Ask the Expert:: 5/31/09

Jun 6, 2009

Foreclosure Pets - Abandoned Foreclosure Pets

Jun 3, 2009

A bill to give judges authority to alter loan terms for primary residences may be the quickest way to arrest the housing market's collapse. Most Democrats in the House and Senate support that plan. President Barack Obama told Democratic leaders Friday he also backs it, according to a Senate aide who was not authorized to be quoted by name.

But 10 groups representing the lending industry and other businesses are fighting back fiercely. Several have engaged portions of their lobbying machines to stop the legislation. The groups spent $83 million in lobbying on multiple issues in 2008, a figure that shows the power of the banking and investing industry and their business supporters.

One Democratic backer of the bankruptcy proposal, Rep. Maxine Waters of California, said the banking industry "has owned this Congress far too long."

Jun 2, 2009

What is the difference between a short sale and a deed-in-lieu? | The Crisis Revealed#comment-108

What is the difference between a short sale and a deed-in-lieu? The Crisis Revealed#comment-108: "Shortsales like modifications cannot happen unless the sponsor violates the indenture. Its one of the many shams the American Public has bought off on.
The only chance for a lender to survive the “mess” is too foreclose and chance litigation on a few while one modification can bring down the house (no pun intended). When will this corollary break and make enable the rest of America see the light!

msoliman"

FICO, MODIFICATIONS AND FICO AND MODIFICATIONS

This topic appears to be one of the hottest topics surrounding loan modifications. Now that people understand the government programs, have a better idea of who qualifies, and now want to pursue one, we want to know the long term repercussions of obtaining one. Namely, we want to know how a loan modification will affect credit scores. Let’s start with definitions. The main concern we have is FICO. This is the company responsible for putting a number on the credit report (Ranged 300-850.) The individual bureaus are only responsible for gathering the data that is used to calculate the score. Variations in data lead to variations in score. To make matters more complicated, FICO uses a different calculation when showing the number to a mortgage company, consumer, or any other credit application type. This number is supposed to give a potential creditor an idea of the likelihood that any credit extended to this consumer will be repaid in a timely fashion.

Now Fair Isaac Corp., the company that invents and maintains FICO is a private company. They are very secretive about the algorithms and calculations used, but they do reveal some items. See, if a lender decides to report a mortgage modification to the credit bureau, it will show up, but the hit to credit score is very minor and from all we have seen can be negligible. The dropping of score really occurs from factors we may not have considered. One of the heaviest weights on FICO is total loan balance to original Credit offered. The healthiest percentage is at about 20-35% balance. Anything less than or above that drags down score. In most modifications there is an adjustment to loan balance when any past due is capitalized onto the loan. Another factor that may drag score down is if the term of the loan is lengthened. Longer term limits hurt score. Finally, the most obvious item is any mortgage lates will drop score significantly, especially when the credit is pulled by a mortgage lender.

If you are pursuing a loan modification, you are probably trying to get your finances in order. Most likely you cannot currently afford your mortgage and have not been able to pay down debt the way you could at one time. Chances are your borrowing power has been diminished solely based on debt ratios regardless of score. A loan modification is changing the original terms of the loan in a way that favors the borrower. The point is, if you have a 750 credit score and are concerned about maintaining it, you are most likely not a great candidate for a loan modification. While it is admirable to want to maintain high credit scores you should be more concerned with keeping a roof over your head. In short, a loan modification will help you restore proper debt ratios and get your finances in order so that you will be in a better position to maintain your credit. Don’t let the short term effects of the changes concern you. FICO will work itself out if you attain a good loan modification.

PRO BONO UPCOMING EVENTS

Protecting the Rights of Homeowners with Limited Scope Representation
Monday June 08 , 2009
By: Practising Law Institute
CLE Credit
Location:
San Francisco, CA

Map: maps.google.com

Source: CALegalAdvocates

Why You Should Attend

Homeowner association law is complex and the field is growing rapidly. This program is designed to not only provide the technical background to the field, but the practical skills to use limited scope representation to assist homeowners who would otherwise be without competent legal assistance.

This program will also provide best practices, risk management materials, fee agreements, and other materials, including sample fee agreements, client handouts, and other documents designed to set up a limited scope representation practice from scratch.

