this Section
'I!.v
F(J'go
/%..y,,
"X',
for the
except
I'u:e
2/
FAX
3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 121 of 163
I066/100
requirements set forth as described in Section '1X.E.'' All such repoils will be provided within
I)10V1C1C
propeily address, and aggregate national data, as necessary per the specihc reporting requirement
tOr the activity during that quarter. The quarterly reports will provide he following information
broken down by the type o relief for Eligible Mortgages: (1) HAMP modifications, (2) MAP2R
moditicatton, and (3) combined inlormation for both I-lAMP and MAP2R modifications; (4)
lorcclosure Alternatives; and (5) Fixed Rate. Conversions.
Additionally, in the event that States, in connection with their implementation ot this
Assurance, wish to locate and contact Borrowers of Eligible Mortgages who between January 2,
2005, and the Commcncement l)ale have gone through a foreclosure sale, Wells Fargo will work
with the State
I-argo will
1.)
t.o
Bc)ErOWe.fS
of
118
of foreclosed
OWfl eXpCflSe,
and
state, submit the names and all necessary identifying information of Eligible
l3orrowers that: were not located using the informatjon provided in section 1) to the United States
Postal Services' National Change of Address (NCOA) service, and/or to a qualified Vendor, and
will provide the States with a best new address for said Eligible Borrowers within 90 clays of such a
request..
A.
111
odificatioiz
Eligibilily
and Requests.
On
Yell.
/iii,,>
luic,n
of Voiu,iio,'
i,llo,u.i:
1'u,:
/1?
of 28
067/100
FAX
[Intl are:
(1)
For modification,
foreclosure alternative, and fixed rate conversion requests that were rejected,
provide the number of Eligible Borrowers rjected by Reason For Rc1ectin.
B.
IA.)an
Modifications.
following:
Avcrige and total dollar amounl.S of Deferred interest forgiven and average
percent of unpaid principal balance this represents;
3.
total
principal
5.
Number of loans that receive term extensions and the average new total term
of such loans;
6.
Number
of
l)OSt
modification interest rate, and average interest rate reduction of such loans;
7.
8,
PlCse111eC1
by the
tnodifical:ion;
tVilIx
4..c,a,ai:i.','
,f
V,hmiury
)nzpli(dIr'
Pap,
/()
41J
l06S/100
FAX
9.
10.
Number of short-sales
[hat
Number of de.eds-inlieu Of foreclosure that. are (i) offered (ii) Conlcted and
11
Section "VII!",
].2.
Number of deeds-in-lieu of foreclosure and shoii: sale request.s that arc (i)
offered (ii) completed and (iii) reccted;
13.
14.
t.o
Section "VI."; number of Borrowers who applied hut were rejected for such
conversions; delinquency rates of converted loans.
C.
For/folio
1.
under MAP2R by the following post modification LTV categories: Less than
80%, 80% to 100%. 101% to 125%, 126% to 1.50%, and more than 150%.
Break out [his data for loans that received principal forgiveness and those that
did not.;
11','/f,'.
/?,r.i:i,
A.crua#ice
4-)(
V,,I:i,iiii,
Cwup!ianc
Pai
20
128
03/19/2014 WED
1530
l069/100
FAX
3.
Number of lligible Mortgages that have not been modifcd and the
percentage
o1
6.
7.
with
D.
Servicing Performance
(JCCisjofl
Number of Eligible
is mailed; and
Borrowers who have
(a/i!illnrr
Pgiji 2!
,.if2fi
03/19/2014 WED
1530
FAX
070/100
the time to notificaton was more than 30 days and more than 60 days.
E.
1,
of the Attorney General with quarterly reports through December 31 2017 that include the
information set forth below. Such reports will be provided within forty-live (45) days ali.er
the end of each quarter.
3.
For any Eligible Mortgage Wells Iargo chooses to modUy at its own
dicreLion under its then existing Modification Program from January
1,
2013
through December 31, 2017, Wells Fargo will report the following
c.
4.
lII.v
l,I,'1fl
4rl,,fU(!
il
/j,,jqjy (,,1iiti:ci.'
Eligible
.'2
eu
21?
FAX
l071/100
XI..
A.
parents, affiliates, subsidiaries, employees, officers and directors from any and all civil and
administrative actions, c hums and causes ot action based upon or With respect to the Origination.
marketing, servicing, prior modification or resolution practiCeS of E!igible.Mortgages prior to the
date of this Assurance which the State could have brought. against Wells Fargo prior to the Effective
Date, except for (I) any regulatory or enforcement proceedings by or
On
l)ehall
Of
an Agency other
than a State Attorney General: (ii) any claims that the State of Texas might have as an investor in
securities: and (iii) any criminal investigations or proceedings. This release does not apply to the
agreement, to assiSt troubled Eligible Borrowers with t:he Attorney General of any state that is not, a
signatory to this same Assurance in a form or on terms that are different than those contained in this
Assurance, then Wells Fargo will provide a copy of such agreement to the State for review.
iview the State determines those alternativc terms or form of agreement are, taken
more favorable than (hose contained in this Assurance,
then the
terms hereof.
XII.
after
as a whole,
to
,Yj,//v
of'
1F
turi,
A,
uo:,,u.i of
Voliiniury C'o1?IpIiJ,IU?
PI
23
:iJ
26
FAX
\Vells Fargo or
itS
13.
in any c.aher
o Jurisdiction
fr
of
proceeding.
Li,nitcd Purpose.
Vv'ells
l:aI.g
submits to the
and enforcing
this Assurance only. Any acts, conduct: or appearance by Wells Fargo does not constitute and shall
not be construed as
(ifly JMJ F
OSC
C.
submission
t.o
Whatsoever.
Voluntary Agreement.
other than what: is c..nt.ainccl in this Assurance, or threats have been made by the Office of the
Jurisdiction; C'hoice of
Law; Venue.
t.o
enforced in accordance with the laws of the State of Texas. In any action or ciisptit:e relating to this
Assurance, the jurisdiction and venue shall he in the trial Court of appropriate jurisdiction of the
State of Texas. Wells Fargo submits to the jurisdiction of the trial Court of appropriate jurisdiction
of the State
of Texas for the limited purposes state in this paragraph, which should not he construed
Confidentiality. The Office of the Attorney General agrees that all conlidential
itS
affiliates, including
but not limited to the periodic reports that will be provided pursuant to Section X shall be kept
periodic
bai
the.
shall not
be.
of the
Vi'/!.
oJ V,!u,,ii,,y
072/100
24 0/28
FAX
073/100
amount
2.
I1'te totiJ
3.
the i:otai amou iii of interest and prmCt pal expected to be saved by Eligible
0f
Eligible Mortgages.
The Office of the Attorney General shall not disclose or use any confidential information without
the prior wriUCn consent
01
court order (and in any of these CirCumstanceS, only upon prior written
flotiCe
ltw1
to Wells
regulation
Or
Fago)
Enforcement. This Court shall retain jurisdiction over this mattet for the purpose ol
1*
(a) enabling the Office of the Attorney General to apply, at any lime, for enforcement of any
provision of this Assurance; (h) enabling any party to this Assurance to apply. upon giving thirty
br
necessaty or appIOl)riatc either for the construction or carrying out of this Assurance; and (c)
enabling any party to this Assurance to request infonnation
to counsel for the parties and subject to
the
omn
move to quash.
I!.
(JonflIct with
Subsequent Law.
any provision hereof, making it impossible for Wells Fargo to comply both with the law and with
the provisions of this Assurance, the provisions of the Jaw shall govern.
(.
No
Third Party
cuficiarics Intended.
upon any J)eesol) any rights or remcdies, including rights as a third party bcneiciary.
Assurance is
nor.
This
intended to create a private right of action on the pact of any person or entity other
H.
/ir/:
Service of Notices.
,4s,vuratu'
of
%'.Iu#uo,> (.iuii,1hinc
Service of
1c,.
2.
of
25
I074/100
FAX
enforcement. shall be in writing and delivered on the iolIowiflg persons. or any person subsequently
A, )I)aross
Any party may change the designated person and address for delivery with respect to itself by
jIving J)OtICC
tO the
Waiver.
