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Lawrence Nardi - 5/9/2012

Page 1 IN THE CIRCUIT COURT OF THE FIFTH JUDICIAL CIRCUIT, IN AND FOR LAKE COUNTY, FLORIDA CASE NO.: 2009 CA 005717 JPMORGAN CHASE BANK, N.A. as Successor in Interest to WASHINGTON MUTUAL BANK, Plaintiff, VS SHERONE D. WAISOME, et al, Defendant. * * * * * * * * * * * * * * * * * * * * * * * * * * DEPOSITION OF: LAWRENCE NARDI, VOLUME 1 OF 2 DATE TAKEN: TIME: PLACE: MAY 9, 2012 9:03 A.M. 121 SOUTH ORANGE AVENUE SUITE 800 ORLANDO, FLORIDA CINDY CONNER, CSR, RPR AND NOTARY PUBLIC

REPORTED BY:

* * * * * * * * * * * * * * * * * * * * * * * * * *

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A P P E A R A N C E S

RACHEL CREWS, ESQUIRE Gray Robinson, P.A. 301 East Pine Street Suite 1400 Orlando, Florida 32801 APPEARING ON BEHALF OF THE PLAINTIFF JACQULYN MACK, ESQUIRE Mack Law Firm Chartered 2022 Placida Road Englewood, Florida 34224 APPEARING ON BEHALF OF THE DEFENDANTS

ALSO PRESENT:

Mr. Sherome Waisome Mr. Nye Lavalle

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C O N T E N T S

TESTIMONY OF LAWRENCE NARDI, VOLUME 1 of 2 Direct Examination by Ms. Mack 5

- - - - E X H I B I T S PAGE DEFENDANT'S EXHIBIT 1 Letter dated 10/10/08 from Chase to Mr. Waisome DEFENDANT'S EXHIBIT 2 Fixed/Adjustable Rate Note DEFENDANT'S EXHIBIT 3 Prepayment fee note addendum DEFENDANT'S EXHIBIT 4 Mortgage DEFENDANT'S EXHIBIT 5 8/16/07 document with FHA identifiers DEFENDANT'S EXHIBIT 6 8/29/07 letter from Washington Mutual DEFENDANT'S EXHIBIT 7 Authorization for release of information DEFENDANT'S EXHIBIT 8 Loan history DEFENDANT'S EXHIBIT 9 Residential broker price opinion DEFENDANT'S EXHIBIT 10 3270 Explorer screen shot DEFENDANT'S EXHIBIT 10A 3270 Explorer screen shot 60 64 66 78 106 120 124 130 184 184 187

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- - - - DEFENDANT'S EXHIBIT 12 3/18/11 Reconciled market value DEFENDANT'S EXHIBIT 13 9/1/11 reconciled market value 190 198 DEFENDANT'S EXHIBIT 11 Income report card 187 E X H I B I T S (continued)

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

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BY MS. MACK: Q Hi, Mr. Nardi. My name is Jacqulyn Mack. And have you ever had your I P R O C E E D I N G S (On the record at 9:03.) LAWRENCE NARDI, having been first duly sworn to testify the truth, the whole truth and nothing but the truth, testified as follows: THE WITNESS: I do.

DIRECT EXAMINATION

represent the Waisomes. deposition taken before? A Q I have. Okay.

If you don't understand my questions,

please let me know because if you answer, I will assume that you understood it. If I am talking too fast, I'm But, again,

sure the court reporter will let me know. if you don't understand, let me know.

Please don't

answer with a shake of your head or an "uh-huh" or "huh-uh," because it doesn't come out very well. I will do my best to make sure that I wait until you are done with your answers. And if you could

please just try and do the same, that would make our record a lot clearer than if we talk on top of each other. If you need a break, you can just let me know or

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get up and walk out. That's up to you.

I think that covers it, so let's start with the basics. A What is your current occupation?

I work as the operations unit manager and a

mortgage officer for the bank. Q A Q And the bank is? JPMorgan Chase Bank, NA. Okay. And could you please tell me what your

job duties are? A I work with inside and outside counsel on I review business Basically

contested and litigated matters. records.

I review customer service logs.

anything that will get to the bottom of any given litigation situation or potential litigation situation in hopes of defusing it or coming to some type of resolution settlement before it ultimately ends in trial or litigation. necessary. Q school. A I attended high school at Fort Union Military I graduated in 1996. I went I appear on behalf of the banks when

That's generally what I do. And what is your education? Start with high

Academy Central Virginia.

to the Merchant Marine Academy in Kings Point, New York, class of 2000. And I took some additional postgraduate

studies in business management, but not to the degree

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level of at this point. Q And did you work while you were in college or

the marine -A While I was in college, I technically did work I was also I

as part of my -- I was a naval reservist.

working on a ship as part of my time at the academy.

also worked odd jobs and parked cars on the weekends to make extra money. Q What type of job duties did you have when you

were with the academy working with the Navy? A Well, I was in an engineering program, so I

worked in the engineering department on the ship. Q Okay. After you were -- after you graduated,

what jobs did you have after that? A I determined that my interest in engineering

was more personal than actually career, so I went to work for Citi -- Citi Cards. I started working on

their -- this was a -- this was, you know, right around 2000. The Worldwide Web was really starting to pick up, So

and online customer service was starting to pick up. I started to help them implement some online customer service, really rudimentary stuff, you know, review balances and chat with representatives and things like that. Q Nothing like you see today, but early stages. Okay. And was that from a technical aspect

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A Q A Q as -- when you -- you said you helped develop this customer service -- web-based customer service -A Q Right. -- is that correct? Is that fair enough -Correct. -- to describe it like that? Yes. Were you actually involved in the software and

programing of the customer service aspects or was it more just dealing with people? A More along the lines of developing it based

upon customer input and giving the software designers an idea of what we needed them for really, at that time, was basically like HTML coding -- which I didn't have any background in -- but letting them know what our customers were looking for, testing it, implementing it, and getting feedback from the customers on that side of it. Q A Q A Q A How long did you work in that position? About two years. Okay. I did. Okay. And what did you do next? And did you leave voluntarily or --

From there, I went into mortgage originations.

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A Q Q Q A Okay. I did that for a couple of years with a small They are also a service --

originator called ABN AMRO. I'm sorry. Q A I just misspoke. That's okay.

PHH Mortgage, which is now -- I think they're

called (inaudible) PHH now, but -THE REPORTER: saying. A PHH Mortgage. THE REPORTER: THE WITNESS: (By Ms. Mack) You're going kind of fast. I'm sorry. PHH Mortgage. Now, when you I can't understand what you're

were working with Citi, where was that -A Q Jacksonville, Florida. Jacksonville. Okay.

PHH, were you also in Jacksonville? I was. And as a mortgage -- working with the

origination at PHH, what were your job duties? A I was the originations officer there. I

worked with the borrowers on collecting documents, getting them prepared for their, you know, eventual closing of their loan; working with underwriting and making sure that the documents they needed to push the

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loan package forward were provided. Basically kind of

the air traffic controller of the loan originations part of the business. Q Okay. Now, at PHH -- are you from

Jacksonville? A I am not. I lived there for basically since I

got out of college. Q A Q Okay. About 12 years or so. Okay. With regard to PHH, did you -- were you

a supervisor or were you supervised? A I was not a supervisor. I had a -- I had

support staff, but they were pooled into groups that supported basically five or 10 other loan officers. I was supervised. I had kind of a head loan officer So

that was -- so we were in a pool. Q at PHH? A Q I would say it was also about two years. Okay. And were you let go or did you leave Okay. And how long did you perform that job

voluntarily? A Q A I left voluntarily. Okay. What did you do next?

Well, we -- that -- PHH Mortgage was leasing

space from Merrill Lynch, who has a large campus in

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that. Q And if you could just generally describe your Jacksonville. A friend of mine was working for Merrill

Lynch as a broker and investment adviser and got me interested in doing that, so I applied and became a broker and investment adviser for Merrill Lynch. Q Did you have to take any type of tests to

become a broker? A Q A Q I did. I took a Series 7 and Series 66 exams. Do you still have those licenses?

All right.

They are not current, no. Okay. And with regard -- and please don't With

take offense, but I have to ask these questions.

regard to those licenses, were they ever suspended for any reason? A Q No. Okay. And how long did you work with Merrill

Lynch as a broker? A Q A I'd say also about two years. Okay. It may have been a little bit longer than

job duties at Merrill Lynch. A My job duties were -- we worked with the

retirement services -- or I worked with the retirement services. I worked on the 401(k) and stock trading

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A Q portfolios for companies like Coca-Cola, Daimler Chrysler. It was just Chrysler at the time, I believe. Some of those plans

Kind of their major employee plans.

had actual trading accounts within them that allowed their borrower -- I should say their employees to trade live stock within their 401(k) plan, which was very interesting. But you basically had to have a broker,

someone licensed to actually complete those transactions. Q Okay. So that's where we came in. And I believe you said you were in that

position for about two years as well? A Q A About two years. And what did you do next? After that, I started work -- went back into I worked for a company

mortgages on the servicing side.

called ABN AMRO, which was the servicing division of LaSalle Bank. years. And I did that for, again, about two

I worked in their property preservation area,

working with abandoned and neglected homes that were in some stage of default. Q Okay. With -- let me just -- sorry. Go back

to Merrill Lynch. Did you leave voluntarily Merrill Lynch? Yes. Okay. The job with ABN AMRO, what -- if I am

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doing my math right, this is about 2008? A Coming into -- because we were purchased by And this was

Citi Mortgage and they laid everyone off. like late 2007, I believe. Q A Okay.

In fact, the reason I remember this is that I

walked out of ABN AMRO on -- I think it was September, one weekend in September '07. And then on Monday, I So I basically had

already had my job lined up at WAMU. no down time. 2007. Q

But I think it was basically the end of

Did you know that they were going to be

restructuring at ABN AMRO? A We were told -- when they first announced the

purchase, we were told nothing was going to change; that everything would be okay. And then within about 60

days, they came back and said, We changed our mind, we don't need anybody, and you are all going to lose your jobs, and basically said -- and then they said, Oh, but we need you to stay here until we close the doors, so please don't leave. I stayed on. I stayed on and took calculated

risks because they promised a pretty nice little severance package if you stayed on to the end. I kind

of rolled the dice on whether or not I would have a job

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walking out, and it just turned out just right. So I

walked out Friday and walked into the new job on Monday. Q A Q A One of the lucky ones -I think. -- at that time, it sounds like. A lot of the people left. The building was

pretty bare for a number of months after they made the announcement. Q find it? A A lot of people from -- Jacksonville is a There's a lot of How did you get to the WAMU job? How did you

pretty small -- I shouldn't say small.

jobs there, but it's a small world in mortgages there. Once you start working in mortgages, you're going to know just through, you know, attrition people that leave and come and go to different businesses. You're going

to have connections after you have been there a year. So I had people who had gone to WAMU years ahead of me, and then some had recently gone just after they made the announcement. So I had some connections there, and I

said, What can you get me into? And then I got a call from one of the managers there who asked if I was interested in this position. said, Yes, but I can't start for 90 days. out that way, so it's a pretty small world. I

And it worked

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Q A Q What was the position that you began -- what

was the first position that you held at WAMU as far as title and duties go? A Title and duties? The first position I held, I've

I think it was like senior -- I've got to think.

got to think a minute because those titles don't exist anymore since the purchase. Senior lead operations specialist. Okay. And the -- but that covered probably 100

different positions, so the title didn't really mean much. Specifically, my duties were to work with

deceased borrowers' estates on these loans where we really didn't have a borrower anymore, but we potentially had some recovery because the family members either wanted to keep the home -- you know, it was one of the things where the family wanted to keep it -- or figuring out a way to make the loan perform, or at least collect on it in some way. So I would work with the family, hopefully, you know, with the executor or executrix of the estates, getting them documented on the loan to really work with us, and then kind of moving down the line where loss mitigation or somebody in recovery could get that loan to perform. So I was kind of on the front end working

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me. A with the estates and trying to establish who we needed to deal with and then push it on down the line to some kind of loss mitigation. Q Now, aside from that, were you doing any other

type of loss mitigation or was it just focused on the -on the deceased borrowers? MS. CREWS: Object to form.

I was only doing -- really, just focusing on

establishing that line of communication, verifying that these people had the authority to act on behalf of the deceased. Beyond that, I didn't have anything to do

with the loss mitigation. Q (By Ms. Mack) Okay. What else did you do

when you first became employed with WAMU? A That was pretty -- I mean, I was -- that was

That was -- it was me, and I had one direct report

at that point, and we were handling that entire operation. So it kept me busy for a time, and I was

actually going back and kind of redoing some of the filing systems that they had and kind of getting that more modernized. And that probably took me through the

first year-and-a-half or thereabouts. It seems like I was still doing it at the time that we were -- that we were purchased by Chase, but -so I didn't change jobs until after the Chase purchase.

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Q A Q Okay. Which was in September 2008. With regard to your -- with WAMU. So who did

you work with? employees were? A

Do you remember who your fellow

Well, in that -- in my department, which was,

like I said, just very small, just two of us, it was me and a friend -- she remains a friend -- Nefreta. She

worked with me in that particular area of the business. Q Okay. And who was your supervisor when it was

still WAMU? A Q Rocky Zaida was our supervisor. Okay. And did you report to anyone else

besides Mr. Zaida? A Q No. Okay. The -- were you on salary at WAMU or

was it a -A No. It was -- at that point, it was hourly.

I was nonexempt employee. Q Okay. And did that ever change before Or

September 25, 2008, the salary part of it? compensation, I should say? A

As far as being salaried or hourly?

No, that

did not change. Q All right. And when you were -- right around

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Q A overnight. the time that the FDIC took the bank over, WAMU, did you know that was going to happen? A No, we didn't know that was going to happen.

Clearly, there was, you know, some indications that the bank wasn't doing well. slipping. You could see the stock

I think at that point we were like at, you

know, $4 a share, where at the beginning of that year we started out at a much larger number. So, clearly, there

was some indication that something was going on, but there was no telegraphing of what was going to happen. What took place took place literally We came in the next day and, I mean, people That's

were like, Did you hear about it on the news?

how fast it really happened, and we had no really warning. But in the end, nothing really changed at all

because we continued to do our duties and things went on as they did the day before that and the day before that. Q With regard to the day or week of the

receivership of WAMU, first -- let me back up. The place where you worked at WAMU, could you describe it to me? Is it a campus in Jacksonville? I

know that y'all like to call them -MS. CREWS: Object to form. -- campuses.

(By Ms. Mack)

There are actually -- at the time -- we'll say

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at the time. At the time, the buildings were all

situated in a building or an office -- what's the word I'm looking for -- complex called, like, Deerwood Park or Deerwood. it. And it's got all kinds of businesses in Citi for a

State Farm has a business there.

long -- I think at this time, Citi still had a big building there, and WAMU had buildings there. WAMU was also renting space from other businesses as well because they had grown out of their own space. So we were actually working -- or I was

actually working at the time in one of the rented buildings called the Charleston Building, which was just down the street from the main building. Q Okay. When the -- it's my understanding that

the receivership began on a Thursday; is that correct? A Q A Q I don't remember the day of the week. Okay. It was like September 25th, you know. Were you actually still at work when the FDIC

came to seize the bank? A Well, I don't know if they ever physically

came to the buildings, and I probably wouldn't have really paid attention anyway. I -- so I don't know I mean -- and

whether I was actually in the building.

my understanding of the transaction is that, apparently,

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it may have happened like after hours or overnight. probably after 5:00, I wasn't there. So

So if the actual

seizure took place after 5:00 p.m. on any given day, I probably wasn't there. Q Was it your practice to leave before or after

5:00 when you were working with WAMU? A Well, generally, if -- you know, unless you

had some type of overtime approved, you were going to be leaving, you know, sometime around 5:00. Q Gotcha. Now, when you came back to -- to your

job and it was Chase, could you just describe what happened? I mean, how did you know that you weren't

working for WAMU anymore? A Well, probably the first thing is what you

normally get in any office environment is the hushed tones and the whispers and, Did you hear this and did you hear that? So nothing official right off the bat.

I think probably more -- I don't watch the news in the morning, so probably people had a leg up on me watching the news and hearing something that happened. So for me, all I heard was kind of the third-party information. There had not been any

official announcements through e-mail or had not gotten a manager or senior managers of the building to announce anything. So, really, it was kind of business as usual

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A other than the obvious disruption of kind of having people wandering around going, What's going on? But it

was business as usual, and nothing really changed. Q When did you first have a change either in

your job description, your compensation, your manager? Do you remember when that would have been? MS. CREWS: Object to form.

The -- well, you know, honestly, for the most They --

part, nothing changed for a matter of months.

they let us know shortly thereafter -- probably either later that day or sometime that week, they came out with some official announcement saying, This is what has happened. It's business as usual. Do your duties as

described, and nothing is going to change right now. Probably months later, they started to roll out plans, letting people know that they're aligning the -- the -- I guess what you'd call the human capital. You know, the human resources with what was -- what Chase already had in the area. So the biggest impact

was probably to the retail branches because they had a WAMU branch across the street from a Chase branch. clearly, that's kind of a waste. impacted more heavily. From the mortgage servicing side, there was some realignment in small areas, but no one really lost So,

So those people were

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their job. They may have been reassigned to a different

job because that function was no longer going to be handled in Jacksonville and maybe it was moving to Lewisville or Columbus. in the same desks. paychecks. But people were still sitting

People were still receiving their

I think at some point months later, the

paychecks may have changed as far as, like, who was cutting the checks. But as far as compensation level Titles remained Not a lot

goes, all of that remained the same. the same. changed.

Department names stayed at same.

I mean, if you walked into that building three or four months later, the only thing you may have noticed is maybe a lot of the signage changed and they had taken down the WAMU signs and replaced with Chase signs. But that's about the extent of what you would

see right on the surface. Q (By Ms. Mack) Okay. Now, did there come a

time when either your job position changed after the -after Chase took over the WAMU, did that come a time when you either became salaried or had a different title? A Not -- not by force or by change of business.

I actually applied for another position within the bank and moved into that position, so my -- I don't think my

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salary changed. My title -- I don't even think my title

changed because, like I mentioned before, the titles were kind of used for all kinds of positions. certainly changed and supervisors changed. My duties

But at the

time, my move was considered lateral, so I didn't get a bump or I didn't change from salary to hourly or hourly to salary. Q Okay. So at this time, at the lateral move,

you're still on an hourly -- you're still doing an hourly -- sorry. of salaried -A Q Correct. -- is that correct? That was tough. Okay. So the lateral move, your supervisor, I Compensation was still hourly instead

believe you just said, changed. A Q A Q Yes. Who was your new supervisor? Shelly Thevin became my new supervisor. Okay. And did the -- did your fellow

employees that you worked with change? A Yeah. I moved out of the team that I was

working with into a completely new team. Q Okay. Who -- do you remember who you were

working with with the new team?

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A It's been -- it's been a couple of years now Probably first names, I worked with a lady

since I worked with these folks. I worked with a guy named Vinnie. named Laura. on the team.

There was probably about 20 to 30 people Some of the people I worked with daily,

but not -- not every one I came in contact with all the time. Q position? A This was a function of kind of early dispute I worked -- at that time, What were your job duties at this new

resolution and Chase legal.

it was basically my first step into working with contested and litigated home loans. Q A Okay. A lot of these were contested foreclosures.

There were also some eminent domain cases, some title cases. So I was working a case load of, you know, We

somewhere around 2- to 300 cases at any given time. were -- we were split up by state, so I would be assigned to a few states.

I think I had Florida and a

couple of other smaller ones because Florida was a pretty large volume state. So I would work on these cases with inside and outside counsel and try to come to some resolution and do some drill-downs to find out what caused the issue

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and recommend maybe some resolution tactics, whether it be -- you know, if it was something we could make go away quickly by doing something simple or whether or not we are going to have to litigate to the end because of whatever issue. So working with inside and outside

counsel on those cases and appear on these cases when necessary. A lot of -- basically a lot of what I do now

is kind of -- is rooted in what I was doing then. Q Okay. And I'm just going to go back to a When Washington Mutual became

couple of questions.

Chase in 2008, did the policies and practices that -that would have been, I guess, taught to you or you would have been trained in the policies and practices of Washington Mutual -- well, let me back up. I'm sorry.

Did you have any training when you became employed with Washington Mutual? A Yes. I went through some -- everyone goes

through some on-boarding just to give you an idea of the culture. And then depending on what kind of job duties

you're going to be doing, give you some systems overview so you can become familiar with the systems if you hadn't already become familiar with them. Q What -- okay. Let's unpack that. What type

of training with regard to systems did you have when you were hired by WAMU?

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A Well, of course, I had the benefit of having So what you may

worked with the servicer previously.

have found is that a lot of the servicers use the same systems. So specifically we were using -- at ABN, we

were using MSP. Q A Q A Is that the mortgage servicing platform? Correct. Okay. Actually, to be technical, I believe it's Platform was

called mortgage servicing package. incorrect. Q A Okay.

The -- so it's a widely used system.

In fact,

all of the major servicers I have ever worked for have used it. So WAMU was using it. Chase was also using So the training for

it, so I had the benefit of that. that for me was kind of redundant.

Some of the other things like some of the imaging software, obviously, you know, people that have worked in the office environment know how to use e-mail and things like that. So a lot of the systems training It's a

for me was kind of redundant, but it's required. formality.

And then, you know, like I said, kind of the

things to get you used to the culture of the company and those things.

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So, yes, there is -- there is technically training for systems; however, for me, it was pretty much redundant except for a few things. Q Now, the MSP system that you're talking about,

is that the Fidelity Lender Processing Services' MSP? A I am not an expert on everything at Fidelity.

My understanding is that Fidelity developed the software and licensed it to individual servicers. So that's my It's

understanding, is they actually -- they own it. their property. Q We're leasing it as a servicer.

But this is -- this software that we've been

talking about, it is -- it's the same for each of the servicers you've worked for as far as MSP? WAMU, it's the same MSP as JPMorgan Chase? A My understanding is they are exactly the same. Maybe at

When I was working with both systems at some point before the -- before this last year, the loans were maintained on different servers, but the software interface is exactly the same. for ABN. There may be some minute details on how certain data fields are used. But when you look at the And the same thing goes

screens and the software and the way you navigate through it, it's exactly the same. Q Okay. The scanning that you have referenced,

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what type of programs did you use to scan documents at WAMU? A At WAMU, I believe it was called Image Web, if And Image Web was the default

I'm not mistaken.

software for anytime you need to look up imaged documents, whether it be notes, mortgages, origination packages, applications. You know, whatever was deemed

worthy of saving or necessary to save for servicing purposes. Q Okay. And would there have been any other

system -- computer system that you would have used at WAMU other than the two that you've just described? A They had a separate servicing system for the I think it was called ACLS. ACLS.

home equity loans.

And they had a customer service collections system called CACS that was used for home equity collections. Those are examples of systems that we would have used at WAMU that didn't -- that weren't the majors. the major being MSP. And then other -- we used other things. mean, Outlook e-mail is a major. I I guess

You know, that's the

line of communications of people within Chase, so you use Microsoft e-mail. So, really, the MSP is really the

central repository for all information related to a loan, so most people work out of that anytime they're

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okay. coming in contact with, you know, servicing. Q Okay. And, now, when you accessed MSP, did

you have a user number or identification? A Yes. Everyone has a unique identifying So they sign

usually three-digit code assigned to them.

in, and they also given -- you know, they also -- they have to set their own password. So, yes, every time you

sign into the system, you have to sign in and use the identifier. Q Okay. And did you have the -- when you signed

into MSP, did you have the ability to enter data or just review it? A I had the ability -- you know, part of my

duties were to document the things that I was doing. So, yes, I had the ability to enter data into certain areas. Not all areas can be manipulated. I could enter

notes into the system.

I could change stop codes so

that if I was dealing with a loan that was in litigation and it needed to stop certain things like collection activities or foreclosure processing, I could put stops on the system. Q Okay. The WAMU -- at WAMU, the MSP was for --

For the type of loan that we are here on today

such as the Waisome loan, which is a residential first lien loan, right?

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A Q A Q Yes. Okay. Was MSP the only servicing system that

would have been used at WAMU for that type of a loan when you were there? A As far as I know, yes, because it wouldn't

have -- it's not a home equity loan, so it would have been -- although the loan was a cash-out refi, it wouldn't be considered a home equity. It wasn't a So it

revolving line of credit, so it was a static.

would have been on the MSP and really no other servicing system. Q You know, just MSP. So if we were looking for all the information

contained on any computer system at WAMU from the date that the Waisome loan originated, which was in August of 2007 -- so from August of 2007 to September 25th of 2008, the MSP system was one system. And then I believe

you said the -- the Image Web was the imaging system? A Q Correct. And then, of course, you've got Outlook. Is there any other system that would have been used to transmit or store data regarding the Waisome loan at WAMU during that timeframe? MS. CREWS: Object to form.

Not that I can think of, no. (By Ms. Mack) Thank you.

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Chase. All right. Now, let's go over to JPMorgan

Did anything change from September 25, 2008 to

date with regard to the MSP servicing program? A The -- initially, no. For a long time after

the purchase, the loans were maintained on their separate -- and this probably isn't technically the right word, but the servers. So we had different

client -- the client numbers that were assigned to different sets of loans. Chase client was like 465. So those were maintained separately for a period of time up until, I think, just recently in the past probably, like, 10 to 12 months. There was an The WAMU client was 156. The

ongoing project in the first several years to get -you're talking about millions of loans in each -- in each client, so it took a while. maintained separately. Now, initially, you would log into the separate clients. The same software, but these loans But, yes, they were

are basically just segregated WAMU heritage and Chase heritage loans. So, really, nothing changed for a

number of years up until, really, this last year where they finally completed the project. And now you go into

one client, and you can view the Chase loans and the WAMU loans all under one client instead of toggling back

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A and forth. Q Now, the -- is the system -- I guess, is it -Or

would you say it was a consolidation or conversion? do you have another word for it? MS. CREWS: Object to form.

I'm trying to recall what they actually -- the It wasn't part of the project, so I And I don't -- you

term they used.

couldn't say what term they used.

know, I would look at it as just the elimination of something that was really unnecessary because at that point -- you know, prior to the purchase, they were using the same systems, so -- and that was great because you didn't have to retrain employees on different systems. They were all using the same ones. I think it

was just elimination of an otherwise extra step that someone had to take to toggle back and forth between these different clients. Q (By Ms. Mack) Okay. And approximately when

did that elimination of that extra step occur? A It was within the last 12 months. It may have

been late last year when, I think, they finalized it. It was a big project. It was -- you know, it took a lot

of time and a lot of effort, but I think it was -- it may have been late last year when they finalized it. Q Who -- what department would have been in

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Q A charge of that project that you just described? A My understanding is that they drew resources I don't think there was

from all areas of the business.

any one department that was involved in handling that transaction or that project. Q Do you know who -- was there a person that was

in charge of it? A I don't know if there was -- if there was a I -- I could imagine

specific person in charge of it.

based upon my experience in some of the projects that I've seen in other places, that there is probably a project manager and several business -- business -- head of business people that were running it, but I wasn't in charge. I wasn't part of the project specifically, so I

don't really know. Q Okay. The -- did you have any role aside With regard

from -- and we're going to do WAMU first.

to Washington Mutual, did you have any role in entering data into the MSP such as payments -MS. CREWS: Object to form. -- from the borrowers?

(By Ms. Mack)

There would be times where I would process

payments for the estates of the borrowers in my duties at WAMU. payments. It wasn't -- I wasn't crediting them with I was processing. Basically they were trying

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platform? A Q No. I keep calling it platform. Okay. Sorry. to keep the loan current. They don't want to go into

default or they want to avoid an acceleration, so they may make a phone payment or something like that. This

won't go to regular customer service because at this point, they're probably -- I haven't been able to vet them enough to give them authorization to speak on the loan, but the rule is if they want to give us money, we will take the money. So we will take their payment over the phone, but that's pretty much as far as I went. As far as MSP

and the loan being credited for that payment, that's someone on down the line that handles that portion of it. Q Now, at Chase, did you ever perform any type

of payment entry duties from borrowers when a borrower -A Q No. -- paid their loan? Did you ever enter that into the servicing

The -- do you know how the end -I'm sorry.

how -- let me back up.

Do you know how the entries for either WAMU or

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Q A Q Chase into the MSP would get reflected in, say, a subledger? A Q ledger? A Q A I am. What is your understanding of that? My understanding is probably very rudimentary. Do you know what I mean by subledger? I do not. Okay. Are you familiar with the term general

My understanding of a general ledger is just the -- it's a general accounting of funds either coming in or going out of the loan. That's pretty much as far as my

understanding goes. Q Okay. Do you know if the -- if there is a

separate system other than the MSP that would account for payments -- and I guess payments going to the loan or expenses, say, perhaps P & I advance or escrow? Is

there a separate system other than the servicing system you are aware that would record that type of data? MS. CREWS: Object to form.

Not that I am aware of. (By Ms. Mack) Is there a separate accounting

system that you're aware of other than MSP? A No. MS. CREWS: Object to form. Okay. And is it no, you're not

(By Ms. Mack)

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Q A aware of it or no, you don't -- no, there isn't one? A I -- I don't know that there isn't one. I am

just not aware of another accounting system.

I have

never encountered it or been provided any records or documentation that there would be another accounting system. Q Okay. Okay. How -- sorry. With regard to WAMU versus Chase, was

there any change in the procedures or policies as an employee that you thought was, you know, extreme? don't know, maybe they wanted you to wear blue on Fridays? I'm giving -MS. CREWS: Object to remember. -- you an example. Like I said, the The policies and I think -I

(By Ms. Mack)

Not -- not really.

day-to-day business remained the same.

procedures really didn't change radically.

anecdotally, I'll say that the one thing that probably rubbed people the wrong way was under WAMU, day one, you have three weeks of vacation, no matter your level. Under Chase, if you are under five years of service, you have two weeks of vacation unless you're management. So instead of grandfathering all the existing folks in, they decided to pull back a week of vacation from I don't know how many people. I was one of them.

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So that -- that is probably the only thing that sticks out, is some of the -- some of the HR, you know, policies, probably changed more than anything else. But

from a business -- running the business standpoint, you know, the servicing is servicing no matter where you go. And, you know, my experiences working with, really, three different servicers is that the procedures and the policies are really geared towards meeting requirements of the regulatory agencies, investors on the loan if there's investors. You know, all the folks who you need to perform up to their standards drive your metrics. So

when you go see these different servicers, you're going to see the same policies and procedures generally because they are driven by all of these other forces. So the Chase policies and procedures, although they may be called Chase policies and procedures, are not going to be all that different from the WAMU policies and procedures. Q Okay. All right. Let's -- I -- I appreciate

that -- the very comprehensive answer. Now, you had made a distinction in the answer that you just gave between an investor -- and I would -would that be opposed to a, I guess, portfolio-type loan where the bank actually holds the loan on its books?

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bank? A Q I do. Okay. What's your understanding of the Q MS. CREWS: Objection. Form.

(By Ms. Mack)

Do you know what I mean when I

say "portfolio loan" -A Q Yes. -- versus a loan that is just serviced by a

distinction? A Well, we refer to it as an asset loan. If we

own the asset, it's ours.

We don't have to -- we are

not meeting someone else's standard of servicing. Whereas if it's a loan that's either been securitized or is backed by one of the GSEs, we have servicing standards that we have to meet. So we may have to do

certain things that are extra and excess of what we would normally do for our asset loans. Or, you know, rarely is it we don't have to do something that we would do for ourselves on GSEs. But

normally the restrictions are, you know, set the bar a little higher or some special tweak or interesting twist. But, yes, I understand the differences between

the asset loans and, you know, the investor-backed loans. Q And how can you tell if a loan is an asset

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loan or a loan that's just serviced by the bank? A Well, generally, the easiest way is to go into

the servicing platform and access the proper screens. It will tell you who the loan is owned by. Q A And what screen would you access? Well, if you were looking for specific

investor or owner information, you would go into a screen called MAS1. And then there's a subscreen within

that called INV1 which would tell you, if there is an investor, who it is. say Chase owned. Q A Okay. But there are other indications. When you're And if it's Chase owned, it would

looking at just, like, the customer service screen which shows loan balance, who the borrower is and general loan information, there is investor codes at the top of most of the screens. But unless you know the codes, you may

not be able to just look at the codes and say, Oh, the investor is such and such. You may need to dig down

deeper into the IMD screen, and it will tell you who it is. Q So is there like -- is there a screen that

has, I guess, a key for the codes where if you had, say, your code was, I don't know -- I think you said WAMU had a three-digit number, and you referred to that as --

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when we were talking about the different MSPs between -I think you said WAMU was 156? A Q A Q A Correct. Is that an investor code? No. Okay. So 156 is a WAMU client number. 465 was the 156 a client -- is a client number.