What You Will Learn

* The ethical rules governing limited scope representation* The special application to homeowner association law* How to master the complexities of the Davis-Stirling Common Interest Development Act* How to utilize limited scope representation to target a pool of potential paying clients who are currently unrepresented* How to limit risk, including malpractice and insurance coverage issues* How to identify the cases which lend themselves to limited scope representation* How to market your limited scope practice
Note: although the program is broken into one-hour segments for convenience, it is strongly recommended that you take each segment in sequence and not skip ahead, as they build on each other.

Who Should Attend

* Real estate lawyers who serve middle class and moderate income clients* Lawyers who would like to expand their practices into the growing field of homeowner association law* Elder law specialists who would like to learn how to help their clients with homeowner association issues* Lawyers who want to expand their practices into small claims assistance
Special Features

Live Webcast - Simultaneous live webcast of the San Francisco session is available for individual viewing. Webcast participants will receive streaming audio and/or video of the program, view and print the course materials, and have the ability to submit questions electronically.
For more information click on the Live Webcast link in the Related Items box.
Special Bonus to all Registrants

Everyone who registers will receive a link to a complete set of risk management materials, including best practices, four kinds of fee agreements, office forms, client handouts, and other materials designed to make limited scope representation both safe and profitable.

PLI Group Discounts

Groups of 4-14 from the same organization, all registering at the same time, for a PLI program scheduled for presentation at the same site, are entitled to receive a group discount. For further discount information, please contact membership@pli.edu or call (800) 260-4PLI.

PLI Can Arrange Group Viewing to Your Firm

Contact the Groupcasts Department via email at groupcasts@pli.edu for more details.
Cancellations

All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.
For more info on registering, please click here: www.pli.edu/product/seminar_detail.asp

CLE Credit Comments: 3.5 hours.
Topics:
Private and Bar Association CLE

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Ask the Expert

TRUSTEES DEED UPON SALE 1) the grantee herein was the foreclosing beneficiary. 2) The amount of the unpaid debt was..... $2,020,589.63 3) The amount paid by the grantee was ....$1,096,500.00 4) The documentary transfer tax is .......... $0 Item 1) states the parties bringing the foreclosure are in possession of the rights of a holder in due course and selling to themselves the property. We will show this not to be the case. Item 2) can they verify the balance and how the breakdown of interest and fees are distributed? It is likely the numbers do not add and constitute grounds to rescind the sale. Item 3) how can the lender, who sold the loan into a bulk pooled asset and for due consideration upon which it has lost its rights to the asset, bring a foreclosure? It cannot! Only by first repurchasing the asset is the party foreclosing in a position first. Loans sold that were securitized into a closed end fund for which many layers of stock certificates were issued is an indication foreclosure is an impossible proposition. What stands out to me most of all is a claim of bid rigging and manipulation of a trustees sale for which a borrowers right to tender is removed. Where the trustee’s deed transfers by credit bid, the tender of the full debt is not appropriate. Credit bids are distinguished from purchase money bids. California Civil Code 2924h (b) provides: (b) At the trustee’s sale the trustee shall have the right (1) to require every bidder to show evidence of the bidder’s ability to deposit with the trustee the full amount of his or her final bid in cash, a cashier’s check drawn on a state or national bank, a check drawn by a state or federal credit union, or a check drawn by a state or federal savings and loan association, savings association, or savings bank specified in Section 5102 of the Financial Code Stay tuned

Contact us for more information

Counsel - Is your foreclosure claim going nowhere? Having problems with the lender who is foreclosing or are you requiring something more from an insiders perspective - then call us.

I am a 25 year secondary and bulk whole loan specialist and offer insider knowledge that you may not get from an attorney alone. You have rights an attorney can advise you on. But the facts you need to prevail require and insiders view when in court.

Our testimony is intended to offer counsel substance and standing to bring an action in the matter of a wrongful foreclosure / SEC violations and accounting irregularities. Contact us for more information Tel 213-880-6288 or Mail us at borrowerhotline@gmail.com

THIS IS NOT TO BE CONSTRUED AS LEGAL ADVICE!!