1.
The failure
j.
S'everabu1Iy.
if any part hereof shall for any reason be found or held invalid or
unentorCeable by any court of competent jurisdiction, such invalidity or unenforceability shall not
affect the remainder hereof, which shall survive and
he
construed as if
SLich
invalid or
OflC
signat:i.tres hereto may he used with the same force and effect as an original.
uT
Vujlu,ii,in (.eiuipliiuiu
lii,
26
uf !
03/19/2014 WED
t530
FAX
I..
the
I075/100
M.
Integration. This Assurance const.it.utcs the entire agreement of the paitics with
respect, to the subject matter hereof and supersedes all prior agreements and understandings relating
0.
this
ASSLIEaIR:C
terminate the terms of any loan niodification entered into pursuant to Section "V.B' of this
Assurance.
P.
Attorneys Ices and CosLc. Wells Fargo has paid all attorneys' fees and costs iclated
be sought by
R'i:I/.v
liJrt'Q A.cxura,u.'
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l076/100
FAX
DATED
this
day of
,2010
1.
II
id
GREG
AE3BOT1'
.-,
28
FAX
Respectfully submitted,
GREG ABBOTT
Attorney General of Texas
DANiEL T. HODGE
Pirst Assistant Attorney General
BILL COBB
[)cputy Attorney General for Civil Litigation
PAUL D. CAR.MONA
Division Chief,
Consumer Proteeflon and
Public Health Division
g D
ES A. DAROSS
A
RICHARD L. BISCUOFF
Assistant Attorney General
Slate Bar No. 0234320()
Office of the Attomey General
Consumer Protection and
Public Health J:)ivi,icn
401 E. Franklin, Suite 53()
El Paso, Texas 79901
(915) 834-5806; Fax (915) 542l 546
Attorneys for Plaintiff
29
tJ077/100
FAX
IN
l078/100
NUMj
1')
IN TIlE
MATTER OF:
STATE OF TEXAS
AND
.?
7i.i
FINAL 0111) ER
APPROVING ASSURANCE
On this date came on to be considered the Assurance between thc State of Texas and
Wells Fargo Bank, N.A., filed in the above-relerenced cause, which is approved by all parties.
17.58,
Tix.
CODI.
SIGNED
this
day of
.}th) 1
2010.
OL
C()t,NrY 'OUF1T AT
..J1):
cuE:
JUJ)G13 PRESIDING
Wl'1l,
!ar)$,
A VC Orijer
LAW #6
GNED BY
KUPrr,
Bus.
& COM.
03/19/2014 WED
1531
FAX
080/100
IN
THEDISTRICT COURT OF EL
PASO COUNTY TEXAS
JUDICIAL
DISTRICT:,
cl,1
iii F S'rA'fE
OF 1'XAS,
Phiintil'f,
V.
ciu
No. 2009
COUNTRYVII.)E 11NAN(..1AJ..d
(OP(.)RAT1()N, I)elaw,ne
COUNi'RY\V1DF J.IOME .,()ANS, INC.,
N'v 'Ycirk corporaton aH(I Fli 1.
sPI(.:'TRuM J.;ENDIN(;, NC., a Calif4rn
crl)(, fli tion.
etion;
I)efendants.
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fit
th
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i/
ea
It'(Y
LptiV(_
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ict i
( ()ii'tI1 tict
Pt ott.
((tot) Act
Ii
t''
&.
I'(!ii'
()M
'
''I
'
( 01)1
FAX
l081/100
l7.4l,
other
OF itfl
ktw,
)'ursuani to the gr ement between tl'tern, the Pai-t' submu tu the urisdiction of tIie
Couit for the purpose of entering and en foicwg this final j udgmerit and do not contest the entry
of this Final .Judgmeni.
it appearing to the Court that all pail ics agreed to the entry of this Final LidP,rflCIll an(l
that they have approVed its entry by their duly authorized signatures and the signatures of their
rcspccttve attorneys below, (he Court, t.ipon the stipulations oi the Parties afier being fully
advise(l in this matter, finds as follows:
.1
(a)
(b)
afl(l
just; mid
(c)
l'hit it would be in the best interests of the Pail ies if the Court approved
(he settlement and rendered judgment accordingly.
RECI TALS.
(I)
Delaware coqx)ration
Company.
(C'J(), is a thrifi
holding
(2)
Countrywide Horite Loans, inc., a New York corporation and wholly..owned subsidiary
of cic, is or was a licensed mortgage banking organization.
(3)
Full Spectrum Lending, Inc., a Cali lorrija corporation and wholly-owned subsnliary
CFC. is or was a licensed mortgage banking organization.
(4)
(5)
IM1NhTR)NS.
1.
(!s1gc. The fol lowin , rules apply to the construct ion of this Final Judgment:
1.1
.'l,l/
'f
/(.va.
V.
(a)
the singular i nclucics the pl utal and the l)lmal includes the singular;
(b)
'includc"
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and
Of
FAX
l082/100
(c)
the headings of the Sections and subsections arc
convenience and hid
not constitute a pati of (his Final Judgment, and shall 1101 affect (he meaning,
cons(.ruchon, or cf'lecL of the apphcnblc pIOVISIOnS of tins I::inal Ji.idginciit;
I
(ci)
in'
(c)
wovd
of
WhC)IC 0
hcrco I
1
.2
J)'/iized
rial
.1
Ihe 101 IOWI)ig (.1()itIl TZO(I lei'iiis shall hiie tilO f011OWing
udgmcnt unless otherwise requ i'ed by the con text or defIed:
i('rPPtS'.
COII1IMUIY
dC
lucrease" means, with respect to any stated rate of interest, an annual increase
intereSt, such that the aggregate scheduled payments of principal (if
applicable) and interest in any ycar does not increase by more than 7.5% of the aggregate
''Annual
scheduled payments of principal and interest in the preceding year, subject to any stated interest
rate cap
"ARII1,s" nicans adj ustable talc first-lien residential mortgage loans.
UI34C means Rank of America Corporation
"fl,ii()i,'i'i2' means, With l'espect to ally owner-occupied CFC Residential Mortgage Loan,
the 01)1 igors(s) on such loan NC) covenant or Commitment herein is intended to rCqUirC a
Sei'viccr to deal with more than one obligoi' on behalf of any Borrowers with respect thereto
IT)Oi:II1S
(.Oi.iIitI'YViCiC
dc
Financial Corpoi'ation.
"CF'C"-Oi'iginuft'd'' means, with respect to any residential mortgage loan, that such
residential mortgage loan is a first-lien i'esident:ial mortgage that. 'Vas onginated on a retail basis
directly or iiid ii'cctly by (..FC or itS subsidiaries or through brokers iii lhei i wholesale lendin
channels, "CF(-OrigjiateeP' rcs Id ential mortgage loans
not i net ude C FC Purchased i.Ma us,
(IC.)
'CFC Pureiia.ved Liun.s'' means any first-lien residential mortgage loan originated by
unafli ialed (hi id pail cs and directly or indirectly purchased by (.FC or its subsidiaric thi'ougii
tlieii' conespondent lending Chi:iflfl1S 01 OtllCi'WiSC, /IOVLd(d thit such loan is serviced by a C FC
Servicci "Ci'( I'upchayc/ Lowis'' do not itici tide CFC-Originated i'esidciitial mortgage loans.
I
"(/7(,' Re.vidi,:rial Illorigage Loans'' nicans any (i) CFC-Originated first--lien residential
noitgage loans, or (ii) CFC Puichased Loans, so long as, in each case, such loans arc serviced by
a
CFC Servicer
''C."iC Seri'icei" iiiearis CFC or any Affiliate of CFC that. scrv; ces
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uf
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03/19/2014 WED
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"(.olfl,,,epzee,,ze,sl
uieans
1)ate''
C)etobct' 6,
2O0.