Chase client number, completely separate and apart from the individual identifiers, which I have a three-digit code assigned to me so that if I put entries into the system, it memorialized that entry with my name or my code, and then date and time stamp I put that in there. But, again, that's still aside and separate from the investor codes, which are codes identifying investors. And more to the point, your question was is there a place where these investor codes are laid out? I don't know that they are within the system. I believe

that we keep records of these investor codes potentially outside the system. I just don't -- I've never accessed

an investor list with an MSP, so it's possible it's there. Q I just don't know. Now, you have a three-digit code. Is that

something you can tell us? A I think mine -MS. CREWS: Are you sure you're okay with

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A that? THE WITNESS: Yeah. I don't care.

I mean, I'm guessing what mine is right now,

but I think it's like OY$ or something like that. Q A (By Ms. Mack) Okay. So --

It's not something you necessarily have to

memorize because when you log in using your password, it's going to tell you -- it's going to memorialize everything. it's OY$. Q Okay. So with regard to if you were looking You don't have to memorize it. I think

at -- I think you called it an investor MAS1? A Q Yes. MAS1. Okay. Three

Are the investor codes three digits? characters? A How do they look?

I believe they are also three digits for the But when you -- and then as you go into

investor codes.

MAS1 and INV1, it actually spells out the name of the investor. So if it's, for instance, a Chase loan, it If it's Bank of America, it It will spell out the name

will say JPMorgan Chase. will say Bank of America.

and the address of the investor or owner for you right there on the screen. code. So you don't have to interpret a

It's right there.

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Q A Q Okay. And you said that's the INV1?

MAS1 and INV1. MAS1 and INV1. Okay.

With regard to -- have you -- have you ever serviced a loan that had a private investor? know what I mean when I say that? A I know what you mean by a private investor. I mean -And this is not a Chase or And do you

Have we ever serviced one? Q In your career.

WAMU specific question. A I mean, I don't remember a specific instance

where I was dealing with a private investor loan, so -but I have worked for three fairly large -- I mean, two majors and one, you know, fairly large servicer. And I

have to imagine at some point, I must have come across it, but I don't recall specifically. Q Okay. So -- okay. The -- and I'm going to

ask you some specific questions about the screen shots that your attorney has provided to us. A Q Okay. Let me do that in a block. Let me ask you a

question off the record. (Discussion off the record.) Q (By Ms. Mack) What would you do to

determine -- or what steps would you take to determine

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Q say that? A I think I do. And if I had access to MSP on who owns a loan, the beneficial interest in a loan? MS. CREWS: Object to form. Do you know what I mean when I

(By Ms. Mack)

that -- if it's an MSP, I'm going to go to MAS1 and INV1 and that will probably be my primary indicator as to who has beneficial interest. That would be the -- you know,

the best piece of information I could find is what is in the servicing platform, because that is what we're depending on day-to-day to run our business. Q Have you ever -- and specifically either at

WAMU or Chase, have you ever been -- now, you had said that you have a group of loans that you handle. And I I

believe you had indicated they were litigated loans. think you said there were 2- or 300 loans? A

And just to define, in my previous role when I

had a case load, yes. Q A 300 loans. Okay. I would have, you know, somewhere around 2- to And, you know, they were incoming. And I

had several cases, and they would be out.

So there was

a constant flow in and out of this portfolio that I was managing. Q When you were handling a loan -- when you were

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A handling the portfolio that we just talked about, would there ever be times when a loan maybe was sold while you were dealing with it, and there would be a change in an investor that you recall? MS. CREWS: Object to form.

I do recall in one particular instance, we had And I -- and I don't know if that

a service transfer.

qualifies under your question, because it may not have been sold, but the servicing was transferred to another servicer. So we didn't own it. It was service

transferred.

So, yes, you know, there -- we got, you

know, we were notified last minute that there was a service transfer, and I advised the borrower and the attorneys working with us that were no longer servicing, so we can't talk to you about this litigation anymore and you're going to get a note. Someone from the other

service is going to have to assign counsel or retain this same counsel, but we are not done anymore, so -Q (By Ms. Mack) When the servicing would

transfer, would the actual note and I think -- I think -- would you agree with me a collateral file is the note, the mortgage and, I think, it's the title policy? A Q That is a fair representation, yes. Okay. When servicing would be transferred,

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would the collateral file also get transferred? A same day. Generally, yes. It may not be on exactly the

A lot of it depends on the -- what the owner

wants and what -- you know, because they are making the -- they're calling the shots as far as, you know, what deadlines need to be met. So we may get a service transfer that is effective on the 4th of the month, and the note, the mortgage and the trailing documents may be shipped out, you know -- maybe the requirement is within 15 days or whatever it may be. So yeah. But, generally, yes, they

are sent along to the new servicer for their own document custody. MS. CREWS: I just want to interject for a

minute because I know we have an agreed order of the scope of topics. MS. MACK: MS. CREWS: Right. And these are very -- and it's

been almost an hour, and I understood you need to get into his background and resume. And I think all

of your questions are appropriate, but I just want to make sure we stick to this loan and these topics and not just a ton of, you know, more general questions on process. MS. MACK: I'm just trying to get an idea of

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here. Have you -- okay. With regard to the Waisome Q what Mr. Nardi knows other than just looking at MSPs. And it sounds like -MS. CREWS: No, I understand. I understand

you need his background, but -MS. MACK: Yeah. Okay. Sorry. Let me regroup

(By Ms. Mack)

loan, did -- have you ever seen the original collateral file documents? A Q No. Okay. Have you ever examined -- with WAMU or

JPMorgan Chase, what would have been an example of a time when you would have had to look physically at the original collateral file, if there was one time? A There would have been countless times where I

would have needed to look at the physical file or the actual file. A lot of those are related to cases that

are going to trial or heading into a mediation or even sometimes depositions that for, whatever reason, there is some question as to whether or not we have the original. Here it is. So we bring the original with us and say, A lot of times that helps to facilitate the

process of, you know, the -- hopefully, settling the case, knowing that, you know, giving the other side --

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A giving the other side the piece of mind that we are, indeed, the rightful parties at interest. Q Okay. So the -- with regard to obtaining the

collateral file, the actual original documents, what is the process that you would take to actually physically get them? MS. CREWS: Object to form.

The process right now is a request -- there's

two separate kinds, because there's -- you referenced a collateral file. There is also a credit file.

Sometimes you need stuff from the credit file, and sometimes you don't. sometimes you need it. The collateral file, you know, Sometimes you don't. So

depending on what you need, there's an electronic request for each one. You send it to the customer service folks. The credit file -- and there's certain restrictions as to who can actually order it. authorization. You have to have certain

You can only send it certain places.

You have to either send it to someone -- if you are sending it to someone within the company, they have to have -- it's a very short list of people within the company who can get it. Generally, we ship it only to

counsel when it needs to go out of custody and services. So you would include your identifier so that,

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you know, they can say, yes, you have the authority to order it. You need to identify where it's going so the

firm that it's being shipped to, custody services, will accept that. Basically it's an e-mail transmission, and So they will go in, pull up

they work those constantly.

the work order, have a person that's designated to be able to actually enter the file room, go in and pull the file, and then ship it off to the firm who's requesting it. Q (By Ms. Mack) Okay. And with the shipping of

the collateral file, is that by FedEx or some other method of mail? A I'm trying to think. Currently, I believe

it's FedEx.

I'm almost 100 percent certain that they

use FedEx almost exclusively for the shipping. Q But it's some -- it could be some sort of

tracked mail, right? A Certainly. They don't drop it into a postal There is actually a site in Monroe,

service box, yeah.

Louisiana where all of the document services are -- or document custodian services are handled now. They have

their -- you know, they work in such large volumes with FedEx, they actually have their own plane that brings in these documents specifically for Chase. So when it

comes in and out, it all comes through a very controlled

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A channel with the -- with these courier services. Q Okay. Have -- how long have you been working

on the Waisome file? A I would say it's been at least a couple of I couldn't tell you exactly the day I

months now.

became, you know, really intimately involved with the case, so I couldn't pinpoint a day. it's been at least several months -Q A Q A Okay. -- at this point. Do you think it was going back to 2011? I -- I would have to -- I would have to go But I would say

back and look at some e-mail records because my -- I'm so e-mail driven, everything is really there. couldn't say for sure. So I

That may be on the outer edge of

when I became involved, but I couldn't say for sure. Q Do you know who -- do you know who was working

on the file before you? MS. CREWS: Object to form. I know -- I

I don't know all of the people.

know who I was working with when I became involved with the file, so they must have been working -- I mean, I -I would have to -- I have the understanding that they had the file -- they were working on the file prior to my involvement. So, yes, I -- I think I do know who was

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sure. working on the file before me. Q A (By Ms. Mack) Who was it?

Inside counsel that I recall is Anita Smith,

and then Kendall Foster was another member of our legal team who was not an attorney who was working on the file. There may have been some other people, but those

are the people that I -Q A Q Okay. -- that I kind of worked with on the file. Have you ever physically seen the Waisome

collateral file or the credit file, the actual physical file, not an image of any of the documents? A Q No. Okay. Do you know what documents are

contained in the Waisome collateral file? A At this point, my understanding is that the

collateral file -- they're no longer in the collateral file, so to speak. They have been deposited, or at I

least the note has been deposited with the court.

don't know if the mortgage has been deposited with the court. So right now, the collateral file would just

have the policy in it, from my understanding. Q A Okay. But I've not seen it, so I couldn't say for

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Q If the note -- and I think you're right. If

the note was taken out, would there be some indication in the file that the note was taken out and given to counsel or the court or whatever happened to it? A Yes. There is a very thorough check-in and

check-out process where all of this is very well documented. So the file -- the collateral file itself

generally on its -- on its left-hand inside cover has a sheet which basically says where the documents have gone. And then in addition to that, there's an

electronic system which tracks all of this information as to where it's gone to. So there's duplicative

efforts to make sure we know where these things are at all times. Q transfer? A I know it as Docline, but I think the database But I -- I -- when I look at What system is it that tracks the document

is called something else.

it, I go into a system called Docline, which is -- my understanding of it is that when I log in, I get basically a web application. That web application is

basically like a prettyfied version of this underlying database which houses all of the information, which the name escapes me at this point. So I plug in a loan number, and it tells me

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where -- basically the history of this collateral file. You know, when the note was received; if it's been checked out, where to; where it was checked out. You

know, all of the pertinent details of the information. But I don't recall the name of the actual underlying database, and I should because I recently did some research. Q But I don't remember it. Okay. Is that -- if you know, this Docline,

is that D-o-c-l-i-n-e? A Q Yes. Okay. Is that a system that was at Washington

Mutual as well as Chase or is that just Chase? A I've only ever seen it at Chase. And from my

understanding, it's a fairly new -- the underlying system is not new. It's the access. It's really just

making it easier for people -- people to access the information without having to know how to use a database and open up the database to people who you may not want to open it up to. But I don't believe it was in use at

WAMU because I think, like I said, it's fairly new. At WAMU, there was a very similar system which I also used to check and check out files and also to query on stuff. But what I would do is I would send it

to someone in the custody services area who would produce for me a report, send it back to me and say,

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today? A Well, I reviewed the business records on MSP I looked at here's the results. access to it at WAMU. Q A Q A Q A Q What was the name of the system at WAMU? I don't know, because I didn't access it. Oh, okay. I would just send an e-mail request -Gotcha. -- to the person that had the access. Okay. Gotcha. So I didn't have the realtime

What did you do to prepare for this deposition

just to familiarize myself with the loan.

origination file, the application and some of the pertinent details. I've reviewed some interrogatories.

Well, I don't know if that was in preparation for today, but I went over some documents that I previously executed in the case. Just, you know, my general

preparation which includes just trying to familiarize myself as much as possible with the documents and with the -- you know, in this case, I think the ownership of the loan. You know, where things have been checked out

to, and trying to nail down certain dates for certain events. Q Okay.

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A Q A Just kind of a general preparation. What dates did you nail down? I wanted -- well, one of the things I always

want to make sure of is that the breach letter corresponds with the date that's in MSP as far as the last payment made or the last payment due. It's one of

those things I've learned that can come back to haunt you. If you don't know when the breach letter went out

or you don't know that it matches the details in the MSP, that can come back to bite you. things. So just little

And sometimes it's not pertinent to the case I

might be appearing on on a given day, but you never know when you get the question why are these dates different? And if you can't explain it, you know, it's -- that type of thing. Q Do you know if when the FDIC took over

Washington Mutual if this promissory note, the Waisome promissory note, was actually an asset of Washington Mutual? A Q A question. Q A My understanding is that yes, it was. Okay. And let me make sure I understood the You said prior to the FDIC seizure? Correct. Yes, my understanding is that it was.

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A Q Okay. And what would you look at to determine

if it was -- if the Waisome note was -- and I'm talking about the note itself -- was actually an asset of WAMU? A The same system of record we used to determine Really, the MSP is going

that at any other given time. to tell us.

You can also take a look at any -- any

other loan records that we have that would indicate transfers. You would look for things like, you know,

any changes to the documentation, to the servicing requirements. You know, notes in the system might

indicate any changes. So there's -- there's just a lot of different information that you can go to or a lot of different sources of information within MSP that you can refer to. Q What -- well, if it was -- if it was an asset

loan, I think you called it before, for WAMU before the FDIC took over, was -- would there have been a specific investor number? MS. CREWS: Object to form.

I believe there would have been a specific I don't know what the investor number

investor number. was for WAMU. Q

(By Ms. Mack)

You don't -- you don't know

what the investor number was for WAMU? A No.

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A well? A I think they're -- my understanding is that I don't think there are any Q Would it have been a three-digit number as

they are all three digits. that are not.

So I think they are all represented in a

three-digit format. Q Would you look at any type of general ledgers

to determine if the Waisome loan was an asset of WAMU at the time that it was seized? MS. CREWS: Object to form.

That's not really something I would look at,

and I don't know that anyone that would go looking -that wanted to verify or was looking for that specific piece of information would look at any type of general ledger. Q (By Ms. Mack) Okay. Are you familiar with

the purchase and assumption agreement between the FDIC, JPMorgan Chase and WAMU? A I've seen it before. I've not memorized it.

But I'm aware it exists, and I'm generally familiar with it. Q Are you -- do you know anything about the

accounting records as they're defined in the purchase and assumption agreement between FDIC, JPMorgan Chase and Washington Mutual?

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A Q No. And do you know anything about the loss-share

agreement, specifically the calculation of losses and how they are shared with the FDIC? A Q knowledge? A I don't know of a specific name. It sounds No. Okay. Who in the bank would have that

like the items that you're looking for encompass more than just the mortgage banking portion. It probably

encompasses all of the bank's losses in the loss sharing, so I -- you know, it would likely be someone quite a bit higher up the chain and, you know, probably in a -- in a much larger office than mine. Q A Okay. So I don't know any specific names, but it

would be someone who's in a control position in the bank, I imagine. Q Okay. The -- are you aware of any type of

schedule of loans that would have been created to represent the -- either the loans that were asset loans or the loans that were serviced by WAMU? Are you -- was

the -- do you know if there is a schedule or database of loans like that? MS. CREWS: Object to form.

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WAMU? A Q A For the individual loan level? Yes. I -- the answer is I don't know if there was My Q A I know that there was a schedule contemplated That We've

in certain documents related to the purchase. schedule has never materialized in any form. looked for it in countless other cases.

We've never It would

been able to produce it in any previous cases.

certainly be a wonderful thing to have, but it's -- as far as I know, it doesn't exist, although it was -- it was contemplated in the documents. Q (By Ms. Mack) Do you -- do you know how

the -- well, okay.

If -- for purposes of this question,

let's assume that the Waisome loan was an asset of WAMU. Okay? A Q Okay. And if it was assumed by JPMorgan Chase

because of the purchase and assumption, how would you be able to tell what the book value was at the time -MS. CREWS: Object to the form. -- of the closure of the bank,

(By Ms. Mack)

any book level assigned to individual loans.

understanding of the transaction is it was a whole bank purchase, and there was not individual values assigned

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to any -- any portion of the loan of the bank, because the bank is even beyond the mortgage lending portion. There's, you know, other portions of the bank. I don't

know that they got down to the point where individual loans were valued and assigned a value for that transaction. Q Okay. Do you know how the -- okay. Well,

would you agree that when your loan is in default, at some point, there's going to be a charge-off? know what I mean by charge-off? A I do. Do I agree that at some point in the I would Do you

default, there is going to be a charge-off? say I wouldn't take it for granted.

I wouldn't assume

that every one of them is going to have a charge-off. The potential for a charge-off is there, but I don't know that in every case there would be a charge-off. Q With regard to the loss-share, how -- if -- if

the Waisome loan, for example, doesn't have a specific value associated with it at the time of closure, how would the loss that is to be shared be determined? MS. CREWS: Object to form. And I'm not sure

how this fits into any of our topics. A Yeah, you know, honestly, I think my previous

answer reflects that I am not really aware of how the loss-sharing was handled, so I wasn't party to that

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1. (Defendant's Exhibit 1 was marked.) Q (By Ms. Mack) Mr. Nardi, if you could please particular portion of the purchase. know. Q (By Ms. Mack) Okay. Mr. Nardi, I'm going to So I just don't

hand you a document that has been produced to us with regard to this case. Have you had an opportunity to review that document, sir? A Q Yes. Okay. And I've seen it before today too. That was my next question. We're going to mark that as Exhibit

MS. MACK:

just tell me what we have marked Exhibit 1, what is that? A Well, I normally refer to this as like the

hello letter, and this is just to let the borrower know -- really, this letter goes out to -- and let me step back. This letter contains a lot more information than a typical hello letter might that you might get if you're being service transferred from Bank A to Bank B and there did not happen to be a bank failure. wouldn't, you know, mention it. They

This letter goes into a It

lot more detail, but it serves the same purpose.

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A basically puts the borrower on notice that the servicer has changed and that, you know, if they need to make changes to where they make their payments to, it describes that. It basically gives, you know,

introduction to here is who we are and here's what's happened, here is how to contact us if you have questions, and here is where to send payments if it's changed, and here is how to get ahold of us. purpose of the later. Q of 2008. A Q Yes. Would you agree with me that the letter The letter is dated -- I believe it's October That's the

indicates that the servicing is going to be transferred? A Q It does. Okay. Now, if the -- the note, as in the

ownership of the note, was going to also be transferred, would that have been something that would have been contained in that letter that is marked as Exhibit 1? MS. CREWS: Object to form. Not in my experience. The --

Generally not.

the servicing information is important to the borrower because it does relate to how their loan is going to be serviced as far as collecting payments, who can answer their questions as to, you know -- let's say they had a

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A question about their homeowners insurance and how it's being paid or their taxes. Basically from the customer

view, the servicer is the important party. The owner of the loan really doesn't make any difference to the borrower because they are never going to have any interaction with the owner of the loan if there is an underlying owner or investor. You wouldn't

call Fannie Mae, generally, for a question about your payment. You're going to call your servicer. So generally, I have never seen a letter -- a hello/goodbye letter that says, We are the servicer or not your servicer anymore, and your owner is such and such. Q It always refers to servicers. (By Ms. Mack) Okay. Do you think it's

important for an individual borrower such as Mr. Waisome to know who the owner of the loan is, the owner of the promissory note? MS. CREWS: Object to form.

Not nearly as important as it is for them to Like I said, in an average

know who their servicer is.

life of loan, the borrower is going to talk to the owner of their loan, unless it happens to be the servicer, probably next to no times. You know, you're generally

never going to have interaction with Freddie or Fannie. If they are the backer of your loan and if your loan

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A happens to be securitized, you are not going to call Wells Fargo as trustee for, you know, WAMU pass-through certificates, you know, 2007-2. your servicer. So, no, I don't think it's important for them to -- from a -- from a customer standpoint, to know who their -- who their owner is, no. Q (By Ms. Mack) Would you agree with me that if You are going to call

you pay off a note, it would be cancelled? A cancelled? If you paid off the note, would it be You know, the debt goes away. Certainly,

the obligation of the note goes away when it's paid off. I don't know if it's stamped cancelled or what the physical disposition of the note is, but the debt is certainly cancelled once you pay it off with that lender. You may -- if you refied it to another lender,

the debt may still exist in another form under a different contract. But as far as the contract that we

hold, the debt no longer exists. Q A Q to mind. Are you familiar with the Waisome note? I've seen copies of it, yes. Okay. Well --

Does that answer your question? Kind of. But, actually, you brought some more

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Q Q Okay. This is a copy that was actually

attached to the plaintiff's motion for summary judgment, which just happens to be the one I found the quickest. This is -- this note bears the endorsement of Ms. Riley as well. And I think I've got the prepayment and fixed

rate rider. I'm going to -- I'm not going to ask questions about that, so we will take prepayment away because I'm not going to ask you questions about that. A Q Do you want her to mark this? Yes, please.

(Defendant's Exhibit 2 was marked.) Q A Q Have you had an opportunity to review it -Yes. -- Mr. Nardi? Okay. I think that's Exhibit 2. Now,

Mr. Nardi, would you agree with me that the note provides for assumptions by third parties that are not parties to the note? MS. CREWS: Object to form. I'm sorry. It's not -- let me

(By Ms. Mack)

find my note, if you can hang on one second. A Q Sure. There we go. It is -- let me ask you a In the note,

question about the prepayments first.

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Paragraph 5 that's on Page 3 of the note. A Q Yes. Okay. If a borrower wanted to make a

prepayment or if they wanted to pay off the note entirely, how would they do that? to? A If they're calling in to make -- and I'm -If they are Who would they talk

and I'll approach this from two scenarios.

calling in to make extra payments to their loan, they would generally talk to the customer service department about how to designate where that money goes, because it -- if you make a payment -- and I'm going to make up some numbers. If your mortgage is $1,000 and you send

in $1500 and you don't designate where the 500 extra is to go, the bank may apply it to different areas where you may not have wanted it. So if you want it to apply

strictly to principal, you have to designate it as such. So that's the answer on half of it. The other half is if you're making a payoff, an early, complete and total payoff, again, you would want to contact customer service, advise them you're going to be paying off the loan, and you would ask for a payoff demand. And you would say, I'm going to pay it

off on or about this date, and they would generate a payoff demand that would be good through on or about

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whatever date you provided, which would account for any interest, any escrow advances, and basically all of the transactions that would take place in the loan up until that date. And then they would give you instructions. Included in the payoff demand, you would get instructions on how to submit that payment. You know,

what kind of payments are permitted, where to send it, where to wire it and mail it, all the details. So

that's really how we would want the borrower to go about either paying off early or doing, you know, early -accelerated payoff. Q Now -- and, I'm sorry, I said I wasn't going

to ask you questions about the prepayment addendums, but the question I want to ask you is actually in it. thought it was in the note. MS. MACK: Sorry about that. I

That will be Exhibit 3, please.

(Defendant's Exhibit 3 was marked.) Q (By Ms. Mack) The prepayment addendum, does

it allow a borrower to make a full prepayment or a partial prepayment? A partial. I think this kind of plays both full and So it looks like it kind of plays both types

of prepayment s. Q Okay. And if a borrower wants to make a

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prepayment, they have to contact the note holder, right? A The prepayment addendum does indicate that the

borrower will notify the note holder in writing that they are doing so. So it, indeed, does say that the The note also goes -- the

note holder must be notified.

actual note which is Exhibit 2 goes into definitions of who the note holder is. And it says, The lender or

anyone who takes this note by transfer and who is entitled to receive payments under this note is called the note holder. Q Do you know what that -- what that means, that

portion of the promissory note that you just read of how -- how would a borrower determine who that entity was, if it wasn't the original lender? A Q Whoever is receiving their payments. So is it my -- is your answer that the person

receiving the payments is the note holder? A I don't know in every case that it would be.

In this particular instance, which is the only one I can really speak to, the note holder is the person who is collecting payments. are one and the same. Q Okay. Let's go back to Exhibit 2 since you So the answer would be yes, they

have it in your hand. A Sure.

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her. Q A How do you know of her? She endorsed -- or her -- she's -- she's the I'm not sure if she Q Is that note that you have in your hand as

Exhibit 2, is it endorsed in blank? A Q A It is endorsed in blank, yes. Do you know where it's endorsed in blank? The pattern or the policies and the procedures

at WAMU at the time and actually continue to be, really, Chase's policies and procedures are to endorse these in blank as they come in. Generally -- to give you an idea

why, the bank doesn't want to own every piece of collateral that it closes on. So a lot of these loans In order to

are destined for the secondary market.

facilitate the ease of transfer to either a bundler, a trust or another lender who wants to purchase, an investor who wants to purchase, they are endorsed in blank as a normal part of our business practice. that was true for WAMU, and it's true for Chase. Q note is? A Q A Cindy Riley is the endorser on the note. Do you know Ms. Riley? I have never met her in person. I know of Okay. Do you know who that endorser on that And

endorser of a lot of WAMU notes.

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A Q still endorses for Chase or not. But a lot of my -- a

lot of my cases have endorsed notes endorsed by her. Q Okay. Do you know if the note -- now, the

plaintiff in this case is taking the position that this note is an asset of WAMU and, therefore, became an asset of Chase. Would you agree with me? Yes. As an asset loan, why would the -- why would

there be an endorsement in blank on the note? A Again, when the loan is originated, it is

assumed that it's going to be sold off at some point to an investor at some point in the future. So the loan

comes out of originations and goes -- you know, goes to closing. Immediately the -- that note is endorsed in

blank, contemplating that the loan is going to be sold off. Whether or not it's ever sold off, we don't know for sure if it's ever going to be sold off. When

it -- it only becomes an asset loan basically at the point where we have either not been able to sell it, or later on it's determined we don't want to sell it, or it doesn't meet investor criteria and they don't want it. It could be any number of reasons. But in the end, it

stays in-house and maintains itself as an asset loan.

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kept? A I don't know that they would be -- that it Q A Q Do you know why this loan was not sold? Not particularly, no. Do you know where that information would be

would be kept at all because, really, what we would do is we would look at the requirements of any given investor bundler who is putting together the trust, one of these 2007 trusts or whatever it may be. They're

going to give us a list of criteria that says, Here is what we -- this is what we will purchase, and it has to meet these guidelines. So if they run these loans through all these guidelines and for some reason it rejects based upon a certain issue, it just never gets bundled into one of these trusts or never gets sold off to any other investor. It didn't meet a requirement. We don't

necessarily document why it didn't.

In other words, we

don't go into MSP and say, Loan unsellable and this is why. Q It just never sells. Okay. Are attempts to sell it recorded in any

of the databases we've discussed? A Q Not to my knowledge, no. Okay. Well, how would a -- how would WAMU or

Chase -- for example, the Waisome loan, it originates.

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A A Q And it's not the only loan, of course, that would have been originated in August of 2007 for Washington Mutual. Would you agree? Correct. Okay. The -- the sale of the -- of the loans, Do they run it through a

do they have an auction? program?

I guess I'm trying to determine who makes the

decision about whether the loan is going to be sold? MS. CREWS: Object to form.

I have a basic working knowledge of this,

so -- and I've never worked in the area where the investor relations are, you know. They're -- the

investors determine -- they determine they're going to -- they want to put together a pool of loans and they want to securitize these loans and sell them off in a market somewhere. So the bank has an idea of the

current pools that are going on and the current demands of the investors. They will go through the portfolios

and see what meets these criteria and what it's supposed to meet. And basically they are -- so someone inside the bank is going to be doing this. They're going to be

going through our portfolios alone to determine eligibility, and then bundling them off and sending them to the investor for final approval, you know, for them

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Q to include it in their investment pool or if they are buying the asset and not securitizing, or whatever they might be doing. Q (By Ms. Mack) So it sounds like there is some

sort of like a checklist or -- I mean, I don't want to put words in your mouth. But there is criteria that a

specific investor pool would want for loans, and the loans would be run through that criteria? MS. CREWS: Object to form. Is that how it works? I'm just

(By Ms. Mack)

trying to understand the process. A That -- again, I have a very rudimentary But, generally, yes. They have, for

understanding.

instance they -- they only want loans that are under $250,000, or they may only want loans that are under a certain acreage property-wise. Maybe they only want

loans that are -- maybe they don't want any loans in a hurricane zone or maybe they don't want loans in any tornado zones. You know, they come up with whatever requirement that they have, and it's basically up to us to basically offer them loans that, you know -- that meet their requirements generally, and then they will do their own review and determine the eligibility. Q Okay. All right. So as far as the offering

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A Q of the loan, are there any documents or databases, any indicia that you know of that the loan was offered for sale to anybody since origination? A Q Not that I'm aware of, no. Okay. Do you know who is in charge or was in

charge of the Washington Mutual loan sale department? A I don't. MS. CREWS: Object to form. Okay. And when I say "loan Like, for

(By Ms. Mack)

sale," do you know what I'm talking about? purposes of selling to an investor -A Q A Q Yes.

-- or a government-sponsored entity? Yes. Okay. MS. MACK: Sure. Do you want to take a short break?

(A recess was taken.) Q (By Ms. Mack) Mr. Nardi, Exhibit 2, the note, Do you see at the top left

let's start at the top.

corner of the first page of the note there is a 19FL M05? A Q stand for? Yes. Do you know what those numbers and letters

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know. A Q A Q A Q I don't. Okay. Now, if we go over to the right side of

the page, there are some handwritten numbers. Do you know who put those on there? I do not. Do you know what they stand for? I don't. Okay. The numbers right below it that are

printed beginning with 301, do you know what that is? A The first portion before the hyphen is the

loan number, I believe. Q A Q A What is the portion after the hyphen? I don't know. Do you know who would know that? I don't know anyone specifically that would It's probably something I can research and

determine, but I just don't know what the numbers after the hyphen mean. Q Okay. What would you look at to research to

determine what the 097 represents on that note? A I would probably -- well, I don't know that I I would probably

would research any particular system.

just ask somebody who I think might know, but -Q A Okay. Who would that person be?

I haven't contemplated that at this point.

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And I might go back and look at other notes in this date range to determine if they are similarly marked or whether or not this was something that was done to every note or not to try and nail it down. explanation is probably pretty simple. occur to me what the last three are. Q Okay. Is it fair to say that that is not a But I'm sure the It just doesn't

question you get asked very often? A It's not. In fact, I don't really recall ever I think I may have

having been asked the question.

personally asked the question before and at one time maybe knew the answer, but it wasn't important enough for me to retain. Q A Q A Okay. So today, I couldn't say what it is. Okay. But generally, I can tell you that in my

experience in these notes, is that sometimes there is extensions even on the front or the back. know what significance that plays. with the left-hand connotations. Q A Q Okay. -- what significance they have. All right. Now, going down below the block of And I don't

And the same thing I just don't know --

bold typeface, you have the date and the city?

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A A Q A Q address -A Q A Q Correct. -- below that as well? Correct. Do you know why the property address city is Yes. The city is Maitland, correct? That's what it says, yes. Okay. And then you've got a property

different than the city indicated next to the date on the first page of the note? A On that first line or -- let me make sure I

understand the question. Q Yeah. Would you agree with me that Clermont

is not Maitland? A I would agree that they're not -- I don't know I don't know if they are close

where these places are. to each other. same place. differently. Q Okay.

I would have to assume they're not the It's described

They are different places.

Is it common with regard to Washington

Mutual notes for the city to be different than the property address location? MS. CREWS: Object to form.

Well, I think that would depend on what the

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top. date and the city designation -- especially specifically the city in the top is where -- what this is describing is the top line is describing where the document was executed. question. And so I don't know the answer to the I'm just theorizing, I guess, as to why they

would be different. So I don't know why it says Maitland at the So I couldn't even tell you. So that would mean I

can't tell you why it's Clermont in the second line. Q (By Ms. Mack) Okay. I was wondering perhaps

if there was some, you know, policy or procedure you knew that would explain why they were different locations. A I couldn't tell you. Maybe there's some So maybe the

additional -- there is not a notarization.

mortgage has a notarization that says where the -- maybe that's where the loan was closed, actually signed. know, I -Q to guess. A I'll get the mortgage for you so we don't have How's that? Could be a number of reasons why. That may be You

the branch where the loan was originated from. Q Okay. MS. CREWS: county. I was looking. It just says the

It doesn't say which city.