By filing a response, you tell the court that you contest the allegations in the plaintiff’s complaint and force the plaintiff to prove their case in order to win.

If you don’t file a timely response, the plaintiff can petition the court for a “default judgment” and possibly win the lawsuit simply because you failed to respond.

First call an Attorney Immediately. An attorney experienced in defending against the type of lawsuit you’ve been served with will undoubtedly be the best tool in your defense toolbox.

Lawyers are knowledgeable about the procedures involved in lawsuits and skilled at making persuasive arguments to a judge or a jury in your defense. An attorney can also help you try to settle the case out of court as an alternative.This blog only describes situational circumstances and no witness can offer legal advice. M.Soliman is an "expert witness" and not an attorney nor affiliated under a licensed prationer.

This web site does NOT advocate nor believe that modifications exist and will not be involvved in any modificiation or other short sale settlement offers.

Consult an attorney first for your specific problem. NO attorney-client relationship exists.

Experts Corner: Another FDIC Bank Failure

American Marine Bank

News of another FDIC member bank falling under the FDIC control was published late this week. The “Emerald City” is the latest to be welcomed back to join the party! Characteristic of the FDIC bulletins that we have come to be familiar with in 2008 and 2009, we are told if you had a loan with American Marine Bank, the friends and family members at the FDIC want you to continue to make your payments as usual.

Our question is to whom? Who is the holder in due course?The purpose of this analysis and discussion of the FDIC are subject to the various parties’ who have interest in your loan. It’s about their representations, conduct and decisions made while enforcing a foreclosure. Making a bad decision or employing conduct viewed to be deceptive will cause any transaction or enforcement of a right to a security to be rendered voidable.

Furthermore the asset may suffer from malfeasance and willful error and omissions causing the loan to be valued far below its market value due to serious impairment. Successfully demonstrating in court the reasons why your loan has become so seriously impaired that the real security, a deed of trust or mortgage, will fall into a judicial abyss and subject the true holder in due course to lose its rights to in a recovery of the asset in a foreclosure. In other words the right to accelerate and foreclose becomes lost to the transaction

Your loan was likely sold after it originated. A sale of the asset versus a government backed insurance guaranty is the single most controversial component of the subprime lenders dilemma.

A bonifide sale and transfer must be evidenced which differentiates the private label loans from the GSE or Fannie Mae and Freddie Mac class of loans delivered to Wall Street.

In a true sale the lender who sold it is lost to the privileges and rights to the asset forever. So I guess the question is not so much about a foreclosure due to a breach and delinquent obligation. This discussion is for us to understand to “whom” you owe the money and what right do they have to enforce the obligation and right to foreclose? Lawful Transfers

A “transfer” is the “streets” vernacular for booking a sale of a loan or pool of loans. The transfer of an asset by the lender to a less than arms investor is routinely conducted solely for accounting purposes. None the less it’s a sale that is forever entered in to the books.

The purpose of this analysis and discussion of the FDIC are subject to the various parties’ representations and decision making that may cause the asset to become so impaired that the real security, a deed of trust or mortgage becomes lost to the transaction. My last sale as a trader was a transfer of a bulk pool of “toxic waste” was back in 2001. The loans acquired and sold under my direction were never really that bad as we had one of the lowest delinquency rates in the region for sub prime assets sold and serviced. What I do know or at least remember from my days of bulk whole loan trading was from selling to the same major market leaders who are in trouble today.

Let’s back up for a moment to consider how accountants arrive at a specific value. A valuation is necessary for a foreclosure to take place just as it is for the original loan to be sold. A sale involves a contract and the essential elements f the law amongst the two parties. The first is consideration (money) and the second is the intent of the parties for lawful exchange and or transfer.

Consideration is required for transferring any good or service amongst one party to another, including a sale of a bulk pool of mortgage loan receivables.

If a mortgage is valued at par then you typically measure its worth at the combined cost to date or basis in the asset. A true and more accurate valuation is based upon the market and what one will pay assuming demand. It’s the true inherent value of a gallon of milk that will force someone to go elsewhere or not to drink milk at all. The same rationale holds true for an asset such as a closed mortgage receivable subject to its ability to attract a fair price in an open market. A mark to market value is entered by an accountant prior to sale if the owner is seeking to value the worth of the assets it holds.

