Case 1:08-cv JMF Document Filed 04/16/09 Page 1 of 23. Exhibit 12

Transcription

1 Case 1:08-cv JMF Document Filed 04/16/09 Page 1 of 23 Exhibit 12

2 Case 1:08-cv JMF Document Filed 04/16/09 Page 2 of 23 SUPREME COURT OF THE STATE OF NEW YORK COUN'rY OF NEW YORK CITIGROUP GLOBAL MARKETS REALTY CORP., Plaintiff, Index No.: /2008 -against- I ACCREDITED HOME LENDERS, INC., I i PLAINTIFF'S FIRST t I REQUEST FOR THE,_. Deten_~:~ PRODUCTION OF DOCUMENTS TO: DEFENDANT ACCREDITED HOME LENDERS, INC., PLEASE TAKE NOTICE that, pursuant to CPLR 3120, Plaintiff Citigroup Global Markets Realty Corp. ("Citigroup"), by its attorneys, Thacher ProtTitt & Wood LLP, hereby denumds that Defendant Accredited Home Lenders, Inc. ("Accredited") produce the following documents and items in its possession, custody or control, or in the control of its agents, attorneys, representatives or employees, for inspection and copying by counsel to the Plaintiff at the offices of Thacher Proffitt & Wood LLP, Two World Financial Center, New York, New York within twenty (20) days after service hereof PLEASE TAKE FURTHER NOTICE that these are continuing demands and that all information or documents responsive hereto should be furnished with twenty (20) days after such infom1ation first becomes known to you, or such documents first come into your possession or control. DEFINITIONS I. The tenn "Accredited" or "De1endant" includes, without limitation, Accredited Home Lenders, Inc., its predecessors, successors, current or former parents, SUbsidiaries, direct or

3 Case 1:08-cv JMF Document Filed 04/16/09 Page 3 of 23 indirect affiliates, divisions, departments, business units, officials, otttcers, directors, partners, licensees, sublicensees, employees, agents, attorneys, assigns, advisors, consultants, representatives, and any other person or entity that is acting or has acted on its behalf. 2. The words "and" and "or" shall be construed either conjunctively or disjunctively as necessary to bring within the scope of the request all responses that might otherwise be construed to be outside ofits scope. 3. The tcrm "Assets" refers to the mortgage notes, promissory notes, title policies, servicing rights, servicing files and all other transferred rights, obligations, duties and benefits which were the subject ofthe Loan Purchase Agreement and made up the Mortgage Loan Pool. 4. The term "Citigroup" or "Plaintiff' includes, without limitation, Citigroup Global Markets Realty Corp., its predecessors, successors, current or former parents, subsidiaries, direct or indirect affiliates, divisions, departments, business units, otttcials, officers, directors, partners, licensees, sublicensees, employees, agents, attorneys, assigns, advisors, consultants, representatives, and any other person or entity that is acting or has acted on its behalf. 5. The word "communications" shall mean the transmittal ofinformation (in the fonn offacts, ideas, inquiries or otherwise) by any means. 6. The word "concerning" shall mean: reflecting, relating to, referring to, describing, evidencing, regarding or constituting, whether in whole or in part. 7. The term "Confirmation Letter" refers to the Confirmation Letter dated as ofmarch 15, 2007 which documents the parties' agreement for Defendant to sell to Plaintiff a pool of mortgage loans in the aggregate unpaid principal balance of approximately $2,769,000,000. The Loan Purchase Agreement and the Confirmation Letter are referred to collectively as the 2

