CERTIFIED FORENSIC LOAN AUDITORS, LLC PROPERTY SECURITIZATION ANALYSIS REPORT TM JOHN DOE 1234 MAIN ST. ANYTOWN, USA 12345

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1 CERTIFIED FORENSIC LOAN AUDITORS, LLC West Washington Blvd., Suite 140, Los Angeles, CA Phone: ; PROPERTY SECURITIZATION ANALYSIS REPORT TM This is a Securitization Analysis Report and not a Forensic Audit Report Prepared on: OCTOBER 03, 2011 Prepared on behalf of: JOHN DOE 1234 MAIN ST. ANYTOWN, USA Page 1

2 I. TRANSACTION DETAILS BORROWER & CO-BORROWER: BORROWER JOHN DOE CURRENT ADDRESS 1234 MAIN ST. ANYTOWN, USA CO-BORROWER N/A SUBJECT ADDRESS 1234 MAIN ST. ANYTOWN, USA TRANSACTION PARTICIPANTS MORTGAGE BROKER MORTGAGE SERVICER MORTGAGE NOMINEE/BENEFICIARY N/A WORLD SAVINGS BANK, FSB WORLD SAVINGS BANK, FSB ORIGINAL MORTGAGE LENDER MORTGAGE TRUSTEE TITLE COMPANY WORLD SAVINGS BANK, FSB 1901 HARRISON STREET, OAKLAND, CA GOLDEN WEST SAVINGS ASSOCIATION SERVICE CO. N/A Page 2

3 II. SECURITIZATION SECURITIZATION PARTICIPANTS: ORIGINATOR/ LENDER SPONSOR/SELLER DEPOSITOR WORLD SAVINGS BANK, FSB WACHOVIA BANK, NATIONAL ASSOCIATION WACHOVIA MORTGAGE LOAN TRUST, LLC ISSUING ENTITY TRUSTEE MASTER SERVICER/ SERVICER WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST HSBC BANK USA, NATIONAL ASSOCIATION U.S. BANK NATIONAL ASSOCIATION CUSTODIAN CUT OFF DATE CLOSING DATE HSBC BANK USA, NATIONAL ASSOCIATION MAY 1, 2006 ON OR ABOUT MAY 25, 2006 Page 3

4 $400,155,100 (Approximate) Wachovia Mortgage Loan Trust, LLC Series 2006-A Trust Issuing Entity Wachovia Mortgage Loan Trust, LLC Wachovia Bank, National Association Depositor Seller and Sponsor National City Mortgage Co. and Wells Fargo Bank, N.A. U.S. Bank National Association Servicers and Originators Master Servicer and Certificate Administrator Mortgage Pass-Through Certificates, Series 2006-A SUMMARY This summary does not contain all of the information that you need to consider in making your investment decision. To understand the terms of the offered certificates, you should read this entire prospectus supplement and the prospectus carefully. Title of Series Depositor Issuing entity Seller and Sponsor Originators and Servicers Trustee Master Servicer and Certificate Administrator Wachovia Mortgage Loan Trust, LLC Mortgage Pass-Through Certificates, Series 2006-A. Wachovia Mortgage Loan Trust, LLC. Wachovia Mortgage Loan Trust, LLC Series 2006-A Trust. Wachovia Bank, National Association. National City Mortgage Co. and Wells Fargo Bank, N.A. HSBC Bank USA, National Association. U.S. Bank National Association. Closing Date On or about May 25, Cut-Off Date May 1, Distribution Date Scheduled Final Distribution Date Form of securities Minimum denominations The 20th day of each month, or, if that day is not a business day, the next business day, beginning on June 20, May 20, The actual final distribution date for the certificates could be substantially earlier. See Yield and Prepayment Considerations Assumed Final Distribution Date in this prospectus supplement. Other than the Class 1-A-R Certificates, book-entry. The Class 1-A-R Certificates will be definitive certificates. Other than the Class 1-A-R Certificates, $10,000 and integral multiples of $1 in excess of that amount. For the Class 1-A-R Certificates, other than the de minimus amount expected to be held by the Page 4

