IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT IN AND FOR LEE COUNTY, FLORIDA CIVIL ACTION CASE NO. 13-CA TRANSCRIPT OF PROCEEDINGS

Transcription

1 IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIL CIRCUIT IN ND FOR LEE COUNTY, FLORID CIVIL CTION JPMORGN CHSE BNK, NTIONL SSOCITION, et al, Plaintiff, vs. CSE NO. -C-0 PELER, BONNIE S., et al., Defendants. / TRNSCRIPT OF PROCEEDINGS Before the Honorable James R. Thompson, Senior Judge, at a trial in the above-styled action at the Lee County Justice Center, Fort Myers, Florida, commencing at : p.m., on the th day of May, 0. FORT MYERS COURT REPORTING First Street Fort Myers, Florida 0 () - FX () -

2 P P E R N C E S ON BEHLF OF THE PLN: RLETTE M. MOLIN, ESUIRE Law Office of rlette Martha Molina Regency Reserve Circle, pt. 0 Naples, Florida () 0- ON BEHLF OF THE DEFENDNTS BONNIE S. PELER ND WILLIM W. PELER: LSO PRESENT: ROY W. FOXLL, ESUIRE First Street Fort Myers, Florida 0 () -00 foxalldocs@comcast.net Bonnie S. Pealer William W. Pealer Eric Hughes I N D E X PGE ERIC HUGHES DIRECT EXMINTION BY MS. MOLIN: CROSS-EXMINTION BY MR. FOXLL: REDIRECT EXMINTION BY MS. MOLIN: RECROSS-EXMINTION BY MR. FOXLL: FURTHER REDIRECT EXMINTION BY MS. MOLIN: FURTHER RECROSS-EXMINTION BY MR. FOXLL: FURTHER REDIRECT EXMINTION BY MS. MOLIN: FURTHER RECROSS-EXMINTION BY MR. FOXLL: FURTHER REDIRECT EXMINTION BY MS. MOLIN: FURTHER RECROSS-EXMINTION BY MR. FOXLL: BONNIE S. PELER DIRECT EXMINTION BY MR. FOXLL: CROSS-EXMINTION BY MS. MOLIN: FORT MYERS COURT REPORTING () -

3 E X H I B I T S NUMBER/LETTER DESCRIPTION DMITTED Note Notice of Intent to ccelerate B Loan History C ssignment of Mortgage from Liberty to JPMorgan Chase E ssignment from JPMorgan Chase to U.S. Bank Trust F ssignment from U.S. Bank Trust to MFR Trust 0- G Limited Power of ttorney FORT MYERS COURT REPORTING () -

4 0 0 THE COURT: JPMorgan versus Pealer. MR. FOXLL: Yes, Your Honor. We're all set. THE COURT: Where do we stand on this? MR. FOXLL: Contested case, Your Honor. THE COURT: We may have to wrap you around a bit, so -- we've got some other matters, but other than that, stand on deck and we'll have at it. MR. FOXLL: You want us to start now? THE COURT: No, because I've only got five minutes to give you right now. MS. MOLIN: Your Honor, I -- THE COURT: I presume y'all are going to take at least an hour or so. MS. MOLIN: Your Honor, I have a hearing in bankruptcy court at :0. THE COURT: You can probably get there and get back, because I have a -- I don't know what's going to happen, but at :00 I've got a 0-minute one. THE CLERK: That one's been continued, Judge. THE COURT: That was continued? THE CLERK: Yes, sir. MS. MOLIN: So :00? THE COURT: Well, apparently now. How did it get -- THE CLERK: There was an order. FORT MYERS COURT REPORTING () -

5 0 0 THE COURT: Okay. re you able to conclude your matters in bankruptcy court at -- MS. MOLIN: It's a. I believe so. THE COURT: Okay. So we'll start as soon after :00 as everybody can assemble. MS. MOLIN: Okay. THE COURT: Okay. MS. MOLIN: ll right. Thank you, Your Honor. MR. FOXLL: Thank you, Your Honor. ( recess was taken from : p.m. to :0 p.m.) THE COURT: Take your seat, please. Give me a chance to get this file up on the screen here. ll right. Y'all want to make any remarks in the nature of opening statements or -- MRS. PELER: Can I? THE COURT: No. That's the attorney's option. MR. FOXLL: No, that's fine, Your Honor. We can just start off. THE COURT: Okay. You can tell him and he can tell me, but -- okay. MR. FOXLL: She'll testify. THE COURT: Yeah. ll right. You ready? Who is going to FORT MYERS COURT REPORTING () -

6 0 testify, this gentleman? MS. MOLIN: Yes, Your Honor, he is. THE COURT: I think we better do it from up here. MS. MOLIN: Okay. THE COURT: If you would raise your right hand, sir, when you can. THE WITNESS: In the box? THE COURT: You can raise your right hand there. Thereupon, ERIC HUGHES, Witness, having first been duly sworn, upon his oath, testified as follows: DIRECT EXMINTION BY MS. MOLIN: 0 record? Good afternoon, Mr. Hughes. Hi. Can you please state your full name for the Eric Hughes. nd, Mr. Hughes, who are you employed by? Fay Servicing. nd in what capacity are you employed? What is your title? FORT MYERS COURT REPORTING () -

7 I'm a default specialist. nd in that capacity are you familiar with the loan that is at issue in this case? re you familiar with the books and records of your employer? nd are they made -- are the entries made at or near the time of occurrence? 0 MR. FOXLL: Objection, Your Honor, predicate. THE COURT: Overruled. MR. FOXLL: I'd like to -- THE COURT: ddress it on cross. Overruled. MR. FOXLL: Yes, Your Honor. BY MS. MOLIN: nd the documents were made at or time -- at or near the time that -- of the occurrence? 0 By people that are employed for that purpose? I'd like to hand you what is attached to the verified complaint as Exhibit. It is a promissory note dated September 0, 00. I'd like to -- can you identify it, please? FORT MYERS COURT REPORTING () -