4 Case 1:08-cv JMF Document Filed 04/16/09 Page 4 of 23 Agreements. Capitalized terms not otherwise defined herein have the meanings ascribed to them in the Agreements. 8. The word "'document" means any document, including, without limitation, any and all written, printed, computer~produced, typed, photographed, phone or tape recorded or electronic or digital words, data or intormation, including without limitation any writing or recording ofany type or description, whether vvritten, printed or recorded (mechanically or electronically), or produced or reproduced by hand or any other method, and whether or not produced or created by Defendant, including without limitation all letters; correspondence; mortgage notes; title policies; asset files; accounts; contracts; ledgers or other records oforiginal entry; telegrams; memoranda; notes; records; summaries of records, personal conversations, or interviews; reports; financial statements; bank deposit slips; bank statements; checks (back and front); statistical and financial records; minutes; memoranda; notice or notes ofmeetings; telephone or personal conversations or conferences or other communications; envelopes; inter-office, intra-office or intra-company communications; microfilm; microfiche; tape recordings; videotapes; photographs; bulletins; studies; plans; analyses; notices; computer records; runs; programs or software and any codes necessary to comprehend such records, runs, programs or software; books; pamphlets; illustrations; lists; forecasts; brochures; periodicals; charts; graphs; indices; bills; statements; files; data compilations; calendars; diaries; reports and notebooks; opinions or reports of consultants; newspaper reports; and any other written, printed, typed, recorded or graphic matter, ofany nature, however produced or reproduced, including copies and drafts ofsuch documents, and any and all handwritten notes or notations thereon in whatever form. The term "documents" also includes all data or documentation that is stored in a computer or other storage device and can be printed on paper or tape, such as electronic mail or conununications, drafts of documents that are 3

5 Case 1:08-cv JMF Document Filed 04/16/09 Page 5 of 23 stored in a computer or word processor and information that has been input into a computer or other storage device, as well as disks or other materials in which the data or documentation is found. The term "document" shall include originals (or copies if originals are not available) and non-identical copies (whether different from the original because of handwritten notes or underlining or otherwise) and any translation ofany document. 9. "Identify" when used with respect to a natural person means to state such natural person's name, address, present employer and job title. 10. "Identify" when used with respect to an entity other than a natural person means to state the name, address and the name of the principal individual(s) at such entity with knowledge of the subject matt~r ofthe request. 11. "Identify" when used with respect to a document or documents means to specify: (a) the nature or type ofthe document (e.g., letter, memorandum, etc.); (b) its date; (c) its general subject matter; (d) its present location; and (e) such other information necessary in order to enable such docwuent to be precisely identified. 12. "Identify" when used with respect to a conversation, oral communication or meeting means: (a) to state the date thereof; (b) to identify each participant and each document referring or relating thereto; and (c) to describe the general subject matter thereof. 13. The term "Loan Purchase Agreement" refers to the Mortgage Loan Purchase and Interim Servicing Agreement dated as ofjune 1,2005, as amended between Accredited as "Seller" and Citigroup as "Purchaser". 14. The term "Mortgage Loan Pool" refers to the pool of mortgage loans in the aggregate unpaid principal balance of approximately $2,769,000,000 which were sold or transferred pursuant to the Loan Purchase Agreement. 4

6 Case 1:08-cv JMF Document Filed 04/16/09 Page 6 of The term "Mortgage Loans" refers to the mortgage loans in the Mortgage Loan Pool. 16. The word "person" includes natural persons, corporations, partnerships, groups, organizations, entities and associations of whatever nature, their agents, representatives, successors, assigns, subsidiaries, parents, employees and related persons or entities. 17. The meaning ofthe words "relate to," "relating to," "referringto" and any variation thereof shall include, but shall not in any way directly or indirectly be limited to: relating to, regarding, constituting, concerning, about, involving, pertaining to, referring to, reflecting, considering, underlying, modifying, amending, confirming, mentioning, endorsing, evidencing, summarizing, memorializing, describing, discussing, analyzing, evaluating, representing, supporting, qualifying, terminating, revoking, canceling, negating, connected with, relying upon, or in any way relevant to the indicated item, person or event. 18. The term "REO Property" refers to a mortgaged property acquired as a result ofthe liquidation of a Mortgage Loan, including, but not limited to, the properties indicated as being "REO Property" on the attached Schedule The words "selection," "selecting," and "selected" refer to the process of determining which assets to include and which assets to exclude in the Mortgage Loan Pool. INSTRUCTIONS 1. All documents that respond, in whole or in part, to any portion of the requests below are to be produced in their entirety, including all attachments and enclosures. If any requested document cannot be produced in full, produce it to the extent possible and identify each page or portion of the document withheld and the reasons that it has been withheld.