5 seller, 20% of the percentage interest of the Class 1-A-R Certificates. Mortgage Pool The mortgage pool will consist of four loan groups of adjustable interest rate, fullyamortizing mortgage loans secured by first liens on one- to four-family properties, which include single-family detached properties, properties in planned unit developments, two-to-four family units, cooperatives, condominiums and townhouses. The Group 1, Group 2, Group 3 and Group 4 mortgage loans provide for a fixed interest rate during an initial period of approximately three, five, seven and ten years, respectively, from the date of origination of each mortgage loan and thereafter provide for adjustments to that interest rate on an annual basis (or, for one mortgage loan, on a semi-annual basis). The interest rate of each mortgage loan will adjust to equal the sum of an index and a gross margin. Interest rate adjustments will be subject to certain limitations stated in the related mortgage note on increases and decreases for any adjustment. In addition, interest rate adjustments will be subject to an overall maximum mortgage interest rate. For the mortgage loans in Group 1, Group 2 and Group 4, the index will be the arithmetic mean of the London interbank offered rate quotations for one-year (or, for one mortgage loan, six-months) U.S. Dollar-denominated deposits as published in The Wall Street Journal. For the mortgage loans in Group 3, the index will be the weekly average yield on U.S. Treasury securities adjusted to a constant maturity of one year, as reported by the Federal Reserve Board in statistical Release No. H.15 (519). All of the mortgage loans in Group 1, Group 2 and Group 4 were originated or acquired and are being serviced by National City, and all of the mortgage loans in Group 3 were originated or acquired and are being serviced by Wells Fargo. Assignment of Mortgage Loans In connection with the transfer and assignment of the Mortgage Loans to the Trustee, the Depositor will deliver or cause to be delivered to the Trustee, or the Custodian on its behalf, among other things, the Mortgage File with respect to each Mortgage Loan. Assignments of the Mortgage Loans to the Trustee (or its nominee) will not be recorded, except in states where recordation is required in the appropriate public office for real property records by either Rating Agency to obtain the initial ratings on the Certificates described under Certificate Ratings in this prospectus supplement. With respect to any mortgage which has been recorded in the name of MERS or its designee, no mortgage assignment in favor of the Trustee will be required to be prepared or delivered, and any such mortgage will not be recorded. Instead, the related Servicer will be required to take all actions as are necessary to cause the Trust to be shown as the owner of the related Mortgage Loan on the records of MERS for purposes of the system of recording transfers of beneficial ownership of mortgages maintained by MERS. The Trustee, or the Custodian on its behalf, will promptly review each Mortgage File after the Closing Date (or promptly after the Trustee s receipt of any document permitted to be delivered after the Closing Date) to determine if any of the required documents is missing. Repurchases of Mortgage Loans If any document required to be included in the Mortgage File is defective or is not delivered to the Trustee, or the Custodian on its behalf, and the defect or omission materially and adversely affects the interest of the certificateholders in the Mortgage Loan, or if a Mortgage Loan breaches any of the representations made by the Seller in the Mortgage Loan Purchase Agreement in any ma- Page 5

6 terial respect and the Depositor or the Seller, as applicable, does not cure such omission or defect within 90 days, the Depositor or the Seller, as applicable, will be required, within 90 days following discovery or notice of the defect or omission either (i) to repurchase the related Mortgage Loan (or any property acquired in respect thereof) at the Purchase Price, or (ii) to substitute an Eligible Substitute Mortgage Loan; however, such substitution generally is permitted only within two years of the Closing Date. Any Mortgage Loan repurchased or subject to a substitution as described in this paragraph is referred to as a Deleted Mortgage Loan. In the case of the breach of the representation made by the Seller that a Mortgage Loan at the time of its origination complied with any applicable federal, state or local predatory or abusive lending laws, the Seller will be required to pay any costs or damages incurred by the Trust as a result of the violation of such laws. With respect to any Eligible Substitute Mortgage Loan, if the principal balance of such Eligible Substitute Mortgage Loan (after deduction of any monthly payments due in the month of substitution) is less than the unpaid principal balance of the related Deleted Mortgage Loan, such shortfall (referred to as a Substitution Adjustment Amount) will be deposited by the Seller or the Depositor, as applicable, and held for distribution to the certificateholders on the related Distribution Date. This cure, repurchase or substitution obligation constitutes the sole remedy available to certificateholders or the Trustee for omission of, or a material defect in, a Mortgage Loan document or a breach of a representation or warranty. 424B5 Page 6