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MS. MACK: Exhibit 4. (Defendant's Exhibit 4 was marked.) Q (By Ms. Mack) And that is a copy of the We're going to mark the mortgage as

mortgage that was produced by your counsel to me in preparation for this deposition. A Q A Yeah, it just makes reference to Lake County. Okay. On the front part of the mortgage is a stamp

from I've seen is the closing -- the title office that closes in Maitland. Q A Okay. So it looks like this is where the document

was prepared. Q Okay. Well, while you've got the mortgage in

your hand, if you could turn to Paragraph -- let me get a copy of it. It's probably easier if I take a look at

your copy, and I can tell you what paragraph to look at. Let's look at that for a second while my expert is looking for the particular paragraph. go back to the note which is Exhibit 2. A Q Okay. And the paragraph I would like to talk about It's entitled Obligations of Persons I'm sorry. Paragraph 9 on Page 3. Let's

is Paragraph 8. Under the Note.

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A Q A Q A Do you see it? Yes. Okay. Are you familiar with Paragraph 9? I'll read it really

I haven't read it yet.

quickly and tell you. I've now read it. Okay. What is your understanding of what

Paragraph 9 -MS. CREWS: Object to the extent it calls for

a legal conclusion. You can answer. I think it speaks for itself. It's pretty

plain English.

It states that the persons who sign the

note either as -- in basically all capacities; guarantor, surety or endorser, basically have the obligation to perform under the -- under the note. Q (By Ms. Mack) Okay. Now, on the Waisome And

note, the signature on the note, there's only one. that's indicated as being Mr. Waisome.

With regard to

the endorsement of Ms. Riley, the endorser under Paragraph 9 would also be obligated under the note? MS. CREWS: Object to form. It also calls for

a legal conclusion. A That's what the paragraph says. I don't know

that the -- I mean, Cynthia Riley is not identified as

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A Q an endorser in her stamped signature. they're intended to be the same party. I don't know if In other words,

I don't know that the endorser as defined in Paragraph 9 is Ms. Riley. Q (By Ms. Mack) Okay. Let's see. With regard

to any system or accounting, whether it's on a database or on paper, if that's even used anymore, what does JPMorgan Chase use to account for a promissory note as an asset on its books? MS. CREWS: Object to form.

I don't think I understand your question. (By Ms. Mack) Okay. Do you know what I mean

when I say "asset"? A I -- I really have -- well, let's say no.

Define what you're -- define what you're using the term "asset" to describe, and I'll adopt it and answer the question. Q Well, what is your -- what's your -- do you

understand what the term "asset" means at all? A Well, I have a couple of definitions that I In -- in my day-to-day

could, you know, use for asset.

work, an asset loan is a loan that is owned by Chase. That's the working definition I come in contact with. But if I was saying personally what my assets are, I'm talking about things that I own that possibly could be

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A Q A okay. liquidated into capital. So it's my -- my worth or

my -- you know, monetary description. Q Okay. So with an asset, like, you could -A car that

Let's just use a simple example.

doesn't have any lien on it, that would be an asset that, if you owned it, it would be an asset that was worth whatever it was worth. A Q A Q I would agree with that. Would you agree with that? Yes. So if you wanted to, say, borrow money and use

the car as collateral, you wouldn't give the car to the bank you were borrowing the money from. pledge it. Do you understand what I mean by that? I do. MS. CREWS: Object to form. Okay. Do you know if this note And You would

(By Ms. Mack)

in this case was ever pledged as opposed to sold? do you know the difference? MS. CREWS: Object to form.

I have not seen any indication that that was

pledged at any point. Q (By Ms. Mack) What would you look at to Or what -- if this

determine if it had been pledged?

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A loan had been pledged, what screen would show if it had been pledged? MS. CREWS: Object to form.

As far as I know, there's nothing in the

servicing platform that would contain the information because it's really not related to the servicing of the loans. It's something that's a separate and removed.

If the bank wants to leverage their assets, it's not something that would be retained in MSP and the servicing platform, as far as I know. Q (By Ms. Mack) Okay. What -- okay. So do you

know -- do you know who would have that information at either -- well, at JPMorgan Chase? MS. CREWS: I'm going to object because I

don't think it's related to any topic that we have listed in our court order. MS. MACK: to answer? A Q And the question is who would know? (By Ms. Mack) I'm just trying to, you know, Are you going to instruct him not

unpack the whole concept of the purchase and assumption, which would be A under the order. The information

related to the chain of custody, which would be B. MS. CREWS: I don't see what -- whether a bank

has pledged certain assets of its portfolio, or

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it. WAMU. A whatever, what that would have to do with the FDIC transfer or the chain of custody of servicing of this loan. Q (By Ms. Mack) Well, with regard to the chain

of custody, would you agree with me that when you sell a note as opposed to keep it as an asset, you physically transfer the paper? MS. CREWS: Object to form.

If we sold the loan, we would generally

physically transfer the paper because the new owner is going to want to have possession of that. Q (By Ms. Mack) Okay. Now, are you familiar

with the concept of pledging a note as collateral as opposed to selling it? A I -- I understand the concept as you described

I don't know this to be a practice of Chase or I've never come to -- I've never worked on a case

or been advised that this is a practice of Chase or WAMU. Q A Okay. So, really, the concept, I understand. The

practice, I don't know if it goes on or not. Q Okay. So you don't know if that happened in

this case with either WAMU or Chase, if this loan was ever pledged as collateral?

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A There is nothing in the -- there would be

nothing that I would have access to that would memorialize such a transaction because it's not related to the servicing of the loan. And, again, I've never in

five years of working for the combined businesses been aware of any such practice or been advised of any such practice taking place. I've never heard of it. I mean, your description to me today is the first time I've ever even heard of it. happens, I would be very surprised. it before. Q Do you read any of the Security and Exchange So if it I don't know that it goes on.

I've never heard of

Commission filings for either WAMU or JPMorgan Chase? A Do I read them? MS. CREWS: Objection to form. What does that

have to do with anything? A I've read them as it relates to cases I have

prepared for, but I don't read them as -- you know, it's not something I wake up on Sunday morning and read, no. Q (By Ms. Mack) Okay. Did you read the

Levin -- we call it the Levin Report, but I believe it's called the Anatomy of a Financial Crisis. A large part

of it was dedicated to what caused the failure of WAMU? Did you happen to read that?

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A assets? Q A (By Ms. Mack) Yes. A Q I did not. Okay. Thanks. With regard to assets, what is Are

All right.

your understanding of mortgage servicing rights? they considered assets? MS. CREWS: Object to form.

Whether the servicing rights are considered

I don't know whether or not servicing rights

would be considered assets by the bank. Q Okay. Now, with regard to the purchase and

assumption agreement, do you know what certain assets were purchased by the bank? A purchase. My understanding is it was a whole bank So pretty much everything under -- in my The -- my understanding

understanding, was purchased.

of the whole backs of things -- it's easier -- I think it is easier to define the things that were not purchased as opposed to things that were, because it would be outweighed, clearly. Certain things, in my knowledge, that were not purchased were certain -- certain loans that were involved with certain types of litigation that the FDIC sought to retain. So, again, I'm working in the

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A Q A mortgage servicing. I don't know what -- and WAMU was a

large bank which had other divisions which I am completely unaware of, so those whole -- the whole bank purchase included those things as well. But as far as what was not included as far as mortgage servicing was, to my knowledge, things that were tied up in litigation that the FDIC saw better of and wanted to hold onto and manage themselves. Q Okay. Do you know if Washington Mutual -- or

sorry -- JPMorgan Chase serviced those loans the FDIC retained? MS. CREWS: Object to form.

I haven't seen any, but I would have to say I

don't know. Q (By Ms. Mack) And "I don't know" is a good

answer, because I prefer "I don't know" to guessing. What accounting or financial records did Washington Mutual have that evidenced Mr. Waisome's note as an asset on the books and balance sheet of Washington Mutual prior to the FDIC takeover? MS. CREWS: Object to form.

Again, I think the answer is I don't know. (By Ms. Mack) Okay. What accounting and

financial records does Chase have of Washington Mutual -- so this would be Washington Mutual records or

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A accounting records, financial, any type of record -that would have been created by Washington Mutual and is now in Chase's custody that would prove that Mr. Waisome's note was an asset of Washington Mutual at the time that the FDIC took the bank over? MS. CREWS: Object to form.

Well, let me go back to your previous question

because in asking your current question, I think I -- I think I may know what you're looking for or at least have some information. If we go back to the previous question which was what records did WAMU have prior to the FDIC seizure, they were working in the same servicing platform as Chase. So the records would have been

retained there as far as whether or not Mr. Waisome's loan was an asset loan or investor loan. They would

have -- they have a document facility which would have housed the original mortgage, all the collateral docs that would have basically shown that that was in our possession and shown -- you know, it would have been proof of ownership at the time. And then really rolling that all forward, Chase purchased and assumed all of the records. And

just to give you an idea, like, we have copies of all the checks for all the payments that Mr. Waisome made in

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the two years that his loan performed. Those are, So I

clearly, WAMU records that passed on to Chase.

think those would have qualified as records that would have shown that we were, indeed, at the very least servicing the loan. And then forward, again, when we talk about post purchase by Chase through the FDIC, we would have -- we take possession of the note, the mortgage, the original collateral documents and all of the -- of the credit file and all of that. The information in the

systems that WAMU was using is the same thing that Chase was using. So I think as I previously testified, we

maintained the system separately up until a period of time until pretty recently in the last year where eventually they were converged into one. So, really, the servicing never went through any major changes. The data is the data, the past

unchanged from WAMU to Chase. Q (By Ms. Mack) But I think we've already

established that you can have a servicing of a loan and not own it. A Q A Certainly. Okay. But the servicing platform and the servicing And that's, I

records are going to reflect ownership.

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A A think, what we are getting at, is that the ownership is shown as being WAMU and Chase throughout. There is no

indication that it was ever sold to another owner. Q Can we agree that the FDIC did not take over

the Washington Mutual holding company? MS. CREWS: Object to form.

Can you -- I don't know what you mean by

"holding company." Q (By Ms. Mack) What's your understanding of For

the FDIC's receivership of Washington Mutual?

example, did it include the Washington Mutual mortgage securitization corporation? Mutual Bank, FA? All the above? Or was it just Washington

Or was it Washington Mutual Bank, FSB? More? Less? Object to form.

MS. CREWS:

I haven't memorized the document which

probably spells out the entities and leaves out those that were not included in that. don't know. So my answer would be I

I don't have a full at -- on-demand

recollection of every entity of WAMU that was taken over by the FDIC and at which point. Q (By Ms. Mack) Fair enough. Okay.

And are you -- have you had the opportunity since you've been working in the last five years of working on a loan where the collateral file was at the

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Q A bank at the time of seizure, okay, the note, mortgage and the title policy, the originals, and they were not actually owned by the bank? MS. CREWS: Object to form.

Where they were -- where they were being

housed by the bank and not owned by the bank? Q A Q (By Ms. Mack) Absolutely. Okay. So how did you determine that that -Correct.

say it was a -- let's just for purposes of this next couple of questions, if Washington Mutual had originated a loan and then securitized it into a Washington Mutual trust -A Q Yes. -- the trust documents provided that the

Washington Mutual Bank, FSB would be the custodian of the documents, the collateral file, so they would be housed in the bank. A Okay?

That's correct. MS. CREWS: Object to form. However, if they were -- if

(By Ms. Mack)

they were sold to a trust, then the trust would own the loan including the note, correct? A Q Correct. But they would -- the originals would still be

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at the bank; is that correct? A It depends on the designation of the trust.

And typically these PSAs designate who the custodians are going to be of the documents. Generally, the But,

servicer of the loan is going to be the custodian. you know, that's the general practice.

But there are

cases where the custodian is going to be different from the servicer. But in most cases, I would say 9 out of

10, 99 percent of the time when we were servicing the loan and the loan was owned by a trust, we're also going to be charged with document retention and custodianship. Q Okay. So in that scenario, that hypothetical

scenario, how would you be able to determine if the loan was owned by a trust as opposed to being an asset of the bank? A A couple of different -- well, MSP is going to

tell you who the investor is, if there is an investor and if there's a separate owner other than WAMU or Chase at the time, whoever it may have been. And then

secondly, there is also a system that we use to determine loan ownership and specifically servicing guidelines as it relates to -- I'll use it for relating to default -- that tells me, like, the name it foreclosed in. So it's going to name the owner and So there's a number of

whose name to foreclose in.

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other systems that are used to, you know, document who the owner is. Q described? A I know it as LISA. I think it's an acronym I can't remember What's the name of that system that you just

for something else, but I forget. exactly what it is. Q LISA?

Is there any other system besides LISA

at MSP that you could look at to determine if there was an investor? A There -- you may -- depending on the

individual loan, if you have access to the MERS registration, you know, I would be able to determine ownership through MERS. MERS was not a party to this

one, but I'm just saying in general MERS, LISA, MSP. I think our -- I think the document -- the Docline system I made the reference to earlier may also reference ownership, but I -- but I may be wrong on that one. Q A Okay. I think that you can run certain reports out

of that database that will produce ownership information. But I know certainly MSP, which is the

go-to system of record, is going to show clearly without any question who the owner is.

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A Q Okay. What I -- I guess what I'm looking for

is did Washington Mutual -- did Washington Mutual have any proprietary system, either database or paper, to determine who owned a loan, owned the note? MS. CREWS: Object to form.

I would consider -- I would consider MSP a

proprietary system because each individual servicer has their own client. cutter. So they're not -- it's not cookie So I would consider it

You can customize it.

proprietary and I would say that would be your -- a prime example of a system that will show you who the investor and who the owner is on every single loan that's documented in MSP. Q (By Ms. Mack) Okay. And so with regard to

Chase, the MSP system, is that the only proprietary -and when I say "proprietary," I mean it's something owned by Chase and that only Chase and its employees or counsel have access to? A Q A That would show that same information? Yes. It's the -- well, I'm not sure if LISA is the I -- but I would say that

proprietary system or not. will also show you. I don't believe.

The MERS is not really proprietary,

So that's the one I'm aware of, or

those would be the two I would be aware of for the most

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A part. I don't know that there's not any others. I just

know that, you know, affirmatively they -- I can tell you from those records that, you know, who the owner is. Q Okay. All right. Other than Washington

Mutual employees and now JPMorgan Chase employees, would there be any other folks that could input data into either MSP or LISA that would change the identity of the investor or any of those types of information? MS. CREWS: Object to form.

I don't know if there's going to be any other

employee -- any other employees of any other companies that would have the ability to do that, no. don't know. Q (By Ms. Mack) Do you know if -- if either I just

Washington Mutual or JPMorgan Chase keeps a log, a computer log, of access to either MSP or LISA or Docline? A Yes. Actually, there are very strict controls Not everyone who walks in the door They have to be For instance, if you

over who has access.

at Chase can access these systems. ordered with specific privileges.

want someone to have read only privileges, they can be read only. If you want them to have edit privileges, It runs the gamut. We

they can have edit privileges.

have to affirm every year that our -- that our accesses

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A are appropriate for our position. We have to affirm for

our employees, if we have any direct reports, that, you know, their accesses are appropriate for their position. They are constantly being reviewed, and they're always looking for ways to limit access to the bare minimum of what is needed to get your job done. Q Who -- if I wanted to get a list of access to

the Waisome collateral file or servicing history, who would I -- or what department would that be kept in, if that's how you keep it? MS. CREWS: And what is it called?

Object to form.

Well, you're dealing with multiple systems Some of it is in

maintained by some inside people. partnership with LPS Services.

And I would say from the

MSP standpoint, because I think that's, you know, heavily partnered with LPS, it's probably LPS who would provide us a list. If we needed a list of everyone who

has ever touched the loan in MSP and the individual identifiers, they would probably be able to run a report and tell us that. The other system such as, like, Docline and who has got access to that, that would probably be internal. And that system, as far as I am concerned, is So

run by the custodianship, Chase custody services.

Chase custody would provide a report on who has accessed

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the file room to pull up the room or who has accessed the loan for whatever reporting they were looking for and so on. So it would be the administrators of the

particular systems. Q (By Ms. Mack) Okay. Any other systems that

you haven't just mentioned that I would -- for log-keeping purposes? A There are -- again, because there are certain

folks who can access view only and there are certain folks who can change, when you are looking at things like iVault, which is the imaging system, you really can't change anything there. It's just a picture of

what document you're looking at. So, certainly, I am sure you can get a list of the people who have accessed the loan from that point, but the purpose would be I don't know what, because they can't change anything or manipulate anything there. They probably do have a list of people who can upload images to the loan records into iVault, which is handled still out of Monroe, which is Chase custody services. Q A Q In Monroe, Louisiana, right? Right. Okay. Now, with regard to the placement of

the endorsement, have -- let me just back up for a second.

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In this case, are you aware of the initial pleading by plaintiff, the complaint that was filed and served? A pleading? Q lawsuit. A I believe I have seen and read it. I mean, I The first one. The one that started the All of the pleadings or just a specific

don't know it through and through. Q A Okay. I think there was -- what sticks out to me, I

think, there might have been a lost note claim in there somewhere. Q Do you know -- do you remember if there was a

note attached? A Q A Q A To the original one? To the initial complaint. I don't think so. Okay. I don't know for sure, but I don't think so.

Why would they do that if they have a -- well, maybe a copy. Q They may have, but I don't know. Okay. Are you aware that one of the issues in

this case is whether Ms. Riley's endorsed -- endorsement on the promissory note existed before the lawsuit was

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A A filed? A I understand that to be a point of contention

in the case, yes. Q Okay. Do you know what document or system you

would look at to determine when Ms. Riley's stamp was placed on the promissory note in this case? MS. CREWS: Object to form.

I am not aware of any system or document that

is going to memorialize when her stamp was placed on the note. Q (By Ms. Mack) Do you know if Washington

Mutual had any system in place for tracking when a note was endorsed? A I would say generally there were systems and

processes in place that define when it should be endorsed as a matter of the normal business practices, but not specifically as to the moment they -- or even the week or month it may have been physically stamped. Q A Those practices, were they written? I've never seen the written -- I've never seen

them, so I don't know. Q Would you agree with me that Washington Mutual

bank's business practices were not sound? MS. CREWS: Object to form.

I would probably not agree with you as to the

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Q loan servicing portion. As to whether or not their

decisions on the types of mortgages they may have been writing, I think that may be a conversation separate and apart from what we were doing as a servicer. But

servicing, certainly, is not impacted by the types of loans that were underwritten. regardless. Q A (By Ms. Mack) Okay. They service the same,

So, again, your question was were WAMU's And I think that would be a

business practices unsound.

very general and broad, sweeping statement that doesn't apply to servicing in particular. Q Now, with regard to the mortgage and

underwriting practices specifically, do you have an opinion about the soundness -- safety and soundness of those -MS. CREWS: Object to form. -- parts of the business?

(By Ms. Mack) MS. CREWS: MS. MACK:

Are you talking about origination? Well, yeah. I mean, origination,

underwriting. whole category. MS. CREWS:

It's going to all fall into that

He's not here to testify about

anything that happened at origination. MS. MACK: You don't think this falls under

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general information and facts related to the loan and borrower as maintained in the plaintiff's business records? MS. CREWS: If he can answer the question,

that's fine, but he -- I don't think he is going to know about specific things about origination. MS. MACK: Okay. Well, we have facts relating

to the endorsement of the note and WAMU's typical business practices relating to loan originations and endorsement. MS. CREWS: And he can testify to that topic

if you want to ask him about that. Q (By Ms. Mack) What do you know about WAMU's

typical business practices relating to loan origination? A question. Q A Q A Well, I know quite a bit. That's a very broad

Are you looking for something -Yeah. -- in particular or -The -Loan origination is a long process and

involves a lot of steps. Q I'm probably going to want to get some

documents out so I can ask this next round of questions. Give me a second. Actually, while I'm looking for those,

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A Q A Q Mr. Nardi, I'm going to ask you some more questions about the mortgage itself, which is Exhibit 4. Specifically, Paragraph 10, 18, 20 and 22. So here you go. 20 and 22? Yes. Okay. Okay. With regard to Paragraph 10, are you

familiar with what mortgage insurance is? A Q insurance? A My understanding of mortgage insurance is Yes. Okay. What is your understanding of mortgage

depending on the requirements of the lender, the borrower may be required to pay an additional amount on top of the regular mortgage payment that is not -what's the word -- doesn't apply to their payment -doesn't apply to their mortgage. It's basically a fee,

for all intents and purposes, that will basically ensure losses that the lender, if the lender remains the owner or -- you know, basically, you know, if I had to use the term "party in interest" to the loan. Like I say, any

losses that may occur from the borrower defaulting on the payments early, you know, or basically a loan not performing.

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Q Q A Q Okay. That's my understanding. Now, do you know the difference between lender

placed mortgage insurance and private mortgage insurance? A I've not heard the term "lender placed

mortgage insurance," so -- and maybe the terms are getting mixed up. Usually, like, forced placed

insurance relates to property coverage, not insurance related to the performance of the loan. PMI versus MPI, I don't know if that's the question you are asking, mortgage insurance, you know, PMI versus MPI. Is that the question you're asking? Well, it depends on what lender you are

working for, I guess, because there's -- I think MPI and lender placed mortgage insurance have been referred to, in my experience, interchangeably. A Okay. I haven't heard and I didn't want to So I'll -I appreciate that.

confuse the issue. Q A Thank you.

-- assume you are not referring to actual

coverage of the property -Q A Correct. -- and you're talking about -- do I know the

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head. Q A What's your understanding of FHA loans? Well, in -- and this is just because I've The difference between those two? Let me -- I have to run

some definitions in my head, so hang on. Q A No problem. Take your time.

I don't deal with the issue very often, so I

I -- my understanding is probably fairly rudimentary. have an idea in my head about MPI as it relates to -for some reason, FHA loans pop in my head. sure if it only relates to FHA loans or not. So I'm not And then

PMI relating to other types of perhaps privately owned loans. So I don't -- I don't think I have a really good

working -Q A Okay. -- definition or a way to divide those in my

recently researched some case that had an FHA loan.

loan to value or -- the borrower didn't have enough to make the 20 percent down payment on the loan, so you basically had a larger than 80 percent loan to value. They were financing, you know, 90 percent of the loan. So basically the -- the backer, the guarantor of the loan, required that they pay an additional, like, $98 a month. That didn't apply to the mortgage payment but

basically covers an insurance policy that, you know,

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loan? case. that basically said it will cover you in case there is, you know, a payment default or some issue with the loan. And then even further, I researched that after a period of time, the borrower or -- the borrower can basically have that removed once they hit a certain percentage of equity in their home or a certain number of years goes by. So my understanding is very specific to this There is probably a lot of other nuances that I

am not aware of, but that's -- that's what I learned in order to -Q A Q insured? MS. CREWS: THE WITNESS: MS. MACK: Are we talking about this loan? No, we're -How did you --- to become knowledgeable. How did you determine that the loan was FHA

I'm asking him what his

understanding of FHA because he was describing it in terms of the insurance. A How was I able to determine if it was an FHA I could look at origination documents, and it

will easily -- I think it's right on the application. It will say FHA on it. Q (By Ms. Mack) Okay.

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A So it's pretty easily identifiable. And

systemically, I think it's there as well. tell you where in MSP I would look at it.

I just can't But from my

research, I was looking at origination documents which clearly identified the loans as FHA. Q Okay. Now, the -- do you know if

Mr. Waisome's loan was an FHA loan? A I would have to look at the application again, It would only take

but I don't -- I don't think it was. me a moment to look. Q A Do you know --

It was a cashout refi, so I don't know that it I'm almost positive it couldn't,

could be an FHA loan. but I could be wrong. Q Okay.

So do you -- okay.

So let me back up.

Are FHA loans identified by loan number or is it an indication on the loan file? Let me ask you -This is one

tell you why I'm asking you this question.

of the documents that was produced to us in preparation for this deposition. A Q What's the question? Okay. The question is: Well, first, have you

ever seen that document before? A I have not, but it was probably in a big pile

of documents that I had.

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A Q means? A I don't know anyone -- I mean, not off the top MS. MACK: We're going to mark that as -- I

think 5 is the next number. (Defendant's Exhibit 5 was marked.) Q (By Ms. Mack) The document we've marked as

Exhibit 5 was a document produced in preparation for this deposition. It indicates that there is an FHA

lender identifier number associated with this loan. That's exactly what it says. Do you know what that means? I don't. Okay. Do you know who would know what that

of my head, I don't know who would know. Q A Okay. I'm sure I could find out, but I've not --

looking at the term FHA lender identifier, it -- it appears that it's identifying a lender that is associated with FHA -- FHA funding by a certain number. So, again, I'm only looking at this for what it is. looks like it's identifying a lender by number. I'm It

sure there are a lot of lenders who work with the FHA processes that have to be identified uniquely, so it could be that. Honestly, I don't know for sure. I would have

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look. to do some additional research. It would be nice to

say, yeah, that's WAMU's FHA lender identifier, but I just don't know that to be the case. Q Okay. So what would you look at to determine

if that was the lender identifier number as opposed to an FHA loan identifier number? A I wouldn't -- I wouldn't even know where to go I would basically start to talk to who I think

would be in the know -Q A Q an answer? A Q A I'm sure I could. Okay. I'd have to find somebody knowledgeable enough Okay. -- regarding FHA loans. All right. But you think that you could get

and hopefully with this -- you know, this is, obviously, a 2007 document, so this would be a Chase document -excuse me -- a WAMU document. So I would probably

identify or try to find someone who was working FHA loans at the time. Q A Q When -- with WAMU? Correct. Okay. Let's see here. Are you

familiar who -- who would be -- who would be the people,

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as you put it, in the know? Do you have people you are

thinking of as we're sitting here today? A Well, not in particular. I have -- working in

and around Chase legal, you tend to find people who worked in other parts of the business at some point. helps when you get people that are just not legal experts. You need to have people who are experienced in It

loan servicing and, you know, all areas of originations and loss mitigation. And so what I do is just try to

maintain a network of people that I can go back to and say, Hey, I've got this issue and I've got a question. Can you tell me what this was about? Basically just

network and be able to verify that some way through business records. See, a lot of these questions just come up like this one. What is this? Well, I don't know what

this is, but I can backtrack and find what the number represents and then go back and find somewhere in the system of record where I can verify the information is what someone has told me that it is. Q Okay. All righty. So if we're talking about

the origination of this loan, then it's fair to say that you don't know everything about it. go talk to some other folks? A Well, I -You would have to

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A MS. CREWS: Object to form.

-- can tell you what -- as far as the I

origination goes, what's included in the documents.

think everything is well-documented in the origination file. I mean, it's all there. I've seen copies of the

application, what the loan was intended to do, what -I've seen copies of the closing documents. So it's all well-documented, so there is nothing I couldn't answer as far as the originations for this loan goes, you know, given the amount of documentation that we have. to go to anyone else. I wouldn't necessarily have

I would need to refer to

documents and business records. Q (By Ms. Mack) Okay. And would one of those

business records be Optis? A Q I haven't heard of Optis before. So if I asked you questions about Optis Center

regarding this loan, you wouldn't know anything about it? A Q A Optis Center? No, I wouldn't.

It's a proprietary WAMU software. Okay. What was it used for? You're asking

the questions. Q I was going to ask you. But since you don't

anything about it --

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A A Q I don't know anything. -- I'm kind of stuck there. Okay. Well, I'm glad I didn't ask a bunch of That would have

questions and you said "I don't know." wasted a bunch of time. MS. MACK: 12:00.

Let's see what time it is.

10 to

I have a big chunk of questioning, and I'm

trying to decide when to get to it because it's all regarding the same stuff. some smaller things. Q questions. A Q Okay. Do you know if there was any insurance at all, (By Ms. Mack) Going back to the insurance And sometimes I can do

FHA, PMI, MPI -A Q I don't recall. -- regarding the alleged default and what

would happen in the event of alleged default? MS. CREWS: Objection. Form.

I don't recall seeing anything in the

documents that would reflect there was some type of insurance premium being paid by Mr. Waisome or by anyone or if there was any coverage in the event of default or anything like that. I would certainly like to say for

sure I would like to definitely see the documents --

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means? A I believe that the paragraph clearly usually the origination documentation will describe any type of insurance premium the borrower had to pay, and then remove from that if there was anything that the bank was paying, which is generally not the case. usually the borrower paying for the insurance. just review the system of record. to this point, nothing. Q A (By Ms. Mack) Okay. It's

I would

But in my review up

Nothing that I have identified shows there is

any insurance paid. Q Okay. So going on to our mortgage, I think With

we've got -- 18 is next -- the next paragraph.

regard to Paragraph 18, if the borrower wanted to transfer the interest in the property, they had to get permission from the lender. Would you agree with me that's what that

contemplates transfer of the property and the obligations of the borrower under the mortgage to consult with the lender ahead of time, yes. Q So for purposes of transfer, it would be

important for the borrower to know who actually owned the note or, I guess, the deed of trust? the deed of trust as well. They reference

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A that here. A question. Q MS. CREWS: Object to form.

I just want to make sure I understand the It would be important for them to know who -(By Ms. Mack) The owner of the note, because And so if you're trying

the mortgage follows the note.

to transfer the interest on the property pursuant to Paragraph 18 under the mortgage, you would have to know who owned the note. MS. CREWS: Object to form.

I don't know that -- I mean, it doesn't say It doesn't say you need to identify or It just identifies the lender. Okay.

inform the note holder. Q A Q A Q A Q (By Ms. Mack)

So I'm not going to interject -Okay. -- words there. How about Paragraph 20? 20? I do. Do you have a question? I just didn't know if you need to

review it first. A Q Go ahead. The sale of the note, change of loan servicer.

What is your understanding of the -- of the loan sale? Is that something -- I think you already said that the borrower does not need to be apprised of the loan sale.

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A MS. CREWS: Object to form.

I will try and just recap my previous answer.

As far as the servicer goes, clearly, there is a need for the borrower to know who their servicer is because that's who they make their payments to. That is who is

handling all of the customer service level issues and basically all the interactions with the customer. As far as who owns the loan, they are not necessarily going to have contact with the owner of the loan itself. As I gave an example before, if the loan

has been securitized and now is in -- you know, involved in a trust, Joe Borrower is not going to pick up the phone and talk to Wells Fargo as the trustee. They are

still going to be contacting Chase as the servicer for whatever issues that might come up in the life of the loan. Q (By Ms. Mack) How would Mr. Waisome, if he

wanted to speak with his lender -- the owner of his note under Paragraph 20, before, say, suing them, okay, if Mr. Waisome hypothetically wanted to speak with the owner of the -- you know, the note -- not the servicer, but the owner -A Q Okay. -- under the second paragraph of Paragraph 20

in the mortgage, the borrower has a duty to actually

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A A know who the owner is and touch base with them before he sues them. MS. CREWS: Object to form.

As far as finding out who owns your note, I --

I've never had to do it personally, and I have really not run into a situation where I have had to answer a question like that before. But there's no reason the

borrower can't call their servicer and ask who owns their mortgage or owns the note, you know, who the investor is. locked down. Q (By Ms. Mack) Are you aware that Mr. Waisome It's not secret information. It's not

attempted to determine who the entity was in this case prior to the lawsuit being filed? MS. CREWS: Object to form.

I'm aware of some communication with the bank.

I don't know when it was in relation -- I don't recall when it was in relation to the suit, and I don't remember specifically him asking for who is -- who the owner was. But I'm not saying it wasn't there. I'm

just saying I recall some communication specific -- very specific and detailed questions being asked. I don't

recall what timeframe it was in relation to the suit or whether or not he specifically asked, Is there an investor, who is it?

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Q A Q (By Ms. Mack) Yes. -- would that have been something you would But if he had --

expect would have been answered? A There is absolutely no reason not to answer Like I said, it's not -- now, the

the question.

question is how -- if the question is who is my -- who owns the note, certainly, there is no need to hide that. You can just answer the question. Now, if you asked, How do I contact such and such, then the question may not be answerable because Wells Fargo as the -- and, again, I'm going to go back to the Wells Fargo as trustee for WAMU pass-through certificates. They're not going to have contact They are not going to They are

information for the borrower. take the borrower's call.

It's not their job.

not -- they are basically removed from the borrower through -- by the servicer. The servicer is there to answer any questions and take care of anything that can be handled. There is

no relationship between, really, the borrower and the underlying owner of the note at that point while the loan is performing or is in some type of, you know, default status, wherever the life of the loan. why the servicer is the servicer. That's

They are handling

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A process. that relationship in lieu of Wells Fargo as trustee. Q But under Paragraph 20, the borrower has an

affirmative duty -- and I'm reading the paragraph -- to contact the lender prior to commencing any type of a judicial action over an alleged breach. And if

Mr. Waisome had written these letters before he was sued, seeking to contact that lender, that owner, do you know if he was given an answer? MS. CREWS: Object to form.