7 Case 1:08-cv JMF Document Filed 04/16/09 Page 7 of Each page of the documents produced pursuant to this request shall be separately numbered in sequential order. 3. All documents shall be produced either in the order and manner that they are kept in the usual course ofbusiness or shall be organized and labeled to correspond with the numbering of this request. Whenever a document or group ofdocuments is removed from a file folder, binder, file drawer, file box, notebook, or other cover or container, a copy ofthe label or other means of identification of such cover or other container shall be attached to the document. 4. If any document otherwise responsive to any request was, but is no longer in the possession oforsubjectto the control ofthe Defendant, or is no longer in existence, state whether: (a) (b) (c) (d) it is missing or lost (and if so, when it was found to be missing or lost and when it was last known to be in Defendant's possession); it has been destroyed (and if so, state the manner of its destruction, when it was destroyed and why this was done); it has been transferred voluntarily or involuntarily to others, the persons to whom it was transferred, when this occurred, and why this was done; or it has been otherwise disposed of, the manner in which it was disposed of, when this occurred, and why it was done. In each such instance, explain the circumstances surrounding such disposition and identify the person or persons directing or authorizing its destruction or transfer, and the date or dates of such direction or authorization. Identify each such document by listing the document type (e.g., letter, memorandum, telegram, chart, photograph, etc.); any addressees or recipients; its author(s); the document's date, subject matter, number ofpages and any attachments or appendices; all persons or entities with knowledge ofthe document's contents or whereabouts; whether the documents (or copies) are still in existence, and if so their present location or locations and custodian or custodians. 6

8 Case 1:08-cv JMF Document Filed 04/16/09 Page 8 of Electronic records and computerized information should be produced in an intelligible format or together with a sufficient description ofthe system or program from which each was derived to permit rendering the material intelligible. 6. Any document requested hercin or portion thereof that the Defendant claims to be privileged against discovery on any ground shall be identified by giving the following information in a writing signed by the person supervising the response to this request: (a) (b) (c) (d) (e) (f) (g) (h) (i) the general type of document, i.e., letter, agreement, memorandum, report, miscellaneous note, etc.; a description ofthe size ofthe document, whether by number ofpages or otherwise; its date; its author; the organization, ifany, with which the author was then connected; the addressec(s) or recipient(s); any other distributee(s); the organization, if any, with which the addressee(s), recipient(s) or distributee(s) were then connected; a general summary ofthe subject matter; G) the identity of each person to whom the document, its contents, or any portion thereof is known to have been disclosed; (k) the grounds for refusal to produce such document; and (1) the present location ofsuch document and every known copy thereof. 7. Ifit is claimed that any documents requested are not within the possession, custody or control of the Defendant, specify what disposition was made of such documents and who now possesses, has custody of, or controls such documents. 8. The use ofthe singular form of any word used herein indicates the plural and vice versa. 7

9 Case 1:08-cv JMF Document Filed 04/16/09 Page 9 of This discovery request is continuing in character and requires prompt supplemental responses in the event the Defendant obtains or discovers additional or different information prior to or during any stage of this case. 10. Plaintiff reserves the right to supplement this request and/or to serve further requests for the production ofdocuments. DOCUMENTS TO BE PRODUCED 1. Any and all documents which are contained in any files maintained with respect to any or all of the purported Mortgage Loans or Assets identified on the attached Schedule Any and all documents which arc contained in any files maintained with respect to any or all ofthe purported Mortgage Loans or Assets identified on the attached Schedule Any and all documents which are contained in any files maintained with respect to any or all ofthe purported Mortgage Loans or Assets identified on the attached Schedule Any and all documents which are contained in any files maintained with respect to any or all ofthe purported Mortgage Loans or Assets identified on the attached Schedule Any and all documents which are contained in any files maintained with respect to any or all ofthe purported Mortgage Loans or Assets identified on the attached Schedule Any and all documents concerning or relating to the negotiation, agreement to enter into, or construction ofthe Loan Purchase Agreement. 7. Any and all documents concerning or relating to the negotiation, agreement to enter into, or construction ofthe Confirmation Letter. 8. Any and all documents concerning or relating to the selection of Assets to be included in the Mortgage Loan Pool transferred to Citigroup pursuant to the Loan Purchase Agreement or the Confirmation Letter. 8