7 WACHOVIA MORTGAGE LOAN TRUST, LLC, as Depositor, U.S. BANK NATIONAL ASSOCIATION, as Master Servicer and Certificate Administrator, NATIONAL CITY MORTGAGE CO. and WELLS FARGO BANK, N.A. as Servicers, and HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee POOLING AND SERVICING AGREEMENT Dated May 25, 2006 Mortgage Pass-Through Certificates Series 2006-A CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES Section 2.01 Conveyance of Mortgage Loans. (a) The Depositor, concurrently with the execution and delivery hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the Trustee on behalf of the Trust for the benefit of the Certificateholders, without recourse, all the right, title and interest of the Depositor in and to the Mortgage Loans, including all interest and principal received on or with respect to the Mortgage Loans (other than payments of principal and interest due and payable on the Mortgage Loans on or before the Cut-Off Date), all accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing, and all proceeds of the foregoing. The foregoing sale, transfer, assignment and set over does not and is not intended to result in a creation of an assumption by the Trustee of any obligation of the Depositor or any other Person in connection with the Mortgage Loans or any agreement or instrument relating thereto, except as specifically set forth herein. In connection with the conveyance by the Depositor of the Mortgage Loans, the Depositor further agrees, at its own expense, on or prior to the Closing Date, to indicate on its books and records that the Mortgage Loans have been sold to the Trustee on behalf of the Trust pursuant to this Agreement, and to deliver to the Trustee the Mortgage Loan Schedule. The Mortgage Loan Schedule shall be marked as Exhibit D-1, Exhibit D-2, Exhibit D-3 and Exhibit D-4 to this Agreement and is hereby incorporated into and made a part of this Agreement. (b) In connection with such transfer and assignment, the Depositor has delivered or caused to be delivered to the Custodian, on behalf of the Trustee, for the benefit of the Certificateholders, the following documents or instruments with respect to each Mortgage Loan so assigned: (i) the original Mortgage Note, endorsed by manual or facsimile signature either (A) in blank or (B) in the following form: Pay to the order of HSBC Bank USA, National Association, as Trustee, without recourse, with all necessary intervening endorsements showing a complete chain of en- Page 7