I believe the answer is -- there is a specific And if it's -- if this is the specific

instance I'm thinking of, it's pretty well-documented that there were responses initially. And then I believe

that the answers may have come through counsel because of -- I'm not -- again, this is my lack of understanding of the exact timing. But I think if we're represented

by counsel, a lot of these requests come through after the point or they are being processed to the point where we are then represented by counsel. So the answers

would have been funneled through counsel. I can't say definitively whether or not he was answered directly by the bank or if the questions were answered through communications with our counsel at the time. And as far as being able to contact the lender, I

think I pointed out a section of the documents that

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Q A A Q A Q identifies the lender as anyone who has a note at the time or -- you know. So the lender is really, you know, The servicer is the lender. So he would have been There was no separate

in this case, the servicer. They are one and the same. contacting the same people. servicer or separate lender. Q (By Ms. Mack)

Okay.

Well, if I could just

point your attention to Page 1 of the mortgage. A Q Bank, FA. Would you agree with me? Yes, it is. Okay. Are you aware of the fact that Sure. The lender is defined as Washington Mutual

Washington Mutual Bank, FA did not exist after April 4, 2005? MS. CREWS: No. (By Ms. Mack) No? But hypothetically, if Object to form.

Washington Mutual Bank, FA was no longer an entity named Washington Mutual Bank, FA as of April 4, 2005, who would Mr. Waisome then contact? MS. CREWS: Object to form. Okay. Let me just give --

(By Ms. Mack)

Well, I mean, the answer is the folks who are

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A servicing his loan, the people who are sending him statements every month for his loan, and the people who are sending him letters about his loan status. It's the

same folks he had been dealing with in the two years prior to his default. I don't think it was a big -- yeah. The same

folks he had had been dealing with two years prior to his default. Q Okay. So if the -- if Mr. Waisome was dealing

with an entity other than Washington Mutual Bank, FA as loan servicer, then from your answer, you believe that those two entities would be one and the same? MS. CREWS: Object to form. I am just pointing

I don't think I said that.

out the obvious that he wouldn't necessarily find someone else to tell about whatever issues that had come up. If he was going to sue -- and, again, I'm still

kind of -- I'm referring back to Paragraph 20 when you said he has an obligation to inform the lender that he is going to sue. If he's had no other contact with

another party, there is no reason for him to go out and seek another party to inform. the right folks all the time. As to whether or not these parties are one and the same, I didn't say that. And I don't know whether He has been dealing with

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Washington Mutual, FA existed at the time. I know that

Mr. Waisome was making payments to Washington Mutual and was getting correspondence from Washington Mutual. And

basically if his loan was in all other forms and manners being serviced by Washington Mutual, there would be no reason to think he needed to go anywhere else. Q (By Ms. Mack) Are you aware of the fact that

this loan was originated through NAMCO? A Q A Q I'm sorry? Do you know who NAMCO is? NAMCO? I don't.

So if I told you that Mr. Waisome's loan was

originated through NAMCO and then transferred to Washington Mutual Bank, you wouldn't know anything about that? MS. CREWS: scope. A NAMCO yet. I don't know. I haven't seen the reference to Object to form and beyond the

The -- Washington Mutual did a lot of what

is called correspondent lending, so they may have -and, again, I have not seen NAMCO before. But I know

that WAMU didn't have branches and locations everywhere in the country, so they did a lot of correspondent lending. And a correspondent lender will start to

process the loan with the contract with Washington

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Mutual that says, Hey, you can write loans for us and you can use our paperwork. And we will agree to

purchase those loans and basically fund those loans as long as you meet all the criteria. But I don't see any documents -- I haven't seen any documentation where NAMCO was listed as a lender. The note and the mortgage show Washington

Mutual, so -MS. MACK: That will be marked as Number 6.

(Defendant's Exhibit 6 was marked.) A Q Go ahead. (By Ms. Mack) Mr. Nardi, did you have an

opportunity to read Exhibit 6? A Q I did. Okay. And does that refresh your recollection

or help you understand why I asked you questions about NAMCO? A Well, I think it's pretty clear the letter is

from Washington Mutual identifying a purchase they made of Dime Bancorp and explaining the relationship between NAMCO and Washington Mutual. Q Okay. Sure.

So, now, with regard to the origination

of the loan, what is your understanding of the position that NAMCO, a subsidiary of Dime Bancorp, had with regard to the origination of this loan?

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A A A Q MS. CREWS: Object to form.

Will you repeat the question? (By Ms. Mack) Yeah. What's your

understanding of NAMCO's role with regard to the origination of this loan? A itself. Well, I think the document has to speak for It simply states that WAMU purchased Dime And it goes

Bancorp, and NAMCO is a subsidiary of them.

on to describe that this letter is informational only and doesn't change any terms and conditions to your loan application or written commitments previously issued -THE REPORTER: THE WITNESS: You're going too fast. I'm sorry.

This will not -MS. CREWS: Do you want to just read it into

the record? THE WITNESS: Sure.

Dear Mr. Waisome, as you may be aware,

Washington Mutual, Inc. acquired Dime Bancorp, Inc. and its subsidiary companies. One of Dime Bancorp's

subsidiaries, North American Mortgage Company, NAMCO. As part of this acquisition, NAMCO's assets and liabilities were transferred to Washington Mutual Bank, FA, Washington Mutual, a subsidiary of Washington Mutual, Inc., so that Washington Mutual is now

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conducting business under the names Washington Mutual and NAMCO, a division of Washington Mutual as a result -- excuse me -- as a division of Washington Mutual. As a result of these transactions, the mortgage loan application you filed with NAMCO will now be processed by a Washington Mutual Bank, FA. letter is for information purposes only. This

There will not

be any changes to the terms or conditions of your loan application or any written commitments previous issued to you by NAMCO. You may, however, receive information

or documents regarding your loan application from us either under the -- under either the name NAMCO or Washington Mutual as we continue the integration of our company -- excuse -- the companies. Please direct any questions you may have to customer service at 1-866-WAMU-YES. We appreciate this

opportunity to serve you and thank you for utilizing the power of yes with Washington Mutual. Q A Q (By Ms. Mack) Sure. With regard to the letter that's been marked Okay. Thank you, Mr. Nardi.

as Exhibit 6, would you agree with me that the letter references the prior commitments and terms and conditions of the loan applications submitted to NAMCO?

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A A changes. Q I think it says that there would not be any It doesn't refer to them specifically. My next question is: Where are those

commitments and loan applications? MS. CREWS: Object to form.

The only loan application I'm aware of is I

the -- I think the one that's already been produced.

think this letter, although very informative, leaves out the timeframe in which Dime Bancorp was purchased by WAMU. It may very well be years prior to the actual In fact, there is a date at the bottom of

application.

the letter that's dated September 4, 2002. So it would -- it may not be such a -- such a jump to show that this transaction actually took place five years prior to the origination of this loan, so Mr. Waisome may never actually have gotten anything under the name NAMCO. And this letter was just for

informational purposes only as it points out, not that he actually received documentation or commitments or loan applications or any documentation under the name NAMCO. I'm just pointing that out as a possibility. I don't know that to be the case. I only know that the

documentation that I reviewed, to my knowledge, has been exclusively Washington Mutual documentation.

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Q move on. Are you aware of any other loan numbers associated with Mr. Waisome's loan other than the one that we've identified in the promissory note? A Q I am not. Okay. The next round of documents are A Q Q (By Ms. Mack) But in light of what you just

read in that letter, it could actually be NAMCO under the name Washington Mutual, right? MS. CREWS: Object to form.

I -- I don't understand the question at all. (By Ms. Mack) Okay. Well, I think the letter

indicates that you could have a NAMCO loan that would be called Washington Mutual. MS. CREWS: Object to form. It speaks for itself. I'll

(By Ms. Mack)

documents that were not provided to me during discovery. However, they do concern this loan. MS. CREWS: MS. MACK: MS. CREWS: MS. MACK: Is this going to be a composite? Yes. Okay. We want to mark it.

(Defendant's Exhibit 7 was marked.) Q (By Ms. Mack) Mr. Nardi, have you had an

opportunity to review Composite Exhibit 7?

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A Q before? A Q A Q I don't believe so, no. Do you know where they came from? I don't. Okay. I haven't seen them before, so -Sorry. Yes. Okay. Have you ever seen those documents

That was a bad question.

Would you agree with me that the account number indicated on those documents is different than the account number indicated on the promissory note and mortgage? A Q Absolutely. Okay. And would you agree that the number is

not just truncated, it's just completely different? A Q It's an entirely different one. Do you know, as you're sitting here today as

the corporate representative for JPMorgan Chase as the acquirer of assets of WAMU, why there are two account numbers? A Well, I can't say with any specificity. I can

give you examples of why that might be. Q A Okay. First of all, I would like to point out we're

looking at -- like, the first page is an unsigned authorization for release of information. Let's say

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that Mr. Waisome applies for a loan and decides that, you know, I think I can get a better deal on another lender, stops that process and starts it with another lender and says, you know what? you guys are doing business. I don't like the way

He goes back to the

original lender and says, I want to do this loan again. He is going to have two different loan numbers because the first time he originates, he's assigned a loan number. And the second time he originates, he is going

to get a loan number. Again, these documents -- which, again, I don't know where they came from or what loan they are referring to -- could have been a separate origination. So that would be like if I was to -- you know, in a vacuum, I would say that probably the most likely scenario was that there was two tracks going on. He

applied at either two different times, or maybe there were two different types of loans. Maybe he was

applying for revolving line of credit and then reapplied for refinance. I don't know, because I don't know where

these documents came from. But there are a lot of -- not an infinite number of explanations. But in a vacuum, I couldn't say

specifically why this has a different loan number on it. With additional research, I'm sure I could probably

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Q provide you an answer. Q Okay. The loan number in the format that is

indicated on Exhibit 7, it appears to be a different type of format. And I'm just going to ask you if you

have ever -- if you have any idea why the format is in this format without having the three numbers at the end. MS. CREWS: Object to form. And if you don't know, I'm

(By Ms. Mack)

just -- you know, just let me know. A No. And just to kind of give you an idea,

when I deal with loans and anyone in the company who deals with loans on a day-to-day basis, they are always 10-digit loan numbers. Exhibit 2 are not used. These last three digits on I don't know what they are The

there for to begin with, but they are not used. 10-digit identifier is how we use.

So although I agree they are in two different formats in -- let's see -- Exhibit 2 as opposed to Exhibit Number 7, I'm sure there's probably other documents which will show just the 10-digit loan number on the document itself. number on this letter. So there's examples where it would most likely actually -- if you looked at the documents in totality, you would most likely see the 10 digits as opposed to Let's see if it's got a loan

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the 13 digits with the hyphen. Q Okay. And we are -- I think we are going to

see some of those documents that have the 10 digits on the note. So you think -- and I'm not asking. You can

clear it up later.

But you think that might be the

reason there is the difference in the two, other than the numbers themselves? A No, no. The fact that they are both 10 digits

indicates to me that these are, you know, assigned loan numbers. They are generally 10 digits long. They

are -- whether or not -- as far as formatting, the only difference between Exhibit 2 and Exhibit 7 is that this hyphenated last three digits is not present. But

otherwise, the formatting of the 10-digit section, there is no formatting differences. Q A Q A Q Okay. It's just 10 digits of numbers. Okay. There is no formatting at all. Okay. Fair enough. All right.

MS. MACK:

Now would be probably a good time

to break because the next -MS. CREWS: MS. MACK: Okay. -- group of questioning is going to

be about numbers and stuff that you guys produced.

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A It's going to be the account stuff. MS. CREWS: MS. MACK: MS. CREWS: MS. MACK: Okay. Lunch? Sure. Are we off the record? We are off.

I'm sorry.

(A recess was taken.) MS. CREWS: Before you start, if we can put To figure out why that loan

this on the record.

number was different, you asked about Document Number 7. And he figured out what that was, if you

want him to explain. MS. MACK: Great.

I did some research while eating lunch, and it

appears that this -- these documents are a part of a larger document group which contemplate a completely different mortgage, an actual fixed rate mortgage which Mr. Waisome applied for at some point. loan number is different. That's why the

It would have been a It never actually I

completely different transaction. consummated.

So the documents we have are very few.

think some of these documents were included in what I viewed. There's some additional documentation. But

it's a completely different type of mortgage, so it's not related to the actual mortgage that closed. Q (By Ms. Mack) Okay. And you didn't happen to

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yes. Q Okay. And we're going to -- I'm going to ask If you much. A Q No problem. Okay. These are documents, Mr. Nardi, that -find out what that 097 is, did you? A No, I did not. I was actually more interested

in this because I thought this might have been more of an interesting topic, the extension. Q Thank you. I appreciate that. Thank you very

actually, unfortunately, I punched a hole, so I'm going to have to share mine with you. Actually, those are the

documents, but I'm going to actually ask -MS. MACK: copy of this? (Discussion was held.) (A recess was taken.) Q (By Ms. Mack) Mr. Nardi, have you ever Is there a way we can get a clean

seen -- we're going to mark this as Exhibit 8, this loan history. (Defendant's Exhibit 8 was marked.) Q (By Ms. Mack) Have you ever seen a loan

history like this before? A I've seen loan histories like this before,

you what the numbers mean as we go line by line.

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yes. Q Okay. Now, the next thing is that INV. What look at the top left corner of Exhibit 8, there is a number. A Q A Q A Q It's I9081-721. Yes. Do you know what that means? I do not. Do you know who would know what that means? I don't. Okay. Now, if you go across that same line

past the Washington Mutual Bank, FA where it says, Loan history YTD, that's year to date, right? A It appears to be representing year to date,

does that mean? A Well, usually when I see the letters INV

together with a code behind it, it generally indicates an -- it's indicating an investor or ownership indicator. Q A It's a code to indicate who owns the loan. Okay. And what does A11 mean next to the INV?

I don't know what it means, but it would

probably be a code to identify, like I mentioned, the owner or investor on a given loan. Q A Where would we find what A11 means? I don't know if the information is within MSP,

but there are records kept as to individual loan

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investors and what their designations are as far as within MSP. Q Now, if the investor was Washington Mutual,

would A11 mean Washington Mutual? A Mutual. The code would probably designate Washington I don't know that to be the case because I

don't know what A11 was at the time, and those codes can change. So conceivably from 2007 when WAMU had investor

code A11 identifying itself as the investor or the owner, to what would be represented in the system today would be different. So I would have to go back and

determine and research how WAMU identified itself in these loans. So I can't say for sure because I just

don't know for sure. Q Okay. Now, the next indication is CAT. What

does that mean? A Q A Category. And 058? What does that mean?

Again, I don't know what the code means, but

generally that would categorize the loan as a specific type, if it was FHA, Fannie Mae, Freddie Mac. It could

have connotations as to whether it was a fixed or adjustable rate. So anything that -- anything that anyone wanted to put down as the code or anything that the bank

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wanted to describe it as, a code would be assigned to that descriptor and put into the category. Q And I know I asked you if there was, like, a

master -- a key for all of these codes. A Q A Uh-huh, yes. And you said that you weren't certain or -I said I know that the records are kept as to I don't know

what the codes meant at any given time. where it's located.

I know it's not -- I don't think But I think that given

it's within MSP specifically.

enough time to do research, I could determine and provide the list or codes. Q Okay. Do you know if there is some reason why

it's not provided to, say, someone like me who is coming to ask your deposition questions about documents like this? key. A I think it -- well, I think there's probably a But probably the most important thing It would make our life a lot easier if we had a

number of things.

is these codes change from time to time, especially since the records we are looking at right now would have been produced by WAMU, and it's not 2007 anymore. So

not only do we have several years of time elapse, but also the ownership has changed. So what WAMU has used as Code A11 may not

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translate directly to what Chase was using for A11. the answer is time and changes. static. Q So if I wanted to get those, say -- when I say These things are not So

"key," I mean, like, the translation for each of the codes that we're talking about -- I would want to ask for a date range and indicate -A Q That would be the best way, yes. I'm sorry.

I'm just trying to figure out how to get the Thank you.

information. A

The best way to determine investor by code in

a given date time would be to ask specifically for that because it's going to change in the transition from WAMU to Chase, because we would have had a different investor code on ours. Q Gotcha. Now, going over on that same line, we Now, correct me if I'm wrong, but it

have INV number.

appears to be the account income. A number. Q A Why is it called INV number? Inventory number. I mean, it may not always As far as I can tell, yes, it is the account

be referred to as a loan number. Q So INV for purposes of A11 and INV for

purposes of the INV number, INV doesn't mean the same

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A thing? A Q Is that what you're telling me? That would be correct. Okay. MS. CREWS: MS. MACK: MS. CREWS: MS. MACK: Why make it easy? What's that? Why make it easy? Yeah, really.

Well, these types of transactions histories

are very difficult to read and understand if you're not doing it all the time. And there are several --

actually, you will probably find several different versions of transaction and payment histories that have come out of the same exact system. just a little different. So some people get used to reading certain ones, and some people never get into it. This isn't one The formatting is

I particularly am fond of and would refer to if I was trying to study up on a loan. I would try to find one

that was a little neater and wasn't as header intensive. But there are a lot of things that are not applicable. Q (By Ms. Mack) Do you know what the T13 means

next to the date? A Q I don't. Okay. Then down here going to the next -Is that -- I know it's the

well, it says Page 90118.

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page number because if you turn to the next page, it says 90119. Does this mean that there are 90,117 pages before this? A Well, the short answer is yes. The longer

answer is this is most likely a purged history which would have gone into a set of documents that would have included unrelated pay history. So at some point, there

is going to be a header break where you'll see documents that are from different borrowers' loans before and after that. So this is a -- this is a, like I said, These

what I would consider like a purged document.

are -- these are representations of what is on the electronic system. Q Let me ask you with regard to -- okay. So

this is -- okay.

So this is -- there's probably -- this

is the part of the history that pertains to Mr. Waisome's -A Q A Q Correct. -- loan. Correct. So if we were going to ask you, Mr. Nardi,

could you go -- and, obviously, through your counsel. But we would like to know -- we want every piece of paper that has Loan Number 3018341986 in your files.

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How long do you think it would take to retrieve that? A Given what I know of the document retention

and processes, retrieval processes and the age of this loan, probably not more than about a week because the -even the documents that are in cold storage, what's called like -- and these are all kept in Monroe. So

even if a document is very aged, we do keep things, at a minimum, seven years past the loan being paid off or whatever the end result -- the end of life of loan. Q A Okay. So even those documents are kept seven years I can still order docs on one of these, you

after that.

know, dead loans, and it wouldn't take more than a week for them to go into this roomful of boxes of files and pull out this stuff and get it to me. Q A Okay. So within a week. And most of the stuff is I can log into an imaging

actually at my fingertips.

system and pull off probably 95 percent of every document that was ever produced on the loan. The things

that are not always at my fingertips are going to be things like the transaction histories, things that would be too lengthy just to scan into the system continuously. The note, the mortgage, the -- you know, all

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the documents from origination, those are static documents. They don't really change. But these things There's

change because the transactions are continuous. charges for insurance.

Borrowers make payments or, you It's all, you know, in a

know, whatever takes place. large set of documents. Q Okay.

Going on to the next lines. So let's see.

And things This

that I know, I will skip over.

is -- going to the line below the address, the one that begins with First Mortgage, if you go all the way over, it has a due date of 1/1/2008. Is that the next payment due date as of the date that this was printed, which appears to be 12/31/2007? A Q A Is that what that is?

Let me read into the document a little bit. Sure. Unless I am incorrect, I believe that January I

1, 2008 is actually the date that is due now.

probably want to look at a copy of the breach letter to determine that, but I don't think it's actually the date the loan was due for as of -- well, December 31, '07. Then, you know, in this case, it would -- okay. It

would make sense because this document is dated December 31st, and January 1st is clearly a future date and, really, a very near future date. So it very well could

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be. I guess I'm hesitant to say because this document -- this document in -- you know, if it was requested the year before, it could say 06. Or if

it's -- if this date is not actually the date the document is produced. And, for instance, I can go back

and query a transaction history given a given window. So it would give me the date, a transaction history in that window and show me when it's due for today. So it -- you know, it will show you what is going on today, but given a given window. But it makes

sense in this particular instance that the due date here, it was reflective as of December 31, '07. Q Now, if you go down to -- and I'm not going to I just want to make sure we are on the Let me see.

mark this up. same page here.

Down to -- I'm reading upside down, which is always interesting. There we go. These two columns

right here that say DT and BM, what do those mean? Start with DT. A Sure. Let me see. I'm going to read the

whole line across to see if it starts to make sense -Q A Sure. -- in what they are accounting for in each of

these little buckets here.

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A Q A too much. Sure. The descriptors are not really helping me out The rest of that line is pretty clearcut, but

the DT BM don't give me enough information to be able to tell you for sure. Q Going -- okay. Let's go back to the line What does

right above it, because I have a question. ESC BAL mean? A Q A Q A Q A Q

That would typically refer to escrow balance. Okay. The REST ESC?

Restricted escrow balance. How about REPL RES? I don't know. Okay. What about the HUD BAL?

I don't know. Okay. If you go past all the way to the right

of that same row, there's a PRT, and then OF and M. Do you know what those mean? Well, I think first of all, they're three Even though it looks

separate fields, PRT, OF and M.

like it may say PRTOFM, it's actually three different fields. Q I don't know what they mean. Going back to the line right below that, P &

I, that's principal and interest, right? A Correct.

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Q A Q A Q Okay. Yes. All right. Yes. And I think MIP is that mortgage insurance we HAZ INS is hazard insurance? And then CO TAX is county taxes?

were talking about earlier? A Q A Yes. And LIEN? What does that mean?

If you continue on down the line, it seems to

indicate that there are some other potential insurance policies. Like, you may be -- I know, for instance, you

can actually purchase, strangely enough, a life insurance policy attached to your home mortgage that will pay off your mortgage in the event you die midstream or whatever. So it looks like if you follow -- I mean, if you are following these things, these are identifying different insurances that are attached to the loan. I

can't say what the -- what the lien insurance might be or whether or not that is actually the descriptor, but it kind of follows the trend here that these are describing different types of insurance, but I can't say with certainty. Q A Do you know what BSC stands for? No.

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Q A Q A indicator. Q A Q How about REP RES? No. And the DT and the BM, we already established

you don't know what those mean? A Q Yes. Going to the next line, first original

mortgage is the note amount, 584? A Q Yes. Okay. And then there's no second mortgage.

Principal balance is the note amount, right? Correct. Okay. And INT IND? What does that mean?

I believe that's the -- the interest From my recollection, it indicates whether

or not it's a fixed or an adjustable rate loan. Q A Q Okay. What about the CAP FLAG?

I don't know. Okay. MTGR SSN, that would be (inaudible). Say it again, please?

THE REPORTER: MS. MACK:

Sorry. MTGR SSN would be the

(By Ms. Mack)

mortgagor's SSN? A Q A Correct. Okay. DEF INT BAL?

That looks like deferred interest balance.

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A Q A Okay. From the negative amortization?

I'm not sure if this note calls or

contemplates negative am, but very possibly. Q A Okay. The amount that would have been basically

building up towards the negative amortization, if he had been paying that amount. Q And I think you told me that before you came

to this deposition, you had not read the note or you were not completely familiar with it right off the top of your head or something like that? MS. CREWS: Object to form. I've seen a

I hadn't seen the original note.

copy of -- I've seen a copy of the note, but not the original. Q (By Ms. Mack) Okay. I just want -- I didn't

know if you needed to look at it to see if it was a negative am loan. A I can take a look at it. It's usually spelled

out in the paragraph -Q A Q A Q Yeah. -- pretty -- pretty upfront. Okay. It's not hidden anywhere. Okay.

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A tell you. Q Yeah. If you could, go ahead. I want to try If you would like me to take a look, I can

and nail that down, if we can. A Sure. Paragraph 3, Subsection (e)

contemplates additional -- additions to unpaid principal each month that I -- that my monthly payment is less than the interest that has accrued on my loan, the unpaid interest shall be added to my principal balance as provided in Section 3(b). So it does contemplate what I would consider negative amortization. I'm not sure it actually says

the words "negative am," but that's my understanding of the principle of it. Q Now, would you have reviewed that before you

verified the complaint in this case? A Q A Q Read the note? Uh-huh. Yes. Okay. Going on to the next part of that line, Do you know what that means?

sir, there is a GPM ORG. A Q I don't. All right.

Going down below that next -- the

next line that starts with ASSUM DT, can you tell me if that's where those columns begin and end, if you know?

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Or is it just all one section from ASSUM to NUM? A fields. Q A Q A Q A I think those are separate columns as far as Let's say fields. Okay. ASSUM/DT would be a field. What does it mean? (Witness shakes head.) You don't know? I could only -- I could only speculate. I'm

pretty good at deciphering the truncations they use, but this one looks like an assumption date or something to that effect. Q A Q A Okay. XFER-DEED?

Correct. What does that mean? I don't know for sure. If I was to use my

best deduction, transfer date or transfer deed. Q A Okay. If there was any information put in there,

they would have. Q A What about FHA SEC/NUM? Again, I think that contemplates if this was a

loan that has a separate identifier for either an investor or other interested party. For instance, when

we service Fannie Mae and Freddie Mac, they have their

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own loan numbers they work off of. So we have to keep a

record of how to address them on their loan numbers because we can't send our loan numbers and say, Hey, can you answer a question on this? That's not our loan number. So if that makes sense. They are going to say,

Send us our loan number.

So if we have to keep track of

a secondary loan number, that is a field where we keep it up. Q Okay. Lender -- LIP -- sorry. LIP PAYOFF.

What does that mean? A Q A Q A I don't know. How about FC-TRK-SW? I don't know. How about YE-ACQ-RPT/DATE? I can -- the first or the middle, clearly, is ACQ would be

contemplating a date of some sort.

acquisition date, but the YE and the RPT, I'm not sure exactly what those are. So if there is some acquisition

dates or dates to memorialize acquisition, that would be there. Q A But I'm not sure what YE or RPT is. How about SALE ID? I don't know what -- what that means. I just don't know. Again,

I don't want to speculate. Q A Okay.

How about EXEMPT?

I don't know.

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Q A Q A Q Okay. How about PLGD LN?

I don't know. Do you know what the B means underneath it? I don't. Okay. Could -- do you know if that stands for

pledged loan? A Q I don't. If you'd just go over to the next page real

quick of Exhibit 8. A Q Sure. Do you see how there's like letters down here

at the bottom? A Q Well, that's convenient. Unfortunately, it's not quite as informative

as we would like. A Now that I'm looking at it, you're right.

It's not exactly helpful. Q A Q A Q Do you know what BSC is? BSC, you're talking about -Yeah. BSC? Okay. B equals BSC. I don't. Going back to Page 1 of the Exhibit 8, What does that mean? And then --

there's PMT OPT. A option.

It looks like it's contemplating a payment Some of these loans had some interesting

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features, like pick a payment and -- a lot of that stuff has gone away nowadays, but pick your payment option. Q A Do you know if this was a pick a payment loan? I don't recall off the top of my head whether

it was a pick your payment loan because I have a pretty narrow definition of pick your payment loan. Usually

it's pretty well-spelled out in the origination documents, but I don't -- if I -- you know, I don't want to say for sure yes or no right now. It's not what I

believe is a traditional pick your payment loan. Q Would it be something that you would find in

the promissory note? A Q A Very possible. Do you want to look? Sure. I wouldn't -- in my definition of pick

your payment note, I really wouldn't consider this a pick your payment note -- a pick your payment option. The pick your payment ones I have seen usually give you three choices. This one is really saying this is the minimum you have to pay that we will accept. You're not required to. You can make more.

But that's not really pick your

payment because you are really not given a choice. You've got to make at least this payment. And some of these pick your payment loans, you

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METH. A can make, really, any payment you want for a period of time. adjust. And then, you know, things will eventually And depending on what choice you made, you may But

have a good outcome and you may have a bad outcome.

let's just say you have an outcome at a certain point in time. Q A Q A Okay. This one I wouldn't call a pick your payment. Okay. The more you pay, the better off you will be,

obviously, but I wouldn't categorize it as a pick your payment loan. Q Okay. Let's see here. The next thing is CALC

Does that mean calculation method? It appears to be contemplating, you know, at

least the option of documenting some calculation method. I don't know. There is so much -- there's so much not

there, but I can certainly say that it's -- the field there is to be able to identify some calculation method. What they're calculating, I don't know, but a calculation method is certainly what it's intended to indicate. Q Okay. The next field appears to be equity

line of credit -A Right.

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Q A Q A Q -- ELOC? Right. And the next field looks like bankruptcy? Correct. Okay. And then the next field CH/DT? Change

date maybe? A I -- when we get down to less than three --

you know, three characters, it's really hard to make that jump. Q A Q Okay. So I don't want to speculate. All right. Fair enough.

Going to the next line, you've got payment periods, 12. A Q A Q A Q A Like, 12 months?

Well, basically that it's due once per month. Okay. So 12 payments a year. As opposed to, like, biweekly? Right. Okay. You know, some of these loans are set up so,

you know, there's all different types of payment periods or -- you know, we require two payments a month. all dependent on the note. Q Right. It's

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A But generally, for most loans, you are going

to see 12 monthly periods. Q And next to that field is 1098 DET HIST.

1098, I think, is what, tax related, like IRS? A I believe the 10 -- if I am not completely

incorrect, 1098 is the -- I think it's the interest statement that is sent out to the borrowers every year showing how much interest they paid. Q A Okay. I could be wrong. There's all -- there's I'm pretty sure.

another document that is sent out if the borrowers realize -- well, if they gain, but if -Q A Q A Oh, right. 1099?

You can be taxed on -Right. -- you can 1099 for the value of your home if It doesn't happen

certain -- the planets have to align.

very often, but basically you can incur taxes on basically the remaining unpaid balance of your loan given a certain set of circumstances, but I think that's a different form. form. Q Okay. So then points paid and then -- points Is that -I believe the 1098 is the interest

paid, I would assume means points paid. A Yeah.

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Q A Q A Q A Okay. That's spelled out. RPTG, reporting year? Yes, ma'am. SUPPR MICR STMT? What does that mean?

I believe that refers to any special statement

types that may have to go out. Q A Oh, okay. Like for the hearing -- not hearing impaired.

For sight impaired or language indicators, things like that, may be require -- maybe contemplating the special requirements. Q A Q reason? A Yeah. I think there's a reason and a cause. But they may relate What about the DI NOT RPT YR? I have -- I don't know. Okay. Next to that is REAS. Is that like a

The next two are reason and cause. to that previous. Q A Q A Q The DI NOT?

Yeah, which I don't think I can define. What about the RI HDR SW next to CAUS? I don't know. Okay. I think the next one is pretty

self-explanatory.

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A Q A Uh-huh. How about REO STAT/COMPL DT? I believe that field is contemplating, you

know, if -- if the loan ever enters into REO, what the status is, whether or not it's a completed, sold out of REO for instance. Q YTD/WH. A before. Q A Is that interest on escrow? You know, I think that would be a great guess, But I know that -- that in I'm trying to think if I have seen that Down in the next line below that is IOE credit

but I couldn't say for sure.

some cases -- I don't know if all cases -- the escrow balances run pretty high, depending on the values of the property and the taxes paid. So there may be some

interest that runs, especially if there comes a time we have to hold escrow for a longer than normal period of time. Then you may have to credit some interest there.

But I don't want to -- I don't want to say for sure and be wrong, so I'll say I don't know. Q A Q A What about the SW WH balance? I don't know. Okay. IORE credit year to date?

It would make sense to me that would be

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A interest on restricted escrow -Q A holding. Okay. -- which would be a different type of escrow I'll give you an example. If the house burns

down and the insurance company cuts a check, it goes to restricted escrow as opposed to regular escrow. Q And I think you said you don't know what the

SW WH balance means. CONSTR CD? Is that construction?

You know -- and I can -- if we go back to the I think it was withholding and state

previous ones. withholding. Q A

Oh, okay. So those might be amounts that are held back

for tax purposes -Q A Oh, okay. -- which is why they probably don't want to

have any interest on escrow paid because then it just complicates things even further than that, because you have to pay interest -- or you have to pay taxes on that interest. But that seems to me to be a pretty good

explanation of state and federal withholding on those interest amounts. Q A Okay. What about CONSTR CD?

Usually that will indicate whether or not the

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loan was a construction loan, and it may actually have a certificate -- whether or not the loan was actually issued a certificate for completion. Q A Okay. Because usually they -- they won't -- the They are not boarded

construction loans are separate. until they are completed.

So when they come into the

servicing realm, they become a permanent loan and no longer a construction loan, but they want to memorialize that it was at some point a construction loan. Q that mean? A Well, generally, these loans -- the servicing Okay. No Purge Flag Slash/Year. What does

platforms have limited capability to hold data in the life system for long periods of time. So generally, if

I go into any given loan in our system, the loan may have been on our books for 10 years, but I'm only going to get live system information probably about 12 to 24 months back, depending on the volume of notes and transactions. Transactions are generally 24 months.