10 Case 1:08-cv JMF Document Filed 04/16/09 Page 10 of Any and all documents concerning or relating to the development, negotiation, revision or discussion of or rationale(s) for the characteristics and criteria which Citigroup and Accredited agreed would apply to the selection of Mortgage Loans to be transferred to Citigroup pursuant to the Loan Purchase Agreement or the Confirmation Letter. 10. Any and all documents concerning or relating to the characteristics and criteria Accredited actually applied to the selection ofthe purported Mortgage Loans or other Assets to be transferred by Accredited to Citigroup, any revisions to those characteristics and criteria or the rationale(s) for using those characteristics and criteria or revisions to same. 11. Any and all documents concerning or relating to Accredited's review ofassets to be transferred to Citigroup prior to their sale or transfer to Citigroup, as well as any and all documents concerning or relating to Accredited's disclosure ofsame to Citigroup. 12. Any and all documents concerning or relating to Accredited's procedures, policies or guidelines for reviewing the Assets it transferred to Citigroup pursuant to the Loan Purchase Agreement or the Confirmation Letter. 13. Any and all documents concerning or relating to the purported Mortgage Loans or other Assets transferred by Accredited to Citigroup pursuant to the Loan Purchase Agreement or the Confirmation Letter, or the condition or status of those purported Mortgage Loans or other Assets. 14. Any and all documents concerning or relating to communications between or among officers, employees, or agents ofaccredited concerning the criteria for selecting Mortgage Loans or other Assets which were transferred to Citigroup pursuant to the Loan Purchase Agreement or the Confirmation Letter. 9

11 Case 1:08-cv JMF Document Filed 04/16/09 Page 11 of Any and all documents concerning or relating to communications between or among officers, employees, or agents of Accredited concerning the Mortgage Loans or other Assets selected to be transferred to Citigroup pursuant to the Loan Purchase Agreement or the Confirmation Letter. 16. Any and all documents concerning whether or not any Mortgage Loans or other Assets transferred by Accredited to Citigroup had been foreclosed, extinguished, prepaid, converted to REO Property or otherwise terminated prior to the time that those Mortgage Loans or other Assets were transferred to Citigroup pursuant to the Loan Purchase Agreement or the Confirmation Letter, including, but not limited to, all of the Mortgage Loans and other Assets identified on the attached Schedules 1,3 and Any and all documents which Ac{:redited may use to support any allegation that it accurately and completely disclosed the condition of the purported Mortgage Loans and other Assets it transferred to Citigroup pursuant to the Loan Purchase Agreement or the Contlrmation Letter. 18. Any and ali documents which Accredited may use to support any allegation that its representations and warranties in the Loan Purchase Agreement were complete and accurate with respect to the Mortgage Loans or other Assets transferred by Accredited to Citigroup, including, but not limited to, any and all representations or warranties that the Mortgage Loans or other Assets transferred by Accredited to Citigroup were existing and valid Mortgage Loans at the time of sale. 19. Any and all documents which Accredited may use to support any allegation that Citigroup's reliance upon Accredited's representations and warranties concerning the purported 10

12 Case 1:08-cv JMF Document Filed 04/16/09 Page 12 of 23 Mortgage Loans or other Assets transferred by Accredited to Citigroup pursuant to the Loan Purchase Agreement or the Confirmation Letter was not reasonable. 20. Any and all documents concerning or relating to Accredited's interim or other servicing of the Assets, including, but not limited to, any and all Asset files maintained by Accredited, and any and all documents concerning or relating to representations by Accredited that the Assets transferred to Citigroup and serviced by Accredited were valid and existing Mortgage Loans. 21. Any and all documents concerning or relating to Accredited's actions or measures taken with respect to any purported Mortgage Loan or any Asset after Accredited stopped servicing the Asset, including, but not limited to, holding itself out as the owner ofthe Asset and interfering \vith Citigroup's rights of ownership including, but not limited to, any actions or measures taken with respect to any purported Mortgage Loans or other Assets identified on the attached Schedule Any and all documents showing that any and all Assets transferred by Accredited to Citigroup had, at the time of transfer, lost collateral, or had no effective right to proceed against collateral including, but not limited to, the Mortgage Loans and other Assets identified on the attached Schedule Any and all documents showing that any and all Assets transferred by Accredited to Citigroup were, at the time of transfer, the subject of any litigation with the borrower, including, but not limitedto, the Mortgage Loans and other Assets identified on the attached Schedule 4, and including any list ofpending litigations maintained by Accredited from the time period prior to the transfer ofthe purported Mortgage Loans and other Assets to Citigroup. 11