8 dorsement from the originator to the Trustee (each such endorsement being sufficient to transfer all right, title and interest of the party so endorsing in and to that Mortgage Note); (ii) except as provided below, the original recorded Mortgage with evidence of a recording thereon, or if any such Mortgage has not been returned from the applicable recording office or has been lost, or if such public recording office retains the original recorded Mortgage, a copy of such Mortgage certified by the Depositor as being a true and correct copy of the Mortgage, if such copy is available; (iii) subject to the provisos at the end of this paragraph, a duly executed Assignment of Mortgage to HSBC Bank USA, National Association, as trustee for the holders of the Wachovia Mortgage Loan Trust, LLC Mortgage Pass-Through Certificates, Series 2006-A Certificates (which may be included in a blanket assignment or assignments), together with, except as provided below, originals of all interim recorded assignments of such mortgage or copies of such interim assignments certified by the Depositor as being true and complete copies of the original recorded intervening assignments of mortgage (each such assignment, when duly and validly completed, to be in recordable form and sufficient to effect the assignment of the related Mortgage to the assignee thereof); provided that, if the related Mortgage has not been returned from the applicable public recording office, such Assignment of Mortgage may exclude the information to be provided by the recording office; and provided, further, if the related Mortgage has been recorded in the name of Mortgage Electronic Registration Systems, Inc. ( MERS ) or its designee, no Assignment of Mortgage in favor of the Trustee will be required to be prepared or delivered and instead, the Servicer servicing such Mortgage shall take all actions as are necessary to cause the Trust or the Trustee to be shown as the owner of the related Mortgage Loan on the records of MERS for purposes of the system of recording transfers of mortgages maintained by MERS; (iv) the originals of all assumption, modification, consolidation or extension agreements, if any, with evidence of recording thereon, if any; (v) the original or duplicate original mortgagee title insurance policy and all riders thereto; (vi) the original of any guarantee executed in connection with the Mortgage Note; (vii) for each Mortgage Loan, if any, which is secured by a residential long-term lease, a copy of the lease with evidence of recording indicated thereon, or, if the lease is in the process of being recorded, a photocopy of the lease, certified by an officer of the respective prior owner of such Mortgage Loan or by the applicable title insurance company, closing/settlement/escrow agent or company or closing attorney to be a true and correct copy of the lease transmitted for recordation; (viii) the original of any security agreement, chattel mortgage or equivalent document executed in connection with the Mortgage; and (ix) for each Mortgage Loan secured by Co-op Shares, the originals of the following documents or instruments: (A) The stock certificate; (B) The stock power executed in blank; (C) The executed proprietary lease; (D) The executed recognition agreement; (E) The executed assignment of recognition agreement, if any; (F) The executed UCC-1 financing statement with evidence of recording thereon; and (G) Executed UCC-3 financing statements or other appropriate UCC financing statements, evidencing a complete and unbroken line of assignments from the mortgagee to the Trustee Page 8

9 with evidence of recording thereon (or in a form suitable for recordation). provided, however, that on the Closing Date, with respect to item (iii), the Depositor has delivered to the Custodian a copy of such Assignment of Mortgage in blank and has caused the Servicer servicing the related Mortgage Loan to retain the completed Assignment of Mortgage for recording as described below, unless such Mortgage has been recorded in the name of MERS or its designee. In addition, if the Depositor is unable to deliver or cause the delivery of any original Mortgage Note due to the loss of such original Mortgage Note, the Depositor may deliver a Lost Note Affidavit together with a copy of such Mortgage Note, if a copy is available, and shall thereby be deemed to have satisfied the document delivery requirements of this Section 2.01(b). PSA Page 9

10 III. FORECLOSURE Chain of Title and Chain of Note Recorded Events on the Loan Including Foreclosure Issues and Securitization Recorded Chain of Deed Possession Chain of Note Possession Date Original Deed of Trust Date Note Holder FEBRUARY 01, 2006 Instrument # Official Records, CLARK COUNTY NEVADA JOHN DOE (Borrower) WORLD SAVINGS BANK, FSB (Lender) JANUARY 26, 2006 WORLD SAVINGS BANK, FSB (Lender) Principal Amount: $195, JULY 31, 2009 Instrument # Official Records, CLARK COUNTY NEVADA NOTICE OF DEFAULT NATIONAL DEFAULT SERVICING CORPORATION, AS AGENT FOR WACHOVIA MORTGAGE, FSB BY GARY TRAFFORD, AGENT MAY 1, 2006 WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST SEPTEMBER 23, 2010 Instrument # Official Records, CLARK COUNTY NEVADA NOTICE OF DEFAULT NATIONAL DEFAULT SERVICING CORPORATION, AS AGENT FOR WACHOVIA MORTGAGE, FSB BY ANSELMO PAGKALIWANGAN, AGENT OCTOBER 01, 2010 Instrument # Official Records, CLARK COUNTY NEVADA NOTICE OF RESCISSION NATIONAL DEFAULT SERVICING CORPORATION, DERRECK RICE, AUTHORIZED SIGNER JUNE 06, 2011 Instrument # Official Records, CLARK COUNTY NEVADA SUBSTITUTION OF TRUSTEE WELLS FARGO BANK, N.A. BY M. BURROW, VICE PRESIDENT OF LOAN DOCUMENTATION SEPTEMBER 09, 2011 Instrument # Official Records, CLARK COUNTY NEVADA NOTICE OF TRUSTEE S SALE NATIONAL DEFAULT SERVICING CORPORATION BY NICHOLE ALFORD, TRUSTEE SALES REPRESENTATIVE Page 10

