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RICHARD CORDRAY

OHIO ATTORNEY GENERAL

RiECEIVED NOV 121010

November 9, 2010

VlA REGULAR MAIL

DanielL. McGookey, Esq.

Law Office of Dan 1. McGookey 225 Meigs Street

Sandusky, OH 44870

RE: Rhonda Mcl.aughlin v. Bank of America NA,. et al

Erie County Court of Common Pleas, Case No. 2010 CV 0852

Dear Mr. McGookey:

Enclosed please find copies of the Ohio Attorney General's Notice of Appearance of Counsel and Position of Defendant Ohio Attorney General on Plaintiffs Motion for Preliminary Injunction, which have been mailed today to the Erie County Clerk of Court today for filing in regards to the above referenced matter.

Please feel free to contact me upon receipt of this letter if you have any questions.

Sincerely,

Richard Cordray

Attorney General /

vr~

.Trffre; R. Loeser

Assistant Attorney General Telephone: (614) 466.1305 Facsimile: (614) 466.8898

J eff.Loeser@ohioattorneygeneral.gov

Consumer Protection Section

30 East Broad 5[ 14'" FI • Columbus, Ohio 43215. PHONE 614.466-8831. FA,'':; 614.466-8898. www.ag.state.oh.us

f i

I RECEIVED NOV 122010 IN THE COURT OF COMMON PLEAS FOR ERIE COUNTY

Rhonda Mclaughlin,

Plaintiff

vs.

Bank of America, NA, et at.

Defendants

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Case No. 2010 CV 0852 Judge: Roger E. Binette Magistrate: Steven Bechtel

Jeffrey R. Loeser (0082144) Assistant Attorney General Consumer Protection Section

Office of the Ohio Attorney General 30 E. Broad Street, 14th Floor Columbus, Ohio 43215

Phone: 614-466-1305

Fax: 877-650-4712

Counsel for Defendant Ohio Attorney General Richard Cordray

NOTICE OF APPEARANCE OF COUNSEL

Please take notice that that Jeffrey Loeser, Assistant Attorney General, Office of

Ohio Attorney General Richard Cordray, 30 East Broad Street, 14th Floor, Columbus,

Ohio 43215, respectfully enters his appearance on behalf of Defendant Ohio Attorney

General Richard Cordray.

Respectfully submitted RICHARD CORDRAY Ohio Attorney General

Assistant Attorney General Consumer Protection Section

30 East Broad Street, 14th Floor Columbus, OH 443215

614.466.1305 [Telephone] 877.650.4712 [Facsimile] Jeff.Loeser@ohioattomeygeneral.gov

I I. -

CERTIFICATE OF SERVICE

I hereby certify that a true and accurate copy of the foregoing Notice of Appearance of Counsel was served upon the following via ordinary U.S. mail, this 9th day of November, 2010.

Daniel L McGookey Esq

Law Office of Dan L. McGookey 225 Meigs Street

Sandusky, Ohio 44870

Bank of America NA 100 North Tyron Street Charlotte NC 28255

Rhonda Weston

clo Bank of America

475 Crosspoint Parkway Gertzville NY 14068-1609

Federal National Mortgage Association - .... 3900 Wisconsin Avenue NW

Washington DC 20016-2892

2

RECEIVED NOV 12 2010

IN THE COURT OF COMMON PLEAS FOR ERIE COUNTY

Rhonda McLaughlin,

Plaintiff

vs.

Bank of America, NA, et al.

Defendants

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Case No. 2010 CV 0852 Judge: Roger E. Binette Magistrate: Steven Bechtel

Jeffrey R. Loeser (0082144) Assistant Attorney General Consumer Protection Section

Office of the Ohio Attorney General 30 E. Broad Street, 14th Floor Columbus, Ohio 43215

Phone: 614-466-1305

Fax: 877-650-4712

Counsel for Defendant Ohio Attorney General Richard Cordray

POSITION OF DEFENDANT omo ATTORNEY GENERAL ON PLAINTIFF'S MOTION FOR PRELIMINARY INJUNCTION

Now comes Defendant Ohio Attorney General Richard Cordray ("Attorney

General"), by and through counsel, and hereby states his position on the preliminary

injunctive relief sought by Plaintiff against Defendant Federal National Mortgage

Association ("Fannie Mae"). The Attorney General does not object to the injunctive

relief being imposed and takes not position on whether it should be granted.