Notes could be as little as six months or they could go back. It depends on volume. So they're measured

differently. So at some point, they will purge the system of old data. It doesn't just go away. It's not

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Q deleted. It's just moved off the live system into what So in

we call, you know, archives or cold storage.

order to get access to that, you just need to put in a request, and they can either load it back up into MSP or they can give you something like this, which is, you know, a printout. Q A Okay. So basically we can also flag it so stuff Like, if there is a reason we need

doesn't get purged.

to be able to retain the documents in the live system for a period of time, we can flag it. So for instance,

if I'm -- if I'm loss mitigation and I am working with a borrower, the notes on the system are only going to go back -- like my customer service notes and my memorialization of conversations may only go back, you know, for the first 300 entries. Well, I can put 300

entries in in six weeks, but that doesn't mean I want the stuff six weeks older purged. So I can flag it and

say, I want everything kept on for two years so I can refer back to notes and it's not falling off the system, and I am not repeatedly having to go back and pull stuff out of archives. Make sense? It makes sense. Yeah. So if you want, you

can look at all your flag stuff and --

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A Q A Q A Q A A Q A Q A Q A Right. -- do a search of the flag stuff. Right. And litigation has the same -- the

same thing too, because we want to be able to view stuff and not have to go back and constantly pull archived data. system. Q Thank you. BNKRPT, bankruptcy status -Bankruptcy status. -- right? Okay. Yeah. Then LAST DEF DUE, it looks like that's the I'm glad I got that one right. So we have to flag it so it doesn't fall off the

last payment date because of the 37. Am I right or wrong? 2037? Well, that -September -Since the loan originated August 29th -I would have to look at an amortization table. Okay. It makes sense that would be about the last It's a guess.

payment due because the first payment was -- let's see. September 2012, 30-year --

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BAL? A Q balance? A There are certain -- there are certain Recoverable corporate advanced balances. What is a recoverable corporate advanced A sense. Q Q A Q No, it was -Oh, I'm sorry. The first payment was due September of 2007.

I think that's the first -A Q The change date. -- change date. THE REPORTER: MS. MACK: You're talking over each other.

Sorry. That would make

So that would make sense.

September of 2037 would be the last payment. (By Ms. Mack) Underneath that, REC CORP ADV

expenditures that a servicer has to undertake in order to service a loan properly. Some of them are

recoverable from the borrower and some of them are not. The ones that are recoverable from the borrower are kept track as such; that, you know, in the event of a default, they can be recovered through -- basically they can be recovered through the judgment process. Okay?

Then there's nonrecoverables, which are going to be things that if there is a backer like Freddie Mac

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or Fannie Mae, we can go to them and say, We've serviced this loan for you and we've done what we were supposed to do. We have to spend this much money. We can't get

it back from the borrower, or you're not going to be able to get it back from the borrower in a judgment, so we need you to pay for those things. So there's going to be a recoverable and a nonrecoverable, and that's really -- from the borrower's point of view, is can we recover this from the borrower under the law, yes or no. Q Okay. Now, you had the -- sorry. The next

thing is this third -- the third, 3rd. for third? A Q It does. Okay.

Does that stand

And recoverable corp advanced balance.

Now, is that a third-party recoverable corporate advanced balance? A Right. In some cases, there are expenditures And I can give you a random

taken on by third parties. example.

If we're attending to a property that's been

abandoned -- and, you know, those are attractive to vandals and basically just fall into disrepair in general. So we'll have -- contractors will go out there

and fix things, and basically they are given certain allowables to get things done. And then they will send

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Q A Q A Q A it back to us for billing. So there are certain things recoverable from third parties that we didn't pay directly, but some of them -- you know, LPS Field Services had to pay a field contractor to go mow the lawn or something. We don't

see a lot of that because most of that does come back through LPS billing directly. things get kind of urgent. But sometimes we get --

Like, the code enforcement

has been out there and they're going to tear down the property if we don't do something the next day. Q Where if -- if this was a -- can you tell from

looking at this document if LPS did spend any money that would be recoverable by Chase -MS. CREWS: Object to form. -- on this loan?

(By Ms. Mack)

From this document? Yeah. I mean, I know it says 0.

This document is pretty limited. Okay. And also, I think, given it's a snapshot of

what is a very specific point in time, I think as well. Q A for sure. Q Okay. So I don't think on this document I could tell This wouldn't be where I would look anyhow. Okay.

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A I would be looking in other areas with an MSP.

There's very specific areas that tell me who we paid to do what. So there will be areas where I can see what we

paid attorneys to do what, what we paid LPS to do what. So that's memorialized in different areas. There are also -- you know, we can look at work orders and invoices and things like that that will tell me what's been paid. go-to place. So this wouldn't really be my

This is a -- I mean, I think if this was a

larger snapshot, we could probably tell because I think it contemplates dollars and cents here in the document. But I think it's too narrow of a view. Now, if we took the same snapshot today, I think -- well, here's another. Depending on the status

of the property, if it's occupied, they are not going to go mow their lawn. They may do inspections to determine

occupancy, which they bill -- they bill, I think, 6 or $8 per time they go out. So there would likely be in

the event of a delinquency in 60 days an inspector go out there. So if this document contemplated the entire lifetime of the loan, there would probably be some charges there that would be under third-party, or they may be -- they may be there from LPS. percent sure. I'm not 100

But there would be other places that I

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Q would look anyway because they're where I would go look for that information. Q Who puts the numbers in, like -- okay.

Assuming -- and I know that, you know, that Mr. -- that the Waisome house is occupied. But -- okay. So if

you -- if Chase wanted to see if it was occupied, they would send a -- would they send a message to LPS Field Services to -- I mean -- I'm sure they don't just do it one loan at a time, but, like, I don't know, a geographical area they would say to -- how would they transmit that -MS. CREWS: Objection. -- direction to LPS that, We

(By Ms. Mack)

want you to do this? A We will run a report of all the loans that are

in delinquency at any given point in time. Q A Okay. We will scrub those loans for loans that don't

qualify for occupancy checks, like -- like if it's investor loan and an investor doesn't require it until they're 120 days past due and they are only 60 days past due, that gets scrubbed and it doesn't go out. Q A Okay. So eventually it gets to the point where we They will

have a list of loans that need an inspection.

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forward that to LPS. It's generally uploaded to their

LPS desktop, which is their web-based software that we contact and communicate with them through. get that. And from their end, you know, basically they have these contractors locally. So they will figure out They will They will

who is our contractor local to this loan.

send them the information, We want you to go do a drive-by inspection to determine occupancy. And they

will go do the drive-by inspection to determine occupancy. That contractor will then report back to

LPS, and LPS will report back to us and send out whatever billing is necessary. Q Do they -- do they report back -- do they call

you up or use the MSP system? A They will report back through the LPS D system

with results. Q A desktop. Q A Okay. It's our communication software with them. So they will transmit that back to us. So we The what? LPS D. LPS is the company, and LPS D is the

can go on LPS D and view it, but it's also loaded into MSP as well. So I go into -- I have to remember the

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A property. PIR1 property inspection results. And I can

view the property inspection results. vacant or occupied.

It will tell me

It will tell me how much they

billed for it and what day they completed the inspection. Q A Q Is PIR1 a screen name? That's a screen name within MSP. Okay. Now, you had been -- when we were --

when I was talking to you about the advances, you said there was another screen you could go into that would be more -- it would be easier to determine to answer my question. Is that the SER1 screen? SER1 screen is really kind of a general loan It's where you can look at loan balance,

status screen.

what the escrow condition is, what the -- when the loan is due for, how much is due currently to either reinstate or -- if it's a performing loan, it will say what the next due date and show everything. SER1 is really kind of a starting point snapshot of what is going on. It's not going to show

the history of, let's say, transactions from inspections. PIR1. In order to see inspections, I would go to

If I was looking for other more detailed

expenditures, I could go to -- it's kind of -- it's

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escaping me. There are other screens which will show

advances made for, like, attorney's fees if there's -if one is in litigation, what we paid in attorney's fees. There is going to be screens that show other contractors that we've retained, like BPO or appraisal services. Things like grass cuts or if we had to reroof

a house because the house was destroyed in a hurricane or something. So those things are memorialized in other SER1 is not -- it's not

screens other than SER1.

formatted in such a way, nor was it ever designed to contain transactional entries like that. Q on MSP? A Q A Q A Q Okay. How many screens do you have access to

And what are they called? All of them? Okay. If -And I couldn't name all of them.

I have access to everything in MSP. You do have access -Yeah. -- to everything? If you wanted to review all the screens in the

Waisome loan or regarding the Waisome loan on MSP, do you know what they are called as far as like SER1, for example, and what they represent? A I know -- well, I know the screens that I need

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to use -Q A Okay. -- because I have to use them as part of doing There are screens that exist that I just

my job duties.

don't ever use because I never have any need to. So to answer the question -- well, I don't know what all the screens are called because there are way more screens than I ever use on a day-to-day basis. And I -- I -- I hope that answers the question. I have

access to it all, anything I need in MSP, but I don't need access -- like, I don't need access to certain things. For -- I'm trying to think of an instance of

something in MSP that I really just don't have any use for. You can look up -- rarely do I ever use, like, hazard insurance information like HAZ1. I can look up

who the current hazard carrier is and what they are paying and when their last -- when their insurance expires, but I rarely use it because I don't have a need to have access to it. Q A Okay. But, like, you know, the screens that I would

use every -- you know, pretty much every time I access a loan investor screens, I need to know -Q What are those calls?

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A Q then INV1? A Q A It's a subscreen of MAS1. Okay. That shows the investor information. I can MAS1, INV1. INV? I think you told me what MAS1 was. And

look at -- you know, if there's -- if the loan has been bought and sold, I can look at acquisition dates. look at -Q What about -- have you ever seen a screen I can

called P190? A Yeah. I think it's a -- it's a

transactional -- I'm not sure if it's relegated to payments only, but it's a transactional screen that shows transactions. I think it's just the -- if I'm not

mistaken, I think it's just payments, but I could be off. There's a couple of -- there's several different ways you can make MSP produce to you a transaction history, and you can -- you can have that be all transactions or you can limit it to just certain types of transactions. Q Okay. So any other screen that you can

remember off the top of your head that you would look at for purposes of the Waisome loan?

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for. A It would be depending on what I was looking The ones that I definitely accessed, I definitely

accessed SER1 and I definitely accessed the MAS1 and INV1 screen. I accessed some of the customer service

notes just to see how far back they went, loss mitigation notes, the loss mitigation history. Q A Anything else? I'm trying to think. I think I went into PL5

online letter writer that tells me what correspondence has gone out to the borrower in the course of the loan lifetime. Q A That's all I can think of right now. Okay. I mean, there are a lot of other screens and

things that I just don't -- like, I don't really get into a lot of escrow analysis, but there are escrow analysis on MSP. Q Okay. Going back on our sheet, I think that

the next entry -- the next field is foreclose, FORECL WKST? A Q A Q A Q Uh-huh. Is that the end of that field? It's actually a combined field, I think. With the next -Right. With the field next to it?

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A It stands for closure workstation code

reinstatement date. Q A Okay. So they're related. Foreclosure workstation

code would tell you the current status of the foreclosure workstation and describe that. Depending on

the status of the loan, different workstations with MSP would be activated. If the loan goes into foreclosure, So it opens

the foreclosure workstation is activated.

up different tracking mechanisms within MSP to determine where the loan is in the foreclosure process. And the same thing when the loan starts into loss mitigation. The loss mitigation workstation will

be activated, and it will track the loan through loss mitigation. So at some point, the loan will come out of loss mitigation or out of foreclosure and go into someone else's basically area. So whether it be REO

after the foreclosure sale or loss mitigation fails or succeeds, there is a definite, you know, lifetime to these workstations. So this thing is contemplating the foreclosure workstation code, whether it's active or not active or what have you. And the reinstatement date would

contemplate the date the loan reinstated to bring it out

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of the foreclosure workstation. Q Now, going next to that is INIT ESC, and it's Do you know what that means?

got a 9 underneath it. A Q A I don't. Okay.

Do you know what the INIT ESC means?

You know, I'm not sure it's actually the same

field either. Q A Okay. I don't know what they mean, but I don't know

they are the same field. Q Okay. What about STMT CODE? Do you know what

that means? A I think it's also referring to some state -I'm not going -- I'm

some mortgager statement coding.

not sure if it's for language or special needs or what it is, but it looks like it's contemplating some type of -- or some mortgages opt out of the statements altogether and would rather get an e-mail. Q A Gotcha. So that might be opt out for statements. I

don't know, but it looks like it's contemplating that. Q 9/8/07 it. A Okay. Now, the next thing is DATE. It's got

What does that mean? I think -- well, from what I am looking at

here, I think that's the -- that's the statement code

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A Q date. I think that relates back to whatever statement

code is in place, if any, what date it was. Q A Q A LOSS MIT STATUS/COMPL DATE. Right. And that means loss -Loss mitigation status and, you know, So whatever date that workstation was

completion date. closed out. Q Okay.

The next, like, line of -- I'm going to The

ask you about the ones that are not really clear.

PROC, does the date that is underneath the PROC -- is that one field? A Q I'm sorry. That's okay. Do you see how it says due and then PROC? Yeah. Okay. So underneath due is date, and then Would you repeat the question?

underneath PROC is also date. A Q PROC date? A Q A Right. Okay. Process date or -- you might hear it called Right. Are those each fields? Like, is it due date

PROC, but it's the (inaudible).

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A A THE REPORTER: to me. THE WITNESS: I'm sorry. Some people PROC date I can't hear you with your back

It's due date and process date.

will say PROC date, but it's kind of jargon. means process date. Q A (By Ms. Mack)

What about the TP next to it?

It's actually a -- TP and TR are actually two The three digits put together

parts of the same thing.

when you see TP TR 142, 170 -THE REPORTER: you going that fast. THE WITNESS: I'm sorry. Slow down. I really cannot get

The TP and TR fields are really two parts of When we read these internally, I would Those are what

the same field.

look and see transaction 142, 170, 171. we refer to as transaction codes.

So they actually

identify the type of transaction within the system. And then there is another digit. I think the

S2 number is like a sequence number or something like that. It's not really something that we use a lot. But

the TP and TR are actually what we refer to together as transaction codes. And I wouldn't -- honestly, I

couldn't tell you what the TP and TR stand for separately. But I can tell you that internally, they

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are used together to identify a transaction. So 171,

you know, 351, 173, those indicate a transaction. Q (By Ms. Mack) So if you go back to due date

and next to it PROC date, are they related to the transaction code? A The process date is related to the transaction

code because the process date is actually the date that the transaction is processed. The due date is actually

the date as of the day of the process code -- the process date is the date that the loan is due for at that point in time. So the reason they're handled separately is because you can have a payment come in two months after it's due. It's going to have a process date of the date

it's received and processed, but it's going to apply to a due date in the past. So you will see that those So you will

dates, depending on the line, will differ.

have a due date one day and a process date that is a different date. They are not always the same date. But

the due date always refers to the date that the loan is due for at that particular time. Q Okay. Now, is there a master list of

transaction codes? A codes. There actually is a master list of transaction

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Q Codes? A You know, I think it's just called -- we call Okay. Is it called Master List of Transaction

it a Trans Code List or -Q A Q Okay. Do you --

-- Transaction Code List. -- know what these transaction codes mean off

the top of your head? A The ones are usually -- if it starts with a 1,

it's usually some type of transaction that is going to affect the balance of the loan, a balance related. it may be a payment. payments. Like, I think, like, 173s are So

And then there's -- it gets really There's like -- there's probably 20 There is like

complicated.

different codes that relate to payments.

the payment that comes in that is coded as a regular payment where the loan is current and it's applied to the loan. That may be like a 173. I haven't done this And then

in a long time as far as coding payments.

there might be a 172 which might be a loan payment that is coming in while the loan is in default or under loss mitigation. So there's a bunch of different codes that are related to just payments. And then a bunch of other

codes that are not payment related, they might be escrow

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codes. But every transaction has a -- basically has,

like, a first digit code which, again, I think 1 is like -- it's either payment related or related to the balance. And then you get some that start with 3s or

other numbers that may be unrelated to payments but related to escrow or some other. code list in a long time. Q A Okay. Well -I haven't seen a trans

And here's another -- here's another little

lump is that, again, we are dealing with -- the snapshot in time here is 2007. So today's trans codes may be

completely changed and different, so we may be in a different ball field altogether. Q A Q Okay. But those are transaction codes. Thank you. I appreciate that explanation.

With regard to -- if you go all the way to the right side of the piece of paper under -- or I should say -- sorry. DCT. A Q A Yes. Is that a field? Yeah. One entire field? Next to Other Amounts, there is a CFD

The way -- the way -- and this is why I

don't like this particular format of these transaction histories is because at a certain point, you have things

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A Q A reading kind of left to right at the top of the page. And now you can see more like a column effect. So this

header, the CFD DCT is one field, and so like basically it accounts for everything in the column right below it. And it stays true throughout basically the second two-thirds of this document. Q Okay. What does the -- do you see underneath

Other Amounts there are like an AB, AC, AE and AF? A Q Yes. Okay. Now, if you go down to the second page, Are those supposed

there's AE, AB, AC and AF as well. to tell me what those letters mean? A Let me take a look.

Are you talking about the little legend here? Yeah. On Page 2 of 8. Oh, I see. It

That's what I was looking for.

looks like the legend does account for -- I'm looking for AB. page. Okay. Yeah, AB, AC, AE and AF on the first

So it looks -- it appears it does translate to

the definitions provided on the second page. Q Okay. Now, the definitions provided on the

second page, AB says it equals deferred interest paid. Is that paid by the borrower? From the -- well, just looking at the first

transaction in the -- that has that breakdown, it looks

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A Q A Q A like a 171 trans code. So it's some type of -- it

appears some type of payment is made, because it contemplates the amount received. I don't know that it

says received from the borrower, so I think that's really kind of the question is whether or not this is paid by the borrower. Is that your question? Yeah. I don't know. You can't tell? No. If I knew off the top of my head what 171

was, it would probably tell me if it was a borrower made payment or whether or not the money was being transferred from a different pool of money within the loan. But 171 is certainly going to affect the balance,

but I don't know if it's actually received from the borrower. Q Okay. AC appears to stand for LIFE DEF INT.

Does that mean deferred interest? It looks like just a further truncated

deferred interest category, but I don't know what the life stands for. Q A Okay. But it looks like it's referring to some type

of deferred interest, but I don't know what the life is.

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see. A Q A Q A Q And AE, which is deferred INT LTD PD, is that I don't know. And this does -- I think

deferred interest loan to date? A It very well may be.

this is showing the very first payment on the loan, if I am not incorrect. So it would kind of make sense that

those numbers would be the same since they're all the first payment. Q Okay. Yeah. If I was a betting person,

that's what I would have thought. Okay. AF, following the same logic, is Or did I

probably life deferred interest loan to date. miss something? A Q Yeah, that would make sense. Okay. All right.

Let's go to Page 2.

If you

could look over at where it says Status Amount at the top of the page. Do you see that? Yes. What does that MPL ID AE01 mean? I don't know. Do you know what status amount means? I'm going to read the rest of the headers to Off the top of my head, I don't know. I think

I've done the research on that before, and I'm sure I can provide it in pretty short order. I just don't

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Q A recall what it is off the top of my head. Q Okay. The -- it's been -- I've been informed

that there are specific manuals for MSP by bank or servicer, depending on -- for example, Chase. Does it

have its own MSP manual to help decipher maybe not this type of document, but if -- I know -- we have one like that that y'all produced from Chase, so it looks like this except it says Chase at the top. A Q Right. Do you have a -- is there a manual that you

either have access to or were trained on or using, trained with, that would tell you how to use MSP and understand the screens -MS. CREWS: Object to form. -- and the codes? And, again,

(By Ms. Mack)

I've never seen a Chase manual.

this kind of -- and the reason is I've known how to use MSP from previous jobs. So the use of MSP really The changes are really

doesn't change all that much.

more specific to the codes and things that we have mentioned and different -- the very small details that each individual servicer uses. So I've never actually

had to be trained by Chase on MSP because I've known how to use it, so I've never seen a manual. I think that there are certain online

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resources I can go to to get, like, the trans codes, so a current list of trans codes and definitions or, like, an investor code list that is current. So there are

certain online resources, but I don't know of the existence of a manual because I've never been through MSP training at Chase or WAMU because the system knowledge I had was in place prior to working for either company. Q Okay. So I think you already answered this, Have you ever -- even

but I have to ask you anyway.

going before WAMU to when you first started using MSP, did you ever use a manual called Introduction to Systems and Resources? A Q No. Okay. What about Getting Started in MSP?

Have you ever used it or even seen it? A Q A Not that I recall, no. Okay. How about --

And I started using MSP in excess of eight

years ago -Q A Okay. -- at some point. So it's been a while since And a lot of my training, You

I was initially training.

just like anywhere else, is kind of on the job. don't necessarily work out of a manual.

You work with

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that. Q A Q A Q A How about Reviewing -No. Sorry. No. I didn't mean to cut you off. I was trying to think of anything else that I somebody who knows more than you and pick up from there. A certain amount of knowledge is just gained over time through experience and using different screens. And you can go through a whole career and

never have accessed the screens that I would use because your job function just never required you to. So there

are very few, you know, people who just have complete knowledge of MSP. From a working perspective, you're

not going to know everything about it unless you work in every single part of our business. Q Okay. Researching Transaction History. Have

you ever seen the manual or -A Q Researching -- no. Using the Common MSP Screens? Have you ever

heard of that one or seen it or used it? A Not like a training schedule or anything like

may have seen reference to. Q How about Reviewing Supplemental Loan Data?

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hand. A Q A Q Script? A Amount Due Affidavit Director Script? I'm No. It's a manual, apparently, Chase uses. Okay. How about Amount Due Affidavit Director

familiar with the director script and the purpose of it, and I -- I don't actually run the script myself. I have

access to basically what is the end result product of that script, but I -Q A What is the purpose of the script? The purpose of the script is to get basically

the system to generate the figures that are going into an affidavit of a debts due and owing. A debts due and

owing are basically a sworn document that is going to say, This is what is due at this time so that we have a systematic record so it memorializes the request and puts it in the record. So the person who is going back

and reviewing the loan records can compare what is going into that sworn document. They will have the sworn document in their They will review the director script product,

which is where the numbers came from that are in this document now, and then compare that with what is on the live system in MSP. So it's basically a way of just

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making sure that what we are producing to the court is 100 percent accurate beyond any shadow of a doubt. Q Now, with regard to other sworn documents such

as -- you know, in Florida, we have verified complaints now. Do you have a similar script or program for

preparing a verified complaint? A No. No. The script in MSP is simply just

running numbers out of the servicing platform based upon every transaction and the history. A verified complaint

is a completely different animal altogether. Q A Okay. It includes things that are beyond the scope.

The MSP is good, but it's -Q It's not that good? Okay. I just have a

couple of more questions, and then we can take a short break. Okay. Do you know, Mr. Nardi -- let me ask a This is also a document It looks like a BPO

quick question here about this. that was produced in discovery.

that would have been ordered by Chase. MS. CREWS: right? MS. MACK: No, it's just a piece. I just want This isn't the full document,

to -- I'm going to ask a real quick question about it, and we will probably come back to it.

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Q 9. (Defendant's Exhibit 9 was marked.) Q (By Ms. Mack) My question has to do with this Do you know That will be 9. Just the first sheet will be

number up here in the top right corner. what that is? A Q A Q The WAM120229-02499-2? Yes.

I do not know what that number is. Okay. MS. MACK: If we can just take a five-minute

break. (A recess was taken.) Q (By Ms. Mack) Mr. Nardi, this is -- you can

probably just move that over to the side, and then we'll go back to Number 9. MS. MACK: This will be Number 10.

(Defendant's Exhibit 10 was marked.) Q (By Ms. Mack) MS. MACK: to you first. MS. CREWS: This is -- do you recognize -I should have handed it

I'm sorry.

It's something y'all produced. Okay. 3270 Explorer, a screenshot.

(By Ms. Mack)

Is that off of the MSP system? A Yes.

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A Q And we'll label these two pages Exhibit 10. Is that a screen that you use in your job? These are actually -- this is two different

screens entirely. Q A Oh, okay. This isn't the same screen at all. One is

a -- one is actually just a portion of the -- a larger series of screens. here. So let's take the first one right That is actually a

It says PAY4 at the top left.

payoff calculation screen.

You basically start at -- if

I was going to calculate a payoff or get the system to generate me a payoff to where I could send it to the borrower, if they ask for a payoff and want to know how much it costs to pay off their loan, if I am customer service, I go to PAY1, which basically says you are going to request a payoff. proceed? Are you sure you want to

Then I say -- I press, like F1 to proceed.

And it says, What date do you want this to go through? So I put in my as-of date, and I hit F1. And the next screen takes me to -- actually, it's usually pretty long because I don't know if everything is here. me see. This one is probably pretty -- let

Depending on the number of expenditures, that I've seen some take three.

may be one or two pages.

But basically you get a breakdown of, like, what the

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principal balance is, escrow advances. be good through a certain date. pages. And then, you know, on the screen it will say, Do you want to fax this? Mail this? Press F1 to mail Everything would

Maybe a couple of

it, and it will go out to the primary mailing address and so forth. So this is actually just setup screens

that are used to generate payoff demands. Q A Okay. So the next page is actually an escrow So that's ANA1.

analysis page. Q A Okay.

And I have used most of these.

I don't use

them a lot.

Generally, I'm dealing with -- when I'm

going to deal with litigated loans, I want to deal with the director script provided payout information for the loan, which will cover, like, any attorney's fees and stuff. I don't -- the PAY4, at least in this instance,

I'm not sure if it would have included the attorney's fees or other type of fees that would have accumulated. So I would use the actual director script, which is the affidavit of amounts due and owing script, because that would give me everything in a nice little breakdown format. Q Okay.

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Q to time. A This one, not so much. So I do use this one, I'm familiar with it.

but not as much as the other one.

The escrow analysis screen, I do use from time It's not something I use every day. But

these -- this is actually two separate screens. MS. MACK: Maybe we can call the PAY4 screen

10 and maybe the escrow analysis 10A, please. (Defendant's Exhibit 10A was marked.) Q (By Ms. Mack) If you could look through that.

It's something -- this is also -- these are all documents produced from -- from your attorney, so -MS. CREWS: MS. MACK: I produced this? Yeah. If you could just take a look

(By Ms. Mack)

at it and tell me if that is all one document. A Well, the first indication is the first page

is dated 1 of 4 and the last page is dated 4 of 4, so it appears to be the same document. MS. MACK: Let's call that 11.

(Defendant's Exhibit 11 was marked.) Q (By Ms. Mack) What is that, Mr. Nardi,

Exhibit 11? A Well, it's entitled Income Report Card, and

it's representative of what I tend to see in loss mitigation efforts, trying to determine if the borrower

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A is going to be able to keep their house through some type of loss mitigation. So they -- generally the

information that is used to populate these types of reports and is furnished by the borrower, we will ask them either on the phone or send in documentation of their income, and then we will be able to place them to these types of reports, which will give us an indication of, you know, combined with other considerations whether or not the borrower is going to be able to retain and what type of modification I might be able to get them. Q What other considerations are -- what other

things are considered besides the income report card if a borrower is seeking some sort of forbearance or modification? MS. CREWS: Object to form. As an example, whether or

A number of things.

not the home is occupied by the borrower, whether it's their residence or not. important factor. Q A That's usually a pretty

Their -- their other obligations. Like kids?

(By Ms. Mack)

Well, you know, children -- cost of living for

them, you know, what their output is for maybe their child care or private school, whatever those things are. They also might have healthcare considerations to take into account. Basically all their -- really, the whole

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financial situation is taken into account. know, specifically things like that. But, you

How much they are How much they

paying in rent -- I shouldn't say rent.

are paying for child care, how much they are paying for the utilities. You know, if they have medical bills So it's all taken into account.

that have to be paid. Q

I'm sorry to go back to 10A real quick, but I

just realized I meant to ask you about Chase Home Finance, LLC, which is indicated. it's on actually 10 and 10A. Why is it Chase Home Finance and not JPMorgan Chase Bank, NA? A Well, at the time of this document, which And I believe that

appears to be April of 2010, Chase Home Finance, LLC was the mortgage servicing division of JPMorgan Chase Bank, NA. Q A Okay. They have since been reabsorbed into the bank

proper, which I think was last year, maybe May, midyear or so. arm. Q So Chase Home Finance existed as the servicing They no longer exist today. Okay. Thank you. And let

Thank you for explaining Number 11. me ask you about the next set of documents. A I'm ready.

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Q Oh, okay. MS. MACK: Do you recognize -We'll mark that as Exhibit 12.

(Defendant's Exhibit 12 was marked.) Q (By Ms. Mack) With regard to Exhibit 12,

Mr. Nardi, have you ever seen that document before? A I believe I have seen it before, yes. And

I've seen similar documents typically prepared in anticipation of or in the process of some type of loss mitigation review. Q Okay. And could you just tell me what -- does

the document have a name that y'all call it in Chase? A Well, it's entitled Reconciled Market Value, You

so this would probably just fall into valuations. know, some type of -- this isn't a full BPO.

This may

be taking information from a larger document that is provided by a broker, but it doesn't include photos and other things you would see in an appraisal or BPO. Q The full-on BPO and appraisal, those are done

by third-party contractors? A Q Generally, yes. Okay. So the document we've labeled as 12,

was that created by Chase? A It says this is for Chase internal business,

so -- I'm looking at the document and, I mean, it's consistent with documents that I know to be produced by

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A Chase, yes. Q Okay. And I -- that was -- does it appear to

be, is what I meant to ask you. The indication with regard to the fair market value, is yours dated September 1, 2011, by any chance? A Q That says prepared on 18 March 2011. Okay. Would there have been a series of those

Chase -- Exhibit 12s prepared, like, at various dates? MS. CREWS: Object to form. Potentially, yes. One might

There may be -- well, yes.

There may be a couple of factors that apply.

be depending on the amounts of the loan and the numbers at play, there may be a requirement for multiple BPOs to be done. So if it's over 500,000, they may want at If it's over a million,

least two independent reviews. they may want three.

So that type of thing.

Then secondly, depending on the length of time that the review goes on, the loss mitigation review, they may require updated values because the market is pretty volatile. So if they do -- if they start loss

mitigation in January of a given year and it gets to, you know, March or April or June, they may want some new values because in six months, the market may have drastically changed for the better or for the worse. Q (By Ms. Mack) Okay. The market value in

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A Q A March of 2011, the fair market value, is that indicated? A Yes. It does say -- it reflects an as is and

as repaired, 315,000. Q A Q 315? 315. Okay. If you can go down to the next box

under current information. A Q number. A Q Correct. Okay. Now, it says next to that, Channel, and Yes. The loan identifier appears to be the loan

it's FFIEC. Do you know what FFIEC stands for? I don't. Do you know what channel means? When I see the word "channel" as it refers in

regards to these loans, I -- in my mind, it typically triggers on the lending channel that it came through, you know, where this loan came through as far as where it came from. For instance, if it was a loan that was brokered by a third party authorized to do business for Chase that purchased loans, or whether it was done at the branch level, or if it was a phone call they made to

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the 1-800 number because they don't have branches in their area. So that's what comes to mind when I hear channel, but I can't say from this document, because I don't prepare them, what channel is actually referring to. Q Okay. What about Servicing ID? It's blank on

mine, but what does that usually stand for? A I made reference to it earlier. If there is

another party interest, let's say, for instance, Fannie Mae or Freddie Mac, they will have their own assigned loan number. So, again, that's my -- that's my

best -- I don't want to say guess, but, really, I don't know exactly what that Servicing ID is for. It

certainly could be for, you know, the underlying investor or owners and individual identifier for that loan. Q Okay. Next to Servicing ID is System. Do you know what -And it

has a P next to it. A Q A Q A Q

Mine has an S next to it. Oh, does it? Yeah. Okay. Well --

But I wouldn't know what it was for anyway. You don't know. Okay.

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CMS Doc ID is underneath Servicing ID. know what that means? A Q I don't. Okay. And next to that is an investor number, Do you

and it's got A01 next to it. A Q A Right. Do you know what that stands for? I don't know what the A01 stands for, no. I

don't have a current list or a list at the time of this transaction of investors. Q A Q Okay. But yours -- does yours say A01?

It does. Okay. Well, if the investor -- if this was an

asset loan on March of 2011, would it say investor number and Chase's investor number? A Q If it was -- can you repeat the question? Sure. The date on your -- on your document is

March of 2011? A Q Right. Okay. So in March of 2011, it's the

plaintiff's position that -- at least according to their pleadings, that they owned the loan -- or, sorry, the promissory note, and they were the investor in the loan. So if in March of 2011 Chase was the investor in the loan and owned the note, would the investor

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A Q A appraisal. A Q for? A Q I don't. Okay. Now, the next -- there's -- underneath number be representative of Chase? A I wouldn't see any reason why it wouldn't be.