11 Deed of Trust: IV. REPORT SUMMARY On JANUARY 26, 2006, Debtors JOHN DOE executed a negotiable promissory note and a security interest in the form of a Deed of Trust in the amount of $195, This document was filed as document number in the Official Records, CLARK COUNTY, NEVADA. This document identifies the loan number as N/A. The original lender of the promissory note is WORLD SAVINGS BANK, FSB. The original trustee under this Deed of Trust is GOLDEN WEST SAVINGS ASSOCIATION SERVICE CO.. Notice of Default: On JULY 31, 2009 Document number (Notice of Default and Election to Sell Under Deed of Trust) was filed in the Official Records CLARK COUNTY, NEVADA. This Document properly identifies the amount of the mortgage loan that debtors obtained on JANUARY 26, 2006, recorded FEBRUARY 01, Notice of Default: On SEPTEMBER 23, 2010 Document number (Notice of Default and Election to Sell Under Deed of Trust) was filed in the Official Records CLARK COUNTY, NEVADA. This Document properly identifies the amount of the mortgage loan that debtors obtained on JANUARY 26, 2006, recorded FEBRUARY 01, Notice of Rescission: On OCTOBER 01, 2010, a Notice of Rescission was filed as document number in the Recorder s Office, CLARK COUNTY, NEVADA. Substitution of Trustee: On JUNE 06, 2011, a Substitution of Trustee was filed as document number in the Recorder s Office, CLARK COUNTY, NEVADA. This document properly identifies the amount of the mortgage loan that debtor obtained on JANUARY 26, Notice of Trustee s Sale: On SEPTEMBER 09, 2011, a Notice of Trustee s Sale was filed as document number in the Official Records, CLARK COUNTY, NEVADA. Securitization: The NOTE was sold, transferred and securitized into WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST. Page 11

12 NO RECORD FOUND FOR THE ORIGINAL LENDER ORIGINAL TRUSTEE WITH ACTIVE STATUS Page 12

13 WACHOVIA MORTGAGE LOAN TRUST, LLC 2006-A ON BLOOMBERG Bloomberg.com PROSPECTUS FILING Page 13

14 SECURITY BOND DESCRIPTION Page 14

15 GROUP DESCRIPTION Page 15

16 COLLATERAL CHARACTERISTICS WELLS FARGO AS SERVICER Page 16

17 CLASSES / CUSSIP / GROUP = PAID AND ACTIVE STATUS Page 17

18 LOAN PERFORMANCE DATA Page 18

19 V. CONCLUSION CHAIN OF TITLE JOHN DOE BORROWER TRUSTOR MORTGAGOR/MORTGAGER GRANTOR DEED OF TRUST PROMISSORY NOTE WORLD SAVINGS BANK, FSB 1901 HARRISON STREET, OAKLAND, CA CLARK COUNTY MAINTAINS ASSIGNMENT HISTORY MONTHLY PAYMENTS NOTE WAS SOLD & TRANSFERRED NOTE WAS SPLIT FROM THE DEED WACHOVIA BANK, NATIONAL ASSOCIATION SELLER Purchases loans from originator; forms pool LENDER/ ORIGINATOR WORLD SAVINGS BANK, FSB U.S. BANK NATIONAL ASSOCIATION MASTER SERVICER Services individual loans; Aggregates Collection; Performs Duties Under Trust s Pooling & Servicing Agreement WACHOVIA MORTGAGE LOAN TRUST, LLC CERTIFICATES UNDERWRITERS SELLS CERTIFICATES TO INVESTORS; COLLECTS OFFERING PROCEEDS CERTIFICATES DEPOSITOR Creates Issuing Entity CERTIFICATES OFFERING PROCEEDS WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST TRUST FUND ISSUING ENTITY Holds pool of loans; issues certificates HSBC BANK USA, NATIONAL ASSOCIATION TRUSTEE FOR THE TRUST& UNDERLYING CUSTODIAN Represents Investors Interests; Calculates Cash Flows; Remits Net Revenues RETURN ON INVESTMENTS INVESTORS Purchase Mortgage Backed Securities as defined in Certificates ARROW LEGEND PURPLE MORTGAGE DOCUMENTS BLUE SECURITIES CERTIFICATES RED INVESTOR FUNDS GREEN BORROWER FUNDS Page 19