8 This is a copy of the fixed rate note. nd who is it between? Between lender, Liberty Home Lending, Incorporated, a Florida corporation. nd is there an llonge that's -- or an endorsement that's on the back? nd is that the note that is at issue in this particular lawsuit for foreclosure? 0 MS. MOLIN: Your Honor, we'd like to introduce Exhibit, the Note. It is -- the original was filed with the Court on January th, 0. MR. FOXLL: May I voir dire, Your Honor? THE COURT: You may. VOIR DIRE EXMINTION BY MR. FOXLL: When was the first time you saw that Note, 0 sir? that Note? Prior to trial. Do you know how much prior to trial you saw No. Well, was that in the file of Fay Servicing? FORT MYERS COURT REPORTING () -

9 copy of it? MR. FOXLL: Okay. No further questions, Your 0 Honor. No objection. THE COURT: Received into evidence. (Exhibit was admitted into evidence.) THE COURT: Now, the ones that are in the court file, the originals, we'll judicially notice those, and also they will be considered to be in evidence. MS. MOLIN: Okay. nd that includes the Mortgage as well? THE COURT: Pardon? MS. MOLIN: Okay. The Mortgage that was filed? THE COURT: (No response.) BY MS. MOLIN: Mr. Hughes, I'm handing you what will be 0 Exhibit No., which is entitled, llonge to Mortgage Note. Can you identify that? This is an llonge to Mortgage Note. nd is it an original? Yes, it is. FORT MYERS COURT REPORTING () -

10 0 nd it is involved in this particular -- involving the Note in this action? Yes, it is. nd is it endorsed in blank? Yes, it is. MS. MOLIN: Your Honor, we'd like to 0 introduce the llonge as Exhibit No.. THE COURT: I'm not sure that I understood. You say that -- is that the original that he has? MS. MOLIN: It's the original llonge. THE COURT: Okay. But it's not part of the Note, the original Note that was filed? MS. MOLIN: Correct. THE COURT: Okay. BY MS. MOLIN: Mr. Hughes, I'd like to give you a letter dated December th, 0, which was attached to the verified complaint as Exhibit for your review. Can you describe that? 0 This is an acceleration letter, or demand letter. nd it is the acceleration letter that is involved in this particular matter? nd was it sent to the borrower? FORT MYERS COURT REPORTING () -

11 nd is it part of the books and records of your employer? MS. MOLIN: Your Honor, at this time we'd 0 0 like to introduce Exhibit, the Notice of Intent to ccelerate, into evidence. MR. FOXLL: Your Honor, I would just object if it's a part of the file of the lawyer, Your Honor. I'm going to -- it should be a part of the file of the servicer, Your Honor, if that could be clarified. MS. MOLIN: Is that part of the file -- I did say the employer. MR. FOXLL: I thought you said -- oh, I thought you said lawyer. Okay. MS. MOLIN: No, I said employer. THE WITNESS: It is employer. MR. FOXLL: Then there's no objection, Your Honor. THE COURT: ll right. It will be received in evidence. (Exhibit was admitted into evidence.) BY MS. MOLIN: Mr. Hughes, I'm now handing you what I have FORT MYERS COURT REPORTING () -

12 marked as Exhibit B. Can you please identify it? This is a pay history. The pay history of this particular loan and history in this case? nd what is the amount that is due on the Note? Well, let me -- let me hand you the proposed final judgment of foreclosure. nd have you had an opportunity to review that? 0 nd are the amounts in the proposed final judgment of foreclosure the same amounts that are reflected in your records as amounts due on this loan? THE COURT: Your Honor, we'd like to introduce 0 Exhibit B, the loan history, into evidence. MR. FOXLL: Could I voir dire, Your Honor? THE COURT: VOIR DIRE EXMINTION BY MR. FOXLL: Mr. Hughes, when did Fay Servicing assume the servicing of the loan? On ugust th of last year. Okay. nd so the records prior to that, who was -- who prepared those records? FORT MYERS COURT REPORTING () -

13 correct? Chase. nd Fay Servicing is not part of Chase, Correct. But you're testifying that those records were put together under standard business practice, correct? Correct. How do you know what Chase's business 0 practices are when those records were compiled here as part of an independent LLC? I don't know. MR. FOXLL: Objection to the entry of those records, Your Honor. THE COURT: These are the pay history? MR. FOXLL: Yes, Your Honor. THE COURT: Do you want to ask him any further questions? BY MS. MOLIN: s a servicer, you obtain records from the 0 owners of and -- owners and holders of those notes? servicer? Say that again. s a servicer, what -- what is the duty of the To service the Mortgage on behalf of a client. So when the client -- the client gives you the FORT MYERS COURT REPORTING () -

14 books and records and you incorporate that information in your books and records? servicer? nd they become the books and records of the That's correct. MS. MOLIN: Your Honor, again, we'd like to 0 introduce the loan history. MR. FOXLL: I would object as to hearsay, Your Honor. It's a -- he's just testified an independent corporation gives him records. He's testifying as to their truthfulness. He's not a records custodian for Chase, and that was when the default occurred. We'd object to the entry of those records. THE COURT: Well, I don't believe they've been properly authenticated at this point, so I sustain the objection. BY MS. MOLIN: 0 When Chase employed you to service this loan, they provided you with information concerning the amounts that are due on this loan? Chase didn't employ me. I mean the servicer. Fay Servicing? FORT MYERS COURT REPORTING () -

15 nd then what was the question? When Chase Bank employed Fay Servicing, did they provide proof of information of amounts that are due on this particular loan? Chase didn't employ Fay Servicing. nd who did employ -- Fay employ? Fay is the purchaser of the -- of the loan. We then service on their behalf. 0 Okay. So Chase is no longer involved. nd the information that you obtained, are -- is information that the owner of the loan provides to you? Correct. nd they provide proof of the amounts that are due on the particular loan? Correct. nd then those -- that information is put into 0 your system? nd that is how you know the amount that is due under the -- under this Note and Mortgage? MS. MOLIN: Your Honor, at this time we'd FORT MYERS COURT REPORTING () -