I don't know why -- for instance, I couldn't tell you -there would be no reason that, for instance, Fannie Mae or Freddie Mac number would be there. Q Right. But you don't know what A01 stands

the box that's called Intended Use, there are origination comments. Do you see those? Yes. Okay. Yes. Now, the origination comments appear to

be a after-the-fact review of the appraisal done at origination. Would you agree with that? MS. CREWS: Object to form.

Let me read the comments. (By Ms. Mack) Sure. Yeah.

I mean, it does reference the original It does reference the date. It does

contemplate the fact that there are -- they used it within the acceptable practices and guidelines and that it's consistent with what, apparently, looking -- a

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A look-back review was true -- you know, true to be the case at the time. So there was no value So that's what the

misrepresentations suspected. paragraph states. Q Okay.

Do you -- okay.

So do you know if that

was something that was -- if that was an issue for this particular property? Or do you know if that was, you

know -- being an issue, I mean, when they're -- they're looking -- I think you call it look-back at the origination appraisal. Was there something that would have caused this review? Or was that something that is done in --

with loans that are in default that have these kinds of reviews done? MS. CREWS: Object to form.

Well, part of the process of going through

these loans -- and there's a constant kind of quality assurance going on and quality reviews. So when they

are going back and they are doing things like loss mitigation, it's a prime opportunity to discover all types of things, you know, from -- anything from, you know, the borrower didn't give us their actual income information, or the appraisal was inflated or, you know, any number of things that may have skewed the decision to make the loan.

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So this is just a normal course of action. This is a normal process for us to go back and look at because, again, this document is created in the hopes we can modify the loan for the borrower. So if we can find

out that someone wasn't giving us the right information and the house wasn't actually worth 800 grand in 2007, that might give us more ability to be flexible in our modification terms. Because if we find it was actually

worth more than 800,000 or significantly less, it would certainly impact our ability in really getting the loan modified to a point that was reasonable. Q (By Ms. Mack) Okay. Do you know if -- that

Mr. -- Mr. and Mrs. Waisome's loan was ever evaluated for a modification? A I think not only were they mod -- or

evaluated, they were offered a trial modification and decided not to engage in that. Q Okay. And so the trial modification, do you

recall what program it would have been under? A Q No, I don't. Okay. All right. If you could just turn to And does yours have a box

the next page of Exhibit 12.

called Original Appraisal Integrity section? A Q No. Okay.

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Q you. A It's not on the next page and not on the Is it at the top of one

following page that I can see. of those boxes like there? Q A Q Yeah.

You don't have a box like that?

There is nothing like that. Okay. All right. I'm going to switch with

I just want to make sure I don't have any more

questions. MS. MACK: I'm sorry, Rachel. I did not mean

to leave you out. (Defendant's Exhibit 13 was marked.) A Q I'm ready. (By Ms. Mack) Okay. Mr. Nardi, is that

another one of those like Exhibit 12? A Yes. MS. CREWS: Object to form. Whatever Exhibit 12 -- I don't

(By Ms. Mack)

know what you called it. A It's titled Reconciled Market Value, and it

appears to be the same type of document. Q A Q And the reason why -- I'm sorry. Go ahead. The reason I'm having a problem with what the

title of the document is is because that's just the top box.

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A Is that what you guys call it? I mean, this would just fall under

valuation -- valuation reports or summaries of valuations provided to us by third-party appraisals or BPO brokers. Q Okay. That valuation report we marked as

Exhibit 13, it appears to be it's dated September of 2011, correct? A Q correct? A Q That is correct. Okay. And it looks like the price -- or the It is. Okay. So that's after Exhibit 12 in time,

appraised value, I should say, of the property has gone up a little bit. A It is currently -- according to this

particular broker or appraisal, it is 330. Q Okay. Now, is there something else that you

would look at, perhaps a BPO, to determine why there was the change in the value in the six-month, more or less, period between the two valuations? A Is there something that -- well, first I would

take into consideration that we're dealing with a $20,000 difference in opinion. upon individual opinions. These reports are based The

So opinion is just that.

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salt. market is going to decide what the value of the property actually is. These are individual opinions. So I

wouldn't necessarily have any reason to go back and question a difference of $20,000 over six months, you know, positive or negative because I have to have an understanding that these are opinions of professionals in their field. Q A Okay. So I have to take everything with a grain of I don't have any firsthand knowledge of the

market that this guy is going into to analyze. MS. MACK: Just off the record real quick.

(Discussion off the record.) Q (By Ms. Mack) Just a couple of more questions

on that document.

The next page, it looks like the

appraisal -- origination appraisal, there were no -- and I'm paraphrasing because I don't have it in front of me. But it appears that there were, again, no discrepancies in the original appraisal that were noted by this valuation expert for Exhibit 13. A Q That's correct. Okay. Now, that -- this Exhibit 13 has that

box about the interior appraisal on Page 2? A Yes.

(Conclusion of Volume 1 of 2.)

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Page 201 IN THE CIRCUIT COURT OF THE FIFTH JUDICIAL CIRCUIT, IN AND FOR LAKE COUNTY, FLORIDA CASE NO.: 2009 CA 005717 JPMORGAN Chase BANK, N.A. as Successor in Interest to Washington Mutual BANK, Plaintiff, VS SHERONE D. WAISOME, et al, Defendant. * * * * * * * * * * * * * * * * * * * * * * * * * * DEPOSITION OF: LAWRENCE NARDI, VOLUME 2 OF 2 DATE TAKEN: TIME: PLACE: MAY 9, 2012 9:03 A.M. 121 SOUTH ORANGE AVENUE SUITE 800 ORLANDO, FLORIDA CINDY CONNER, CSR, RPR AND NOTARY PUBLIC

REPORTED BY:

* * * * * * * * * * * * * * * * * * * * * * * * * *

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A P P E A R A N C E S

RACHEL CREWS, ESQUIRE Gray Robinson, P.A. 301 East Pine Street Suite 1400 Orlando, Florida 32801 APPEARING ON BEHALF OF THE PLAINTIFF JACQULYN MACK, ESQUIRE Mack Law Firm Chartered 2022 Placida Road Englewood, Florida 34224 APPEARING ON BEHALF OF THE DEFENDANTS

ALSO PRESENT:

Mr. Sherome Waisome Mr. Nye Lavalle

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DEFENDANT'S EXHIBIT 22 Plaintiff's reply to interrogatories 292 DEFENDANT'S EXHIBIT 20 Verified amended complaint DEFENDANT'S EXHIBIT 21 Customer service comments 263 281 DEFENDANT'S EXHIBIT 18 Affidavit DEFENDANT'S EXHIBIT 19 Purchase and assumption agreement 236 251 DEFENDANT'S EXHIBIT 16 SER1 screen shots DEFENDANT'S EXHIBIT 17 Checklist 215 220 DEFENDANT'S EXHIBIT 14 3/8/12 reconciled market value DEFENDANT'S EXHIBIT 15 DDCH screen shot 207 210 TESTIMONY OF LAWRENCE NARDI, VOLUME 2 of 2 Direct Examination by Ms. Mack (continued) CERTIFICATE OF REPORTER CERTIFICATE OF OATH LETTER OF TRANSMITTAL - - - - E X H I B I T S PAGE 205 327 328 330 C O N T E N T S

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E X H I B I T S (continued)

DEFENDANT'S EXHIBIT 23 3270 Explorer DLQ7 DEFENDANT'S EXHIBIT 24 3270 Explorer ANAN DEFENDANT'S EXHIBIT 25 3270 Explorer BNKN DEFENDANT'S EXHIBIT 26 3270 Explorer REON DEFENDANT'S EXHIBIT 27 3270 Explorer LMTN DEFENDANT'S EXHIBIT 28 3270 Explorer LMTN DEFENDANT'S EXHIBIT 29 3270 Explorer LMTN DEFENDANT'S EXHIBIT 30 3270 Explorer LMTN DEFENDANT'S EXHIBIT 31 3270 Explorer LMTN DEFENDANT'S EXHIBIT 32 Collateral valuation report

295 300 301 302 303 307 309 309 318 319

- - - - -

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BY MS. MACK: Q Do you know why one has that interior The other one, (Beginning of Volume 2 of 2.) DIRECT EXAMINATION (continuation)

appraisal box and the other one doesn't? meaning Exhibit 12? A Q A Bear with me just a moment. Sure. That's fine.

You're talking about the -- you mentioned I'm sorry.

interior appraisal section. Q A

I'm going to have to stand over you. That's fine. I just want to make sure I'm

looking at the right section. Q A Q A Q A Original appraisal integrity section. Oh. I'm sorry. I totally butchered that.

Why one would have it and the other wouldn't? Uh-huh, yes. Well, let me look at the -- I mean, if I was

looking at these two documents, the value misrepresentation and original appraisal integrity section would be, to me, interchangeable. They may have

just changed the verbiage in the document from March to September to reflect a different heading for that section.

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Q A Okay. But they -- they look to, you know,

contemplate the same thing, is whether or not there was integrity in the original appraisals that we were given. And I think if it was me, I probably would avoid terms like "value misrepresentation" as sections in the document like this. I would probably go with something

like integrity review or something like that versus -so it could just be a new version of the document. don't know for sure. thing. Q Okay. The -- I'm sorry. That document -- I But they contemplate the same I

have to lean over you.

Your investor number on that one And I believe the

is A01, and they are both the same.

only difference is the system which you noted was -it's S on Exhibit 12 and P on Exhibit 13. A Q A Q A Q Yes. Do you have any idea what it means -I don't. -- now? I really don't. Okay. All right.

The next document we have is going to be another valuation. A Okay.

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Q Okay. Exhibit 14 is --

(Defendant's Exhibit 14 was marked.) Q (By Ms. Mack) Now, just a couple of questions

about Exhibit 14. A Q A Q It is. Okay.

It's March of 2012, right?

And the value is down to 310. Or 315, 310. Would you have

Back to 310, yeah. Yeah.

Back down there again.

the same explanation as to why there's that change? Just is it an individual appraiser issue? Or is there

something that you can see that would account for the difference of $20,000? A Well, I think if you take it in their

totality, they are clearly -- I mean, you can look at the top. One is -- the appraiser on one is David Ruiz. So, again, there is going to I think if every

The other one is Mark Lee.

be some differing opinion, naturally.

appraisal came to the same number, there would be something wrong. opinion. Also, Exhibit 13 actually has -- even though it lists 330 as repaired, it gives some additional breakdowns as to other numbers. So there was -- there So, You want to see some differences in

was another -- there was an appraisal at 317.

clearly, there was some opinion changes -- or I should

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investor. A Q A Q say opinion differences between these brokers. that's pretty common. You are not going to find But

everyone getting the same number. As far as it going down, I don't think anyone is surprised in a -- you know, in a period from September to March, especially end of September of 2011 to '12, that the market continued to depreciate. Unless

there is something going on in that county that I'm not aware of, I think it's pretty consistent with what is going on everywhere. Q A No, I know. I'm just telling you what I know from We haven't really seen any I'm not a property appraiser.

reviewing these loans. recoveries yet. Q

Keep our fingers crossed. Okay. Number 14 has also an indication of an

It's X99. It is. What does X99 stand for? I don't know. Would the investor have changed between

Exhibits 12 and 13 and 14? A Q A Not very likely, no. Okay. The codes could have changed, but I would -- I

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list? A Q A Q A Q Yeah. Okay. To be specific, there's other code lists. That's the transaction code list? Yes. Gotcha. Now, if you will note there, the I think it's a code list. that. Q So if we wanted to find out -- "we" being would certainly want to refer back to a code list that would tell me what X99 is, what A01 is, if they are somehow related or, you know, an explanation. Q A Okay. But I don't have the convenience of knowing

myself and my client and expert, we would ask y'all for a code list -A Q A Q Yeah. -- that would explain those codes? Yes. Okay. That's what we would call it, is a code

original application date of the loan -- I think it's called loan orig ap date -- tell me that's a mistake, please. A Well, it's probably like if somebody didn't

put any information out there, so it defaulted 1/1 of

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value? 1900. Q of 1900. Because this loan did not originate in January Okay. So do you know if that is a default field Is it something that you can say, Hey, I've seen

that happen before? A I haven't seen that happen before. I was

looking back to these other two, and I think they are filled in. So, you know, I don't work with these

documents on a daily basis, so I couldn't say with any reliable firsthand knowledge, but -Q Fair enough. Okay. I appreciate it. Thank you.

We are going to move on to something a

little different, which is going to be your -- actually, we're going back to the Explorer. A Q all -MS. MACK: Let's make that 15, first of all. Okay. Okay. I'm ready. Those -- could you tell me, first of

(Defendant's Exhibit 15 was marked.) Q Mr. Nardi? A This is a print-off of the DD -- DDCH screens So these are (By Ms. Mack) All right. What is Exhibit 15,

called Corporate Advance History Screens.

really just transactions for corporate advances for the

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loan. These go back -- these go back to, like, April of

'09, so I don't know if it's a full counting of all the advances, but it's a pretty good chunk of them. Q Okay. With regard to the advances, if you

could just go through each line of advances and tell me what it stands for and who the advance was made payable to and whether or not it was recoverable or not. A Whether it was recoverable or not? I don't

know if I can answer that based upon this document. Q A question. Q A Q Okay. And you want to go through every page? Every line. I could read them off to you, but Okay. I can do my best with the rest of your

I think we can get through quicker if you go through the lines of each date. A Okay. We have Transaction Code 33 -- 633 SAP, It says that escrow payee is Payee is -- payee code is 85N16. REAP, and a

date March 2012, $65. M-g-c-o-l-l-i-n-t-e.

RSN, I think that's a reason code. description is REO appraisal. The next line is 633 -MS. CREWS:

He's just reading the document

which speaks for itself.

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Q MS. MACK: Yeah. I'm going to ask for --

(By Ms. Mack)

If you could tell me what

Transaction Code 633 means. A Q A I don't know. Do you know who that payee is? There are so many payees in the system that I It's -- I mean, the

couldn't tell you for sure.

description is REO appraisal, so I think it's clearly identifying an appraisal fee. And the escrow payee and

their code is probably part of their name or maybe part of their business name. Q please. A Sure. MS. CREWS: MS. MACK: MS. CREWS: MS. MACK: Is there a question about it? I don't know what they mean. What what means? Well, I mean, we can go through it I can go through I was just Okay. If you could go to the next line,

the other way, if you want me to. it line by line, if you want me to.

trying to get through this a little faster. MS. CREWS: question? MS. MACK: I would like to know the The Albertilli, I can figure I mean, what's the general

transaction codes.

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that out. Okay? But, like, the REO appraisal that

you just identified, I have no idea what that was. So the transaction codes, of course, I don't know those either. MS. CREWS: You're not going to -- are you

going to know any of the transaction codes? THE WITNESS: I'm not going to know them off We can get you a list. Now, the Albertilli

the top of my head, no. Q (By Ms. Mack) Okay.

ones, I know who those are. A Q Okay. Those are self-explanatory. But, like, the

payee's names that are not clear, maybe I should just go through those and ask you. A Well, let me look at a few of them and see if

I can help you out. Q Mr. Nardi, do you see an advance for

$246,965.35? A Q A Would you repeat the number? 264 -- I'm sorry. 246,965.35.

I actually see several line items which

reflect that figure. Q What are those? I should say, what does that

number represent? A I don't know. I would have to do some

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additional research to find out. Q A Okay. It certainly wouldn't be a typical or Normally, you wouldn't see an amount

corporate advance. like that.

I mean, on very large loan balances -- which

this is larger than average, but this isn't $15 million large. You might see some large advances for insurance

on a big mansion someplace or, you know, that -- that might reach, you know, five or six figures if you're paying for a year of insurance, or maybe you're paying back taxes or something like that. But on these type of -- on these kind of transaction lists, generally you're not going to see an advance of $250,000 on a 6- or $800,000 loan. generally not there. It's

But I don't have an explanation as But

to what this particular amount is accounting for.

it seems to be being applied and unapplied throughout -you know, for several lines throughout this transaction history. Q Yes. So if you were going to try and

determine what that amount was representing, where would you go look? A I wouldn't necessarily look -- well, I would

look in other transaction screens to see if I could sort it out. Otherwise maybe, SER1 SHT to see if there are

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transactions. I would go find what the Tran Code 745

was because it seems to be regulated to these particular transactions. You don't see 745 throughout the rest of

this document, so -- you see a lot of six -- six codes. There's a couple of large 745 codes earlier on in the document, which I would probably also be looking at. But basically the first thing I would start with is the transaction code list to tell me what it's supposed to be as far as the code goes, and then try and drill down from there. Q Let me give you -- just don't put that too far

away because I'm going to ask you some more questions, but I think this might help. look. MS. MACK: That will be Exhibit 16. If you could just take a

(Defendant's Exhibit 16 was marked.) Q A Q (By Ms. Mack) Yes. Exhibit 16 is two pages of a larger group of However, those two pages do have Mr. Nardi, Exhibit 16.

SER1 screen shots.

that figure, that $246,000 and change figure. A Q Right. And I was wondering if those screen shots from

the SER1 view, I guess, would that help you understand Exhibit 15?

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A Well, to a certain extent, it may clarify it a

little bit. Q A How does it clarify it? Well, it incorporates the descriptor of

corporate advance adjustment, but also goes on to tell me it's not -- it's not what they consider a nonrecoverable corporate advance. So apparently, these

are adjustments being made in the account of some type of nonrecoverable advances, apparently. Q Okay. Now, if those advances were being made

or were -- do you -- does -- do you think those advances affected this loan balance? A Q A The loan balance itself? Yeah. No, because the corporate advances as -- as

escrow and as restricted escrow and other transactions that are related to the loan aren't reflected in the balance. So as far as I understand it, there would be You wouldn't --

no effect on the balance of the loan.

you wouldn't -- there is an exception to that at some point if -- like in a modification instance, if we had advanced $30,000 for taxes and insurance and the borrower couldn't repay us those escrow advances, we might capitalize that into the loan -- the loan balance under the terms of the modification.

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A Q A Q But as far as these transactions are concerned, without some type of modification of the note and the terms of the mortgage, no, they wouldn't just be dropping in and out of the balance. These should be

accounted for separately and tracked separately than the balance. Q Okay. And so would you need to look at, like,

a general ledger or accounting system database that would show you what those corporate advance -- advances were either applied to or why they are showing up in Mr. Waisome's loan history? MS. CREWS: Object to form. I mean, how would that be tied I mean, if somebody is

(By Ms. Mack)

into Chase's balance sheet?

advancing $246,000 and change, that's a significant amount of money. Wouldn't you agree? Sure. Okay. I think we are assuming some facts that are That -- it's clearly But we don't But I don't know if that's the case.

not in evidence, as you would say.

showing an amount that is being adjusted.

know if that is the total amount of advances for the life of the loan, which wouldn't necessarily be unheard of if we've spent $100,000 in litigation to the point of

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Q the transaction, and it has to be adjusted. And, again,

just a shot in the dark here, is that that could represent the total sum of corporate advances, not a single corporate advance. And I don't know the answer

to that question, which is why I can only speculate. Q A Okay. I wouldn't assume that was a single advance.

There would be no feasible explanation for a single advance of a quarter million dollars. Q A Q A Q On a loan this size, right? I'm sorry? On a loan this size. On a loan this size, no. A couple of more questions on Exhibit 16 while You'll note there is a date up here, and

we're on it.

it's 12/10/2009. A Q Yes. The 12/10/2009 is -- postdates the alleged

date of default, correct? A Q I believe so, yes. Okay. Would Chase have taken a principal --

sorry -- a charge-off at the end of 2009, and perhaps that's what the amount of money the $246,000 is for? MS. CREWS: Object to form. In your experience, have you

(By Ms. Mack)

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shot? A Q A Q I believe it does. And there's A01/013. Yes. So the A01 is -- it corresponds with some of ever seen that happen? A I haven't seen it accounted for in a corporate I think I -- and -- and, really, I

advance history.

don't really pay much attention to charge-offs to begin with. But, you know, compounding that, I don't know why

they would include it in the corporate advance accounting. Q It wouldn't be the right place for it. If you would just -- if you will

All right.

note, actually, going between Exhibits 15 and 16, if you will look at Exhibit 15 at the top of the page under borrower name, there is -- and next to corporate advance history screen, there's that X99 again. A Q Yes. Do you -- in the context of Exhibit 15, do you

know why it says X99? A Q No. Okay. Now, if you go to Exhibit 16 again, you

look up at the top of the page under customer -- or right next to customer service, there is that INV again. Does that stand for investor on that screen

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at. A Q A Q Okay. Are you ready? Do you want it marked? Yes. MS. MACK: We'll mark that as 17. A Okay. the valuation reports we have previously marked as exhibits. But does the context of Exhibit 16 help you

identify what A01 or 013 mean? A Q Not really, no. Okay. The -- okay. I'll rest on that one.

We'll go on to the next ones. With regard to the note codes, do you know

what the note code LMHAM means? MS. CREWS: Object to form.

I don't have an example of the note codes I don't -- can you define note

you're talking about. code or show me? Q (By Ms. Mack)

I'll show you what I'm looking

(Defendant's Exhibit 17 was marked.) Q (By Ms. Mack) Okay. With regard to the

document I've just handed you, do you have a name for that document? A Have you seen anything like it before?

Let me just read a few things here. It looks like -- I don't think I've seen this

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particular form before. I've seen ones like it. If

I'm -- it looks like a modification checklist of some sort, someone going through to do some type of quality check on a loan for -- maybe to see if they can push it into, you know, certain modifications to be reviewed. Or maybe it's in the process of modification, and this is the checklist they have to go through for premodification. Clearly, it's a checklist. I think it --

there's a lot of loss mitigation-related items in here, so it appears to be that it even contemplates HASP trial on the checklist. Q A Q A Now, HASP trial, what is that? I don't know what HASP stands for. That's not a Chase program? I don't know that it's not a Chase program. It's not my

I'm not -- I don't work loss mitigation.

field, and so I don't know what HASP stands for. Q A Okay. It wouldn't surprise me. There's a lot of

programs of all sorts. Q Okay. I'll ask you some more questions about If you could just look in the middle

that in a minute.

of the page, Mr. Nardi, there's going to be the codes I'm going to ask you about, the LMHAM and the LMTMQA.

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A Q Okay. Is there a code list for this loss mit

document that we have marked as Exhibit 17? A before. Q A Do you recognize the codes, the LM -These are actually codes that go into MSP. I don't know. I've never seen the document

They don't -- they are not really tied to the document so much. Q A Okay. When you go into the NOTS screen, which is

basically your general loan notes of all types -customer service, loss mitigation, collections all go into the NOTS screen -- you can type in these codes in a field in that screen, and it will -- and depending on what the code is designed to do, the code might generate a preformatted text box for you. So you type in this

code, and it will basically put in something that says, Borrower has completed Step 5 of 6, or whatever you want it to do. So basically it's a shortcut. Type in these

five digits, and it produces a note so you don't have to type it in longhand. way. Q Okay. So a shortcut. You can do it that

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Q A So they are basically looking for codes which

show that whatever these codes stand for, the steps have been completed. mean. Q A Okay. Let me see that one more time. I don't know what the codes really

One looks like -- one looks like a loss The other one, I don't

mitigation quality analysis. know.

One looks like a loss mitigation quality

analysis. Q There is one other question I wanted to ask Yes. Okay. If you look under the

you about this.

HASP -- actually, two lines up from the line you were just looking at. It looks like it says MAS1/INV.

Are those the names of the screens that you were telling me about that identify the investors? A Q Yes. Okay. And the "verify the investor" that is

indicated next to those screen codes, there's a list to determine the numbers that the -- I mean, who the investors are with regard to each number. Is that -MS. CREWS: Object to form. -- what these folks would be

(By Ms. Mack)

looking at? A Can you repeat the question?

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Q Q MAS1 -A Q A Right. MAS1 and INV1. Okay. You see how -- I believe you told me

Those are investor disclosure screens? That's information within MSP that will show

you who the investor is. Q And from another answer you gave me, there is

an investor code list. A Q Correct. Okay. So would someone that is going to try

and fill that document that you have in your hands out that is marked as Exhibit 17 to complete it, would they go to a particular list or is there just one list? MS. CREWS: Object to form. Let me ask it this way: You

(By Ms. Mack)

talked about your -- you would look at an investor list. Okay? You said you are not in the department or you

don't do loss mit, and that this document you have in your hands, Exhibit 17, is a loss mit document. A Q Correct. So would the loss mitigation folks be looking

at a different investor list than you would? A Q No. I just needed to know if I needed to ask for Okay. Thank you.

more than one.

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All right. Going back to -- I think we are I'll take you back to

done with that one, Mr. Nardi. Number 15. Okay.

There are a couple of payees here that If you look at the date

I wanted to ask you about.

9/23/2010, there's two entries for $12,800 -A Q Yes. -- in advances. Can you tell me by looking at that document who the recipient of the advance was? A Q A Q A No. Do you know what 10N14 means? Where are you seeing that? It should be to the right of the amount. Oh, I'm sorry. No, that's a payee code, but I

don't know what it means. Q means? A Q It's a reason code I don't know. Okay. 12-month anniversary? Do you know what Okay. And the CANV? Do you know what that

that means? A Q No. If you keep going to March 29, 2010 -- and

we've actually put some yellow stickies on the numbers we wanted to ask you about or near them.

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It's an entry for $135,000 times two, and the date is March 29, 2010. A Well, I want to actually go back a moment There's

because I think you might be misunderstanding. two transactions for $12,800. Q A Okay.

But one is coming in and one is going out, so

they net 0. Q A Okay. The same thing applies to 135,000. It's not

two of the same transaction. is going out. Q A Q A

One is coming in and one

And what about the 9/24/2010, 246,000? So we're talking about these at the back? Yeah. All right. So we have -- one is a negative, Another positive and another There's two more

and one is a positive.

negative, so we're still netted 0.

that one is positive and one is negative, still netted 0. They are all netted 0. Q Okay. All right. And you -- you don't know

what that means as we are sitting here today, what those entries -A Q No. And I --

-- netting 0?

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A A Q A Q -- wish I could tell you. Okay. I don't have any idea. Okay. Thank you. We can move on.

All right.

Based on your training and

experience, does the mortgage in this case secure the property or the promissory note? A Does the mortgage secure the property or the

promissory note? MS. CREWS: Object to form.

Well, let me just define what -- I'll make it

easy because I don't -- I don't know if I answered your question, so I'll try to answer it the way I think you're asking it. Q A (By Ms. Mack) Okay. It's a contract to -- we'll This is the rate.

You have a note.

lend you money, and you pay us back.

This is how much you have to pay each month and so forth. note. The mortgage is the document which secures the It gives us the ability to basically confiscate

your collateral which you pledged in the mortgage if you do not perform under the terms of the note. So I think

that's what you are asking me, but I want to make sure I answer the question. Q Okay.

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A question. Q (By Ms. Mack) Yeah. I'm asking if there is a A The note -- I think your original question was But the

does the mortgage secure the property.

question, to me, doesn't make any sense at all -Q A Q Okay. -- so that's why I answered the way I did. Thank you. Can -- is there -- excuse me. Is there a

provision or a procedure in your company for the borrower's agents, whether they are an expert or their lawyers, to go inspect the collateral file that is stored in -- I think you said Louisiana? MS. CREWS: Object to form. I think I heard the

Would you repeat?

procedure for the borrower's representative, whether it's an expert or a lawyer, to go and inspect the collateral file that you know of. A Q A Q A In Louisiana or just -Wherever it is. -- wherever it is? Yeah. Is there a provision? Well, I don't think

there is a provision in the contract with -- that you signed into in your note or mortgages. I don't think

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original. Q A Right. That takes some planning, because they are not there is any verbiage in any note or mortgage that gives you the right to inspect your documents in the normal course of business. Now, under a performing loan, there is really no need to for the most part. I think that any lender

wouldn't necessarily object to it so as far as it's planned for in advance and that you just don't show up in custody services and say, I want to see my note. As

long as you did it appropriately, I don't see why there would be any objection to it. However, I haven't seen any provision or policies surrounding that. give you an example. We'll -- like, I'll just

I called my lender the other day

and said, I need a copy of my title insurance policy. They faxed it to me within an hour. Generally that

information is available almost immediately. Now, your question was specifically as to the

going to send it anywhere than if we're represented. They are not going to release that just to anybody because it's the note. It's the mortgage. So -- but I

haven't seen any provisions for that. Q Okay.

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A A But I imagine it would probably be something

that just needs to be planned ahead of time. Q Okay. Thank you.

Now, with regard to the MSP and accounting, do you know if MSP has an interface with the general ledgers that Chase would have for the Waisome loan? A Q Sorry. How -- can you -- can you tell from -- is there any provision in MSP for verifying whether a -whether the original note has been either pledged as collateral or sold or otherwise hypothecated? MS. CREWS: Object to form. I don't. Okay. I don't know.

And -- I can't even read my writing.

I -- I don't believe that there is as far as There are certain fields in MSP which will

being sold.

show you acquisition information if we purchased the loan from a previous lender or note holder. But as far

as the selling or securitization, so for servicing for a -- one of the secured backed trusts, that's not the place you would go to view that information, no. Q (By Ms. Mack) Okay. Can you -- can you tell

us how you would verify if the owner of the note had retained possession of the note and ownership of the note or if they had pledged it? Is there anything you

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anywhere? A would look at? So, for example, if someone came -- this If someone came up to Mr. Waisome

is a hypothetical.

and said -- or sent him an acceleration letter, we own your note and we are going to accelerate it, and he called Chase up and said, I thought y'all owned my note, what would you look at to see if, in fact, maybe Chase had sold the note or perhaps maybe the note was sitting in somebody's front seat and it was stolen? MS. CREWS: Object to form.

First of all, I would like to say this whole

pledging concept that you have discussed, I have no knowledge of. I don't know -- I've never had any loan

that I've dealt with with Chase or WAMU where somehow it was pledged and then -- so I have no definition of what that means. Q A (By Ms. Mack) Okay.

But let's just say that -- let's go with If we had sold it, there would be

something I do know.

a number of things that would -- that would tip me off. First of all, why would it be in our system Why would we be managing the service of the

loan if we transferred servicing rights to somebody else? So right off the bat, the question really doesn't

have any foundation in reality, because we wouldn't continue to do work on a loan we no longer had any

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Q financial interest in doing it on. We don't service things for free. We charge

other entities service -- you know, fees to service. You know, we service our own loans because those loans we collect the interest on, that interest belongs to the bank. So it's not a charity; it's a business. So if

we're doing -- there would be no instance where we would be accidentally servicing someone's loan where it was sold to someone else. So the answer is, you know, the hypothetical fails because we are not going to have a loan in our system if we sold it off. Q Okay. All right.

Do you know who actually maintains the integrity of the data in the MSP system with regard to Chase? MS. CREWS: Object to form. Specifically -- and when I say

(By Ms. Mack)

"data integrity," do you know what I mean? A Q A Yes. Okay. Well, I think data integrity is really on an There is no -- there's no master

ongoing process.

person who is doing it 24/7 seven -- you know, 24 hours, seven days a week. Data integrity is a -- is a ongoing

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process that involves all the people who are putting information into MSP. information. depend on. And we're constantly using that It's what we

It is the system of record.

So if there is an error and it's discovered,

it's remediate and it's corrected. Pretty much anything that goes into MSP that is an error is going to be discovered immediately right away because someone else is going to have to access that same information and use it to really go about their business. But I don't think -- I don't know of a

specific individual who is the master of record keeper and, you know, determiner of all things accurate in MSP. It's -- accuracy is based upon, you know, the actual records, what is -- what is -- what is true of the loan. I mean, individual errors are -- are catchable. They're -- they're redeemable. correct things. Q A Q A Q It's just a -You can go back and

So who would go --- it's not one person. I'm sorry. Sure. Who would go back and correct them if you did Would that be somebody like you or

find an error?

somebody in the quality control department, if there is such a thing?

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Q A It depends on the error. If you are talking

an error in some type of -- like for me, if I am going through a file that I know should be legal coded so that customers are not receiving collection calls, I will just correct the coding and fix it. That doesn't

require a committee or a meeting or anything like that. Now, if you're talking about other types of errors which would be significant changes to the loan records -- which, coincidentally, I've never actually run into myself, but I imagine significant loan records, we would have to go back with folks that basically administer the system and get those corrected and make sure that everything that needs to be covered, depending on the scope of the error. Because if it's something

that was, you know, a long time ago and would impact a lot of things going forward, whatever the scope is, will determine who we bring in on corrections. Q Fair enough. Thank you.

