FILED: NEW YORK COUNTY CLERK 11/03/2014 09:05 PM INDEX NO. 652382/2014 NYSCEF DOC. NO. 166 RECEIVED NYSCEF: 11/03/2014 EXHIBIT N
Exhibit N: Loan Modification Examples - Conflict of Interests Example 1 Example 2 Example 3 Loan Number XXXXXXX445 XXXXXXX947 XXXXXXX764 Trust CHASE 2007-S3 CHASE 2007-S3 CHASE 2007-S1 Orig Date 02/21/2007 02/01/2007 11/28/2006 Loan Purpose Purchase Purchase Purchase Occupancy Owner Owner Owner FICO 744 773 731 Appraised Value 835,000 1,560,000 800,000 LTV 80% 70% 60% CLTV 90% 80% 80% Original Balance $668,000 $1,092,000 $480,000 Originator JPMorgan Chase JPMorgan Chase JPMorgan Chase Mortgage Rate 6.500 6.750 6.375 Second Lien $83,500 $156,000 $160,000 2ndLien Lender JPMorgan Chase JPMorgan Chase JPMorgan Chase Current Balance $524,353 $936,125 $318,983 Modification Date 08/01/2013 04/01/2013 07/01/2012 Property Value $797,000 $1,079,000 $417,472 Post Mod LTV 66% 87% 76% Current Rate 2.000 2.000 2.000 Loan Status Current Current Current Booked Loss $233,037 $416,789 $218,475 Street Address X XXXXX XXX XXXX XXXXXXX XX XXXX XX XXXX XX City Harrison Pacific Palisades Miami State & Zip NY 10528 CA 90272 FL 33165
Loan Modification Example 1 (loan number XXXXXXX445) Date Action Feb-21-2007 Subject property was purchased by borrower at $835,000 Feb-21-2007 Borrower took out $668,000 1st lien from JPMorgan Chase Feb-21-2007 Borrower took out $83,500 2nd lien from JPMorgan Chase Apr-17-2007 Oct-01-2011 Dec-12-2011 Jul-12-2012 Jul-12-2012 Aug-20-2012 Jul-08-2013 Jul-08-2013 The $668,000 1st lien was sold into CHASE 2007-S3 trust Borrower stopped making payments on the $668,000 1st lien The servicer sent a notice of default to the borrower (72 days past due) CHASE 2007-S3 trust filed for judicial foreclosure at the Supreme Court of the State of New York (Westchester County) JPMorgan Chase was named as defendant along with the borrower due to JPM's ownership of the 2nd lien The borrower requested judicial dismissal of the foreclosure action citing the lack of evidence showing the Trust's ownership of the mortgage note and the lack of proper notification afforded the borrower Servicer reached modification agreement with the borrower, lowering interest bearing principal balance to $534,624, lowering interest rate from 6.5% to 2% The subject property had an estimated market value of $798,000. Post loan mod, effective LTV dropped to 68%, far lower than the FHFA mandated HAMP guideline of 115% Jul-08-2013 The entire non-interest bearing balance of $233,037 was booked to the CHASE 2007- S3 trust as realized loss Oct-02-2013 Nov-01-2014 Servicer cancelled foreclosure action citing successful loan modification To date, there is no public records showing either satisfaction or modification of the $83,500 2nd lien indicating that it's still alive
Loan Modification Example 2 (loan number XXXXXXX947) Date Action Feb-01-2007 Subject property was purchased by borrower at $1,560,000 Feb-01-2007 Borrower took out $1,092,000 1st lien from JPMorgan Chase Feb-01-2007 Borrower took out $156,000 2nd lien from JPMorgan Chase Apr-17-2007 May-11-2007 Jan-07-2011 The $1,092,000 1st lien was sold into CHASE 2007-S3 trust Borrower took out $311,800 HELOC (home equity line of credit) from Washington Mutual This $311,800 HELOC was reconveyed to JPMorgan Chase (as successor by merger) Apr-01-2009 Jun-06-2012 Sep-07-2012 Borrower stopped making payments on the $1,092,000 1st lien The servicer sent out a notice of default to the borrower (by now, accumulated advances has reached $222,090) Notice of trustees sale of the property was announced Mar-01-2013 Servicer reached modification agreement with the borrower, lowering interest bearing principal balance to $962,267, lowering interest rate from 6.75% to 2% Mar-01-2013 The subject property had an estimated market value of $1,079,000. Post loan mod, effective LTV dropped to 89%, far lower than the FHFA mandated HAMP guideline of 115% Mar-01-2013 The entire non-interest bearing balance of $416,789 was booked to the CHASE 2007- S3 trust as realized loss Mar-14-2013 Nov-01-2014 Servicer cancelled trustees sale citing successful loan modification To date, there is no public records showing either satisfaction or modification of the $156,000 2nd lien or the $311,800 HELOC (the sum of these two amounts to $467,800, almost the same as the booked loss to CHASE 2007-S3 trust)
Loan Modification Example 3 (loan number XXXXXXX764) Date Action Nov-28-2006 Subject property was purchased by borrower at $800,000 Nov-28-2006 Borrower took out $480,000 1st lien from JPMorgan Chase Nov-28-2006 Borrower took out $160,000 2nd lien from JPMorgan Chase Apr-17-2007 Jul-01-2010 The $480,000 1st lien was sold into CHASE 2007-S1 trust Borrower stopped making payments on the $480,000 1st lien Jul-01-2012 Servicer reached modification agreement with the borrower, lowering interest bearing principal balance to $333,700, lowering interest rate from 6.375% to 2% Jul-01-2012 The subject property had an estimated market value of $417,000. Post loan mod, effective LTV dropped to 80%, far lower than the FHFA mandated HAMP guideline of 115% Jul-01-2012 The entire non-interest bearing balance of $218,475 was booked to the CHASE 2007-S3 trust as realized loss (including more than $62,000 of servicer advances) Nov-01-2014 To date, there is no public records showing either satisfaction or modification of the $160,000 2nd lien held by JPMorgan Chase