16 like to introduce the loan history. MR. FOXLL: Objection as to hearsay and authenticity, Your Honor. THE COURT: Well, it's weak. They go through no process to verify the accuracy of the prior record-keeper? I sustain the objection at this point. BY MS. MOLIN: Mr. Hughes, what -- what does the servicer do 0 to verify the amounts that are given to them by the owners of the -- of the Note in the action -- in the question here? We receive loan information from the prior servicer -- Uh-huh. -- load it into our internal system, and then verify what's in our internal system against what was provided to us. nd they provide you proof of the payments 0 on -- that have been made on the loan? Correct. The pay history? nd that is how you verify that the amounts that are due on the Note, by the -- FORT MYERS COURT REPORTING () -

17 Correct. -- information -- by the proof of payments that have been given by the owner of the Note from the borrower? nd that becomes the records of the servicer? Correct. nd you -- and there have been verified -- the 0 amounts that have been made -- the payments that have been made have been verified by the servicer? correct. gainst the records of the prior servicer, Okay. MS. MOLIN: Your Honor, at this time we'd 0 like to introduce the loan history. MR. FOXLL: Same objection, Your Honor. I mean, if the -- to overcome the hearsay objection, we have to go through the business records exception. Mr. Hughes is testifying that he -- he's not even employed by Chase, wasn't employed by Chase, but the subsequent purchaser of the Note. He has no idea as to Chase's internal management of accounts and their accuracy. We would object to these being entered. MS. MOLIN: Your Honor, the witness has FORT MYERS COURT REPORTING () -

18 0 testified that they have verified each payment that was made, that proof of each payment was provided to the servicer, and that is where the servicer obtained its information that it put into its business records. THE COURT: I didn't hear it quite that strong. ll right. I think the whole thing could be stronger on the authentication, but at this juncture I will receive them in evidence over objection. MS. MOLIN: Thank you, Your Honor. (Exhibit B was admitted into evidence.) BY MS. MOLIN: nd again, the final -- the proposed final judgment, what is the total amount that is listed on the proposed final judgment? It's $,.. nd that amount is accurate compared to your 0 books and records? Yes, it is. MS. MOLIN: Thank you. No further questions. THE COURT: Pass him? Mr. Foxall? FORT MYERS COURT REPORTING () -

19 CROSS-EXMINTION BY MR. FOXLL: Mr. Hughes, as part of servicing, you have the loan history, correct, the payments and the credits, debits that were made on the account from its inception, correct? 0 correct? Bank. Correct. nd it went from Chase to Wilmington Trust, There was an intermediary, but yes. Who was the intermediary? It's U.S. Bank Trust. MRS. PELER: First it went to US National MR. FOXLL: ll right. Hold on. He's testifying. That's fine. BY MR. FOXLL: 0 nd the llonge, do you know when the llonge that was signed by Vicki Marles was signed? I don't. nd do you know what the llonge going from JPMorgan Chase to Liberty -- well, JPMorgan Chase to a blank endorsement, do you -- do you know when that FORT MYERS COURT REPORTING () -

20 0 occurred? I don't know. Okay. nd then there's another llonge attached to the Note, or part of the Note, or part of this case, which is going from Liberty Home Lending to JPMorgan Chase Bank, signed by Richard Phillips, President. Do you know when that was signed? 0 I don't know. Do you know if JPMorgan Chase Bank had possession of the Note when this case was filed on February 0th, 0? Yes, based on the chain of -- of allonges. How do you know what the chain of allonges is if both of the llonge -- these allonges are undated? The llonge from lender into JPMorgan was included with the original filed complaint. But the original complaint -- oh, it was included in the original complaint? 0 Uh-huh, as an exhibit. Okay. Have you reviewed the original complaint that was filed in this case? copy of it, yes. When did you review that? Prior to trial. FORT MYERS COURT REPORTING () -

21 complaint? How long prior to trial? I don't know. Can I hand you my copy of that original MS. MOLIN: Is this the complaint that was 0 verified? MR. FOXLL: This is the original complaint, February 0th, 0. MS. MOLIN: Okay. MR. FOXLL: May I approach the witness, Your Honor? THE COURT: BY MR. FOXLL: This has been marked as Exhibit, or in my 0 litigation file, at least. Can you show me in that original complaint where the llonge is attached as an exhibit? The llonge I'm referring to is going from JPMorgan -- oh, JPMorgan Chase to a blank endorsement signed by Vicki Marles. That llonge was included in the amended complaint as an exhibit which was filed -- I don't have the exact date, but it was earlier this year. Because your earlier testimony is that when this original complaint was filed on February 0th, FORT MYERS COURT REPORTING () -

22 0, you knew that this llonge signed by JPMorgan Chase Bank in blank was attached to it? No. I either misspoke or it was misheard. The llonge from lender into JPMorgan was included as an exhibit in the original filed complaint, proving they had standing to foreclose in that name. Okay. So that's going from -- and that is attached? The first one going from Liberty Lending, Inc., to JPMorgan, that's attached to it? Yes, the copy's right here. nd then there's this other llonge going from JPMorgan Bank to blank. When was that signed? I don't know. Was it signed during the course of this litigation? It was included as an exhibit in the amended 0 complaint filed this year, in 0, but I don't -- I don't have the exact date. I think it was in January or -- Could I review that? Uh-huh. Thanks. nd the records that you rely on in coming up FORT MYERS COURT REPORTING () -

23 with the amounts due today, some of those records are JPMorgan Chase Bank records, correct? nd those were presented to you by -- which company -- which lender retained your services? Who does Fay Servicing work for? Christiana Trust. Christiana Trust. Is Christiana Trust the owner of the Note? 0 Do you have anything here today showing that Christiana Trust is the owner of the Note? The llonge from JPMorgan into blank included with the amended complaint. But the -- on May th the attorneys in this case filed to assign as -- this matter as plaintiff to William -- Wilmington Trust, National ssociation, not in its individual capacity, but solely as trustee for MFR Trust I'm sorry. I misspoke. The current owner is Wilmington Savings. That's my mistake. Is Wilmington Savings -- The Wilmington Savings Trust that you just listed off there is the current owner. Wilmington Trust, National ssociation? FORT MYERS COURT REPORTING () -

