1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Law Offices of Thompson & Associates Linda J. DeVore, SBN 123800 Trent Thompson, SBN 214367 Christopher Nelson, SBN 220566 152 S. Harvard Street Hemet, CA 92543 (951) 925-3808, Fax (951) 925-3239

SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF RIVERSIDE

LEANNA BRADLEY, individually and as Trustee, Plaintiff, vs. WELLS FARGO BANK, NATIONAL ASSOCIATION; BLUE SAPPHIRE INVESTMENTS; HSBC BANK, USA, NATIONAL ASSOCIATION, as Trustee; and DOES 3 50, Defendants.

) ) ) ) ) ) ) ) ) ) ) )

Case No.: RIC 10010779 SPECIALLY-PREPARED INTERROGATORIES PROPOUNDED BY PLAINTIFF TO HSBC BANK, USA, NATIONAL ASSOCIATION SET NO: ONE

Dated: March 25, 2011 PROPOUNDING PARTY: Plaintiff, LEANNA BRADLEY RESPONDING PARTY: Defendant, HSBC BANK, USA, NATIONAL ASSOCIATION SET NO.: ONE

INSTRUCTIONS: The word ASSIGNMENT as used herein means an Assignment of Deed of Trust, recorded in the Office of the Riverside County Recorder as Document #2009-0515373. To

SPECIALLY-PREPARED INTERROGATORIES PROPOUNDED TO HSBC BANK USA, NATIONAL ASSOCIATION, SET NO. ONE- 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

further describe and identify this document, it purports to be associated with a Trustee Sale #2009134008588, and regards a property previously-owned by Plaintiff, Leanna Bradley. The grantee is HSBC Bank USA, National Association, as Trustee for NAAC Mortgage Passthrough Certificates, Series 2007-1. The grantor is Mortgage Electronic Registration Systems Inc. as nominee for Royal Crown Bancorp. HSBC Bank, USA, National Association is identified herein as HSBC. The property owned by Leanna Bradley is a phrase which refers to 39155 Saddle Ridge Road, Hemet, CA 92543.

1.

Is Stephanie Goble currently employed as an associate general counsel of NDeX West,

LLC? No answer. 2. Was Stephanie Goble employed as an associate general counsel of NDeX West, LLC on

September 28, 2009? No answer. 3. What is the current relationship between HSBC and NDeX West, LLC? NDeX West,

17 18 19 20 21 22

LLC is a separate legal entity from HSBC Bank, USA, National Association (HSBC). HSBC is a national bank chartered under the National Bank Act, and is regulated by the Office of the Comptroller of the Currency. Pursuant to the California Secretary of State Entity Detail for NDeX West, LLC, it is a Delaware limited liability company, and it was created on January 19, 2007. In relation to the subject loan, on September 28, 2009, HSBC was assigned all beneficial

23 24 25 26 27 28

interests in the deed of trust and on or near October 29, 2009, NDeX West, LLC was substituted as the Trustee of the deed of trust. 4. What was the relationship between HSBC and NDeX West, LLC on September 28,

2009? NDeX West, LLC is a separate legal entity from HSBC Bank, USA, National Association

SPECIALLY-PREPARED INTERROGATORIES PROPOUNDED TO HSBC BANK USA, NATIONAL ASSOCIATION, SET NO. ONE- 2

1 2 3 4 5

(HSBC). HSBC is a national bank chartered under the National Bank Act, and is regulated by the Office of the Comptroller of the Currency. Pursuant to the California Secretary of State Entity Detail for NDeX West, LLC, it is a Delaware limited liability company, and it was created on January 19, 2007. Thus, it appears that NDeX would have been a limited liability company on September 28, 2009. In relation to the subject loan, on September 28, 2009, HSBC was

6 7 8 9 10 11 12 13 14 15 16

assigned all beneficial interests in the deed of trust and on or near October 29, 2009, NDeX West, LLC was substituted as the Trustee of the deed of trust. 5. What is the name(s) of the individual(s) who executed and/or prepared documents to

allow NDeX West, LLC to conduct the foreclosure sale identified as Trustee Sale No. 20090134008588? Herman John Kennerty executed the Substitution of Trustee, substituting NDeX West, LLC to be the trustee under the subject deed of trust. 6. Does HSBC contend that the ASSIGNMENT constituted a valid transfer of rights from

Mortgage Electronic Registration Systems Inc. as Nominee for Royal Crown Bancorp to HSBC? Defendant contends that the Assignment of the Deed of Trust is valid, and that pursuant to the

17 18 19 20 21 22

Deed of Trust and the Assignment of the Deed of Trust, all beneficial interests in the Deed of Trust were assigned to Defendant. 7. What is the proper legal name for Royal Crown Bancorp?

Defendant lacks personal knowledge and cannot answer. 8. On September 28, 2009, was Royal Crown Bancorp an existing corporation?

23 24 25 26 27 28

Defendant lacks personal knowledge and cannot answer. 9. On September 28, 2009, was Royal Crown Bancorp an existing limited liability

company? Defendant lacks personal knowledge and cannot answer.

SPECIALLY-PREPARED INTERROGATORIES PROPOUNDED TO HSBC BANK USA, NATIONAL ASSOCIATION, SET NO. ONE- 3

1 2 3 4 5

10.