Do third parties, other than Chase employees -- or before Chase, WAMU -- do third parties enter information into MSP other -- and what I mean third parties, I mean anybody from loss mitigation like broker person to LPS people -MS. CREWS: Object to form. -- to your attorneys.

(By Ms. Mack)

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A Q A not. A Attorneys certainly do not. Third parties do

I think the exception to -- it depends on how you As I mentioned, the software is So I

define third party.

licensed through the owner of the software.

imagine at some level or another, the owner of the software, along with our knowledge, is going to be able to make changes to the system. Maybe not loan level

individual changes like removing late fees or something as small as that, but at some level, they can make changes to the platform. That's what their job is.

Their job is to maintain that system and make sure it's continually working. Q Okay. And does the system itself perform

calculations such as the ones we have seen in the loan history documents that we have gone over to date? that done manually and is it ever verified by an individual as opposed to a computer? And that was a compound question. MS. CREWS: Object to form. Sorry. Or is

I think I get the question. (By Ms. Mack) Yeah.

And a lot of the transactions -- or a lot of

the calculations that we work off of, like a payoff demand, that's systematic because the system is going to have the balance, the escrow advances, the amount of the

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it -Q A Oh, yeah. Absolutely. A interest that is running and all of that and be able to produce that and save a lot of man-hours than trying to do that manually, because the system is going to be more accurate 99 times out of 100 -- probably more -- you know, than a human trying to manually go through and do amortization over a long period of time and other calculations. Q Now, the affidavit of indebtedness, in your --

in this case, you executed an affidavit in support of plaintiff's motion for summary judgment. Do you recall doing that? Yes. MS. MACK: And we will mark that as 18.

(Defendant's Exhibit 18 was marked.) Q (By Ms. Mack) Mr. Nardi, could you tell me

exactly what steps you went through to execute and prepare that affidavit from beginning to end? A Q A From beginning to end? Yes, sir. The -- well, let me first of all read through

-- and make sure I have an understanding of This was like a

everything that was in this affidavit. couple of months ago or something.

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Q A Q Q Yeah. No problem. Do you want to see the exhibits? Yeah.

MS. CREWS: THE WITNESS:

Well, all of this is based -(By Ms. Mack) We could -- I'm sorry. I did

not mean to interrupt you. MS. MACK: We could -- if you want to use your

copy, Rachel, we can. MS. CREWS: MS. MACK: MS. CREWS: MS. MACK: To mark it? For the exhibit. That's got exhibits with it. I wasn't trying to trick you. I can go on either way. We'll use the complete one as

THE WITNESS: (By Ms. Mack)

long as Rachel doesn't mind us using your copy. A The individual section -- I mean, the first

one, as far as preparing -- I'm authorized by Chase to sign any document basically, so I didn't really have to do anything to prepare for Section 1 which is, you know, authorizing myself. documents. Q A Q Could I ask you a question about that? Sure. Do you have an authorization from either the I was preauthorized to sign

board of directors or whoever authorizes signatories to

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perform? A Q A Q Not with me, but, yes, I do. You do have one? Yes. Is that authorization something that is a

onetime authorization or is it preauthorized every year? A Basically, right. It's basically held in a

centralized repository. signers for the bank.

They keep a list of authorized My authorization is reviewed and

reupped every year that I am in a position that I need it. Q A Okay. Okay. Thank you. So, really, Number 1 speaks for itself. I have

Number 2, I'm over 18 and competent. access to the mortgage records. I reviewed

Mr. Waisome's mortgage records, and specifically the hello letter, which I think is one of the exhibits in here. ones. I'm not sure. I think it's one of the early

Checks that Mr. Waisome sent in after the date of Basically MSP in general. Making

the hello letter.

sure that the loan is on the system and that it's consistent with what is in the affidavit that I'm attesting to. Bear with me a second. I have personal knowledge that the

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A transactions in MSP are made at or about the time of the transaction. I know that because I work in MSP every

day, and I've worked in MSP every day since I have worked for Chase, and the business records are made at or around the time they happen. So Paragraph 4 talks about the letter in question, the hello letter. I made sure that that It is. We provided

letter was actually in the system. it.

I verified that he made payments after that, both

through MSP and through verifying cancelled checks that we received post that October 10th date. I also

verified in loss mitigation documentation that he was offered a (inaudible). THE REPORTER: THE WITNESS: I'm sorry. I'm sorry. I didn't hear you.

I also verified in loss mitigation documents

that the borrower was provided a trial modification plan but did not choose to participate in the plan. Q (By Ms. Mack) Okay. And that's the end of

the affidavit, right? A Q A Q That's the end of the affidavit, yes. Okay. Sure. When you prepared the affidavit, specifically Let me ask you a couple of questions.

Paragraph 3, did you review Washington Mutual's books

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A A and records to see if the Waisome note was on the books of the bank when the FDIC took it into receivership? MS. CREWS: Object to form.

I reviewed the systems of record that would

have reflected that, yes. Q (By Ms. Mack) Okay. And is that all you

reviewed, as far as that question, to determine if the Waisome loan was on the books of Washington Mutual at the time the FDIC took the bank into receivership? MS. CREWS: Object to form. And one is

Well, I really hear two questions.

really the collateral, whether the note was in the possession, or whether the loan was being serviced by WAMU at the time. And the answer is -- either way, is both. Like I described earlier, WAMU was conveniently using MSP, and Chase was conveniently using MSP. So when the

transaction -- when the transaction took place -- and I was working for WAMU at the time. So I can tell you

that the loans that were in place at WAMU on September 25th of 2008 were the same loans that were in Chase's possession on September 26th and going forward. tell you that from firsthand knowledge. Now, I, of course, didn't access Mr. Waisome's loan in 2008. I wouldn't have a reason to. But the I can

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business records were the business records that were transferred from WAMU to Chase. Q (By Ms. Mack) And so I think you answered the

question, which was you reviewed the MSP system to determine if the loan was, one, being serviced by Chase or WAMU -- excuse me -- and two, if WAMU owned the promissory note? A Q Correct. Okay. So besides MSP, to answer -- to

determine those two things, did you look at anything else? A As to whether or not it was owned and whether

or not it was -- well, I looked at other screens within MSP as well which would have shown that Chase was the owner. So MAS1 and INV1 would have shown that Chase was The ownership would have passed from WAMU to

the owner.

Chase through the FDIC in the purchase of their assets by Chase. So there was nothing in my review that would have shown me that everything other than WAMU owned the loan and through the purchase of the WAMU assets, Chase now owns the loan. Q Okay. Well, through the exhibits we have been And

through today, we've seen several investor numbers.

I think that the investor number, as you've testified,

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A Q A A is going to identify the investor once you have that list. A Correct. MS. CREWS: Object to form.

Well, I think it will identify who the code --

who that code is designed to identify. Q A Q (By Ms. Mack) Yes. So if you saw all -- in reviewing the Okay. Right.

documents in MSP to the documents -- sorry. When you reviewed MSP to execute this affidavit, did you research what the different investor codes meant to see if, in fact, Washington Mutual did own the promissory note at the time it was seized, if Washington Mutual was just servicing it? MS. CREWS: Object to form.

I did not look at the code specifically, no. (By Ms. Mack) Okay.

I had sufficient business records and evidence

that I didn't even -- at the time of my review, there was no reason to look at the investor codes specifically or depend on them specifically. There was plenty of

other indications that WAMU was owner servicer and then Chase became owner servicer. Q Okay. Now, the records that you would have

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Q reviewed to determine that, are they all attached to your affidavit -MS. CREWS: Object to form. -- to review the ownership of

(By Ms. Mack)

the note at the time of the seizure by the FDIC of WAMU and the ownership after the seizure? A The system of -- I mean, MSP, the system of

record, would -- there's a screen you can print off that shows the current owner, but it doesn't -- there is no look-back function on it. So that would probably be the

only other thing I can think of that I would have reviewed. But it's not going to have a look-back

feature, so I can't look back to 2007 and see any information. Q It's who is the current owner. So if you don't have the ability to do

Okay.

that look-back function in MSP, what would you have to look at in order to determine if the investor remained the same before the FDIC seized the bank and after the FDIC seized the bank? A You could look at archived records from WAMU,

and you have examples in here, screen prints from 2007 and 2008 prior to the seizure. Q A look at. Okay. So those are the types of things you could Those were not things that I specifically

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looked at, but you could pull all of the records -- all available screen shots from that timeframe, and that information may be available there. Q You're aware from your prior testimony that

the issue of who owns this loan from my client's perspective is a large one, are you not? A As to who owns the loan from your client's I guess I understand the -- I understand

perspective?

the concern, but I -- my belief is that it's unfounded because if there was any question as to who owned the loan, we wouldn't have continued to receive payments after the purchase of WAMU assets by Chase. Q Let me ask you. Now, you've indicated that

the payments made -- there are three payments attached to your affidavit, and they followed the hello letter, I think you called it. But doesn't the hello letter just

indicate to Mr. Waisome that the servicing of his loan was transferred to Chase? A Q I believe it does contemplate servicer. So wouldn't that be consistent with the

discussion we had earlier about the borrower's ability to find out the owner and why it would matter or why it wouldn't matter? I think you said that they don't

really need to know who the owner of the promissory note is because it's only the servicer that matters because

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A they are the ones accepting the payments and dealing with the borrower; is that correct? MS. CREWS: Object to form.

Are you asking me if that was my testimony or

are you asking me another question? Q (By Ms. Mack) Well, I mean, isn't that true?

Isn't it true that you would not expect Mr. Waisome back in 2008 to pick up the hello letter and say, I don't believe that JPMorgan Chase owns this loan, and I'm going to find out who does own the promissory note? So why -- I guess what the question is, is: What is the significance of Mr. Waisome making three payments after he receives a hello letter telling him that his servicing is transferred from WAMU to JPMorgan Chase? A What does it show? Well, I think -- well, I think the issue at

hand is if there was a concern about the ownership of the note -- and I think you even said that is a major concern of Mr. Waisome's. concern? payments? reason. At what point did it become a

And was that the reason he stopped making his And I would have to say that was not the He put in documentation that said there were

other reasons he is not making his payments, and it didn't apparently become a concern until later on when faced with the loss of the home, then suddenly it's an

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issue. But that was months after the purchase of WAMU

assets by Chase. So, again, I guess there's no specific timeframe in which I -- I would ever expect any borrower to go, You know what? I don't think I'm making payments

to the right people, or I want to know who my lender is or who owns my note. From a personal perspective, I don't know who owns my mortgage. And it doesn't really matter because

in the end, I have to make the payments no matter what. And who gets the beneficial -- who gets the benefits from that in the end doesn't matter. have to make my payments. What I know is I If I

These payments are due.

don't make the payments, I forfeit the house.

It's in Who

the contract, and I've pledged my signature to it. the lender is in the end doesn't matter. I happen to know that Wells Fargo owns my loan, but it -- it doesn't jibe with the information that Mr. Waisome provided to us.

He didn't say, I'm not

making my payments anymore because you guys won't tell me who my lender is. That's not what he said. He said,

I am not making payments anymore because I can't afford to make my payments. The question of who owns my note

didn't come until further on down the line when it was a little more convenient for Mr. Waisome to make the

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A A A question. Q Well, without drawing conclusions as to

whether it was convenient for Mr. Waisome, really, we are not here to do that right now. figure out the time line. A Q Okay. And one of the things that is puzzling is that We're trying to

if Chase owned the loan and the promissory note was in its possession because Washington Mutual owned the loan and note before it was seized, then how come the initial complaint was filed with a lost note count? A You know, that's -MS. CREWS: THE WITNESS: Object to form. Sorry. And it was an

That's a good question.

unfortunate practice of certain firms we were working with in that timeframe to file lost note affidavits on all foreclosure accounts. MS. CREWS: I'm sorry. Not affidavits. Not lost note -- lost note Lost note

claim -- what's the word I'm looking for? counts -MS. CREWS: Count.

-- on a majority of their filings.

That has

since been remedied and is no longer a practice that we

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accept. going on. But at the time, it was something that was Regrettably so. They were later on supposed to have been dropping the count and basically remedying the issue, but some of them were and some of them were not. I'm

not sure -- that's the best explanation I have is they were really just filing it without any knowledge of the actual condition of the note. Q (By Ms. Mack) Okay. Do you know why the --

are you -- first of all, are you aware of discovery that was produced in the early part of this case -- I want to say it was the fall of 2009 -- where Mr. Waisome had asked for a copy of his note, and one was provided, but it was unendorsed? A Do you have any knowledge of that?

I have knowledge of -- well, I've got a couple I have knowledge he asked

of answers to the question.

for documentation throughout the course of the loan, and maybe even more than one time. As to whether or not he

received an endorsed copy or unendorsed copy, I don't know. Q With regard to the request he made for

documents regarding his loan throughout the life of the loan, are those the types of requests you would get from somebody who was questioning whether or not they were making payments to the right entity?

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A My experience tells me that people -- and,

again, I have been working in default mortgages for going on seven years or something like that. of that has been time spent in litigation and specifically contested foreclosure. going to be based upon my experience. So my answer is And that is, And a lot

borrowers tend to get very interested in their loan at the point where they have stopped making their payments and would like to delay the process as much as possible. So they tend to file -- if they are not able to be represented, they tend to file large, nonsensical objections and pleadings and all kinds of stuff to kind of slow down the process. And that's my experience from

dealing with these contested foreclosures; that they are not really interested in the facts. They are interested

in basically burying us in paperwork and delaying the process as much as possible. Q A Okay. Regardless of what we send them, nothing is

ever good enough, it didn't show up, or endless reasons and excuses. Q And that's my experience. Thank you.

Okay.

With regard to your affidavit, Mr. Nardi, did you execute that in Texas? A I did.

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Q Q A business. Q A Q Okay. Is there a Chase office in Texas? And do you live in Texas now? I do not. I was traveling in Texas on

Absolutely. I'm sure there's a lot of them, but is -- is

it like one of those vaults or campuses like you have in Jacksonville? A It's actually a pretty large -- it's two We have

buildings, two really large buildings.

different operations out of -- this is in Lewisville specifically. We have a big REO department there. We

have part of our Chase legal department, which is where I was visiting, there. legal department there. Q Okay. In your experience with Washington So I was visiting the Chase

Mutual or Chase, have you ever handled loans that were serviced in -- sorry -- serviced for the federal home loan banks, any of them? MS. CREWS: Object to form. Do you know what the federal

(By Ms. Mack)

home loan banks are? A Are you referring to Freddie and Fannie or

somebody else? Q No. Do you know what a federal home loan bank

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A Q is? A I don't think I do. I mean, well -- I don't

think I do. Q Okay. Is there any reason why a Chase

employee would inform Mr. Waisome that Washington Mutual -- Washington Mutual Mortgage Securities Corporation was the investor on this loan? A Not that I can think of, no. MS. CREWS: Object to form. Okay. Are you familiar with

(By Ms. Mack)

general ledger accounting systems like PeopleSoft, Oracle or other similar software systems? A Q I've heard of them. Okay. I don't work with them.

Do you know how the LPS-MSP system that

Chase uses interphases with Chase's general ledger system? MS. CREWS: Object to form.

I think you asked that before, and my answer

is still no. Q different. (By Ms. Mack) Okay. MS. MACK: Exhibit 18 -- off the record. It's actually a little

(Discussion off the record.) MS. MACK: This will be Exhibit 19.

(Defendant's Exhibit 19 was marked.)

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Q (By Ms. Mack) Mr. Nardi, Exhibit 19. Have

you ever seen a copy or maybe the original of Exhibit 19? A Q I've seen copies before. With regard to Exhibit 19, have you actually

been able to read it at any point since it was executed in 2008? A I've seen it on several occasions. I can't

say that I -- you know, this isn't, you know, my Sunday morning read or anything. I read when I need to. I

read the portions applicable to the cases that I work on, but I -- there's just too much information in this and other documents that I must rely on. That's why,

you know, they say the document speaks for itself. Q A Okay. I don't have to speak for it or tell you

what's in it. Q All right. I understand that. Okay. I'm

going to ask you some questions about it. A Q first. A Q I'll read as we go. Page 2. If you will turn to Page 2, please. Sure. I just didn't know if you need time to read it

Page 2, if you could look at the definition of

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accounting records. A Q Yes. Could you tell me where those accounting

records would be kept? A Q A Q I could not. Who could? I don't know. Okay. In this case, do you recall answering

interrogatories? A Q I do. Okay. Do you recall -- do you recall in

answering those interrogatories, what you did to try and find the information that I asked for? MS. CREWS: Object to form. You didn't ask

anything about -- I think you may be talking about requests for productions, which are not verified. MS. MACK: right, Rachel. MS. CREWS: MS. MACK: Okay. I'm missing part of my file. Hang on a second. You could be

Let's go off. (Discussion off the record.) Q (By Ms. Mack) The accounting records that are

defined in Article 1 on Page 2 of Exhibit 19 -A Yes.

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Q -- you do not know where those exist or who

would know why they exist; is that correct? A I don't -- well, these accounting records that

were -- well, this is just a definition, so this doesn't say whose accounting records or anything. for accounting records. It just calls

So are we assuming these are

defined as WAMU's accounting records or the records that were turned on over to Chase by WAMU? Q defined. A Well, the accounting records, I think, are So, yeah, WAMU's accounting records. Okay. So my answer would still be I don't

know where they are housed and -- and let me go back. As I described previously, WAMU was using the same mortgage servicing package as Chase. So as far as

those records are concerned, they are what they are. They are electronically kept, and they were transferred to Chase intact. If there are other accounting records outside of that, I -- they're not accounting records I would have any reason to access in my duties at Chase. If

they exist, I imagine they are probably held at some management level well above me. who those folks would be. I am not sure exactly

And, again, that's just

assuming they exist outside of the servicing platform. So that's my best answer.

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MS. CREWS: And I don't know if this will help

going forward, but Mr. Nardi -- you know, the scope of his deposition and what he can probably testify to the categories here, he knows about the purchase agreement that happened. it happened. He was employed there when

He knows it relates to this case and

how he can opine that Waisome's loan was actually part of the assets that were taken over. But he's

not going to know -- he wasn't involved in the brokering of this deal or anything like that. MS. MACK: Right. I'm not going to ask him Thank you, Rachel.

questions about that. Q (By Ms. Mack)

Mr. Nardi, if you will go

further down in the definition section under assets. A Q Yes. Would you agree with me that the purchase and

assumption agreement contemplates a list of assets? A Q It does. Okay. It defines assets.

And doesn't it refer to them as being

included on a schedule? A Bear with me a second. Well, it's not saying anything about schedule in the definition of assets. I should look? Q Section 3.1 -- sorry. Section, not schedule. Is there some other place

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Q Q A It does say pursuant to Section 3.1, assets

owned by -Q A Q A Q Okay. -- the subsidiary. If you would turn to Section 3.1, please. Okay. Okay. Would you please review 3.1, unless you

have a working knowledge of it without reviewing it? A No, I'll take a moment. Okay. Where would we find the assets purchased by

the assuming bank that are indicated on Page 9 of the purchase and assumption agreement? MS. CREWS: Object to form. I mean, where would we find the

(By Ms. Mack)

Schedule 3.1(a) that's indicated in Section 3.1 of the purchase and assumption agreement? A I think I answered the question with previous I've never seen the I've been

testimony, but I will do it again.

schedule reflected -- contemplated here.

searching for it for some time in relation to other cases I've been preparing for. And from what I can Through the

tell, it never actually materialized.

transaction, it was either too lengthy a document to actually put on paper, or what have you. But I've never

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A itself. Q well? MS. CREWS: The document speaks for itself. Q seen it, and I've never come across anyone that has. Q Where did you look for the Schedule 3.1(a)

when you were looking for it? A Anywhere that I could. And, really, the quest

wasn't just in systems or repositories of MS documents. It was research through contacting folks who may have had contact with it in the past in working in different cases. And so the search was exhaustive, not just

limited to documentation. Q Okay. If you would please look at the last

sentence of Section 3.1. A Q Yes. The indications on 3.1, that last sentence

that says, The assuming bank, JPMorgan Chase, purchased all mortgage servicing rights. Is that -MS. CREWS: Object to form. Is that your understanding as

(By Ms. Mack)

Again, I have to say the document speaks for I can only understand what the document says. (By Ms. Mack) Okay. Now, with regard to

Section 3.2, if you could please review that. A Sure. You want 3.2(a) or every section

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A A Q A Q there's -Q A Q Start with Section 3.2(a). Okay. Okay. Do you see how it reflects --

references a Schedule 3.2 which, apparently, is a schedule that has the book value of the assets that were purchased? A Do you know where Schedule 3.2 is? I don't. Unless it's attached to the

document, I don't. MS. CREWS: THE WITNESS: It is? Is it? Okay.

Let me flip through the schedules. (By Ms. Mack) It is. Okay. Okay.

Page 35, right?

And now, 3.2(d), would Mr. Waisome's

loan fall under 3.2(d)? MS. CREWS: Object to form.

I -- well, I have to say I wasn't part of this

transaction or, you know, the part of the production of the document, so I don't know that his loan would be part of Section 3.2(d) or Schedule 3.2(d). It does

contemplate loans, but it doesn't really go into enough specificity for me to feel comfortable saying that that would be the case. Q (By Ms. Mack) Okay. Well, do you know who

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A would know that? A Probably the folks who were involved with the Probably Chase lawyers at

closing of the transaction.

some level and Chase business managers at some level. Q A Q Okay. No. Okay. With regard to the purchase of an asset Do you have any names for me?

such as Mr. Waisome's loan, where would I find the information as to how much Chase paid for it or if they did pay for it? MS. CREWS: Object to form. The document --

I don't know that it exists.

it kind of goes back to the document speaks for itself. If the document -- if the loan is defined in here -- if it falls into one of the categories of book value, then it would be whatever the book value is. But I don't

know that there's a schedule that shows what was specifically paid for the loan. My understanding is We purchased

that it was a whole bank purchase. everything for one price. prices per loan.

They didn't come down to

And I will, again, draw your attention to the fact that this transaction took place practically overnight, so there wasn't time to go through millions and millions of loans to determine what the purchase

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A A price for each one of those loans was going to be. It

would be impractical, and it would, clearly, take more than just a few hours or a couple of days, even. Q (By Ms. Mack) Okay. I have a question about

3.3, which is on Page 10. A Q Sure. If you need a minute to review, just let me

know when you're done. A Q Okay. Okay. Where would we find a document with

regard to Mr. Waisome's loan that contains the language contained in Section 3.3 of the purchase and assumption agreement? MS. CREWS: Object to form.

I'm not aware of any document that would need

to contain or does contain that language, so I wouldn't know where to find it either. Q (By Ms. Mack) Have you ever in your duties of

being a loan analyst -- a loan operations analyst, have you ever seen an FDIC bill of sale or a receiver's deed or an assignment of mortgage or an allonge? MS. CREWS: Object to form.

For loans, I'm assuming you're talking about

the Fray WAMU loan that was subject to the purchase here.

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A Q A Q A (By Ms. Mack) Right.

No, there is no assignments of mortgage. There's no -- in the thousands of

There's no allonges.

loans that I have come in contact with that were a part of this purchase, I've never once seen an assignment of mortgage. There is simply not -- they don't exist. Or

allonges or anything transferring ownership from WAMU to Chase, in other words. things like that. Q This would be actually specifically through Specifically, endorsements and

the FDIC and would contain the language that is in 3.3. A No. MS. CREWS: Object to form.

I haven't seen the document. MS. MACK: Well, I'm clarifying this and

talking about certain documents. Q (By Ms. Mack) So you just don't -- you don't

think that is something that was performed -MS. CREWS: Object to form. -- as far as transferring the

(By Ms. Mack)

properties in the manner indicated in the purchase and assumption agreement? MS. CREWS: Object to form.

Again, I -- I don't know of any requirement or

process that was followed regarding the language in this

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paragraph; that whatever -- that basically produced or basically caused to affect new or certain documents being added to those WAMU loans. Q (By Ms. Mack) Okay. If you will just give me

a minute, I think we are almost done with the PAA. Have you ever inquired of anyone at the FDIC to determine if they have a loan schedule of loans that would have been on the books of WAMU at the time of failure that would have been acquired by JPMorgan Chase? Not servicing rights, but the ownership of a promissory note, beneficial interest, whatever you want to call it. A Q A Have I ever inquired of the FDIC? No.

Do you know if Chase has inquired of the FDIC? Not related to the ownership or beneficial We've made inquiries as to the

status of the loans.

whereabouts or existence of the schedule of loans or assets, which is something that they have not been able to provide either. So not -- not specifically related

to the document that you mentioned. Q Okay. Mr. Nardi, do you have a copy of -- oh.

I think you already answered this, but who is your supervisor right now? A Q A My supervisor is Cassie Freeman. Could you spell Ms. Freeman's name, please? C-a-s-s-i-e F-r-e-e m-a-n.

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Q A Q A Q Or is -A I work either -- I'm either on the road or I don't have a physical Chase Is she located in Jacksonville? No, she's not. Where is she located? Columbus, Ohio. And is that where you are working out of now?

work from my home. location. Q Okay.

Do you recall executing the verified

amended complaint in this case? A Q Yes. Okay. And I have a copy for you, and we will

mark that as the next numbered exhibit. MS. CREWS: the exhibits? MS. MACK: It doesn't matter. We can do it You're going to mark it without

either way, Rachel. MS. CREWS:

Do you have a preference?

Mark it with the exhibits.

(Defendant's Exhibit 20 was marked.) Q (By Ms. Mack) Okay. With regard to the

verified amended complaint, could you tell me every single item you reviewed to execute the verified amended complaint? A It's going to take a few moments.

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Q A Sure. Go right ahead.

Much of the -- the information contained in

the complaint or the verified complaint is based upon my working knowledge of the bank and didn't require me to review documentation. point those out. Q A Okay. Specifically items that I would have reviewed So things I know I can -- I can

would have been the note, the mortgage, probably the breach letter. I know -- I knew the assumption I didn't necessarily need to review Bear with me

agreement to exist. that.

Let me see what else is in here.

just a second. The legal description is part of the mortgage and available to me in other portions of our servicing platform. The LPS-D and correspondence with counsel

would have told me when the note and the mortgage were deposited with the court. I reviewed copies -- well, I

think I already mentioned copies of the note and the mortgage. Q What did you review to determine that it was

Washington Mutual's ordinary business practice to keep a copy of the fully executed note and mortgage from a closing in its records? A That's part of my working knowledge of the

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bank. I know that's part of the practice at WAMU, and I

know the current policies and procedures and things that go on today. Q anywhere? A I don't know that it's written down. My -- my So --

Was that policy and procedure written down

review of those policies -- of those procedures and the processes that are in place are from observing them firsthand and interviewing and researching for previous cases in which this -- these things were pertinent. Q And what -- when you were with Washington

Mutual, I think you testified earlier that your role was to do loss mitigation with regard to deceased individuals. A No. I specifically did not do loss I worked with estates of deceased borrowers

mitigation.

to determine their eligibility to discuss and work with us on behalf of their deceased family member in hopes that we would be able to, you know, mitigate our losses. But typically, a lot of that is just complete total losses. But sometimes we can work with these survivors

to try to get them to make the loan perform or refinance the loan with another lender, or whatever. But the first step in that is basically getting -- finding out who the heirs are, getting them

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qualified, getting them documented, and then pushing it on down the line to loss mitigation. Q So I believe you said you worked there from

September of 2007 -A Q Correct. -- to -- and then it was seized, and then you

were working for Chase? A Q Correct. All right. During that approximate one year,

could you tell me each and every instance you had to observe the business practice of keeping a copy of the fully executed note and mortgage from closing for records? A Well, I had to use the imaging software. And

so every day I would pretty much go in and verify that we had a copy of the note, see who was on the note and if there were any other borrowers or any other parties in interest. So I would have to use the systems every And that was

day, so I know that the copies were there.

our business practice to keep copies and make copies of these documents as they arrived. Q Well, how would you know by looking at a

computer image if the image on the screen was an image of a copy as opposed to an original? A Good question.

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Q A to know. I try. Generally, there wasn't a -- a guaranteed way Sometimes they had a label on them. Not

permanently affixed, but a label that would be affixed to them for scanning purposes saying original. times, there weren't. Other

Or sometimes they would say There is now a process in

certified copy or otherwise.

place to mark originals so that we can identify them. But at the time, there wasn't a surefire way to know that what you were seeing was a copy of the original. Generally, you -- there's a couple of different ways you could deduct that through using logic. One is that if there's multiple copies, which

sometimes there were -- because there is one that comes in right away. That's the one that is probably copied The title

at the time the loan is blue ink signatured.

agent makes the copy and sends it off to Chase. And then there's the one that is scanned later on with the endorsement. multiple copies. So you're going to look to see

And the mortgage is the same way

because we get a copy of the unrecorded mortgage and a copy of the recorded mortgage, and there is usually a gap, you know, anywhere from a couple of weeks to maybe months, depending on the county where it's being recorded that you're going to see. But you will see two

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different copies. So logically, you can deduct, Okay, this is the original without the recorded stamp, this is the original without the endorsement, and here is the most current copy with the endorsement. But for -- you know,

it was -- you know, it was not always easy to tell whether or not you were looking at a scan of the original or not. Q A Okay. So generally, there would be no purpose in That's the purpose of

making a scan of the copy anyhow.

the system, is to represent the true and correct original. Q Going on to Paragraph 12, what did you -- what

documents or procedure manuals did you review to determine that it was WAMU's ordinary business practice to send all of its original notes to be endorsed in blank as a matter of course immediately after the notes and mortgages were executed? A Well, again, I know this from just working Secondly, in my time with Chase

with the documents.

legal, I've had a lot of opportunity to work with the folks who were actually doing the process, telling me what the process was, verifying that against the documentation, going to the secured document facilities

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time. Q Okay. And was there any written business that are managed now and determining that this is actually the case. So my -- basically my business

experience and my research and interviewing the folks who were actually doing the processing at the loan level provided me that information. Q Could you tell me who you -- who you

interviewed? A I didn't interview anyone in particular in

this case because this is knowledge I've kind of garnered over several years, so -Q With regard to the knowledge you've acquired

over several years, could you identify the sources of the knowledge? A Off the top of my head, no. It's been some

practice or procedure manual that you could identify that would support the Paragraph 12 statement? A No. I didn't have any reason to review or Plus,

really want to necessarily review documentation.

a lot of this research was done post WAMU bank failing, so the documentation just wouldn't have been available, which is why I do quite a bit of kind of sit-down-with-people-and-interview-type research. Q Okay. Now, are there that many former WAMU

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folks that are working with you at Chase that would have had that knowledge? A Q A Absolutely. Okay. You would be surprised how many people made

the transition. Q folks? A Of all the folks that were WAMU employees that How hard would it be to get a list of those

became Chase employees? Q The ones that would have been in the

particular division to be able to testify that -- or teach you or inform you that that was WAMU's business practice as stated in Paragraph 12 of the amended complaint. A That sounds like a question you will probably

have to address with my counsel. Q A Okay. Fair enough?

Whether or not we would -- whether or not it

would be difficult to produce such a list, I think, is irrelevant. Whether we would produce such a list is

really, probably the question. Q Thank you. Paragraph 13, Mr. Nardi, the copy of WAMU -it says, Thus, WAMU would have and keep a copy of the

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A A A executed loan and mortgage for the loan closing for it records. And that would not be endorsed? Correct. The fresh blue ink signature is

clearly not going to have an endorsement on it, but we're going to keep a copy of that in perpetuity. Q Now, if there was evidence that, in fact,

copies were endorsed, how would -- you know, would you have an opinion on that? MS. CREWS: Object to form.

I don't -- I didn't -- I don't really

understand the question. Q (By Ms. Mack) Would you have an opinion or

would you have a disagreement with the statement if I told you that there has been testimony in this case that, in fact, Washington Mutual did endorse copies? A Q Endorse copies of? Of promissory notes. MS. CREWS: Object to form.

So not the original, but endorsed a copy of a I would be -- I would be surprised. I

promissory note?

don't see what the -- what would the purpose be, number one? Because unless the original -- unless the original

is endorsed, it doesn't really matter that a copy is endorsed, because the original is the bare paper. So a

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copy of a note with an endorsement is -- is worthless just as a copy of a note without an endorsement is worthless. It's a copy of a note. So I don't see why anyone would go wasting their time endorsing a copy of a note. I guess

that's the -- my opinion is I don't know why anyone would waste their time doing it. purpose. Q (By Ms. Mack) Okay. Sorry. It's getting It doesn't serve any

late, but I don't want to have to ask you to come back. So just bear with me. A Q Might as well stay to until 7:00, then. We're having such a good time. MS. MACK: Off the record.