Estimating value based on the future worth of an asset is something that continues to attract criticism whereby a historical valuation is entered based on a discounted future value. A presumption of value is calculated in a variety of ways sometimes using an internal rate of return offset by depreciation. In the mortgage industry I call this type of valuation complete lunacy. And this is where things get interesting with taking a look back at the cause of the mess we are now in.

Generally Accepted Accounting Principals aka “GAAP” allows us a standard to apply a historical value on a loan which is necessary for estimating consistency as with the life of a loan. The terms of the note say 30 years but we know that homeowners rarely keep a loan to term. Valuations use variables such as prepayment velocity or life based on a traditional or historic early payoff.

The CPR is the measurement of prepayment speed determine from reversion (sale of a home) refinance or the opposite end of the spectrum which is delinquency and default. Mortgages originated over the last decade were attributed an estimated holding time or CPR of say 60 months. Other things that influence price and for understanding the lenders desire to become fixated with the sub prime mortgage sector are subject to ethical scrutiny. I am referring to extreme maximum leverage used to buy loans and the introduction of something called accounting practices such as derecongnition. The latter is suspect, according to many accountants, as it offer no real value to a transfer and subject to entering a “gain on sale.”

The "streets" ability to substantiate its reporting methods. The Expert Witness must have among other things a legal understanding and verifiable accounting practices background. So figure an offshore investor will take a coupon of 1% at twice the current alternative which was a US Treasury. So I guess a WAC of 8% would yield on $100,000 certificate up to $800,000 in capital investment. Or is that $100,000 yielding 8 separate $100,000 certificates?

What ever it is its six of one and half a dozen of the other. It makes me want to run to the Hampton's and buy the biggest home they can offer. It makes me want to find the worse of the worse credit and put them into a loan.....any loan.

The problem with this madness conducted under the great GWB (and side kick “Don't call me Cheney call me "Dick”) administration is the regulatory absence for the bubble Wall Street elite would eventually pop.

The money raised was at a huge multiple and was causing CDO product to suffer from heavy demand internationally in a market that had long exceeded capacity. ( . . . .It makes me cringe and recall the old Keystone Kops silent flicks; remember the morons running around that said nothing and were always trying to help while and causing even more chaos …..Anyway!

I cannot pinpoint of fully grasp the role of the FDIC here but fear we may have an accounting play that shows the bank lines were actually used as “paid in capital” . It’s called derecongnition under GAAP and FASB accounting pronouncements for isolating the source and use of funds.

Will this help your arguments to save your home? YOU BET IT WILL! The big question is where the logic here is and why would the bank regulators let this happen? These Pretender Lenders were not pretenders at all. I call them “Tender Lenders” who tendered a note like currency instead of parking it in a vault like the asset it is. Therefore when tendered the check is electronically debited (hmm) and treated like a cancelled check.

The lost note is not a coat lost by a child at school. It’s lost to the payee who failed to deliver to the payor that check evidencing a debit stamped paid in full.

Hey, Barney just a minute . . . Hey, Wilma I’m home!!!!! So lets say these guys raised volumes of cash at huge multiples and did so with FDIC capitalization or tax payer insured capital contributions into a “NewCo” or De novo or S*P* E*.

If so, I feel the SPE is more like an STD and its all absolute "Bull Crepes". Where did these guys put all the capitalization anyway from money and stock…Huh? Especially with all these stringent FDIC risk weight capital set aside requirements. It’s a regulatory capital priority and basic fiscal mandate enforced by the OTS.

I got to know, where did they "Deposit" the money and stock ...do you know? I am referring to the "Deposits by the Wall Street “Depositors” you see. Deposited, Depositor, Depository, Restroom, tell me Wendy! Where’s the beef! Howard, who goofed I must known, who goofed!

Hey! ....wait a minute!!!....D*E*P*O*S*I*T*O*R*S! Yikes…OMG! How much more can we take!

So back to the failure of another institution, one of Americas and Pacific Northwest’s finest! American Marine Bank. So who do we bring an action against now? FDIC say’s “for all questions regarding “new” loans and the lending policies of the new successor call Columbia State Bank, and to please contact your branch office.