13 Case 1:08-cv JMF Document Filed 04/16/09 Page 13 of Any and all documents showing that, with respect to any Mortgage Loans or other Assets transferred by Accredited to Citigroup, there were grounds for rescinding the Mortgage Loan which existed at the time oftransfer to Citigroup. 25. Any and all documents showing that any and all purported Mortgage Loans transferred by Accredited to Citigroup had been repaid at the time of transfer to Citigroup including, but not limited to, the Mortgage Loans and other Assets identified on the attached Schedule Any and all documents showing that, with respect to any and all purported Mortgage Loans or other Assets transferred by Accredited to Citigroup, the second lien position transferred had already been extinguished, or was not a valid second lien, at the time oftransfer to Citigroup including, but not limited to, the Mortgage Loans and other Assets identified on the attached Schedule Any and all documents showing that any and all Mortgage Loans or other Assets transferred by Accredited to Citigroup were subject to other, unreleased mortgages at the time of transfer to Citigroup including, but not limited to, the Mortgage Loans and other Assets identified on the attached Schedule Any and all documents showingthat any and all Assets transferred by Accredited to Citigroup were not Mortgage Loans at the time oftransfer. 29. Any and all documents showing that, with respect to any and all Assets transferred by Accredited to Citigroup, there was no residential dwelling on the subject property at the time of transfer, including, but not limited to, the Mortgage Loans and other Assets identified on the attached Schedule 5. 12

14 Case 1:08-cv JMF Document Filed 04/16/09 Page 14 of Any andall documents showingthatany and all Assets transferred by Accredited to Citigroup consisted of"high cost," "abusive," "predatory," or "high risk" (or similar designation) loans under applicable laws or regulations, and/or are violative ofsame, including, but not limited to, all ofthe loans identified as such on the attached Schedule Any and all documents showingthatanyandall Assets transferred by Accreditedto Citigroup had loan originations not conforming to Mortgage Loan Pool characteristics and criteria, including, but not limited to, the Mortgage Loans and other Assets identified on the attached Schedule Any and all documents showing that Accredited disclosed any and all material deficiencies and/or breaches of Accredited's representations and warranties in the Assets it transferred to Citigroup before the time ofthe transfer. 33. Any and all documents showing Accredited's knowledge ofthe actual condition of the Assets transferred by Accredited to Citigroup, including any and all material deficiencies, breaches of representations and warranties, and nonconformity to Mortgage Loan Pool characteristics and criteria. 34. Any and all documentsconcerningorrelating to any andall breachesby Accredited of representations and warranties in the Loan Purchase Agreement. 35. Any and all documents concerning or relating to the sale of the Assets in the Mortgage Loan Pool pursuant to the Confirmation Letter, including but not limited to the timing of the sales. 36. Any and all documents concerning or relating to Accredited's position(s) concerning purchase price adjustments to be made to remedy Accredited's breaches of its representations and warranties in the Loan Purchase Agreement. 13

15 Case 1:08-cv JMF Document Filed 04/16/09 Page 15 of Any and all documents concerning or relating to Accredited's purported claims to receive any Hold Back amounts as defined under the Loan Purchase Agreement andlor the Confirmation Letter. action. 38. Any and all documents upon which Accredited intends to rely at the trial of this Dated: March 28, 2008 New York, New York THACHER PROFFITT AND WOOD LLP By /l. ~.? /d-~ 1/\2~Z Patrick J. Boyle;_ William M. Cooney Two World Financial Center New York, New York (212) Attorneys for Plaintiff Citigroup Global Markets Realty Corp. To: Accredited Home Lenders, Inc Avenue of Science, Bldg. 1 San Diego, California Attn: David Hertzel, Esq. General Counsel 14