On October 22, Plaintiff Rhonda Mcl.aughlin moved for a preliminary injunction

against Defendant Fannie Mae to prohibit Fannie Mae from selling, transferring or

encumbering her home. The Court has scheduled a hearing on the motion for November

12. 'Plaintiff is not requesting any injunctive relief against the Attorney General, a fact

which the Attorney General's counsel has confirmed with Plaintiff's counseL

Because Plaintiff is not seeking any injunctive relief against the Attorney General,

counsel for the Attorney General called Magistrate Steven Bechtel on November 8 to

determine if it was necessary for the Attorney General to appear at the November 12

hearing. The Magistrate requested that the Attorney General file a statement of his

position on the injunctive relief sought against the other defendants.

The Attorney General hereby states that he does not object to or defend against

the injunctive relief sought by Plaintiff in his Motion for Preliminary Injunction. The

Attorney General takes no position on whether this relief should be granted and submits

to the judgment of the Court.

For a more detailed discussion of the Attorney General's views towards

foreclosure fraud generally, the Attorney General refers the Court to two letters he wrote

to the administrative and presiding judges of the Ohio courts of common pleas, including

Judge Binette. (Copies attached as State's Exhibits A and B).

Respectfully submitted RICHARD CORDRAY Ohio Attorney General

e ey R. Loeser (0082144)

Assistant Attorney General Consumer Protection Section 30 East Broad Street, 14th Floor Columbus, OH 443215 614.466.1305 [Telephone] 877.650.4712 [Facsimile]

J efr Loeser@ohioattorneygeneral.gov

\

2

CERTIFICATE OF SERVICE

I hereby certify that a true and accurate copy of the foregoing Position of Ohio Attorney General On Plaintiff's Motion for Preliminary- Injunction was served upon the following via ordinary U.S. mail, this 9th day of November. 2010.

Daniel L McGookey Esq

Law Office of Dan L. McGookey 225 Meigs Street

Sandusky, Ohio 44870

Bank of America NA 100 North Tyron Street Charlotte NC 28255

Rhonda Weston

clo Bank of America

475 Crosspoint Parkway Gertzville NY 14068-1609

Federal National Mortgage Association 3900 Wisconsin Avenue NW Washington DC 20016-2892

~

A<~(0082144)

3

Ric:HARD CORDRAY"

oaro ATT~RN:EY GENERAL

October 18, 2010

The Honorable Judge Roger E. Binette Erie County Court of Common Pleas 323 Columbus Avenue, 2nd Floor Sandusky, OH 44870-2602

Re: Fraudulent Foreclosure Affidavits

Dear Judge 'Binette,

On September,28, 2010, 1 wrote to you and the other presiding and administrative judges of the Ohio Courts of Common Pleas, noting widespread questions about the accuracy of affidavits filed in foreclosure cases by GMAC Mortgage.

We have since filed a lawsuit charging GMAC Mortgage, LLC and its parent, Ally Financial Inc., of filing fraudulent affidavits to mislead courts in hundreds of Ohio foreclosure cases. We are seeking a preliminary injunction that, if granted, would prevent GMAC Mortgage from completing foreclosure sales in Ohio based on fraudulent affidavits and stop GMAC from using faulty affidavit practices in other, foreclosure cases in Ohio.

In addition to GMAC, similar concerns have arisen about the accuracy of affidavits filed by others, including Bank of America, JPMorgan Chase, PNC, and OneWest Bank, each of which has acknowledged problems with fraudulent affidavits flied in foreclosure cases. Investigations by my office lead me to believe that others may well have followed similar fraudulent procedures (though note that no such problems have yet been identified with any Ohio community banks or credit unions). To explore the process used to create foreclosure affidavits, I am leading a multi-state investigation joined by alISO state attorneys general.

I urge you to review affidavits in foreclosure cases very closely. As I stated in my previous letter, at least one court has found that filing affidavits that falsely claim personal knowledge is a violation of the Ohio Consumer Sales Practices Act if connected with consumer transactions. Midland Funding, LLC v. Brent, 644 F. Supp. 2d 961, 977 (ND. Ohio, 2009). Sanctions for filing fraudulent evidence may well be appropriate, and this financial exposure could lead plaintiffs in foreclosure cases to seek negotiated resolutions rather than proceeding to judgment. Time will tell.

Please feel free to contact me or Susan Choe, my Consumer Protection Chief, at 614.466.1305, if we can provide any further information about these issues. Thank you.