They continue that shares of American Marine Bank were owned by its holding company, AMB Financial Services Corporation, Bainbridge Island, WA. The holding company was not included in the closing of the bank or the resulting receivership. So if you are a shareholder of AMB Financial Services Corporation, please do not contact or file a claim with the Receiver. You may contact AMB Financial Services Corporation directly for information. How convenient is that….a BK waiting to happen.

The FDIC claims it does offer a reference guide to deposit brokers acting as agents for their investor clientele. This web site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution. Wait a minute here now just slow down. FDIC makes no mention of a lender consumer grievance, and tells us to call the broke parent of the bank. Now are these loans in question considered FDIC troubled assets? Okay, we cannot help you with a predator loan but we will be back to foreclose on you?

My heart is pounding right now and I cannot take anymore folks…..really! But on a more serious note, consider the following. A bad notary signature, broken promise by a “Tender Lender” or forged MERS document is not the argument to bet the house on (no pun intended) It won’t get you to the promised land so can the need for an audit. It won’t get you to the Promised Land, so here is my advice!

SAVE YOUR MONEY! . . . UNLESS YOU WANT TO BORE THE HELL OUT OF A JUDGE AND GET THROWN OUT OF COURT.

It’s time to step up or step down!

By "Toxic Waste Guru" (LOL)

M.Soliman

expert.witness@live.com

WHY IS SOLIMAN A HARDLINER AGAINST LENDERS - .HE WAS ONE OF THEM!

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Expert Testimony in Court

In a securitization the origination of eligible mortgage loans and the transferring of the assets for real consideration mandate accrual accounting applying a gain on sale.

Accounting for sales and lawful transfers must occur as an open market transaction that is bid and priced at FMV.

Lender as a seller then forever loses its controlling interest in the assets to the bonefide sale under an arm’s length transaction.

Therefore the subject loan is sold into a pool transferring the asset to investors who capitalized the investment under a tax exemption.

Investors own a pass through fractionalized interest held in trust.

The asset was thus, sold away by the lender and beneficiary acting now as the successors and assigns.

-----------------------------------------------------

"WON " California Superior Court Aurora Home Loan v. S. Corbett Contra / "WON" The Superior Court of Oregon Josephine County WA MU v. Chancey / WON First Franklin Vs Spicer No CA/ WON GMAC Vs Fanning $20,000 Cash Settlement/ WON Lopez Vs SPS $25,000 Cash Offer to settle /Duetsche Bank Vs Russell/Lender resigned Los Angel. CA /WON Lender (sealed) Vs Wuensche Wisconsin / Recent **Appellate Ct overturns dismissal/trial set—

Mailto: expert.witness@live.com

ASK THE EXPERT: WHAT IS LOAN MODIFICATION HELL

People are confused by the lenders lack of willingness to fulfill promises and why they appear sincere and then stall. Modification offers and terms for qualifying these loss leader offers are NOT genuine or even POSSIBLE.

I cannot tell you how many clients have seen leave our effort and forego our strategy and testimony after buying into lenders misrepresentations. These clients have also pursued counsel and were never heard from again. Their lawyers likewise believed they could compel a lender into a modification.

NO ONE CAN OFFER A LOAN MODIFCATION OTHER THAN A LENDER. THE PARTIES YOU’RE SPEAKING TO ARE NOT A LENDER BUT PARTIES REPREPSENTING THE SELLER OF YUR LOAN.

I can only professionally opine and remain steadfast to the primary most damaging argument available to consumers over all other arguments.

ARGUMENT: According to GAAP accounting rule FAS 140 and revised 140-3 under FASB pronouncements you will find a crippling lender reporting requirement. FAS 140 cause the lender as a seller who transfers your loan into a securitization to FOREVER lose all control of the asset.

A sellers lack of adherence to the rules for FAS 140 are undeniable whereby a registrant is required to publish its assets acquired and annual earnings in public records for the year the loan is sold .

Lenders cannot grasp the fact that an accounting rule is enforceable whereby they see the sale provision for reporting as merely an accounting necessity. It’s an accounting requirement that no doubt MANDATES seller adherence solely for derecongnition regardless of the circumstances.

And by that I mean that derecongnition may be the single greatest financial error in US history to have ever occurred.