24 Sorry. Christiana Trust was a -- was a misspeak on my behalf. How do you personally know that the records that you received from the lender that you currently work for that purport to be the records of JPMorgan Chase, how do you know that those are accurate? Fay Servicing has a department solely devoted 0 to what is called loan boarding. So when loans are transferred from one servicer into Fay, all they do all day is verify the information by comparing what's -- what was loaded into our internal system and what was provided by the prior servicer. But you're relying on what Chase put together, 0 correct? There's no way -- they're giving you data showing a payment history, and you have no idea as to their internal checks and balances how they conduct business, correct? MS. MOLIN: Objection. I think he's already testified that they are -- they review the payments that are made to verify the amounts due on the loan. THE COURT: I'll allow the question. BY MR. FOXLL: I mean, all you -- all you receive as part of your package is what you have here today, a computer FORT MYERS COURT REPORTING () -

25 printout of the payments that were purportedly received, payments that went out for insurance, payments that went out for taxes? That's all you receive, is what you have exactly here today, correct? It's images of documents displayed here as well as information loaded into Excel sheets and text files. There's something different that you don't 0 have here today that Fay Servicing has back at its office with respect to the recordkeeping abilities of JPMorgan Chase Bank? Why isn't that here today, then? If there's some internal audit that you check to verify the accuracy of a prior lender's records, why wasn't that brought here today? I don't know. How do you know that that notice of acceleration was sent? Who was that sent by? 0 Chase is on the document on the first page. So you're just -- you're relying on a photographic image that you received from your subsequent lender, and you look at this letter, and just by looking at it, you know that that letter was sent somehow by JPMorgan Chase; is that correct? FORT MYERS COURT REPORTING () -

26 MS. MOLIN: Objection. He's already testified that he has reviewed the original complaint which has that information, and that verified complaint -- that complaint was sworn to. MR. FOXLL: Sworn to hearsay, Your Honor. THE COURT: Overruled. Note the objection. BY MR. FOXLL: Would it be true to say that you have no idea 0 whether that letter was sent or not or when it was produced? prepared? No. How do you know that that letter was sent? I don't know. Do you know on what date that letter was It's dated December, 0. But you have no idea as to the accuracy of 0 that date; is that correct? Okay. He's looking at you to help him out here. You can just answer yes or no, sir. What -- repeat the question. You have no idea -- there's a date on a photographic image -- or image of a letter. You're looking at that date and you're saying, oh. You have no FORT MYERS COURT REPORTING () -

27 idea that that -- that that letter was sent on the date that it has on its face? MS. MOLIN: Objection. Mr. Hughes is testifying concerning the books and records of -- of the servicer which has that information in its books and records. THE COURT: Overruled. BY MR. FOXLL: You have no idea, sir, if that was sent on 0 that date or if that's even an accurate letter of what was sent, if anything was sent, correct? It's dated December, 0. If you could please answer yes or no. You have no idea if that letter was sent or if that date is accurate? I don't know. MR. FOXLL: No further questions, Your Honor. REDIRECT EXMINTION BY MS. MOLIN: 0 Do the books and records of the servicer, Fay Servicing, do they reflect that the Letter of Intent that you're referring to was sent? Fay maintains an image of the demand that is dated December, 0, prior to -- prior to the complaint filing. FORT MYERS COURT REPORTING () -

28 nd that's part of the information that Fay would have verified when it took responsibility over the servicing of this loan? MR. FOXLL: Objection, leading, Your Honor. THE COURT: Overruled. THE WITNESS: I don't know. BY MS. MOLIN: Fay Servicing has in its books and records 0 when default letters and acceleration letters are sent out; is that correct? We keep a history of letters that Fay has sent out. Do you keep a letter of -- do you keep a record of letters that were sent out prior to Fay being the servicer in this case? I don't know. nd the amended complaint in this matter was -- was verified; isn't that correct? 0 What do you mean? It was -- there's a -- it was -- the amended complaint was sworn to by Fay Servicing? Maybe I -- let me hand you a copy of it. MR. FOXLL: Your Honor, we'd object as to the amended complaint coming in as some sort of evidence, because it is hearsay. FORT MYERS COURT REPORTING () -

29 0 THE COURT: Probably, but that's probably another reason that I don't -- if I use the affidavit form that's prescribed by the Supreme Court, that's not sufficient for a summary judgment or otherwise. I think the idea that's hearsay is probably good, at least for this issue. I'm not sure where we stand. Were you getting ready to ask him some questions about it? MS. MOLIN: I had to get a copy of the verified amended complaint. BY MS. MOLIN: nd on page 0 there's a verification of Fay Servicing attesting to the truth of the allegations contained in the amended complaint. That's correct. nd in paragraph of that complaint, which is 0 probably around page or, it has the Exhibit, and in that it has that the letter of acceleration was sent on this particular loan? MR. FOXLL: Objection, Your Honor, hearsay. He's -- somebody verified this complaint. He is reading it in court. It's an out-of-court statement that -- I can't cross-examine whoever signed that amended complaint. So we'd object to this whole line of questioning. FORT MYERS COURT REPORTING () -

30 0 THE COURT: I'll sustain the objection. I'll allow you to present it as a proffer; however, since it appears y'all are going to be litigating for years to come, so -- go ahead. BY MS. MOLIN: The information that -- upon which the verification [sic], would that be based on the books and records of Fay Servicing? 0 So is it accurate to state that the -- that Exhibit to the amended complaint is a book -- part of the books and records of Fay Servicing? nd based on the books and records of Fay 0 Servicing, was that Exhibit sent to the borrower? MR. FOXLL: Objection, Your Honor. Lack of predicate. THE COURT: I'll allow the question. You can cross him on it. THE WITNESS: The paragraph states, The notice and acceleration default letter previously mailed to the defendant is attached hereto. nd the complaint was verified by Fay Servicing. THE COURT: So the record's clear, I don't believe the verified complaint is admissible to FORT MYERS COURT REPORTING () -