20 For traditional lending prior to Securitization, the original Deed recording was usually the only recorded document in the Chain of Title. That is because banks kept the loans, and did not sell the loan, hence, only the original recording being present in the banks name. The advent of Securitization, especially through Private Investors and not Fannie Mae or Freddie Mac, involved an entirely new process in mortgage lending. With Securitization, the Notes and Deeds were sold once, twice, three times or more. Using the traditional model would involve recording new Assignments of the Deed and Note as each transfer of the Note or Deed of Trust occurred. Obviously, this required time and money for each recording. (The selling or transferring of the Note is not to be confused with the selling of Servicing Rights, which is simply the right to collect payment on the Note, and keep a small portion of the payment for Servicing Fees. Usually, when a homeowner states that their loan was sold, they are referring to Servicing Rights) Securitizing a Loan Securitizing a loan is the process of selling a loan to Wall Street and private investors. it is a method with many issues to be considered. The methodology of securitizing a loan generally followed these steps: A Wall Street firm would approach other entities about issuing a Series of Bonds for sale to investors and would come to an agreement. In other words, the Wall Street firm pre-sold the bonds. The Wall Street firm would approach a lender and usually offer them a Warehouse Line of Credit. The Warehouse Credit Line would be used to fund the loan. The Warehouse Line would be covered by restrictions resulting from the initial Pooling & Servicing Agreement Guidelines and the Mortgage Loan Purchase Agreement. These documents outlined the procedures for the creation of the loans and the administering of the loans prior to, and after, the sale of the loans to Wall Street. The Lender, with the guidelines, essentially went out and found buyers for the loans, people who fit the general characteristics of the Purchase Agreement. (Guidelines were very general and most people could qualify. The Lender would execute the loan and fund it, collecting payments until there were enough loans funded to sell to the Wall Street firm who could then issue the bonds. Once the necessary loans were funded, the lender would then sell the loans to the Sponsor, usually either a subsidiary of the Wall Street firm, of a specially created Corporation of the lender. At this point, the loans are separated into tranches of loans, where they will be eventually turned into bonds. Page 20

21 Next, the loans were sold to the Depositor. This was a Special Purpose Vehicle designed with one purpose in mind. That was to create a bankruptcy remote vehicle where the lender or other entities are protected from what might happen to the loans, and/or the loans are protected from the lender. The Depositor would have once again created by the Wall Street firm or the Lender. Then, the Depositor places the loans into the Issuing Entity, which is another created entity solely used for the purpose of selling the bonds. Finally, the bonds would be sold, with a Trustee appointed to ensure that the bondholders received their monthly payments. WORLD SAVINGS BANK, FSB was a correspondent lender that originated mortgage loans which in turn, was sold and transferred into a federally-approved securitization trust named WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST. The Note and Deed have taken two distinctly different paths. The Note was securitized into WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST. The written agreement that created the WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST is a Pooling and Servicing Agreement (PSA), and is a matter of public record, available on the website of the Securities Exchange Commission. The Trust is also described in a Prospectus Supplement, also available on the SEC website. The Trust by its terms set a CLOSING DATE of ON OR ABOUT MAY 25, The promissory note in this case became trust property in compliance with the requirement set forth in the PSA. The Trust agreement is filed under oath with the Securities and Exchange Commission. The acquisition of the assets of the subject Trust and the PSA are governed under the law. In view of the foregoing, the Assignment of Deed of Trust executed after the Trust s Closing Date would be a void act for the reason that it violated the express terms of the Trust instrument. The loan was originally made to WORLD SAVINGS BANK, FSB and was sold and transferred to WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST. There is no record of Assignments to either the Sponsor or Depositor as required by the Pooling and Servicing Agreement. In Carpenter v. Longan 16 Wall. 271,83 U.S. 271, 274, 21 L.Ed. 313 (1872), the U.S. Supreme Court stated The note and mortgage are inseparable; the former as essential, the latter as an incident. An assignment of the note carries the mortgage with it, while assignment of the latter alone is a nullity. An obligation can exist with or without security. With no security, the obligation is unsecured but still valid. A security interest, however, cannot exist without an underlying existing obligation. It is impossible to define security apart from its relationship to the promise or obligation it secures. The obligation and the security are commonly drafted as Page 21