M.Soliman
Witness to Counsel
Tel. 213-880-6288
Mail to:"expert.witness@live.com"

COUNTRYWIDE HOME LOANS INC

DEPOSITOR: CWALT, Inc. is a limited purpose finance subsidiary ofCountrywide Financial Corporation.
4500 Park Granada,Calabasas, California 91302,
(818) 225-3000.

SELLER - Countrywide Home Loans, Inc. will be the seller of a portion of the mortgage loans. The remainder of the mortgage loans will be sold directly to the depositor by one or more special purpose entities that were established by Countrywide Financial Corporation or one of its subsidiaries, which, in turn, acquired those mortgage loans directly from Countrywide Home Loans, Inc.

MASTER SERVICER - Countrywide Home Loans Servicing LP

TRUSTEE- The Bank of New York

SUMMARY OF EVENTS

(1) The trustee, if the servicer is the seller, or the servicer will promptly notify the relevant seller of any breach of any representation or warranty made by it in respect of a mortgage loan that materially and adversely affects the interests of the security holders in the mortgage loan.

The master servicer will make cash advances with respect to delinquent payments of principal and interest on the mortgage loans to the extent the master servicer reasonably believes that the cash advances can be repaid from future payments on the mortgage loans. These cash advances are only intended to maintain a regular flow of scheduled interest and principal payments on the certificates and are not intended to guarantee or insure against losses.

The depositor, CWALT, Inc., will purchase the mortgage loans in the mortgage pool from Seller’s Countrywide Home Loans, Inc. and one or more other affiliated with Countrywide Financial Corporation.

(each of which is referred to in this prospectus supplement as a “Seller” and together they are referred to as the sellers)

pursuant to a pooling and servicing agreement, dated as of October 1, 2005, among the sellers, Countrywide Home Loans Servicing LP, as master servicer, the depositor and The Bank of New York, as trustee, and will cause themortgage loans to be assigned to the trustee for the benefit of the holders of the certificates.

In this prospectus supplement, the mortgage loans in loan group 1 and loan group 2 are referred to as the "GROUP 1 MORTGAGE LOANS" and the “GROUP 2 MORTGAGE LOANS", respectively, and together they are referred to as the“MORTGAGE LOANS".

Under the pooling and servicing agreement, Countrywide Home Loans will make certain representations, warranties and covenants to the depositor relating to, among other things, the due execution and enforceability of the pooling and
servicing agreement and certain characteristics of the Mortgage Loans.

In addition, each of the sellers will represent and warrant that, prior to the sale of the related Mortgage Loans to the depositor, the applicable seller had good title to the Mortgage Loans sold by it. Subject to the limitations described in the next sentence and under "-- Assignment of the Mortgage Loans," Countrywide Home Loans (or the related seller, in the case of the representation regarding good title) will be obligated to repurchase or substitute a similar mortgage loan for any Mortgage Loan as to which there exists deficient documentation or as to which there has been an uncured breach of any representation or warranty relating to the characteristics of the Mortgage Loans that materially and adversely affects the interests of the certificateholders in that Mortgage Loan.Countrywide Home Loans will represent and warrant to the depositor in the pooling and servicing agreement.

REQUIREMENTS OF THE APPLICABLE CUSTODIAN .

(ii) If Custodian determines that the documents in the MortgageFilefor a Delivered Mortgage Loan conform in all respects with Section3(b)(i),and unless otherwise notified by Buyer in accordance with Section3(b)(i),Custodian shall include such Mortgage Loan in the CustodialMortgage LoanSchedule issued to Buyer.

If the documents required in any Mortgagedonot conform (except as otherwise notified in Section 3(b)(i)),Custodianshall not include such Mortgage Loan in any Custodial Mortgage LoanSchedule. Custodian shall notify Sellers and Buyer of any documentsthatare missing, incomplete on their face or patently inconsistent andof anyMortgage Loans that do not satisfy the criteria listed above.Sellers shallpromptly deposit such missing documents with Custodian or completeorcorrect the documents as required by Section 3(a) or remove therelatedMortgage File from the Request for Certification.