31 prove anything. BY MS. MOLIN: In the books and records of Fay Servicing, if you were to go on your computer that had Fay Servicing and look up this loan, would you be able to print out the -- Exhibit? nd have you done that? Printed out a copy -- an image of the -- 0 Or looked at -- or looked at a copy of it. So that Exhibit, the letter of intent to accelerate, is part of the books and records of Fay Servicing? Okay. nd was provided by the prior servicer. Okay. THE COURT: nything? I'm not saying there 0 should be, but I've got to bring -- are you passing the witness? MS. MOLIN: I'm passing the witness, Your Honor. THE COURT: ll right. Mr. Foxall, do you have anything? FORT MYERS COURT REPORTING () -

32 RECROSS-EXMINTION BY MR. FOXLL: Okay. Would it be true to say that all -- all that Fay Servicing has with respect to the notice of acceleration is a photographic image of it; there's no other records whatsoever that Fay Servicing has with respect to that item? 0 I don't know. MR. FOXLL: I'm going to hand the witness something just for demonstrative purposes, Your Honor. THE COURT: Very well. BY MR. FOXLL: This is something that was wrongly filed in my case. When was that sent? ppears to be May th, 0. Okay. nd I just handed that to you. It's my 0 letterhead. My name is Roy Foxall. That's from my law firm, correct? Your name's Roy Foxall? Okay. With respect to that item, do you have any information more with respect to the notice of FORT MYERS COURT REPORTING () -

33 acceleration than you would have with that item from my office? I don't know. It's a yes or no answer. Would you have any 0 0 more information with respect to the letter that is in your file, the notice of acceleration, than you would with that letter I just handed you on my letterhead? MS. MOLIN: I'm going to object. There's not been any predicate that he's gone on a Fay Servicing computer and looked up in the books and records of Fay Servicing if that letter even appeared. THE COURT: I'm not sure if I understand what the question is. MR. FOXLL: I'm just asking his lack of knowledge, Your Honor. I'll just take it back. Those are the questions, Your Honor. THE COURT: nything? MS. MOLIN: One moment, Your Honor. FURTHER REDIRECT EXMINTION BY MS. MOLIN: I'm handing you a copy of a Florida ssignment of Mortgage from -- wait one second. n ssignment of Mortgage from MERS as nominee for Liberty Home Funding, Inc., to JPMorgan dated February th, 0. FORT MYERS COURT REPORTING () -

34 Can you identify that? This is an ssignment of Mortgage. nd is that the ssignment of Mortgage that went from Liberty to Chase Mortgage? From MERS as nominee -- Right. -- for Liberty Home Funding into JPMorgan 0 Chase Bank, yes. MS. MOLIN: Your Honor, we'd like to introduce the ssignment of Mortgage into evidence as Exhibit C. MR. FOXLL: No objection, Your Honor. THE COURT: It will be received in evidence. (Exhibit C was admitted into evidence.) BY MS. MOLIN: nd then I'm also handing you a Florida 0 ssignment of Mortgage where the grantor is JPMorgan Chase Bank to U.S. Bank National ssociation as trustee for PROF-0-S Holding Trust I. Can you identify that? This is an ssignment of Mortgage. nd is that the ssignment that transferred the loan ownership from Chase to U.S.? Trust. Yes, from JPMorgan Chase into the U.S. Bank FORT MYERS COURT REPORTING () -

35 0 MS. MOLIN: Your Honor, I'd like that introduced as Exhibit E. MR. FOXLL: No objection, Your Honor. THE COURT: It will be received in evidence. (Exhibit E was admitted into evidence.) THE COURT: May I see that? re you going to question him about that? I just want to take a quick look at it. THE WITNESS: This is the lender to Chase. THE COURT: I want the one from -- THE WITNESS: nd this is from Chase to -- yep. BY MS. MOLIN: nd then subsequently that loan was assigned to the current plaintiff? Correct. Okay. nd that would be Wilmington Trust, National ssociation? 0 ssigned into the trust name, yes. Okay. THE COURT: Say that again, please. It is Wilmington Trust, National ssociation, not in its individual capacity, but solely as trustee for MFR Trust 00-. I believe the ssignment is into the MFR FORT MYERS COURT REPORTING () -

36 Trust, yes. MS. MOLIN: Okay. Thank you. No further questions. FURTHER RECROSS EXMINTION BY MR. FOXLL: Okay. Your ssignment of Mortgage dated February th, 0, is that -- is that marked as Exhibit D [sic] in what's in front of you? 0 nd it's Mortgage Electronic Registration Systems Inc., MERS, as nominee for Liberty Home Funding, Inc.; is that correct? What's your -- what's your question? That's what it says on that Exhibit D that you have, correct? s the assignor? MERS is assigned -- oh, is acting as nominee for Liberty Home Funding, correct? 0 It does say that, yes. Okay. nd who -- on the Note itself, who is the lender on the Note itself? On the Note, it's Liberty Home Lending, Inc., a Florida corporation. What is the relationship, if you know, between Liberty Home Lending, Inc., who is on the Note, and FORT MYERS COURT REPORTING () -

37 Liberty Home Funding, Inc.? I don't know. Do you know if they have any business relationship at all? I don't know. Do you know if Liberty Home Funding, Inc., even exists? 0 Which one? Liberty Home Funding, Inc. I don't know. MR. FOXLL: No further questions, Your Honor. THE COURT: Plaintiff, anything else? MS. MOLIN: No further questions. THE COURT: You may step down. Just let me know when you're ready to make a 0 decision on whether to rest or not. MS. MOLIN: Okay, Your Honor. If I could have one second. One second, Your Honor. Your Honor, I would like to call Mr. Hughes to the stand one more time. THE COURT: Very well. You're still under oath. THE WITNESS: (No response.) FURTHER REDIRECT EXMINTION FORT MYERS COURT REPORTING () -