"Delinquent Bo,',
'ei'' means, with rcsI)cct to any l3oriowei,
that (he chited CF(1
Residential Mortgage Loan (a) is Seriously Dcl inqt.tcut on or before lie fermi rat oil t.)ato, or (b)
is subject to an imrniiicn( reset or Recast and, jr the reasonable view of the CFC Servicer, as a
result of such reset ot Recast i.s reasonably Ikely to become Seriously Delinquent on or before
I
leirniation
the
Date.
''frannj
the meaning
given
to such
tCIIi)
in Section
of aity
date,
'1'ederai I.l,gtbIe" niafls, w th respect to any first-I ten residential mortgage k)an that, at
the time of Ongiliation, (a) such loan is or was cligibic br sale to, or guaranty or insurance by, a
federal agenc, (JSE or comparable federally-sponsored entity similar to a GSE, under then
applicable g.tidclines of such agency, GSE or entity, or (t) such loan was made in connection
wi
a pro j.!yam intended to qualify for ere(iit under the Community Reinvestment Act' of 977.
iii
the
program
to such tern
iii
7.
"Interest Rate J'loor" means, with respect to niodificatio ii of a Qual i fymg Mortgage
heicunde, (a) a ate of 3.5% per annum il the modification results in an interest-only pitynient
0 (b) a rate of 2.5% per annum ii the modification results in a fully amortizing payment.
"LTJ"" means, with respect to a first-lien residential moigage loan as of the time
jeviewed ('or el igibil it)' for modiflcation, the ratio of the unpaid principal balance of such
iloriguge loan to the Market Val Lie of the residential property that secures such marl (4agc.
'M,*et
Value'' means, with respect to ai'iy tesidential mortgage loan, the va Itic of the
icsidential prope1.y that secures such mortgage loan as determined by a lender or Servicer in
reliance Oil aii appraisal (whcthei based or an appraisal report prepared not moie than 80 days
belbre the ci atc of deIrmination, broker price Opinion prepared not mote thaii 20 (laYS bet(.)c
tlie date ui deteimniation, oi automated valuation model prepared not more than 90 days befbre
the date of delcrminaiori),
1
General"
o il'cxas.
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083/100
FAX
lJO84/100
Pa ()p(ioi, A R/l4,.'' nians /\RMs Ll'at, dilFIlig an initial J.)CIi()d (aIi(1 SLJhjCC1 to Recast),
peim ii he l)OfF(}WCJ to choose anions two oi muic payment options, inc.) udi ng a ii ntcicst -only
J)iIYITIcIiI and a niinimuni (oi limited) payment.
I
Qi.aIifin /I'Ioiigagi" has the n irig given t:o such term in Section 4.2.
''Rcasi'' means, in the case of a Pay Opt:ion i\RM, a contractual payment recast to a
anion iicd I)aYment baSed on
liii ly
has the
meiIIThig Ji VCfl
Del/n quell! Bariim'er" means, with respect to any L3OITOWOI that, on or be1re
iniliiiIwn l)iif (h dated ( I ( Rcsidcimal MoIIagd I oan i 'uiouly D linqunl
Seru)II,/y
"Subpri,,ic 2,
3, 5, 7,
and lO Hybrid
3, 5, 7,
and /0
II i'brid
ARIWS
ARMs.
Sub/)rune MOrIAage LOWI.S" nlCiInS hist-lien residential mortgage loans that combine
higher risk features (such aS low or no doeumciitatioii, low equity, adjustable intCrCst. rateS,
prepayment l)enalt.ics, cash-out finarkeing) with higher risk borrower pioliles (lower 1:1CC) scores,
recent bankrupteies/loreclosurcs, major derogatory credit), resulting in a loan t:hat: could not
reasonably be underwritten and approved as a "pIiilIe'' loan. An existing C1C Residential
Mortgage Loan would be a "Subprinu' Mortgage Loan" if it is idcnti fled as such in CoflhlectiOn
with a SCCuiilization in which it is part of the pool of securitized assets or, in the case of a CFC
Residential Mortgage Loan that is nOt included in a sccurilization, was classified as being
'subpnnie'' on the systems f CFC kind its subsidiaries on June 30, 2008.
"r('nzinU,,o,l /a1?''
2.
2.
J?e.spon,ibiIitp
f CFC Until the Teiminiition Date (or such earlier date as is
speci 1iec:l herein), CPC is responsible to the other parties hereto for perlormance of nfl of t:he
undertakings in this Final udgment, including the changes to the residential mortgage lending
practices described in Section 3, the loan modilication programs described in Section 4, ilic
Relocation Assistance payments d csciibcd in Sect on 5, the Foicclouie
Program
CSCII l)ed ill ScCtiOfl 6, and the report n.g obligations clescri bed in Sect ion
1
.1
Ref
C1
2.2
Absence o/Dc'Jense,s It is not an excuse to the performance of the Ol)ligatioiIS of
CFC hereundei that it does not directly or indirect:l y engage in the h usiness of Origi iiat.in g
residential mortgage loans or in the buiness of sci-vicing i'esidential mortgage loans. CFC is
responsible for the conduct of CFC Affiliates and CFC Scrviccrs as sp lied hercunder whether
or not it controls such CtC Affiliates or CFC Scrvjccrs and the absence ol such control shall not
be a defense to or otherwise excuse CFC's failure to perlorm hereunder.
2.3
J?oii:edIw toi I"aihire o/ ('J'C to (au.vt'
If there is a material
fail lire to pci-form the obligations under the loan modification piofranis described in Section 4,
the. Relocation Assistance payineills described in Section 5, the Forecl c.sure Rd ief Program
(lesenbed in Section 6, or the ;-cport ing obligations described in Section 8, and such iai we is not
promptly cured alter notice by the Office of the Attorney General, (hen the Offlce of he
Attorney General may scek enforcement of I hi Final .1 udgment under Section 10.4, or, in the
I
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03/19/2014 WED
FAX
tm mate ti
;il ternati\',
l:'.'ii.ud
085/100
SEJ.V10ER
ii
Ju;mcnt. If
t)A(.:lic.,:s.
the l'erniination l)aic, (K. shall be rcsI)onsihle (or the implementation of the
fol lowii
by (_lC Affiliates with respect to (ic Residential Mortgage Loans with respect
Bonowcrs in the State of Jexas:
(mu
1(r)
3.
R(,ideu14aI
il'1ori.,'age
J'rod,ct (/feiings.
(a)
(,iC Seivicers wil I inai alum robust processes for early ideriti iieation and
Contact With Borrowers who are having, or arc icasonab y Cx pec(ed to have, trOut) Ic
making their payments on (1FC Residential Mortgage Loans Under these processes,
When contact is made with such Borrowers, an individualized oval tiat ion nt the
BOITc)wcf eCC.)flomic circumstances will be made to determine if alternatives to
foreclosure are available, and conistent with the directions of the investors, ii applicable
I
(b)
CFC Servicers will maintain the Current. priCt ICC of oftering kati
mod ilicat ions or other workout oluIiOns to Boirowers who are 30 days or more
dcl inquent in their payments, who desire to remain in their homes, and who can afibid to
make i-easonable mortgage payments, subject to applicable investor guidance and
approvals.
(c)
CFC's reports to the Office of the Attorney General under this Final
Judgment vil inchidc inforinaUoii on (he numbers and types of workouts concluded on
loans scouted by Borrower-occupied plopertics in the Stale of Texas.