Sincerely,

Richard Cordray

Ohio Attorney General

STATE'S EXHIBIT

A

R1CH'ARD ,CORDRAY,

" OHIO t<T'fOJt.NEY GENERA:I;

October 29, 2010

The Honorable Judge Roger E. Binette Erie County Court of Common 'Pleas 323 Columbus Avenue, 2nd Floor Sandusky, OH 44870-2602

Re: Fraudulent Foreclosure Affidavits

Dear Judge Binette,

On September 28, and October 18, 2010, I wrote to you and the other presiding and administrative judges of the Ohio Courts of Common Pleas, noting widespread questions about the accuracy of affidavits filed in foreclosure cases by GMAC Mortgage, Bank of America, JPMorgan Chase, PNC, and One West Bank, each of which has acknowledged problems with fraudulent affidavits filed in foreclosure cases.

I also informed you at that time of the actions that my office was taking with respect to these fraudulent affidavits, including the filing ofa lawsuit charging GMAC Mortgage, LLC and its parent, Ally Financial Inc., of filing fraudulent affidavits to mislead courts in hundreds of Ohio foreclosure cases and my offices lead role in a multi-state investigation joined by all 50 state attorneys general.

We have now learned recently of a March 9, 2010 deposition given by a robe-signer for Wells Fargo Bank, N.A., Xee Moua in a Florida foreclosure case. Among other things, Ms. Moua testified that crucial statements made by her in sworn affidavits were false. For instance, contrary to her affidavits:

• Moua was not "familiar with the books of account .,. kept by Wells Fargo Bank concerning the transaction alleged in this Complaint." (46:7-16.)

o Moua did not examine "the books, records, and documents." (49:4-9.)

• Moua did not have "personal knowledge of matters contained in books, records and documents kept by Wells Fargo Bank." (49:23 to 50:20.)

• Moua did not have "personal knowledge of the facts within" the affidavit. (48:19-21, 50:21-24.)

• Moua did not have "personal knowledge of the facts regarding the sums of money which are due and owing to Wells Fargo Bank, N.A." (50:25 to 51:6.)

In fact Ms. Moua testified that generally before signing a document she verifies that her "name" and her "title" are correct (29: 19-25) and that she does not review any of the "numbers" that appear on the documents because "[t]hat's not part of my job description". (30:4-5.)

... •

I

STATE'S EXHIBIT

B

These are crucial misstatements that are an affront to our legal system. In an October 27 News Release, Wells Fargo stated, "the company has identified instances where a final step in its processes relating to the execution of the foreclosure affidavits ... did not strictly adhere to the required procedures." Wells Fargo further stated it was "electing to submit supplemental affidavits for approximately 55,000 foreclosures." By this News Release, Wells Fargo is attempting to sweep under the rug the false affidavits filed by Wells Fargo in the courts.

My office will not let that happen in Ohio and have identified some affidavits signed by Ms. Moua and filed in Ohio foreclosure cases. If you become aware of affidavits Ms. Moua signed in any foreclosure cases filed in your Court. I would appreciate receiving copies of such affidavits.

Further our position in our GMAC lawsuit and the cases in which we have entered appearances as amicus is that it is improper for the plaintiff to ask the court to ratify a foreclosure judgment based on a false affidavit after the fact by simply substituting or supplementing what plaintiff now claims is a proper affidavit. If your court starts receiving substitute or supplemental affidavits with a request by plaintiff's counsel for the court to ratify a foreclosure judgment that already has occurred. I would appreciate your notifying this office. so we can determine if action by my office is appropriate.

FinaIJy, my office has also learned that to guard against fraudulent affidavits, some courts in Ohio are reviewing and other states have put in place, or are in the process of putting into place, procedures for the filing of such affidavits and the appropriate disposition of these foreclosure cases. If your court has established new policies in this area. I would appreciate your sending me copies of such procedures. so I can provide that information to other courts for their consideration. Also. if you would like such information on what other courts may be adopting. please let me know. I will be glad to provide you the information this office has just started collecting and expects to collect in the coming weeks. Of course, each court will determine based on the circumstances the ~ppropriate policy for that court.

I urge you to review affidavits in foreclosure cases very closely. Sanctions for filing fraudulent evidence may well be appropriate, and this financial exposure could lead plaintiffs in foreclosure cases to seek negotiated resolutions rather than proceeding to judgment.

Please feel free to contact me or Susan Choe, my Consumer Protection Section Chief, at 614-466-1305, if we can provide any further information about these issues. Thank you.

Sincerely,

Richard Cordray

Ohio Attorney General

CC:

Sarah Lynn, Deputy Chief Counsel, Ohio Attorney General

Susan Choe, Consumer Protection Section Chief, Ohio Attorney General

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