38 BY MS. MOLIN: I'm handing you a Florida ssignment from JP -- from JPMorgan Chase to US National Bank ssociation as Trustee for PROF-0-S Holding Trust, Inc., and it says in this that it has been assigned by Mortgage Electronic Registration as nominee for Liberty Holding -- Liberty Home Lending, Inc. Is that one of the ssignments that transfers ownership -- 0 Do you have the execution page, that signature page? No, I don't. Okay. The first page states, JPMorgan into U.S. Bank National ssociation as Trustee for PROF-0-S Holding Trust I, and it's assigning a certain Mortgage in favor of Mortgage Electronic Registration Systems, Inc., as nominee for Liberty Home Lending, Inc. Okay. nd then I'm handing you another 0 ssignment of Mortgage from U.S. Bank National ssociation as Trustee for PROF-0-0 to MFR Trust 0-. Is that also one of the ssignments that is in the record -- record title of these -- of this particular loan? Yes, from the U.S. Bank Trust, so named, into FORT MYERS COURT REPORTING () -

39 0 MFR Trust 0-. MS. MOLIN: Okay. Thank you. I'd like to introduce this as Exhibit F, Composite Exhibit F. MR. FOXLL: Could I see those, Your Honor? THE WITNESS: (Indicating.) MR. FOXLL: Very good. No objection, Your Honor. THE COURT: It will be received in evidence. (Exhibit F was admitted into evidence.) MS. MOLIN: No further questions, Your Honor. MR. FOXLL: May I approach, Your Honor? THE COURT: THE WITNESS: (Indicating.) FURTHER RECROSS EXMINTION BY MR. FOXLL: Okay. Mr. Hughes, when did you first see these ssignments that we're discussing? 0 Prior to trial. Okay. nd one of them is dated -- or recorded on September th, 0. Could you -- I'm handing that one to you that is going from U.S. Bank National ssociation as Trustee for PROF-0-S Holding Trust I, herein assignee. Okay. So it's Chase Bank assigning it to U.S. FORT MYERS COURT REPORTING () -

40 0 Bank National ssociation, correct? Can I see it? (Indicating.) So the ssignment recorded //0 is from JPMorgan Chase Bank into U.S. Bank National ssociation as Trustee for PROF-0-S Holding Trust I. Okay. nd the second one was recorded on 0 February 0th, 0, going from U.S. Bank National ssociation to MFR Trust 0-, 0 Park venue, 0th Floor, New York, New York 00; is that correct? nd that's February 0th of 0, correct? The bold part reads, MFR Trust 0-, 0 Park venue, 0th Floor, New York, New York, 00, assignee in parentheses. Can I see that item again? (Witness complies.) Okay. nd then the attorneys on May th filed 0 a motion -- ex parte motion to substitute party plaintiff that was granted this week stating that the Note was assigned -- or Note -- Mortgage was assigned to Wilmington National ssociation, not in its individual capacity, but solely as trustee for MFR Trust 0-. So who is the lender that retained your services again, your company? The Wilmington Savings -- Wilmington name that FORT MYERS COURT REPORTING () -

41 you named there. Okay. nd I understand this was assigned to MFR Trust 0-, but what -- what is -- do you have anything in court here today showing what Wilmington Trust's relationship is or what gives them the right to act as trustee for MFR Trust 00- [sic]? I believe there's a power of attorney between Fay Servicing and Wilmington. But you'd agree that MFR Trust 00- [sic] 0 is not the plaintiff currently; it is Wilmington Trust as trustee for that MFR Trust 0-, correct? plaintiff? Can I see the motion and whatever granting the The order is hard to read, but it's later on in my -- in my file, but there's some handwritten notations. It was granted. Yeah, the motion states, Wilmington Trust National ssociation, not in its individual capacity, but solely as trustee for MFR Trust Why is Wilmington Trust involved? Why can't that 0 trust act on its own? I don't know. MR. FOXLL: No further questions, Your Honor. MS. MOLIN: I have one question, Your Honor. FURTHER REDIRECT EXMINTION FORT MYERS COURT REPORTING () -

42 BY MS. MOLIN: I'm handing you a limited power of attorney. Can you please describe that? This is a limited power of attorney between Fay Servicing and Wilmington Trust National ssociation, not in its individual capacity, but solely as trustee of MFR Trust 0-. nd under your records, the trust -- that 0 particular trust has a trustee which acts on behalf of the trust? Say it again. The Wilmington Trust is a trustee that acts on behalf of that particular trust? Okay. nd originally when the amended 0 complaint was filed, it was filed by U.S. Bank National ssociation, and it was Fay -- a Fay Servicing representative verified that particular complaint. Was Fay Servicing servicing the loan on behalf of U.S. Bank National ssociation at that time? this? Okay. THE COURT: Who did you say originally filed MS. MOLIN: Your Honor, it was originally FORT MYERS COURT REPORTING () -

43 0 filed by Trust Bank -- I mean, by Chase Bank. THE COURT: Okay. Okay. MS. MOLIN: nd then it was amended to be U.S. Bank National, and then Wilmington Trust -- THE COURT: ll right. MS. MOLIN: -- substituted in as plaintiff. THE COURT: I'm sure y'all are going to explain it all to me in due course. nything else for this gentleman? MR. FOXLL: May I inquire, Your Honor? Is that okay? MS. MOLIN: That's fine. FURTHER RECROSS EXMINTION BY MR. FOXLL: I just asked you what Wilmington Trust's relationship was to MFR Trust, what gave them the power to act on their behalf, correct, and you said you didn't know, correct? 0 I don't recall. Oh, okay. Did that -- that trust document you have in front of you, have you ever seen that before? Trust document? MS. MOLIN: re you referring to the limited power of attorney? The limited power of attorney. I'm sorry. FORT MYERS COURT REPORTING () -

44 The limited power of attorney. You've seen that before? When have you seen that before? Prior to trial. MR. FOXLL: Okay. No further questions, Your 0 0 Honor. MS. MOLIN: Your Honor, we'd like to introduce the limited power of attorney as Exhibit G. MR. FOXLL: No objection, Your Honor. MS. MOLIN: Thank you, Your Honor. THE COURT: It will be received in evidence. (Exhibit G was admitted into evidence.) THE COURT: What did you say that purports -- that Wilmington Trust gives Fay Servicing the power to act on? Is that what it's supposed to be? You can tell me later, but if that's -- THE WITNESS: re you asking me or -- THE COURT: Pardon? THE WITNESS: re you asking -- THE COURT: nybody that wants to speak. nybody that knows. MR. PELER: I'm not supposed to. FORT MYERS COURT REPORTING () -