I
(d)
(c)
Witli respect to AltA Residential Mortgage loans, CF(. acknowledges
the Office of the Attorney General has expressed concerns about future
delinquencies, and agrees to provide the Office of thc Attorney General noti Jication
whenever the nationwide rate at which Borrowers on Alt-A Residential Mortgage Loans
arc 30 days or mote delinquent in their payments exceeds 150% of the delinquency rate
l)i compai-al)ly-agod FHA-insuied loans serviced by CIC Servicers, If such notice is
required, (:PC agrees to coaler with the (.)Uiec of the Attorney General Concerning Alt-A
Residential Mortgige Loaiis delinquency trends, including whcihei delinquencies ale
isolated in Certain segments of the Alt-A Residential Mortgage loans portfolio (e.,,
loans with interest-only foatures, loans originated at high CJ..iV), anci concerning the
possible deployment ofstieandined Ibi-eclosure avoidance solutions lot such Borrowers
that
(f)
Th mugh .Ini y
2009, a mi iii mum o 3 90() porsuninc] hiil I)e eml)Ioyed to
Borrowers wit Ii loan modifications and other foreclosure avoidance measures
1
aisI
(g)
CFC Servicers w'ill ensure that the values in any AVM system used to
generate elect ionic appraisals are regularly updated and periodically validated so as to
ptovule icasonabic; assurance as t the accuracy ol' i'csu ti ag vat nat ions, Aiiy \'u! dat ion
I
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l532
03/19/2014 WED
FAX
l086/100
ainst
ii
(Ii)
A though the SCOC ol tlic ]o;.in moification prOgr;mi in I:his Final
IkI inerit is limited to certain first icn Quali
Iying Mortgages, CFC acknow Icdges that (I)
many E1 igibic Borrower-occupied -to-4 unit residential properl:i es are suhj ec( to second
I
.1
lien mortgages and (ii) the existence (Yf such junior liens may ieduce the inceni lye of
i3om)wc,rs to reimuri in thoir homes ad may impair lJigi ble Borrowers al)i liLy to
refinance Qualilymg Mortgages. CFC coftrms that it is engaged in devclopiiig beSt
servicing piact ices with respect to first lien Qualifying Mortgages
gibte
Borrower-occupied -to-4 unIt residential properties that ace subject to second lien
n oil gages
l
3.2
('onpIiazee. Understanding (lie circumstance.s and behaviors el Iea(lcrs and
brokers that riwy ave conttihiitcd,
10 the current mortgage ensi S, CIC recognizes its
responsibility to ensure the very highest degree of ethical conduct on the part ol (.1-C's agents
and employees. CFC shall ensure that, (a) Ic> Ilie cxicnt it rcsume subprimc lending,
wi
design and implement a cithelive compliance management pi'ogi'am to provide reasonable
assurance
10 the identificatin and control at consumer protection hazards associate(l
with
such subprnnc tending activities, and (b) to the extent of its own lending activities (ii' any), it will
create appiopriate COnSuililCi safeguards to avoid un(ir or deceptive activities or practices arising
in connection with its interaction with brokers and other third pallies.
1
I F
i:tS
4.
MORTGAGE IRODUCTS.
t..Jntil the Ierininntion Date, CFC shall be responsible for ensuring that CFC Servicers
attempt, on an Oflgoing basis, to qualify eligible Borrowers in Speihetl mortgage products for
affordable loan modifications in accordance with the following provisions:
4.
Eligible Boiron'eiw,
An LligThle Borro'er IS ft HOLTOWCI who has a
Qualifying Mortgage with a first, payment date on ot before DeCeIfll)er 31 2007. thai (a) is
secured by an owner-occupied -to-4 unit residential property, (b) is serviced by a CIC Servicer,
and (e) in the CVCnL that is determined that a condition described U) Section 4. 10 haN occurred,
the applicable CF C Servicci has determined that such BoiTower is iii financial (listi. Eligible
l3orrowcrs arc potentially eligible fbi loan modification relief' under this Section 4. A Borrower
who does not occupy the I ..(4 miii icsidcrial property that SeCureS the Qualifying M ortgage is
1
jI
itol an tligihle6oriower,"
4.2
Qziaijji,,g Mortgages.
Mortgigex"
11
of
(a)
Sub1.>rinic' 2, .., 5, 7, a ul 10 !1)'brid ARMs, A Subprime 2, 3, 5, 7, and 10
.(tybi'id ARM shall be a Qualifying Mortgage if the P.1 igible Borro wet meets aily One of'
the following (lCfj nquency pta files at the lime consideied for 10dm mnodifictition.:
..
(I)
75h or iltoic.
(iIli
(1/
(V(lX
I(l'.'I lid),,/
I.
(cI,,,11,IIihl'
iiiiI /Iljll1I(!flJf
01
the LI'V is
FAX
087/100
(b)
l'ap ()pilon
oi.
AR/tv. A Pa
the
is Scriously
mote; or
(ii)
75% or mote.
anc.l
the
i1'\'
is
(e)
!IpbrId
75%
01
lfl(Te.
4.3
Law: Mod:fwatioi:. to B4' Con,cide,ed, Each Eligible I3on'owet shall be
i,onsidered (or a IaIigC of affordable loan im.'d1 ficalion opt ions with respect to lii s or her
Quail
Mottgage. The loan moth (leation options will include those desei'i bed below arid
existing inodi lieatioii options, subject in each case to approval of the investor who OWflS the
Qwd.ifyin Mortgage and the Affordahithy Eq liori as
forth in Section 4.4.
Loan
iiiodiication options for each category of Qualifying Mort:gages are as follows:
fyi,
st
(a)
Subprinie 2, 3, 5, 7, and 10 Hybrid ARMs. Qualifying Mortgages that ate
Subpnmc 2, 3, 5, 7, and 10 Hybrid ARMs will be eligible tot' loan modilicutions as
Vol lows, in no pail jeular ordci-:
(I)
'lo the extent the HOPE tbr Homeowners P gram is available, an
refinancing unclet the iIOPL for liomeowners Program under the
underwriting enlena applicable to that. program.
Fl IA
(ii)
For Eligible Borrowers (A) who become Seriously Delinquent
following a reset, or (13) who arc subject to an inunineni rcscl and, in the
reasonable VieW of the CFC Servicer, as a result ol such reset are reasonably
likely to become Seriously Dcl ll1Ie11t Ofl OF be1oi' the Termination Date (even
though they arc not Seriously Delinquent at the lime of the modification), an
unsolicited (subject to Section 4 0) restoration of the inti-oducloiy nite for live
years, without IICW loan documentation oi' an evaluation of the Eligible
Boriower 's current meonie. Communicati otis to f.I igibic 3orrowei's ink)rmi rig
them of this moth fict ion will invite Eligible i3orrowei's to contact the applicable
CPU Servicer if (hey do not believe they will be able to afford the introductory
rate in oider to be considered for more ex(CnslvC relief undci' Sections 4.3(u)(i ii)
or 4.3 (a)(iv).
I
(iii)
A sti'cnmhnec.h, futiy-amortiv.ing loan
A ffoi'dabi lily Equation consisting o:
(A)
until ll-ie iif-th anniveisai'y of' the loan modification, a
reduction of the interest rate to the (1) introductory tate or (2) lower ( 1)Ut
not less than 3 5%); and
(B)
on the fifth anniversai'y of ilie loan mod iheatioti, an
automatic conversion to a fixed i'atc mortgage lot ili ieiitttiiidci' of the
loan (cifl) at the higher of (1 ) the Fannie Rate and (2) the introductory i-ate.
If t:he new payment would not be affordable to the 1.l igib] e l3orrowei
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based
L3oiwcv
w ill be ccutsdered
li
(i
v)
(A)
inochIlcaLioI) el the Quah ilying tvloilgagc
yC.ir iflte(hC)fl1y t(i0(1
10
(13)
r&ducti0ii ol lhC iIile[CS1 LatC 10 a rate flU lower hum the
Interest Rate Floor. With an Annual Increase subject to an interest-rate cap
its provided below in Section 4,3(a)(iv)(C) and
(C)
an interest-rate caj for the reinahi log, liii ly-amozi i' ug term
of the Qualifying Mortgage at an annual interest rate equal to (lie
jut rod ictory talc.