22 separate documents typically a promissory note and a deed of trust. If the creditor transfers the note but not the deed of trust, the transferee receives a secured note; the security follows the note, legally if not physically. If the transferee is given the deed of trust without the note accompanying it, the transferee has no meaningful rights except the possibility of legal action to compel the transferor to transfer the note as well, if such was the agreement. (Kelley v. Upshaw 91952) 39 C.2d 179, 246 P.2d 23; Polhemus v. Trainer (1866) 30C 685) Where the mortgagee has transferred only the mortgage, the transaction is a nullity and his assignee having received no interest in the underlying debt or obligation, has a worthless piece of paper (4 Richard R. Powell), Powell on Real Property, [2] (2000) By statute, assignment of the mortgage carries with it the assignment of the debt... Indeed, in the event that a mortgage loan somehow separates interests of the note and the deed of trust, with the deed of trust lying with some independent entity, the mortgage may become unenforceable. The practical effect of splitting the deed of trust from the promissory note is to make it impossible for the holder of the note to foreclose, unless the holder of the deed of trust is the agent of the holder of the note. Without the agency relationship, the person holding only the note lacks the power to foreclose in the event of default. The person holding only the deed of trust will never experience default because only the holder of the note is entitled to payment of the underlying obligation. The mortgage loan becomes ineffectual when the note holder did not also hold the deed of trust. Page 22

23 AFFIDAVIT STATE OF CALIFORNIA ) ) COUNTY OF LOS ANGELES ) I, AUDITOR, a citizen of the United States and the State of California over the age of 21 years, and declares as follows, under penalty of perjury that the facts stated herein are true, correct and complete. The undersigned believes them to be true and admissible as evidence in a court of law, and if called upon as a witness, will testify as stated herein: 1. That I am a subscriber of the Bloomberg Professional Service, certified and licensed to use such service. I have completed the required training and engaged in the continual education with Bloomberg both online and at Bloomberg s headquarters, to stay abreast with Bloomberg s latest progress and developments. I have the requisite knowledge and the trained command to navigate and perform effective searches on the Bloomberg terminal. 2. I am a Certified Mortgage Securitization Auditor and my qualifications, expertise and experience provide me with the background necessary to certify the audit services and to be qualified as an expert in this field. I have produced thousands of Securitized Analysis Reports in residential real estate mortgage investigation and have trained auditors in California, Nevada and Florida. 3. I have the trained skills and qualifications to navigate and perform searches on the Bloomberg terminal in regards to the automatic tracking and determination of mortgage loans and the subsequent loan-related documents and information. 4. The contents of this report are factual, but it is provided for information purposes only and is not to be construed as legal advice. 1 1 The client has been strongly advised to seek legal consultation from a competent legal professional in connection with the content of this report and how to properly use it Page 23