45 MS. MOLIN: Limited power of attorney gives -- it's from Wilmington, giving -- THE COURT: I'll look at it. MS. MOLIN: ll right. THE COURT: Y'all tell me what I need to know. MR. FOXLL: Well, okay. BY MR. FOXLL: But this power of attorney is going to you as 0 servicer, Wilmington Trust, not in its individual capacity, but solely as Trustee of MFR Trust 00- [sic], that's who the plaintiff is now, correct? They're giving you as the servicer the power to act, such as appearing in court here today and testifying, correct? On their behalf. Okay. So this has nothing to do with Wilmington Trust, National ssociation's relationship as trustee to the MFR Trust 0- [sic]? 0 I don't know. MR. FOXLL: Okay. No further questions, Your Honor. MS. MOLIN: No further questions, Your Honor. THE COURT: Okay. You may step down. re you going to call any other witnesses? re you going to rest? What are you going to do? FORT MYERS COURT REPORTING () -

46 0 0 Do you need a moment to think about it? MS. MOLIN: Your Honor, we rest. THE COURT: Okay. MR. FOXLL: Motion for directed verdict, Your Honor. THE COURT: Do you want to speak to it or -- MR. FOXLL: Yeah, I'll speak to it, Your Honor. THE COURT: -- or do you want me to deny it first? MR. FOXLL: I'll speak to it, Your Honor. THE COURT: ll right. MR. FOXLL: Your Honor, Mr. Hughes comes in testifying as a servicer for the current owner of the Note, relying on JPMorgan Chase Bank's records showing a default date. He has no idea what their internal checks and balances -- what their business practices are. He is unqualified to act as a records custodian for JPMorgan Mortgage Bank -- or JPMorgan Chase Bank. nd then the loan goes through a couple other owners, and then the current lender throws him some records and he's supposed to come into court here and we're supposed to authenticate those records. Those are insufficient. FORT MYERS COURT REPORTING () -

47 0 0 Further, since the chain of assignment was put in, we believe that there's somebody involved -- or there's somebody listed who isn't even the original lender, so the chain of assignment is defective, and we'd respectfully request directed verdict in favor of the defendants. MS. MOLIN: Your Honor, as to the amounts that Fay Servicing testified, Mr. Hughes testified -- he also testified to the fact that there is an entire department within Fay Servicing that verifies all the information that is given and before that information is put into their system. He also -- he also testified that it's part of the books and records -- that the amounts that he -- that are due under this particular loan are the amounts that are in the books and records of Fay Servicing as has been verified by the Fay Servicing department on -- based on the payments and records that they received. In addition, the chain of title does show that this current plaintiff is the plaintiff in this particular matter, and we're entitled to judgment. THE COURT: I'm going to deny the motion for directed verdict. Do you need a moment to consider what you're going to do, Mr. Foxall? FORT MYERS COURT REPORTING () -

48 0 MR. FOXLL: I'm going to put my client on, Your Honor. THE COURT: ll right. Will you raise your right hand please, ma'am? THE WITNESS: (Witness complies.) Thereupon, BONNIE S. PELER, a Defendant herein, having first been duly sworn, upon her oath, testified as follows: THE COURT: Have a seat. DIRECT EXMINTION BY MR. FOXLL: 0 Please state your name. Bonnie Sue Pealer. nd where do you reside? venue, Geneva, New York. Geneva, New York? Okay. nd are you the owner of this property? Yes, sir. Okay. nd how did you become the owner of this property? I bought it at foreclosure auction due to past homeowners' fees. nd when did you buy it? FORT MYERS COURT REPORTING () -

49 In 0. Okay. nd do you feel that the current owner is the actual owner of the Note or the -- who purports to be the plaintiff in this case is the actual owner of the Note? I believe that Chase Bank, when they filed the ssignment -- can I speak freely? When Chase Bank took over this Note and filed 0 the case, they had an undated llonge in favor of Chase Bank, undated. They filed an ssignment in 0, the Mortgage ssignment, after I was already the owner, by -- the person who filed the ssignment was a vice president of MERS, was actually an employee of Chase Bank. They also listed the wrong bank. Okay. nd that was what I brought up before the Court's attention, correct? 0 Yes, I understand that. Okay. Yep. It was not even the right bank, because that bank was no long -- the original lender, Liberty Home Lending, Inc., was no longer in business. They went out of business in 00, I believe -- MS. MOLIN: Objection, no foundation. THE WITNESS: I've got documents. I've got FORT MYERS COURT REPORTING () -

50 0 documents here. THE COURT: I'm going to allow her to testify, subject -- but I'm not sure what bank it was that supposedly went out of business. THE WITNESS: Liberty Home Lending, Inc., and I have a document here from the State stating when they were administratively ordered to close. BY MR. FOXLL: Do you need any documents over here? What do 0 you need? Do you need -- That one right there in your left hand. This? No. This? Bottom -- your left. This is my left hand. Oh, I'm sorry. I'm looking at my left. Okay. That one there is the order. They were 0 administratively closed. Okay. Where did you find that order? On the Internet, research. So the original lender -- and who was the original lender? Liberty Home Lending, Inc. FORT MYERS COURT REPORTING () -

51 When did they -- when did they close up? 00, I believe that document says. Okay. So they closed up, and then who got the Note after that? Chase claims to have had the Note. Of course I did not have notice of it since it wasn't in the county records. Okay. nd this is a first order to cease and desist assessing -- 0 is this? Correct. -- civil penalties coming out of -- what state Florida. Florida. Okay. So they were -- they were here and they were shut down through that, correct? Yes, sir. 0 Okay. nd what other deficiencies have -- have you -- your research uncovered with respect to the current plaintiff's standing in this case? The llonge appears to me to be fraudulent because it has the beginnings of the date of the original loan, September 0th, and it has no year after it. To me -- and it's right next to where the signature information is. To me it's a cut-and-paste job. FORT MYERS COURT REPORTING () -