(b)
chigble
br the
Par Opthm ARM.'. Qualifying Moii:gagcs thai aze Pay Option ARMS aLe
following loan modifications, in no particular ozder:
ft
(ii)
A sircamhined, fully-amortizing (except a provided in Section
4,3(b)(ii)(B)) loan modifleahion subject to the Affbrdabihity Equation Consisting
of:
1I1(
(A)
elintination of
(13)
the
loan;
thai:
2,
3,
5,
7,
Quati lying Moitgages that arc Subprime loans (Other than 2, 3, 5, 7, arid 0
A RMs) are chigib
for the fbi lowing loan modifications, iii no particular order:
I
ybrid
(i)
IC) the extent the HOJ>E Ibi Ilonteowneis Program is available, an
rehinanciug under (lie HOPE ftr Homeowners Program under hhc
underwriting criteria applicable to that program; or
PITA
(ii)
A strcanihinc:d, fUlly-amortizing (except as provided in Section
4 3(e)(ii)(A)) loan modification within the limits ol thc Aflordabil ily Fquation
Consishi up, of:
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I
I
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1fl1
(I/UI
h08S/100
03/19/2014 WED
1532
FAX
l089/100
opoonal nti'oducton of
(A,)
te.i.year
terestoidy
periUd 00
11)0 tuall
(H)
e.duetion of the intcet iate on the moitgae to a rate no
lower iha:i the lalciesi RaIc Floni, wi h an Annual increase subject to an
intereSt tate cap as pvovided below in Section 4.3 (c)(ii)(C); and
ilfl
(a)
CCCI \'C
piard
(b)
AJftndabiIi(y Criteria,
(i)
Subject: to the Foteclosue Avoidance Budget, if tax and insurance
esciows are inaintaiiicd with respect to the Qualifying Mortgage, the Eligible
l3oirowcr will be offered a loan modification that. produces a flislyca payment of
principal (if applicable), interest., taxes, and insurance equating to 34% of the
Eligible 13o,iowcr's ineome, 01 uS close to 34% of the Eligible Borrower's income
as the Foreclosure Avoidance Budget permits without exceeding 42% of the
iligib1c Hori-ower's income.
(ii)
Subject to the Foreclosure Avoidance Budget, if tax aid iflSLItiflCC
escrows are not maintained with respect IC a Qualifying Mortgage, the Eligible
Borrower will be offered a loan modification that produces a first-year pa yment of
principal (if applicable) and interest eQualing to 2.5% of the El igi hi C Rt)iOWeI'S
income, 01 OS eloe to 25% Of 11)0 l:ligiblc L3o110WCF'S income as the Foteclosuic
Avoidance Budget permits without exceeding 3.4% of the Eligible Horrower's
income
(c)
Borroweiw
VJia
(aflnot
4/rd
i..oa,,
Modificatimi.
Ihere
iS
nO
obligation to oiler loan modifications with respect to Quailying Moi1,iigts ii the I.1 igible
Borrower cannot be qualified under the AffOrdability Equation Such Eligible Borrowers
may be eligible for a Relocation Assistance paymeil and/or a payment ui)der the
Foreclosuic Relief Prograni, a Il as provided in Sections .5 and 6.
'15
OWreac/, Ia Borrini'cr.v (It Risk o/ De/uu/ue,1c). Borrowers with Subprime
Moigage Loans or Pay ()pt ion A RMs with hrst-paymenl (lue dates betweeti January , 0O4 and
1
','Itlt'
of
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R ecast, 01 CS plIffliOl) Of
iI
lntcrct-onIy term,
\ViJ
4.6
Re.strwtwi:' on
lFllIiatiofl
/r EIiib1e
Procc.','.s
or Advwiei,,ent of
8OIiO )t'(i!W.
(b)
will l)C
(1)
ii is dctcrmincd, based on communication with the Borrower or
based on the i3orrowcrs abandonment of the residential PropertY that secures the
mortgage loan, that the Borrower does not wish to retain owncrhi p of the
residence that secured the mortgage loan;
(ii)
it is or has been determined that the Borrower cannot be qualified
ha'
fused a loan modification under this Final udgni eni within the
limits of the Aftbr:Iabilily Equation, as applicable; or
[or,
01
.1
(ui)
despite icasonable efThrts, servicing agents have been unable to
ma fcc con tact with the borrower 1.0 determine his or her picierences with regard to
home ownership, ot to ol:)lain inlorn)ation concerning his or her iflCome and
ability to afford a mortgage payment under a modification.
4.7
!I'Iisee/!tm eons
Pio
'tsions
Related
to
Loan Modflcat,on
Progi'ani.
(a)
('o,ninitissent lo *i'e Laie/1)eliiiqueiuy
I..ate/dcl i nq ucucy fees
wilt be waived to the extent they arise with respect to past due loan payments that 'Vfl11fl
unpaid as of the date immediately belbic modification of' the Qualifying Mortgage under
this float ,Tudginent. l..,ale/del inqueney ITecs will not he waived to the extent they arise
with respect to loan paynients that were previously past due but. were subsequently paid
prior to the date immediately before modification.
(b)
(on:,pij(n,cat Not to C'Jiai'gc Loan /l'fodifiea(io,i Fees. J:xeept to the
extent ucqiiiied in connection with the 11(_WE lot Ilomeowocis Program, Eligible
florrowers will not be chaiged loan iuuodihcation fees in conflOClion with loafl
modifications of Qualifying Mortgages hereunder.
(c)
Prejiaync'n1 Peizaltj' Waii'rs.
Prepayment penalties will be waived in
with
connection
any payoff oi refinancing (even if rothianced by i pCrsO not Affiliated
wi lii CFC) of a Qualifying Mortgage that is a Subprime Mortgage l..oan or l'ay Option
ARM that (i) had a lust payment due dale between January 1, 2004 and t)ceember 31
2007, (ii) WflS directly or indirectly held by CFC on ,I tme 30, 200, and (iii) which at the
time of lhc payoff ni rcfi mmci uig is held by CFC or any Affiliate. lnvcstoi owners ui
their ucpuCSen(aI.i yes of Qualifying Mortgages that are Subpriine Mortgage 1._ouns or Pay
Option AR Ms serviced by a CFC Servicer will be encouraged to waive l)IePayulIcnl
PCITh hues in such CirCuflistanccS.
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(d)
Comm itizeiU to Lauxuler 4 dditinaf Re/ie/ br Borra 'ers R(een'iJz/
A'!athfiea(ioiiv (1/1(1 Later Ileeomjni.' Deflizijuent. Eligible l3on'oweis with respect to
lying Moi'Ig ges who have cail CI' FCCCi ved )oaii 7110(11 ficaliOns 07' OtlCr Woikouls,
\Vhethel 07' 1101 puiuoi1t to this Fi iiai Judgment Will be eligible to be COnSi(lCi'C(l foi new
lo,i modification ofThis under this Final J udgmeit ii they otherwise satisfy the ci igibi Ey
I
ci'i led a.
I?epi'. cit ta/iou C'o,icernin' Ii, iestor .!)eki'utioui inul ilppro vat.
(e)
C FC
CFC Servicers CuiTently have, Oi' reasonably expect to 0ht8ifl disci'tiOii I')
pursUe (he tni'eclosuie avoidanee measures outi iflC(l in this Final Judgment for a
substant uti majonty of Qual lying Mortgages. If CFC Servicers do not have di SCICliOn
1)t11SuC these 'foicelostire avoidance niCaSUICS, best cffoi'ls Wil
be used to obtain
nppI1)iiote investor author jZtion.
ICpI'CSOIlIs
tI11t
IC)
Ct,,,uuuit,,re,,,
(0
Jnrp/eiii c/it
Relief
/1ut/lOriZc/
Meas'urc.
by
.!'et/ei'al
(ow'rnmcnt. To the extent the federal govermnent acquires any Qualifying Mortgages and, as
the owner of these moil gages, authorizes loan modifications that ollr burrower benefits greatei'
than those OSSOC1OIC(1 with the modifications outlined in this Final Judgment, such i'ci jet'
nicaSures will be pursued in modifying such Qi.ialilying MOI1gOgeS to the full extent of such
alit Itori za(i on.
4.9
Thitefraine for Lowi Modification J'rores
'1 he loan modification process will
he managed to ensure that offers of loan niodificalions under this Final Judgment (other than
unsolicited interest role reductions) ate made Co Eligible Borrowers, on average, nO more than 60
(lays Oftel' such EIigil)lC Borrowers make Contact with the applicable CFC Servicci' and provide
any required information ConCerning 0 pOSSibIC modification.