If the answer to either Interrogatory 8 or Interrogatory 9 is affirmative, in what state does

HSBC contend that Royal Crown Bancorp was incorporated? Defendant lacks personal knowledge and cannot answer. 11. Was Randy LaDon Potts an employee of HSBC on September 28, 2009? Defendant

lacks personal knowledge and cannot answer.

6 7 8 9 10 11 12 13 14 15 16

12. 13.

Was Stephanie Goble an employee of HSBC on September 28, 2009? No. When the ASSIGNMENT was given to HSBC, what action did HSBC take to ensure that

the loan corresponding to the trust deed be taken off the MERS Registration System? Following the assignment of the deed of trust, the MERS Registration System was updated to reflect a transfer of the beneficial rights in the deed of trust. 14. When did HSBC first become aware that it was a grantee under the ASSIGNMENT? All

beneficial interests in the deed of trust were assigned to HSBC on September 28, 2009. 15. Does HSBC contend that there is any type of connection between Royal Crown Bancorp

and Blue Saphire Investments (California), Inc.? Defendant lacks personal knowledge or
17 18 19 20 21 22 23 24 25 26 27 28

information regarding any specific connection between Royal Crown Bancorp and Blue Saphire Investments. However, Plaintiff contended in her Second Amended Complaint that Blue Sapphire Investments is an entity which formerly held itself out as Royal Crown Bancorp, and that Blue Sapphire Investments has succeeded to the rights and responsibilities of Royal Crown Bancorp. (SAC, para 2, 54). In the Third Amended Complaint, Plaintiff contends that the two entities merged. As set forth in the records of the California Department of Corporations, Blue Sapphire Investments held a Mortgage Banker License from November 6, 2002 through January 11, 2010. The subject mortgage Note was executed on November 16, 2006, during the period in which Blue Sapphire Investments was licensed. Further, the address reflected on the subject

SPECIALLY-PREPARED INTERROGATORIES PROPOUNDED TO HSBC BANK USA, NATIONAL ASSOCIATION, SET NO. ONE- 4

1 2 3 4 5

mortgage Note for Royal Crown Bancorp is the same address listed with the Department of Corporations for Blue Sapphire Investments. Thus, it appears that Royal Crown Bancorp and Blue Sapphire Investments are connected. Discovery and investigation are ongoing. 16. If the answer to Interrogatory 14 is affirmative, what type of connection is contended by

HSBC? See Response to Special Interrogatory No. 15, which is incorporated fully herein.
6 7 8 9 10 11 12 13 14 15 16

17.

What did HSBC do to ensure that the signature of Stephanie Goble on the

ASSIGNMENT was adequate to grant an interest to HSBC? The original lender for the loan and the original beneficiary of the deed of trust have never contested the validity of the Assignment of the Deed of Trust to HSBC, or the authority of Stephanie Goble to execute the Assignment. Further, pursuant to an Agreement for signing authority between MERS, Wells Fargo and NDeX, Stephanie Goble had authority to execute the Assignment of the Deed of Trust. 18. When did HSBC transfer the right to foreclose on the property owned by Leanna Bradley

to NDeX West, LLC? HSBC never transferred its right to foreclose on the property. Pursuant to the comprehensive California non-judicial foreclosure statutes, the beneficiary, trustee, or the

17 18 19 20 21 22 23 24 25 26 27 28

agent for the beneficiary or trustee has authority to commence foreclosure and record the notice of default and notice of sale. Thus, HSBC as beneficiary, as well as NDeX as trustee (or as an authorized agent) all had authority to record the notice of default or the notice of sale. 19. When did HSBC submit its offer to purchase the property owned by Leanna Bradley to

NDeX West, LLC? HSBC did not submit an offer to NDeX West, LLC to purchase the subject property. 20. Was a representative of HSBC present at the time of auction for the foreclosure sale on

the property owned by Leanna Bradley and sold under Trustee Sale No 20090134008588? No.

SPECIALLY-PREPARED INTERROGATORIES PROPOUNDED TO HSBC BANK USA, NATIONAL ASSOCIATION, SET NO. ONE- 5

1 2 3 4 5

21.

If the answer to Interrogatory 19 is affirmative, who was that representative or

representatives? N/A. 22. What are NAAC Mortgage Pass-through Certificates, Series 2007-1? The NAAC

Mortgage Pass-through Certificates, Series 2007-1 is a securitized trust. 23. When did HSBC become a trustee for NAAC Mortgage Pass-through Certificates, Series

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

2007-1? On or near July 2, 2007. 24. Yes. 25. 26. Did HSBC instruct Stephanie Goble to execute the ASSIGNMENT? No. If the answer to Interrogatory 24 is affirmative, which specific person or persons so Is HSBC the sole trustee for NAAC Mortgage Pass-through Certificates, Series 2007-1?

instructed Stephanie Goble? N/A. Dated: March 25, 2011

LAW OFFICES OF THOMPSON & ASSOCIATES Attorneys for Plaintiff, Leanna Bradley

By: ___________________________________________ Linda J. DeVore

SPECIALLY-PREPARED INTERROGATORIES PROPOUNDED TO HSBC BANK USA, NATIONAL ASSOCIATION, SET NO. ONE- 6