52 Okay. Secondly, and that -- like I say, that ssignment of Mortgage was made after I was the owner by a party from Chase Bank. So they -- Chase essentially assigned it to themselves, even though this bank was no longer in business, so that's a fraudulent document. They have dirty hands. What about the people who signed these? Did you find any robo-signers or people of shady character? 0 ctually, I do have in my documents there that Lashonda nderson was considered a robo, and she's been taken to trial on it in the past. nd what's this woman's name? Lashonda nderson. She's on the ssignment. From who to who? From Liberty Home Lending, Inc. -- oh, no, I'm sorry. That's the Mortgage ssignment from MERS. No, it's in your documents, not in there. 0 It's in where? Top -- top, your left, the ssignment. The Mortgage ssignment -- This? -- from Lashonda. This is? No. FORT MYERS COURT REPORTING () -

53 No. The Mortgage ssignment. MR. PELER: On the corner of your desk, I think she means. This? Oh, okay, so this. Didn't you have, like, a deposition here or something before? 0 I don't know what a deposition would be. Oh, okay. So you think this Lashonda was robo-signing this thing? Yes, sir. She was an employee of Chase Bank. Okay. nd she signed this on whose behalf, then? Well, she signed -- assigned it -- Chase essentially assigned it to themselves, but she was saying that she was the vice president of MERS, assigning from the defunct bank, Liberty Home Lending, to Chase. 0 Okay. nd any -- any other deficiencies your investigation has uncovered? I want the Court to know that we are not the debtors. We -- if we make -- if we take a loan and borrow money, we would pay it back. nd so I feel bad for the clients who invested in a nonperforming Note and FORT MYERS COURT REPORTING () -

54 didn't know about the deficiencies here, but I don't think they should strip me of my legal rights as the landowner when they've introduced fraud to try to take it away from me. nd what have you been doing with the property since you purchased it? 0 property? I've rented it out. Okay. Have you been taking care of the Yes, sir. I have a pool maintenance company and a lawn maintenance company, and it's in beautiful shape. Okay. ny other improvements you've put to it? When we bought it, the previous owner had run out of money, so they never enclosed the bedroom shower. Okay. nd so we enclosed -- new glass doors on it. 0 We've replaced two compressors, because it has two air conditioning units. We've made repairs to several sinks that had faucets leaking, toilets, refrigerator, washing machine, that type thing. Okay. nd is there a tenant in place now? Yes, there is. FORT MYERS COURT REPORTING () -

55 there? Okay. nd how long has that tenant been She's been there shy of a year by three months. Nine months. 0 correct? York? Okay. nd your husband's here today as well, Yes, sir. Okay. nd how are you both employed up in New I work as a maintenance planner at Cornell University, and my husband is self-employed. MR. FOXLL: No further questions, Your Honor. Or wait one second. BY MR. FOXLL: nything else you'd like to tell the Court? I'm too nervous to think. I don't know. MR. FOXLL: Okay. That's fine. No further questions, Your Honor. CROSS-EXMINTION 0 BY MS. MOLIN: When did you purchase the property? In July 0. purchased? July 0. nd in what name was the property Bonnie S. Pealer and William Pealer. FORT MYERS COURT REPORTING () -

56 nd you purchased it from a foreclosure of a homeowners' association lien? Lee County put it up for auction based on past homeowner fees that were due. nd at the time that you purchased this, you knew that there was a first lien on the property? I did, but I also knew that it had been 0 closed. I did some research on the Internet to try to contact them, and I have a document here that said on the Internet that they imploded. nd I tried to call a number that was associated with them and got no response. I even did -- subsequent to purchasing it, I had a lawyer do a title search to see if he could find out for me, because there was nothing in the records that I could see, and I thought maybe he could see more than I could, but -- re you familiar when a loan closes what happens subsequent -- 0 Yes, ma'am. nd how do you know? What -- I've bought several houses. You what? I've bought several houses. Have you ever been involved when a bank FORT MYERS COURT REPORTING () -

57 closes? Yes, ma'am. When? You mean when the bank -- when you take out a mortgage and buy a house yourself? No. When a bank -- when the FDIC or any governmental authority goes into a bank and closes it. FDIC is for banks. This is not a bank, but a 0 mortgage brokerage company, so -- I'm asking, have you ever been -- you're -- I'm asking, have you ever been involved when a financial institution closes? No. So when a financial institution closes, you don't know what happens to the loans? I might not know, but in this case I figure they just imploded or got mortgage insurance coverage. 0 But you don't actually know? How could you know? Okay. I do know that when FDIC takes them over and they -- they then take possession of the loans and -- when a bank goes out of business, and they would sell it -- How do you know that? FORT MYERS COURT REPORTING () -

58 -- to somebody else. I've done research. But you're not familiar with the process -- the behind process of what happens when the FDIC takes over an institution? I've read on it. But you don't have own personal knowledge? No. You were talking about an employee of Chase 0 Bank. nd what was her -- what was that person's name? Lashonda nderson. nd do you know her? No. nd do you know of any document that she -- did you see her sign any document in this particular -- involved in this particular loan? Certainly not. Certainly not. So you have no idea -- you have no personal 0 knowledge of whether she did or did not robo-sign, as you've been saying, this -- on this particular loan? I don't know if she's a robo-signer, but I know she committed an act of fraud when she signed it from MERS -- from Liberty Home Lending, which was out of business, to Chase Bank, the bank she worked for. Do you know what MERS is? FORT MYERS COURT REPORTING () -

59 Yes, ma'am. What is it? Mortgage Electronic Recording System. But what is it? It is only a database to keep the information on when mortgages sell or loan -- notes sell to another party. So you don't have information on whether any 0 governmental institution that closed Liberty gave that authority to this individual? They were not taken over by any bank. They were not taken over by any agency. They were simply ordered to close. They were not taken over. It didn't continue to live. That wasn't my question. gain, the name of the person that you're saying did some robo-signing? 0 Lashonda nderson. Ms. nderson? Okay. I don't know if she robo-signed, but I'm saying she committed an act of fraud. On this particular loan? Yes, ma'am. nd where do you get that knowledge from? Her name is right on the Mortgage ssignment FORT MYERS COURT REPORTING () -