4. 2
Number of' Lntn Mtw/Ificarion Offrw beJre Marc/u 37, 2009. On 01 l)elOi'C
March 3!, 2009, loan mod ihcat ions will be oflcicd by ('IC Scivicis ill aecoidaI)CC with this
HnaI J udgment to not fewer than 50,00() Delinquent Bo i'JoverS on a nationwide basis Thc
()fficc of the Attorney General may tciiiiinate the Final Judgment and no longer be bound by the
release set forth in Section 9.2 if there is a material fi!ure to satisty this COfl)liut1l)eIll. If the
office of the Attorney (icneral terminates tiii Fimial J udgnienl, 5fl unspent portion of the
F neelosu rc Relief Program allocation that has been reserved by the ()ffi ce of he A ttoi'ncy
(eneral for pulposes (.)IheI' than making payments to Boi'roww's as provided in Section 6 of' this
nal J udgnicnt Will be repaid to CFC
1
Final
Siuie
if
.1
/c'u.
13
udgmcnt shall
be
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FAX
Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 146 of 163
PI'OPi
CS.
l'biiiowejs horn
i'CCCi vilIg
CX pCCt
that he
hCSCi1CC ol SecOnd
5.
10
bC
piovided to boriowcis
V11) aT-c
gi ble
unable
iii
H1ibiiitp.
i301T0WCF5
5.2
Amou,it.
ihe amount of Relocation Assistance payments of tered to any
Borrower will j,c in the discretion of CFC or its dcicgec accoidirip, to its or then assessment of
the individual circumstances of the Borrower (e.g., iiumbcr of dependents Oh amount of moving
CX p discs),
liming Of Payments.
5.3
Relocation Assistance paynienis shall be made to a
F3oiiowcr rio later than fourteen days fbIIowini the Borrower's voluntary arid appropriate
surrender ol the iesidence that secured the moil gage loan
5.4
2,008, through
CFC projects that, froill October
i'in',nent Projection.
I)ccember 3 I, 2() 0, Relocation ASSIStanCC payments will be made to 35,000 bormwers oi'i a
nation wide basis in a total amouflI ci more than 70,000)000.
1
6.
I'apmnent,
6,2
(b)
'the Just payment On the CFC-()riginated Residential Mortgage Loan was
due bet.weeii lanuaty , 2004 and 1)ecemher 31, 2007;
I
Six or fewer payments were n'iade on the CIC-(_)ii gi imi CCI Rcsideiit ial
(c)
M oi1.gage
l.oa ii;
(d)
days
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and
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LV/)(IlISWIl
r C'oitrueiw,i of the Foric!osu,c J?(/ieJ P?)graP!l; Rcs'ereitioi, of
Oiiu'r I'urpo.v.&'. The OFfice ol the Attorney (.iei)cid may expand the Foreclosure
ReF ICI Puograni to cover additional Borrowers Or Ii thu the FOICCIOSUIC Rclief Program to covet' a
IhiUloWer lange of Rom)wcls, provided that at' least those ci igi bie L3oi'rowe,s who made three or
lwcr paym cots over he Ii fe of the CFC-Oi'i gitiated Residential Mortgage 1(0111 Ole COV&M'CCI. If
the Office of the Attorney General elects to cx pond or contiiet the program, the amount allocated
to the Slate of Texas will remain the same. The Office of the Attorney General may reserve as
much as 50% oF the st.im allocated to the State of Texas fbi fbrcelosuro reF iellmitigation or
related programs other than payments to de flm lied J.3onowcrs, mci iid ing purchasing or
rehabilitating foiecFoed piopeilics.
(..
f)I
6.1
(.oinm:ii,jca(ions. CFC and the 0111cc of the Attorney (..ieneral shall consult as to
the ibrrn and content of any communic:alion sent to Borrowers who ate to FCCCIVC Foreclosuic
Rebel Piogriiii payments.
Umillocaed Junds'. i-nods aJloc.utcd to l3orrowcrs ill the State of Texas who
choose not to participate in the Fo icci osure R ci Ic i' Program or who can not be located aitcu'
6.
commercially icasonahic elThrts shall be available to the Oflice of the Attorney General for icallocation to Borrowers under this program at the direction of the (.)fficc of the Attorney General.
00
7.
The j)0itICS undcriad that, wliil (he I3aiik of Ajncriea Foundation ("Iotlndation") is
not a parly to, or in any way bound by, this Final Judgment, the Foundation intends to work
actively with non-profit organizations, community development corporations, and others in
addrcssin, tile adveu-se effccts of the current housing crisis, particularly by pmmoting coihi)fluuh)ty
redeveIopnlcnt and lacilitatmg tile application of 1-lousing and Economic Recovery Act funds to
beneficial usage of real esi ate owned proporl ICS CFC commits to col Ial')oraIe in good faith with
tile Office of the Attorney (eneral to identify ways in which CFC can support or complement the
I-c) a iidal ion' elf bus.
REPOR11N(; RE(ULR!MEN'J'S.
.
Eligible JO/7P)VerS UI
Qualif.ii,ir.
Mogeige
lcxs
iii
Qu1i
SF1011
10011
modifications
Were COtlC1UCI(d
(iii)
For nil loan modifications under this Final udgmcnt cone) tided
with in the rcpouii rig period in the State of Fexas, t}ie original arid uilodihcd loan
tertlis, and the W))0Un1S of kite/del inqucilcy tees WlU vel, loati ul'i(ldi fication fees
.1
.:ai
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/i.
i.
C n,ni,,'uI,
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\Vai Ve(l,
.111(1
)I(l):1yIiicfll
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i'a
J)CIulli(5
'ed by (.F(1
ni en t,
lor
(iv)
whom
iTilil
C 01
was
ii
.1
(v)
i'hc number and total imoi.int Of Relocatioii Assitancc payments
or loreclosure Rd cf payments made to Jorrowcrs n hc State of' l'exas dining
the icport I og period;
(vi)
Delinquency data on act i \'C loatis with fin'sI pFym cut due dates
I , 2004 and Deceiniben
31 , 2()07 that are secuned by i.3onrower
occupied residential propeity in the State ol Texas, broken down by type of loan
between
.1
annuity
and
(vii)
IYPC
([Cli
of niodification.
(h)
CP('shnnll piovick' nnual reports to the Office of the Attorney General,
that include the jnthrmai:ion Sped fled in Section 8. 1(a) ton the periods July I , 2() I 0
through June 30, 2011, and uly I , 20 I thiough June 30, 201 2.
.1
8.2
Other Loizn Modijications. With the same frequency as specified in Section 8 I
CPC will provide to the 0111cc of the Attorney General a report detailing the numbers and types
of modi Ii cations concluded on first-lien rcsident.ial mortgage loans secured by Burroweroccupied property in the State oI lexas (other than ual ifyiiig Mortgages) and the total unpaid
pnnciiial balance of such modified loans.
8.3
1"irsi
Rexidc:ituiI Property Sub/eci to Second Lu.": 4'Jortgage . CFC will peniodical ly report to the
Office of the Attorney General on its progress in developing best Servicing practices as described
iii Section 1(h).
,
8.4
9.
Releases
/17)111
In consideration flit the I)itynient we are tO rCCi\'C under the Fon-eclosuic Relief Program,
we release Countrywide Financial Corporation and its ath iates and their respective
(lireetcirs, officcis, employees and agents (except broken's) from all civil c.laiirns, causes of
action, any other night to obtain any type of monetary damages (i nici udinig punitive
damages), expdilses, attoryS' and c>lIii lees, 1CSdiSSiOfl restitution on any other
reniedies of whateven- k ad at Iii w or in equity, in contract, in tort (including, but not
limited to, persona) inuuy and emotional distress). anising under any SOUICe whatsoever,
I
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l095/100
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iti)
C)
I)
9.2
Re/ea,'e. As to Cl-C and its Aluifiates, this Final Judgment effects a
resolution, complete sCithefl1Oilt and release by the Office of the Attorney General of all claims
arising Out of the residential mortgage origination or servicing activities of (.FC and its
subsidiaries occurring before entry of this Final Ju(lgment that are within the authority of the
Ofliec of the Attorney General to release, except for (i) any claims that the State of Texas might
have as an inVeStor in CFC securities; (ii) any regulatory or enfc)rccl'nent proceedings by or on
bchal I of another State of texas officer or agency; (iii) any claims oi investigations identi fled to
CFC by the Office of the Attorney General; and (iv) any criminal investigations 01 proceedings.