16 Case 1:08-cv JMF Document Filed 04/16/09 Page 16 of 23 SCHEDULE 1 - Assets Already Converted to REO Property Prior to Transfer to Citigroup t already converted to REO sset already converted to REO UO already converted to REO already converted to REO converted to REO J J sset already converted to REO sset already converted to REO Asset already converted to HEO converted to REO /make whole /make whole _ /make whole t already converted to REO already converted to REO - 1 -

17 Case 1:08-cv JMF Document Filed 04/16/09 Page 17 of 23 SCHEDULE 1 cont'd - Assets Alre~dv Converted to REO PropertyPriQr to Transfer to Citigroup cady converted to REO sset already converted to REO already converted to REO sset already converted to REO sset already converted to REO sset already converted to REO ) already converted to REO set already converted to REO converted to REO converted to REO /make whole sset already converted to REO J

18 Case 1:08-cv JMF Document Filed 04/16/09 Page 18 of 23 SCHI':OULE I cont'd Assets Already Converted to REO Property Prior to Transfer to CitigrOl.lp already converted to REO t i sset already converted to REO Asset converted to REO already converted to REO converted to REO already converted to REO sset already converted to REO U /

19 Case 1:08-cv JMF Document Filed 04/16/09 Page 19 of 23 SCHEDULE I coned - Assets Alreadv Converted to REO Property Prior to Transfer to Citigronp already converted to REO -4-

20 Case 1:08-cv JMF Document Filed 04/16/09 Page 20 of 23 SCHEDULE 2 - High Cost ami/or Predatory Loans ] ] ] High costjpredatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement. High cost/predatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement. High cost/predatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement costjpredatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase cost/predatory loan law violations in breach of Section 7.02(xxxiv) oftile Loan Purchase High costjpredatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement V'. _... High costjpredatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement. High cost/predatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase cost/predatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase costjpredatory loan law violations in breach of Section 7.02(x.x.xiv) ofthe Loan Purchase Agreement. costjprcdatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase High costjpredatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement. High costjpredatory loan law violations in breach of Section 7.02(x.xxiv) ofthe Loan Purchase Agreement. High cost/predatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement. High costjpredatory loan law violations in breach of n 7.02(xxxiv) ofthe Loan Purchase Agreement. High cost/predatory loan law violations in breach of Section 7.02(xx.xiv)ofthe Loan Purchase Agreement. costjpredatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase nt. costjpredatory loan law violations in breach of 7.02(xxxiv) ofthe Loan Purchase Agreement High costjpredatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement. High cost/predatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement High costjpredatory loan law violations in breach of Section 7.02(xxxiv) ofthe Loan Purchase Agreement.

21 Case 1:08-cv JMF Document Filed 04/16/09 Page 21 of 23 SCHEDULE 3 - Second Lien Extinguished Prior to Transfer to Citigroup ] ] ] nd Lien extinguished prior to COM's purchase _nd Lien extinguished prior to COM's purchase Lien extinguished prior to COM's purchase Lien extinguished prior to COM's purchase Lien extinguished prior to COM's purchase 2 nd Lien extinguished prior to COM's purchase 2 nd Lien extinguished prior to CGM's purchase Lien extinguished prior to CGM's purchase Lien extinguished prior to CGM's purchase 2 nd Lien extinguished prior to CGM's purchase ] Lien extinguished prior to CGM's purchase 158] Lien extinguished prior to CGM's purchase nd Lien extinguished prior to CGM's purchase ien extinguished prior to CGM's purchase Lien extinguished prior to CGM's purchase

22 Case 1:08-cv JMF Document Filed 04/16/09 Page 22 of 23 SCHEDULE 4 - Assets Subjeet to Litigation Claims Prior to Transfer to Citigroup In litigation concerning borrower's claims for rescission and Truth in Lending Act violations. Unreleased mortgages threaten title; in litigation concerning borrower's claims for Truth in Lending Act violations. In litigation concerning borrower's claims for fraudulent rination.

23 Case 1:08-cv JMF Document Filed 04/16/09 Page 23 of 23 SCHEDULE 5 - Miscellaneous Deficiencies IIuI Loan paid in ful! prior to purchase 5HOU395 Loan is actually 3'd lien not as purchased No Residential Dwelling on Property; Mortgage already converted to REO Seller impaired right to foreclose after sale