On or prior tothePurchase Date and as a condition to purchase, except with respectto aWet-Ink Mortgage Loan, Custodian shall deliver to the Buyer anelectronicCustodial Mortgage Loan Schedule to the effect that the Custodianhasreceived the Mortgage File for each Purchased Mortgage Loan on theMortgageLoan Schedule and as to each Mortgage File, specifying any documendelivered and any original document that has not been received, andverifying the items listed in this Section 3(b).(c) As required by Section 3(a), Custodian shall deliver to Buyer,nolater than 3:00 p.m. Eastern Time on the related Purchase Date(provided, thatthe

Custodian has timely received the items required in Section2(b) herein),electronically or via facsimile, followed, if requested in writingby Buyer, byovernight courier, a Custodial Mortgage Loan Schedule havingappended thereto aschedule of all Mortgage Loans with respect to which Custodian hascompleted theprocedures set forth in Sections 3(a) and 3(b)(i) hereof andcertify that it isholding each related Mortgage File for the benefit of Buyer inaccordance withthe terms hereof.

CitiGroup executives claiming the high-risk securities were deemed safe

CitiGroup right hand man Rubin claim they learned belatedly that Citi had $43 billion in high-risk securities on its books. Both were testifying at a hearing by the panel investigating the roots of the financial crisis.

Citibank's losses reached nearly $30 billion as the registrant borrowers defaulted on certain portions of collateralized debt obligations, or CDOs. These two high ranking CitiGroup executives both gave testimony claiming the high-risk securities were deemed safe (according to statements made and given in the April government hearing).

The issues were not discussed at any of those meetings before September 2007 said Rubin.

A $43 billion position orchestrated by Citigroup's was a significant exposure to risk. This was the message sent by chairman of the Financial Crisis Inquiry Commission, Phil Angelides as told to Rubin and Prince.

Rubin, a former Treasury secretary undr Clinton insisted: "There isn't a way ... that you're going to know what's in those (bank) position books" "You really are depending on the people who are there to tell you."
Rubin and Prince said the Citi executives who piled up the risky securities on the bank's books thought, as did others on Wall Street, that they were safe from default.

Claims are supported by their understanding the securities had received triple AAA ratings from credit rating agencies

Talk abouot incriminating. Prince began his testimony "Let me start by saying I'm sorry," Prince said. He is "deeply sorry for the failure of Citigroup's management, starting with him, to foresee the crisis that wreaked devastation on the U.S. economy and ordinary Americans. Rubin said "We all bear responsibility for not recognizing this, and I deeply regret that."

Analysts and Critics have said Rubin, with his vast experience on Wall Street and as Treasury chief in the Clinton administration, should have picked up on the warning signs of the crisis and taken a more active role in preventing Citigroup's debacle.
"Those losses were a substantial cause of the bank's
Prince said he wasn't aware of decisions being made on the bank's trading desks to keep on its books the "super senior" CDOs. Still, he says, given that they were widely perceived as having a low risk of default, "it is hard for me to fault the traders who made the decisions."

"Regrettably, we were not able to prevent the losses that occurred, but it was not a result of management or board inattention or a lack of proper reporting of information," Prince said. He said multiple meetings were held to inform board members of developing problems and to solicit their advice. Citigroup is being examined as a case study because it was heavily involved in each stage of the process.

The bank was a major subprime lender through its subsidiary CitiFinancial. Other divisions of Citigroup pooled those loans and loans purchased from other mortgage companies and sold the income streams to investors.

When Citigroup announced the estimated losses of up to $11 billion in November 2007, Prince resigned and Rubin stepped in as chairman, helping Citi raise billions in capital to shore up its sinking finances.

Ask the Expert: Will Obama plan holds off a foreclosure

In a securitization the origination of eligible mortgage loans and the transferring of the assets for real consideration mandate accrual accounting applying a gain on sale.

Accounting for sales and lawful transfers must occur as an open market transaction that is bid and priced at FMV. Lender as a seller then forever loses its controlling interest in the assets to the bonefide sale under an arm’s length transaction.

Therefore the subject loan is sold into a pool transferring the asset to investors who capitalized the investment under a tax exemption.

Investors own a pass through fractionalized interest held in trust.

The asset was thus, sold away by the lender and beneficiary acting now as the successors and assigns.

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