This ii nl J udgmcnt does not resolve or release, but instead speci fleall y preserves, any claims
the Stale oflexas may have against Angelo Mozi lo or David Sambol.
More Favorable Thrmv. The parties agree that should CFC resolve zil legal ions
concerning the conduct covered by this Final Judgment which occurred befiwc the date of this
linal J udgnient in actiofls brought by Attorneys General of other states on terms that are
di IThrent than those contained in this Final Judgment (other than terms offered b CFC but not
accepted l:)y the Office of the Attorney General), then CFC Will provide a copy of those terms 10
the (,)fficc of the Attorney General for review, If, after review, the office of the Attorney
(eni-al cletermines the let-ms o such reso1utins are, taken as a whole, more fivoiable than
those contained in this Final Judgment, then CFC shall stipulate that this Final Judgment shall be
amended to tell eel at I of such teiiis in p1mcc of [he terms lietco I
9.3
10.
.1
Con fide,,tialltp. 'Ihe Office of the Attorney General agrees that all Coilfidential
to it by LAC or CFC oi' any of tiiii Affiliates, inch udi ag but 11011 united to
the periodic reports hat will be provided pursuant to Section i, shall be kept confidential;
pi-ovidc:d, liowevei-, that the following nilorniat ion reported to tile (.) 111cc of' the Attorney General
on a petiOd ic basiS shall not. be (teemed conhdcnlinl to the extent aggregated fbi Borrowers
the
State of Texas for a fat reporting period: (a) the total numbei of loans modified, (b) the total
own her of loanS inodi tied, by type of' l( an, (c) the l:otal doll at' amount of interest and principal
expected to be saved by )3orrowcis IS result of such 1110db icahons Over tiI( life of Ilie loans,
and (d) the total dollar amnoucut of paymcluts tmndr Sect ions $ and C of' this Final Judgment to
1
0.2
IFI
11
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Ihe () I licc of tlic Attonicy (itneiaf shall nut disclose or use any confident ml
lotniation without (lie prtor wttlten consent of he disclosing paily, cxcclt l> the extent
req ni red by law, regul ati on, or court order (and in such case, 0111)' upOn pu nt written nOtice to the
J3orrewers.
ifl
d isclosit
I
party).
0.3
SuInii.s.io,i
to
,/urisdIctiin,
/n Limited
I'ui'jwsc'.
0.4
Ibis
ln/orcen;en/.
COUII
fr
.1
.1
.1
0.5
Conflict
.Siibwqueiit
)t'i(Il
No TJuy!
0,6
.1
.1
of
Sert',ce
)Votices
Brian Boyle
O'MF1..VFNY
MYERS
&'.
1.1.1'
NW.
ftC.
20006
anues A.
)aross
fYaiier. The failure of' any party to exercise any iighs under this Final udgmcnt
shall not be deemed a waiver of' any right or any future rights.
1
0.8
.1
0.9
_Si'i'e,iiInlu'. It any l)aui hereof' shall br ;.iriy rcaon be found 01' held invalid or
unen (brceai:le by any court of' Cotlih)CtCJlt jurisdiction, such invalidity or unenfoiccability shall
I
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I097/100
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0.
(.iziitterjuzrtx.
This
Fiimal
.1
l)C
COnSlI'IJC(l
if such
ifl\'ill(l
or
of wh icli shall be deemed an original. Faesinii he copies of this Ii tial Judgment and the
sigriiturcs hereto may he used with the same force and ctThct: as an origin;.il.
each
0.
.1
ol the parties
This Final J udgmemit COnStituteS the CFitiiC agicenleilt ot lh( pail 10.5
With icslx to thes ubcct matl:er hereof and superSedes all prior agiceinents and understand rigs
relating to the subject maitci hereof.
I
(.).
.hz1esrufion.
0. I 3
AIIICndIUL'nt_
Ter,,:j,ugl/o,g. i'xec;it to the CX1COt at). C011y date is specified or the provisions of
this Fi tial Judgment :uc earl icr terminated according to the terms hereof, the obl iguf IOIS of CFC
under this Final Judgment shall terminate on the Termination 1)aIe. Provi dccl, however, that no
termination of the obligations under this Final Judgment shall change or (erminaic the terms of
any oat) modification entered into pursuant to Section 4 of this Final Judgment..
1
0, I 4
,1tto,iicp, Jee, and Coxt.s. CFC shall pay attorneys hes and COStS ii) (he ImOtII1t
oh two hand red thousand dollars (200,O00) to the Office of the Attorney (eneral within (cii (I 0)
days of the entiy of this Final Judgment
tO. 5
1
(.iN ED on the
/1
..
.._r:7
(,YODC;E PRESH)ING
SIONATURES ARE ON THE FOLLO\VING PAGI
i,t,
li
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Apl:l:c)V:))
FiI:
....
'lane
Senior Vice President, Assisl;ant General Counsel
N ame; Pan I
I) EF'ENDA NI S
ntryvvidc Financial Corpo ration,
.'ia(c
of
ti.vii.':
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v.
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20
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t:tie.:
'1
itic
Paul L,uie
l)E
)ANTS
(::()untvvide Iii,ancial
(tirc'w1de Honic
(,.isl
(ition
inc. and
J.dO8JiS
By:
James E D vis
Eock e LoiclJJ3isseI
&.
[jdk'l
J..LP
('ounsel
>,tu
()( ...........
/inal IiiIr
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R.
1.')j-.1\'
PAUl., U. CARMONA
'hiel, ( ousuu)eI' Pi'o(cc(ion arid Public Health 1')ivision
A.
1os
..
(eiieral
Consumer I'otection and lublic lieaIih I )ivision
/\.s., i$Iar'iI /\t.t':.r'ney
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cassearthecounty.com/PublrcAccesslCaseDetall.aspx?CaselD=2644448
Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 155 of 163
412312015
REGISTER OF AcrIoNs
CASE No. 2010-3307
STATE OF TEXAS vs. AMERICAN HOME MORTGAGE SERVICING, INC.
Related Cases
2014DCV0180 (Related Case)
PARTY INFORMATION
Defendant
Plaintiff
STATE OF TEXAS
Lead Attorneys
ROBERT T MOWREY
Retained
214-740.-8000(V
JAMES A DAROSS
Retained
91 5-834-5806(V\t)
Evrrs
DISPOSITIONS
08/30/2010
09/02/2010
09/07/2010
09/07/2010
09/27/2010
10/27/2010
11/22/2010
11/22/2010
11/22/2010
11/23/2010
11/23/2010
01/10/2012
02/02/2012
02/03/2012
02/03/2012
06/07/2012
07/03/20 12
07/03/2012
07/11/2012
09/14/2012
Served
Response Received
09/09/2010
11/22/2010
Letter
Letter
Answer
Motion to Transfer Venue
Civil Service Answer Default (Response Case Event)
Electronic Filing
Electronic Filing
Order Setting Hearing
DoclD# I
Status Hearing (10:00 AM) (Judicial Officer ARDITTI, REGINA)
Order for Referral to Mediation
Order Setting Hearing
Doc lD# 2
Order Setting Hearing
Doc ID# 3
Motion for Abatement
Doc ID# 4
Proposed Order
Order
CANCELED Transfer of Venue Hearing (2:00 PM) (Judicial Officer ARDITTI, REGINA)
Abated
11/01/2012 CANCELED Pm-Trial Hearing (2:00 PM) (Judicial Officer ARDITTI. REGINA)
Abated
11/05/2012 CANCELED Jury TrIal (9:00 AM) (Judicial Officer ARDITTI, REGINA)
Abated
12/20/2012
01/04/2013
05/14/2013
05/17/2013
08/14/2013
08/15/2013
08/29/2013
08/29/2013
08/29/2013
09/19/2013
09/24/2013
10/18/2013
10/25/2013
10/31/2013
11/01/2013
11/01/2013
Entry of Appearance
Doc ID# 14
MotIon to Strike
Doc ID# 15
Order Setting HearIng
Doc ID# 16
Motion for Continuance
Doc ID# 17
Order
Notice of Filing
Doc ID# 18
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Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 156 of 163
11/05/20131
11/07/2013
11/20/2013
11/26/2013
12/02/2013
Doc ID# 19
Order Setting Hearing
Notice
Doc ID# 20
Doc ID#21
Motion for Appointment
Motion Hearing (11:00 AM) (Judicial Officer Larsen, Susan)
Doc ID# 22
Order Granting
Motion
Doc ID# 23
Doc ID# 24
Motion for Hearing
Doc ID# 25
Order Setting Hearing
Doc ID# 26
Order Setting Hearing
Doc lD# 27
Response
Dec ID# 28
Motion to DismIss
Response
Doc ID# 29
Response in Opposition
Status Hearing (2:00 PM) (Judicial Officer Enriquez, Sergio H.)