24 5. On October 3, 2011, I researched the Bloomberg online Database at the request of JOHN DOE whose property address is 1234 MAIN ST. ANYTOWN, USA Based on the information I was provided, JOHN DOE signed a Promissory Note in favor of World Savings Bank, FSB on January 26, Loan was identified in WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES A TRUST with the Master Servicer being U.S. Bank National Association, the Sponsor / Seller being Wachovia Bank, National Association and the Depositor being Wachovia Mortgage Loan Trust, LLC. 8. The basis of the identification of Loan in WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST was based on the following factors/information from WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST - Loans that corresponds exactly with JOHN DOE s loan documents provided: Original Amount: $195,000.00; Location of Property: USA; Property Type: Single Family Residence; Zip Code: JOHN DOE s Note was split-apart or fractionalized, as separate accounting entries and deposited separately into Classes. Each Class is insured up to 30 times the face value of each Note therein, which is permissible under the Federal Reserve System. 10. Pursuant to my extensive research, I have found the Loan in fifteen (15) Classes of the WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST. These classes represent the sections that the WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST are divided into. Individuals invest in these Classes based on their desired maturities. The WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST pays interest, usually monthly, to investors and principal payments are paid out in the order of the maturity. 11. Below are the classes the WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST has been divided into and their CUSIP number which is a nine (9) character alphanumeric code identifying any North American security for the purpose of facilitating clearing and settlement of trades. Page 24

25 12. There are a total of fifteen (15) classes in WACHOVIA MORTGAGE LOAN TRUST, LLC SERIES 2006-A TRUST. 13. The Loan is in the fifteen (15) classes. Six (6) classes out of the fifteen (15) have been paid. 14. Generally, if the Deed of Trust and the Note are not together with the same entity, there can be no legal enforcement of the Note. The deed of trust enforces the Note and provides the capability for the lender to foreclose on the property. Thus, if the Deed of Trust and the Note are separated, foreclosure legally cannot occur. The Note cannot be enforced by the Deed of Trust if each contains a different mortgagee/beneficiary; and, if the Deed of trust is not itself a legally enforceable instrument, there can be no valid foreclosure on the homeowners property. Page 25

26 15. No Entity can be a CREDITOR if they do not hold/own the asset in question (i.e. the NOTE and/or the property); a Mortgage Pass Through Trust (i.e. R.E.M.I.C., as defined in Title 26, Subtitle A, Chapter 1, Subchapter M, Part II ) cannot hold assets, for if they do, their tax exempt status is violated and the Trust itself is void ab initio. Therefore, either the Trust has either voided its intended Tax Free Status, or the asset is not in fact owned by it. 16. Since the loan was sold, pooled and turned into a security, the alleged holder can no longer claim that it is a real party of interest, as the original lender has been paid in full. 17. Further said, once the Note was converted into a stock, or stock equivalent, it is no longer a Note. If both the Note and the stock, or stock equivalent, exist at the same time, that is known as double dipping. Double dipping is a form of securities fraud. 18. Once a loan has been securitized, which the aforementioned loan had been many times, it forever loses its security component (i.e., the Deed of Trust), and the right to foreclose through the Deed of Trust is forever lost. 19. The Promissory Note has been converted into a stock as a permanent fixture. It is now a stock and governed as a stock under the rules and regulations of the SEC; hence, the requirement for the filings of the registration statements, pooling and servicing agreements, form 424B-5, etc. There is no evidence on Record to indicate that the Deed of Trust was ever transferred concurrently with the purported legal transfer of the Note, such that the Deed of Trust and Note has been irrevocably separated, thus making a nullity out of the purported security in a property, as claimed (Federal Rules of Evidence Rules 901 & 902). Page 26

27 Careful review and examination reveals that this was a securitized loan. The Assignment of Mortgage pretended to be an A to D transaction when in fact the foreclosing party was hiding the A to B, B to C, and C to D facts of true sales. They also hid the legal SEC filings, governing the transaction according to our findings. But to be controlled by those SEC filings, the true original loan Note and Mortgage had to be provided by the Document Custodian certified to have been in possession of them by the on or about May 25, Because it was not, the claim of ownership by the Trust cannot be substantiated and the loan servicing rights not established at law by agreement. I supply this report as written testimony and am available for oral testimony. By: AUDITOR Certified Mortgage Securitization Auditor / Bloomberg Specialist Page 27