Entry of Judgment Hearing (2:00 PM) (Judicial Officer Enriquez, Sergio H.)
Dec ID# 30
Order Denying
Notice of Judgment Sent
Notice of Judgment Sent
12106/2013
12/19/2013
12/30/2013
01/31/2014
03/07/20 14
03(18/2014
03/19/2014
03/19/2014
03/19/2014
03/24/2014
03/24/2014
03/24/20 14
03/25/2014
03/25/2014
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Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 157 of 163
REGISTER OF ACTIONS
CASE No. 20 10-3872
STATE OF TEXAS vs. WELLS FARGO BANK, N.A.
PARTY JNEORMATIO
Lead Attorneys
Defendant
Plaintiff
STATE OF TEXAS
JAMES A DAROSS
Retained
91 5-834-5806(
EVENTS
&
02/14/2012
02/15/2012
02/22/2012
02/22/2012
09/18/2013
09/26/2013
DoclD#1
Motion
Doc lD# 2
Order Setting Hearing
Motion Hearing (10:45 AM) (Judiaal Officer Kurita, M. Sue)
Order Granting
Doc ID# 3
Doc ID# 4
Motion to Approve
Doc ID# 5
Order Granting
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Case 3:15-cv-00126-DCG
Document 1 Filed 05/01/15 Page 158 of 163
4/22O15
REGISTER OF ACTIoNs
CASE No. 2013DCV0413
PARTY INFORMATION
Lead Attorneys
Defendant
DOCX, LLC
Defendant
Defendant
Plaintiff
STATE OF TEXAS
JAMES A DAROSS
Retained
91 5-834-58O6(P
EVENTS
DISPOSITIONS
02/06/2013 Final Judgment (Judicial Officer: Garcia, Patrick M.)
Judgment
Awarded To: STATE OF TEXAS
Awarded Against: LENDER PROCESSING SERVICES, INC., et al
of Judgment Sent
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HB Hse2ndRdg,Amnd#227
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1 Filed 05/01/15 Page 159 of 163
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Case 3:15-cv-00126-DCG Document
1 Filed 05/01/15 Page 160 of 163
1,
Contingent
similar legislation t
Department of Housing
certain organizations
residential mortgage
neighborhoods funded
in general revenue f
Mortgage SettlementO
enactment of HB 2473, or
establish grant program in the
and Community Affairs to assist
or governmental entities to make
loans
to
residents of certain
rom the $125.2 million deposited
om the State-Federal National )
a
the
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Greg GiHiland
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To rromanallomey@yahoo.com
Trash
CC Ruth Soucy
'
Unread
The Texas Comptroller of Public Accounts received your below request for information. Your request has b
Starred
People
You asked for 'information on 3rd party requests, appropriation applications or grant requests etc., made
Fund for 2011, 2012 and 201 3." We understand you to ask for information relating to the ludicial Fund, Fu
Treasury and only the Legislature via the General Appropriations Act )GAA) or other supplementary approp
fund only to state agencies. State agencies may issue payments from the Judicial Fund -0573, and the tol
Cash Reports that are published at http://www.texastransparency.orct/Stafjjnance/Budget Finance/Repo
Social
Travel
Shopping
Finance
Folders
Due to the statutory restriction that "the fund shall be used only for court-related purposes for the support
found in Article IV of the GAA are able to receive funding from this fund per the Legislature's discretion. Ag
Appropriations Request (LAR). Copies of the LARs can be found at http://docs.lbb.state.tx.us/display.asDx?l
Recent
My Games
once Ca:
50-59
the following agencies expended funds from the Judicial Fund -0573:
Supreme Court
Court of Criminal Appeals
221
Court of Appeals First District )Houston(
222- Court of Appeals Second District (Fort Worth)
223- Court of Appeals Third District (Austin)
224- Court of Appeals- Fourth District (San Antonio)
22S- Court of Appeals Fifth District (Dallas)
226 Court of Appeals Sixth District (Texarkana)
227- Court of Appeals Seventh District (Amarillo)
228- Court of Appeals Eighth District (El Paso)
229- Court of Appeals Ninth District (Reaumont)
230- Court of Appeals Tenth District (Waco)
231 -Court of Appeals-Eleventh District (Eastland)
232 Court of Appeals Twelfth District (Tyler)
233 Court of Appeals Thirteenth District (Corpus Christi)
234- Court of Appeals Fourteenth District (Houston)
241 District Courts Comptroller's Judiciary Section
In years 2011-13,
201
211
Recotnrneretcd Games
J
More games"
Growse
Pint
Now
Ou
Thank you for your request. Please feel free to contact us at open.recordslRicpa.state,tx.us should you need
Sincerely,
Greg Gilliland
Greg Gilliland, Legal Projects Coordinator
Open Records
Ms. Saucy:
In connection with my previous Texas PIA request, how may obtain inform
appropriation applications or grant requests etc., made that are seeking funds fro
2011,2012 and 2013?
by
Mo M
on fikkr
https://us-mg5 .maiLyahoo.comlneo/launch?.randm=bpd2shqsua22o
E,chi b; 4.
4/13/2015
SCHEME
1.
2.
3.
Recitation of how homeowners may have been harmed, the legal authority for
claims that defendants actions are illegal, false and applicable regulations:
The State of Texas' portion of the $2.5 billion (in direct state payments) was 134
million. Texas reportedly received the third largest of all state payments. The
reason provided was because of the "extent of the damage Texans homeowners
suffered". Texas homeowners were given the false impression by the Texas
Attorney General's Office that relief was forthcoming. It was diverted. This is a
violation of the federal false claims act.
4.
Falsity of the defendants actions and how the Relator discovered this:
True homeowner relief was never provided. The scheme used by Texas to divert
settlement funds (124 million into the Texas General Fund and 10 million into
the Texas Judicial Fund) was discovered through open records requests.
5.
explains
were diverted. Relator learned about this first hand through her own litigation and
files the instant complaint.
SCHEME
Marking of the inception of the timeline:
1.
announced it
In 2012 a task force comprised of 49 state attorneys general
The
successfully negotiated a settlement to benefit aggrieved homeowners.
on
nation's five largest banks agreed to a 2.5 billion dollar settlement
charges of "fraudulent foreclosure practices, etc".
2.
3.
for
Recitation of how homeowners may have been harmed, the legal authority
claims that defendants actions are illegal, false and applicable regulations:
was 134
The State of Texas' portion of the $2.5 billion (in direct state payments)
The
million. Texas reportedly received the third largest of all state payments.
homeowners
reason provided was because of the "extent of the damage Texans
Texas
suffered". Texas homeowners were given the false impression by the
This is a
Attorney General's Office that relief was forthcoming. It was diverted.
violation of the federal false claims act.
4.
this:
Falsity of the defendants actions and how the Relator discovered
divert
True homeowner relief was never provided. The scheme used by Texas to
million into
settlement funds (124 million into the Texas General Fund and 10
requests.
the Texas Judicial Fund) was discovered through open records
5.