(Discussion off the record.) Q (By Ms. Mack) Okay. I believe you already

testified that you have not seen the original note in this case. A Q notary. A Q A No. Okay. Let's see here. Question on the

Do you know Ms. Leslie Ann Henley? Yes, I do, actually. Does she work with you? Not anymore. We actually worked together for

a little over a year, and that was both when it was WAMU

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me. ago. A and after it became Chase, so -Q A Q Do you know if --- it was during that time. I'm sorry. Do you know if she was fired? As far as I know, she still works there. I

just saw her the other day. Q A Oh, I'm sorry. No, no. I misunderstand you. I mean, as far

She's still there.

as -- I saw her the other day -Q A Okay. -- and she executed this for me not too long And I think I was in the office within the last 30

days or so, so I'm pretty sure she's still there. Q A Q Do you know a lady named Rose Hunter? No, the name is not familiar. Did you review Ms. Hunter's affidavit of

indebtedness executed in this case? A I don't think I did. It doesn't jump out at

I reviewed quite a few documents, though, so -Q Okay. Do you know a lady named Florina Nunez?

She's a notary. A at me. Q And were you working at -- and I think you I don't. Not the -- the name doesn't jump out

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already testified to this. But in 2009, in December of

2009, were you actually working out of the Jacksonville Chase location or was it someplace else? Like, I think

you said you work out of your house now or -A Q A I do work --- on the road? -- out of my house now. December 2009? December of 2009, I think I

was still working at a Chase location, like an actual business site. Q A Q Okay. No. So if you were going in the office back in So it wouldn't have been in Ohio or --

2009 in December, it would have been the Jacksonville office? A Right, the Jacksonville office. And for

clarification sake, Ohio is where my line of business is out of, so my -- the manager that I report to channels through Ohio and into Chicago. So I don't have any

onsite -- well, my line of business is not onsite in Jacksonville. We happen to have, you know, a campus

there and a lot of employees there, so -- and so it just so happens that I was able to keep my -- I guess get a job in Chase and not have to work where my boss works, is basically what amounts to, which is nice. And it's

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A Q A not a job that I have to be onsite all the time because I do quite a bit of business travel as well. Q Okay. Thank you.

Do you know someone named Kendall Foster? I do. Who is that? Kendall Foster is -- well, her title would be She works for -- she works in

like litigation analyst.

the same -- actually the same line of business that I do and actually reports under the same infrastructure. quite exactly the same, but -- but she works for a different manager, but we all report up to the sometime senior management team. Q A That's in Ohio? The senior management team? Things at Chase move very It could be Not

Chicago right now.

quickly, and right now it's Chicago. different next week.

She actually works for -- and our

line of business kind of bridges a gap between Chase legal, the in-house attorneys, and our -- and our mortgage business. So we -- we bridge that gap between

people who are experts in mortgages and people who are experts in legal. So Kendall is one of those folks who has the rare ability to understand everything that goes on in loan servicing and at the same time have an

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understanding of the legal impact of a case, analyze that case for displacement so we can say we want to settle this one, there was a problem here, we made a mistake or we didn't make a mistake and need to defend this. You know, whatever the case is, she can come up

with -- she can drill down on the analysis and work with counsel on coming up with some resolution whether or not we need to, you know, mediate, coming up with the facts of the case, providing documents to outside counsel for representation. So kind of works with Chase in inside So a lot of what I do, but she She is pretty much

and outside legal.

doesn't -- she doesn't travel. stationary. Q A She sits still.

And I think you said she's in Chicago? She -- Kendall Foster? She's -- I can tell She's not in

you she is in one of three places. Chicago. Q A Okay.

I think she's either in California because,

really, this team is really in three places: California, Ohio or Texas. And that's really the three

offices that we maintain with these litigation support teams. Q Is this just litigation support dealing with

old WAMU loans or is it litigation support in general?

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A A It's litigation support for all of the So everything. It

mortgage banking lines of business.

doesn't really have anything to do with loans or it's just the mortgage banking, and it's not default stuff. You know, there's a lot of unrelated to default. Sometimes we get sued for something or we have to go after people that are defrauding us or we get dragged into civil litigation or criminal litigation, so there is a support group that handles that. Q Okay. I gotcha.

Now, have you -- do you know what an external website escalated issue is? A Q No. Okay. Do you know -- is there an external

website that is a program that you would use? MS. CREWS: No. Object to form. There's

And it's -- external website?

no -- I've never heard the term before, so it sounds like someone is trying to bring someone's attention to a specific issue like -- maybe someone came across a website that contains information that is a possible -puts the business either at risk or what can be interpreted negatively, and we want to bring that to the attention of someone who needs to review it and take it into consideration, which in this day and age,

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everything is online. So it's possible someone is just

escalating an online issue that they are recognizing. Q group? A They are pretty much like the high-end (By Ms. Mack) What's the executive resolution

customer service division that handles really highly escalated complaints, trying to resolve those before hopefully prelitigation and before they get to the point where they start spending a lot of money on lawyers. So

if the borrower hasn't really retained counsel but they have an issue that we think is substantive, we can escalate it to these certain levels of customer service, that being one of them, where their issue would likely get priority attention. Q Okay. The executive resolution group, is that

located in a particular place or is it -A I'm trying to think. I don't have a lot of It would probably be very

interaction with those folks.

unlikely they would all be located in one area just because of continuity of business plans, we'd probably need them to be in at least two locations because of weather or disaster, or whatever. But I don't know

where they are located at, and I don't really have a lot of interaction with them. Q Okay. Do you know someone called Webb, b --

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as in Webb spelled W-e-b-b? A Q No. Okay. If a qualified written request was sent

to Chase and it was assigned for review, what department would actually perform the review? A so post -Q A Yes. This would be in March of 2010. Okay. Very well. And you're talking about Chase specifically,

March of 2010.

I think that same group that you referred to just a moment ago would eventually take possession and ownership of the -- of that. cases, though. That may be not in all

In the case where the loan was already

in some type of litigation, it may not go to that group. It may go to one of the legal analysts and then work with counsel on determining the appropriate response to the QWR. But let's say, you know, aside from loans that are in litigation or loans that are just current and there is some QWR brought in, I think generally it goes to that group. Q Okay. With regard to a Code XB, do you -- are

you familiar with Code XB? A I'm not. MS. CREWS: I have no context, though, so -Is that something we produced? I

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A Q A Q don't know if that would be helpful or -MS. MACK: Yeah, it is. And I just want to go

through it first, and then I will ask specific questions about the stuff that you haven't been able to answer. Q (By Ms. Mack) When you have a -- well, I'll

ask you that when I give you this document. Do you know somebody named Jodi Goff? No, I don't. How about a Robin Steward? No. Okay. Is there any reason why on February 14,

2012 there would have been a request for a rush payoff for Mr. Waisome's note? A There's probably a number of reasons. But

just as an example, if the loan was going into some type of -- or if the parties were going to mediate, we would want to provide current details of what is total due and owing. If there was request for production that

included a request for that specific document, then clearly, there would -- and there was a deadline approaching, they might put a rush request for a payoff. Q But that date -- is that standing out in your I mean, it was

head for any reason, February 14th? Valentine's Day, but besides that?

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A verbatim. A Q questions. A Q Are we marking this? Yes. MS. MACK: We're going to mark that one as 21. February 14th? Not particularly, no.

And I'm going to ask you some specific

(Defendant's Exhibit 21 was marked.) Q (By Ms. Mack) Just let me know when you are

done reviewing that, Mr. Nardi. A Q I'm ready. Okay. If you would look at the date of

January 19, 2011, the first entry has an indication of a legal issue with loan, and it has a date of 3/3/2020. What does it mean? It looks -- well, I'm just reading this Please also add credit block with expiration

date of 3/3/2020 due to legal issue. Q A What does -- what does the credit block mean? Under certain conditions if it's deemed

necessary, the bank will suppress credit reporting so that basically we don't expose ourselves to any additional -- whether they are realized -- by any additional risks in litigation. Because a lot of times

what will happen in the course of litigation and potential settlement is that invariably, we get to a

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settlement discussion in which the borrower asks for his credit to be fixed. Well, if we have reported it, we can't go back and remove it. processes. It's part of the credit reporting

We can't just say, Oh, that never happened.

You know, the credit reporting bureaus don't see that as a good practice. But if we suppressed it and never

reported it to begin with, then we can say, Okay, well we suppressed it from this date forward, so we basically fixed it from a certain date. retroactively fix things. So they started doing that for that reason because I think a lot of that came from feedback from the -- you know, a lot of the mediations that I've attended, which comes up as a request, Can you fix my credit? Well, in a lot of cases, we -- and even up to But we can't go back and

the day we get to mediation, we have been reporting, you know, what is perceived to be negative credit reporting. So they started a process where if they see anything, they can say, You know, we can stop this credit reporting and maybe save ourselves some heartache in the future. Q Okay. So let me ask you. With regard to --

and thank you for that explanation. With regard to the March -- I'm sorry -- the

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January 2011 placement of a credit block, do you know if that credit block is still in place? A I don't. Well, I don't know if it's in place. So unless someone has

It's put in place up until 2020.

gone back and manually removed it, it will sit there until 2020. Q So if Mr. Waisome pulled his credit report --

and I know you can't speak for the credit card companies. I just kind of want to understand what your Okay?

understanding of the credit block is.

If Mr. Waisome was going to go pull his credit report, would the trade line for this particular loan -do you know what I mean when I say trade line? A Q Yes. Would it show any delinquency for the period

before the credit block? A From what I understand of these credit blocks

is they can't go back and remove anything that has already been reported. So it would show from initiation

of the loan through the date they were able to get this credit block in place. So basically there should be no But everything that

reporting post this credit block.

was reported prior to that would still be there. The only way, in my understanding, to achieve what you have contemplated is to actually remove the

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trade line altogether, which -- and this kind of rolls into why they started implementing these practices, is that that has its own problems because then you -regardless of good or bad standing, you remove a complete credit line, which could be a major part of your credit reporting, whether it's good or bad. don't ever think in terms of good or bad credit reporting. is. It's factual. It's either -- it is what it And I

It's in the eyes of the beholder to interpret the

data as they see fit. That being said, the only way to get removal history is to remove the trade line, which has its own drawbacks. Q It doesn't always work, as we found out. Thank you. With regard to the other cases that you've worked on, do you have a list of all of the cases where you have testified either in trial or given a deposition or an affidavit? A Q No. Okay. Do you ever testify in federal court on

behalf of Chase? A Q I have. Okay. And has anybody asked you for a list of

your testimony pursuant to the rules of procedure in federal court?

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long. A Q A A In federal court? I don't think anyone has

asked for testimony in federal court -Q A Okay. -- before. It may have happened, but it's not something that I had to go out and find. care of that. Chase legal would take

They would determine which cases were,

you know -- were part of that group and then testimony, but I don't -- I don't recall having been asked for it before. Q Okay. Do you know as we are sitting here

today what cases you have given testimony in -- on Chase's behalf? related to WAMU. MS. CREWS: testimony? MS. MACK: Court or deposition testimony. Object to form. I mean, court And I don't need the ones that are not

Do I know what cases I have? (By Ms. Mack) Yes.

The length -- the list would be very, very I mean, I've testified a number of times. I

mean, as an example, this is, you know, probably getting into triple digits on my depositions, and I've testified in Miami Dade County probably in the thousands. the bench trials there are, you know, 20 a day. Because And

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then -- and then outside, I've testified in probably half the country over the course of three years. Q A Okay. So I -- there's -- I don't have a list, and

I've never -- I'm not going to -- there's no reason for me to maintain a list, and I couldn't produce to you a list. It's -- it's -- I've testified quite a bit for

the bank. Q A country. Q Do you keep copies of depositions that are Okay. And so, like I said, in probably half the

transcribed that you have given? A Not all of them. I probably -- right now I There has to be a specific If my counsel says, Here,

probably don't have any. reason for me to keep it.

keep a copy of this or sends me one back and says, Read it and verify, then I will keep it. There's no reason for me to do that. But generally not. If there is ever a

question or clarification needed, they can come back to me and do it again or clarify the record or whatever it takes. Q Okay. Have you ever testified in Connecticut,

either at a hearing or at a deposition? A I'm pretty sure I have. I know I've done

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A mediations there. I would have to say with probably 95

percent confidence that I've done some testimony in Connecticut. I couldn't -- there's a little bit of I've been there

doubt in my mind, but not very much.

enough times that they couldn't possibly have all been mediations. Q Do you recall this year testifying in the

state of Connecticut, in Bridgeport specifically? A this year. Q A Okay. How about last year? I don't think No. I don't think I've been to Connecticut

Last year I was in Connecticut.

I was in Bridgeport, though. Q A Q Okay. -- no.

But not this year --

In Connecticut, were the cases that you

were -- or was the case -- the court cases you testified in regarding Washington Mutual loans? MS. CREWS: Object to form. I would say the

I don't really recall.

chances are probably 50/50 because there's about -- you know, half of the loans that we have now are WAMU heritage loans. yes. Q (By Ms. Mack) Okay. Are there other folks So there's a good chance they were,

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for WAMU. A required. like you that go around and testify for JPMorgan Chase for purposes of specifically Washington Mutual loans? mean, I know you do more than just Washington Mutual, from what you've told us. But are you the only one that I

does what you do or do you have a team of other individuals that are witnesses for the bank that travel around the country testifying for the bank? MS. CREWS: Object to form.

It depends on the type of witness that is Like, you know, in some cases, there -- in

some cases, we are not there to testify, but we have to make an appearance. So mediations and so forth. So It's

there are certain folks who will do mediations. not by loan type.

So, like, as -- there's nobody who is I will just first of all

just going to do WAMU loans. answer that question. to do WAMU loans.

There is no one who is just going

Anyone who is deemed to be a

qualified corporate representative is going to have to have the requisite knowledge to be able to testify from all of our business records and heritage organization. So I can testify on cases for EMC, for Chase, So all of those things I have to be able to And then so -- there isn't really And some

be familiar with.

anyone else who is going to be doing this.

people go through a long period of time and don't have

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to. We will manage these cases and don't have to appear

in testimony because, you know, some cases are easier -are easier to settle than others, and some cases are in different stages of litigation. So they may only see it

during a certain stage where there is no testimony needed, and it may be passed on to another person. So there's not really a -- there is not really a formula that you put in Loan A with Lender B or anything, and then it spits out, like, this is the person who you send. It's really, you know, who is

going to be available, who has the requisite knowledge that you need generally. But, you know, there is people

with a lot more WAMU knowledge than I do -- clearly, people with the bank longer than I was there -- but may not have the Chase -- understanding of certain operations at Chase. So although they try to accommodate counsel -because counsel knows, you know, kind of what they are looking for, it's not always available. And, really,

not everyone wants to work in a job where they're having to get up and go someplace and sit eight hours and listen to questions. Q A So -Oh, come on.

(By Ms. Mack)

There's not really a -- there's not really a It's just, you

fixed structure like that, you know.

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know, the best person to send to answer all of the questions. deposition. A lot of it has to do with the scope of the Sometimes we just can't produce one person

who can cover all the topics, so we say, Look, we're going to have to send two people. You know, give us

some dates, and we will get them out of the office and to your office. Q Now, do you recall -- do you recall executing

interrogatories a long time ago in this case? A Not a long -- I wouldn't say -- and I consider

a long time probably -Q A Two years? -- greater then six months. I would say in my

time, things move so quickly for me, a long time ago for me is six months. I have been executing documents for the bank in combined, let's say, WAMU and Chase for probably more than three years. So there is a possibility, although

remote, that this case -- and I did have Florida as my -- one of my -- my case states. So that was -- so,

you know, it's possible this loan, given the time it was originated and the time it went into default, that I may have been assigned the case. But it would be purely

coincidence that I am here today, because I don't recall.

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it -you. Q actually. MS. MACK: Can we make a copy of that, please? (By Ms. Mack) This can probably clear it up, a time. I had hundreds of cases that I was handling at And as soon as I was relieved of those duties, And I never really -- I've had

I was like, thank you.

cases that have come full circle and I've seen again, but it's pretty rare. I mean, considering the number of

cases that we have in Florida alone. MS. CREWS: And you referenced that before

maybe at a hearing or something, and I have never seen any interrogatories in this case signed by him. A I signed a lot of interrogatories in Florida. That's part of my job duties. I may have missed it, but I have

I can tell you.

MS. CREWS: never seen them. MS. MACK:

We'll come back to that.

Thank

(A recess was taken.) Q (By Ms. Mack) MS. MACK: at that. A Q Mr. Nardi, this is a copy of -Take a look

And I'm sorry, Rachel.

That's my other copy, though.

All right. (By Ms. Mack) Yeah, your signature is not on

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that. Q A Q Correct. -- I can see. MS. CREWS: THE WITNESS: MS. CREWS: MS. MACK: Where is his name? Right here. You gave me something different. I'm sorry. I didn't mean to do

Here it is. (By Ms. Mack) Mr. Nardi, I realize you have

not signed Exhibit 22. (Defendant's Exhibit 22 was marked.) A Uh-huh. Actually, I don't even think this

was -- yeah, it was intended for someone to sign, but I don't know what the questions were. Q A produce. Okay. It's probably like who do you intend to Or actually, it may have been who signed this

or who is attesting to it. Q Do you know a gentleman named Michael

Williams, senior lead operations specialist? A I think I -- I think I do. I don't know him.

I know of him.

I think Michael Williams was somebody When I

who joined the -- the team that I was leaving.

was getting away from my case load duties and leaving that team, I think he was hired on right before. I

think he -- I think he just recently left again, but I

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A Q didn't -- I only know of him because he was coming in as I was going, and I think he worked there probably the last two years. And I think he just left again. I came

into contact with some of the people on that whole team, and I'm thinking this is the same guy. Where does his name come up? Oh, I see he's on the other side of the

interrogatories, but -A Q A Q Oh, okay. -- I'm not going to ask you -Yeah, he --- about him. THE REPORTER: THE WITNESS: You're talking over each other. I'm sorry.

It would make sense his name would come up on

documentation because as far as I know, he took over my case load for the most part. I think he might have not

gotten some of my other states, but I think he got a great deal of Florida. Q (By Ms. Mack) Okay. All right. Some other

questions, Mr. Nardi.

I'm not going to ask you about

all of these screens because I think once we get the codes, we will be able to figure them out. And you've

already testified that you don't know what the codes are off the top of your head, so --

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A I hate to remind you, but you handed me this

and didn't ask me any questions on it. Q Oh, I asked you -- well, yeah, because you

didn't sign it. A Q A Q No. Well, okay. Okay. Thank you very much. I will ask you one question. think you answered it off the record. Do -- and I But at the time Let me ask --

that the interrogatories were prepared, which I think would kind of be reflected by maybe Mr. Alvarez's state, maybe around July -A Q A Q June. June of 2010? Uh-huh. Would you have been in a position that is Operation -- no, it

indicated on the first page?

doesn't indicate your position on the first page. Sorry. A No. Well, it -- I would have been, clearly, It doesn't say what I was doing other I -- looking at this, it looks like

with the bank.

than with the bank.

the question probably would have been who does Chase intend to produce at trial or whatever. And I likely

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probably would have been, given my experience -- well, at least my past experience with the Florida cases in particular and working heavily in Florida, I probably would have been named as someone who would have been produced at trial or maybe at a deposition or something like that. But without seeing the questions, it's kind

of hard to know what the answers would be. Q Yeah. And if your signature was on it, I

would have gotten the questions out for you, but -okay. Now, moving on to the next set of questions, I'm going to be asking you about the 3270 Explorer screen again. These are also documents that were

produced by counsel, and we're going to -- I'm just going to be asking you some general questions, not about every single screen. MS. CREWS: MS. MACK: Are me marking this one? Yeah. We'll make that one 23.

(Defendant's Exhibit 23 was marked.) A Q Go ahead anytime you're ready. (By Ms. Mack) Okay. Now, this screen shot Do you call it 3270

is -- what do you call it at Chase? Explorer? A

We call it -- well, this is just a screen shot So this screen

from MSP, so this is a MSP screen shot.

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in particular is actually kind of a subscreen. DLQ stands for delinquency. right there. Like,

I think it's spelled out

So these would be screens that would be

populated for loans that are in some type delinquency. So you have DLQ1, DLQ2, DLQ3, on and on. it would contain various information. Q numbering? Okay. So DLQ7, is that sequential-like And

Or does it mean it's been bumped up to a Do you --

different level of delinquency? A No, not really.

Honestly, I only ever use,

like, DLQ1 -Q A Okay. -- because it shows me, like, the current

delinquency status and what it would take to get the loan out of delinquency. Most of the time it's not But if

useful once the loan runs into foreclosure.

you're doing early stage litigation and hopefully settlement, DLQ1 could be useful. I don't use DLQ7 very much. But now that I

have seen it -- I really have never put in DLQ7 -- but it looks like it's listing out transactions related to the delinquency or milestones or some type of events related to the delinquency process. Q again. Okay. So my question is about the headings

If you could just go to about -- do you see

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A Q A Q is? A mortgage. Well, it's a conventional residential An ARM is adjustable rate mortgage. The X99. A Q A Q Right. Any idea what that is? No. Okay. Do you know what a 13-A CONV RES ARM where it says delinquency underneath that first line -A Q Yes. -- in the middle? If you go below that, there is another INV

13-A, I'm not 100 percent sure.

I think that also But it's

refers to just the type of mortgage it is.

conventional residential mortgage as opposed to commercial or other type of nonconventional mortgage. It also indicates that it's an ARM. Q Okay. If you go down to under the comments, There's some fields. You've got

there -- well, okay. A.

Do you know what A stands for? On the far left-hand side? Yeah, on the far left-hand side. I don't. Okay. Dates, that's pretty self-explanatory

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yes. Q A Okay. We keep track of delinquency based upon the and time. There are scores down here. those stand for? A Q A Scores? Under time. Oh, oh, oh. Specifically, no. Generally, Do you know what

amount of days delinquent and then kind of the risk associated with that. At this point in time, this is -Clearly, the days delinquent

this is generated in 2012.

would have -- would have been over, I think, over 1,000 at this point because we're going from 2009 or something. So it basically is a track of the risk associated with the delinquency. We have -- like, for

instance, if it was 30 days late, there is a certain, you know, risk associated with a 30 days late. There's

other risks -- there's other risk factors involved with that, like the type of loan it is, where the loan was, where the property is. All the things that kind of

rate -- all the things that you would risk -- you would rate risk on in the origination are all the same things kind of you would rate your risk level on in default or

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A in imminent default. Because this is kind of geared Because they don't really --

towards imminent default.

you know, a borrower may not default until they hit like, you know, 60 or 90 days after they missed that first payment. So the loan doesn't necessarily

accelerate until some point after that. But they are keeping track of -- how do I say this -- really kind of repeat offenders or pattern of delinquency. So we can always go back and see that,

yeah, they ran 60 days past due, you know, eight times in the last four years. check that. practices. Q Okay. And on top of those numbers that are So they would have a way to

So just kind of good recordkeeping

next to the score, there is a field that says USR. Do you know what that stands for? Yeah. That's what I was referring to earlier So that actually indicates

as the individual user IDs.

a person who was behind putting in that information. Q A Okay. And as a point of clarification, sometimes you Sometimes it's computer So these ones

see like a star, star, star.

generated, like automatically put in.

that you see, like the score 107 on those dates, that's put in there by the system. So there's a -- there's a

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A Okay. A program that runs that generates the information and plugs it in. Q A Okay. Individual -- like probably the one up at the

top where you see L@J, that's probably actually an individual human user, and they are putting in a note that says, you know, (inaudible). THE REPORTER: I'm sorry? Saying what?

Letter received from attorney received to

cease communication. Q (By Ms. Mack) Cease communication. Gotcha.

Thank you for explaining that page.

I'm not

going to ask you about every single one of them. All right. We're going to do these one by one

because they have different headings, but the first one -- we'll call it 24. (Defendant's Exhibit 24 was marked.) Q Notes. A Q A Q It's entitled Escrow Analysis Processing And you are familiar with that screen shot? Yes. And that is also from LPS-MSP? MSP, yes. Okay. MSP.

And what does that screen show you? This is just a -- when you go through -- I'll

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A Q Q kind of set some groundwork here. Depending on what

department you're working on when you put notes into MSP, it's going to code those notes according to where you were. So if I'm in customer service or collections And

or loss mitigation, it's going to put in notes.

then when I go back through and I want to see notes from a certain area, I can put in, like, HAZN, which is going to be the hazard insurance notes. hazard insurance. mitigation notes. So it holds true for when you go into ANAN, which is analysis notes. This is just the notes that So anyone who has

And then LMPN, which is a loss

someone from escrow analysis was doing. Q A Q Okay. Or at some level of escrow analysis was doing. Escrow analysis. ANAN. Thank you.

And the next one we are going to talk about is going to be 25. (Defendant's Exhibit 25 was marked.) Q Okay. Mr. Nardi, the Exhibit 26 -25. 25. I'm sorry.

MS. CREWS:

(By Ms. Mack)

Bankruptcy notes -Yes. -- from MSP? Is that what that is?

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A Q A Q A Correct. And the loan was not set up in bankruptcy? Correct. Is that because there wasn't a bankruptcy? Basically, no bankruptcy was ever -- well, I

can't say ever filed, but I can say that no bankruptcy that impacted us was filed, so they wouldn't have opened workstations to memorialize it. Q X99/013. A Q Correct. And in the context of this screen shot, does Does it mean anything to you, Again, this particular screen shot has that in

it mean anything else? that X99/013? A Q No. Okay.

(Defendant's Exhibit 26 was marked.) Q A Q A Q in REO. A Q Exhibit 26 is another screen shot, correct? Yes. And it's from the REO process notes screen? Correct. All right. And it looks like the loan is not

Is that what that indication -That's correct. -- at the bottom is?

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A A Q X99/013. A Q That's correct. So, again, you have another indication of And does it mean anything to you? No. Okay. Okay. Thank you. I'm just writing down these screen Okay.

names we've gone over.

(Defendant's Exhibit 27 was marked.) Q 27 is going to be your LMT process notes. And

I think this is -- they are all Page 1 of 1. Who inputs the LMT process notes? Really, anyone who may be coming in contact

with the borrower on the customer service level or the loss mitigation level, anyone who may have been reviewing the file for any given reason. system can put in notes. The computer

So really, any -- you know,

anyone can really put in notes specifically into the LMTN or any -- even if I am not working in loss mitigation, I can designate a note to go into loss mitigation notes. By default, my notes would go into,

like, foreclosure collections, but I can designate it to go somewhere else. So really, anyone in the business can put in notes into the system. Notes are pretty -- are pretty

much like -- how do I say it -- the lowest level of

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A access. Q Anyone can pretty much notate a loan. Okay. With regard to the entries on the

process notes, the first entry that I am curious about is this LMIT exceptions monitoring team review loan. What does that involve? Well, throughout the process of servicing in

general, they are looking for things that are out of the ordinary, what we call exceptions. So we have loans

that we'll enter into, in this case, loss mitigation at some point. The loss mitigation workstation is opened.

The borrower has -- you know, should have at that point provided a loan -- a loss mitigation package or application. And the process goes along until at some point, the borrower either enters into a loan mod. The

loan mod is consummated and completed, or it falls out for whatever reason. Generally the person who is

handling the loss mitigation at that point should close it out automatically. What I think this may have been is that someone didn't close it out automatically -- or I shouldn't say automatically. Someone did not close it

at that point where the borrower either never responded, or whatever the case may have been, on any given loan. And so it's called an exceptions report, saying, Hey,

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Q A this loan is an open loss mit workstation, but there is no activity for X amount of days. So someone goes and

looks at it and says, There is no activity on this loan, and we are going to close out the workstation. aged. Q Okay. Is that the only reason that that Or does it have anything It's

exception would be in there?

to do with the decision as to whether to perform loss mitigation services, whatever they are? it's cash for keys or -MS. CREWS: Objection. Form. Like, whether

(By Ms. Mack)

-- deed in lieu?

Well, those aren't really loss mitigation

processes, cash for keys -- well, deed in lieu would be. Q A Okay. Cash for keys, not really. The -- and I'll kind of lay foundation. The

loss mitigation process is a partnership between the borrower and their lender. It's not a single track. We

can't do a buy or sell, so what we can do is solicit. And when we solicit, which happens quite frequently in delinquency, usually you are going to get, you know, solicitation, you know, probably once a week or more saying, Hey, you know, this is your home, your delinquency. Maybe we can fix it. Give us a call.

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But during that time, loss mitigation workstation is not open because you have not made the affirmative efforts to respond. in your package, or whatever. Or if you haven't put If you haven't responded,

the loss mitigation workstation really doesn't open. Nothing happens there. It's not until any given

borrower puts in affirmative some effort, putting in their loan loss mit package, whatever it is, give us a call even. Sometimes they will open it based on

telephone conversations, depending on how much information you can provide over the phone. open the workstation and start the process. So I think the answer to the question is: Is They may

this the only time they would close it in this manner? Generally, if they are having to go through and close it afterwards where the loan -- clearly, it states this one has aged. it's stale. So if it's aged, that usually indicates that There is no result to the loss mitigation.

They're going to close it because otherwise, someone is -- it's producing work that is unnecessary. want to eliminate as much as possible. Q Can you tell if Mr. Waisome had requested loss And I think I have some more -- here's It's another page to the They

mitigation?

another -- this may help you. LMTN?

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A Q Do we want to mark it? Oh, I'm sorry. MS. MACK: Yes.

We'll make it 28.

(Defendant's Exhibit 28 was marked.) Q (By Ms. Mack) Does 28 help answer the

question about whether Mr. Waisome -- Mr. and Mrs. Waisome requested this loss mit? A Well, I don't need clarification. I know that

Mr. and Mrs. Waisome at some point put in a package from my loan document review. took place. So, I mean, I know that it

I mean, this clearly shows there was

document exchanges, so -- but I didn't need this to tell me that. Q A I knew it -Do you know -They were offered a (inaudible). THE REPORTER: you said. A They were offered a trial mod, so I knew that I didn't hear the last thing

there was some loss mitigation activity going on. Q (By Ms. Mack) Okay. With regard to that Sorry. 28?

particular Exhibit 28 -- 29. A Q 28.

It appears from Exhibit 28 that there were

some issues with receiving documents or verifying documents. Where did it go? Hardship perfected.

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Do you see something on Exhibit 29 that talks about -- 28 that talks about hardship being perfected? A Q A Yes. What exactly does that mean? Basically it means the document came in and

met the minimum standards for moving the loan forward and not keeping -- well, for that particular document, because there is a number of documents that went into that package. So that the -- in the hope that we get

the full package all perfected, and everything is up-to-date, fully signed, executed, and it contains all the information -- because we are not going to waste the underwriter or reviewer's time with an incomplete package. We have too many of these things and too many

people who actually want to get the benefit of the process to deal with the people who are sandbagging or holding back a document or two or sending a stale document. So the perfecting process is to make sure that we are not wasting the time of the people who are really digging down into these things and making decisions on modifications. comes into play. So that's how the perfection process At that stage, they are not making a

determination on whether they are eligible or any of that. They are simply gathering documents and

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A perfecting them much like a loan processor from the origination standpoint would do. In fact, I often tell people, Think of a modification as if you were applying for a new loan. That is the level of document review that you're going to have to go through in order to get your loan modified. comes in. Q Now, you had an opportunity to -- this is And that is where the perfection process

going to be Exhibit 9. MS. CREWS: 29.

(Defendant's Exhibits 29 and 30 were marked.) Q (By Ms. Mack) If you could just look at the

middle entry in the notes there, it appears to me to indicate that Mr. Waisome had submitted his loan modification package and -- I guess a trial plan was issued, if that is the right word. A Q Okay. And the payment or the income information that

the bank used to determine the modification was incorrect. Do you see that in there? I -- I will just read it. It says, Received

call from client stating that we sent him mod doc in May for his property approving a SPF. Client said we used

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A Q the wrong income information, so the payment amount was wrong and that he did send the docs back. I advised

him -- I advised if he feels we used the wrong info, he can resubmit a new mod. Client said wants appointment

set date as of 7/31/09 at 11:00 to bring in mod docs. So it looks like -- I mean, my interpretation, because I wasn't there, is that Mr. Waisome called in, advising that the wrong information was used in the original calculation for a modification and that he wanted to send in new docs. Q What if the borrower, Mr. Waisome, had

previously sent the income documents or the loan modification package and the income was indicated as being incorrect at that time, so this would actually be the second time that Chase had offered a loan modification without having the proper income? MS. CREWS: Object to form. Would that also be a sign of

(By Ms. Mack)

his unwillingness to save his house through a loan modification? MS. CREWS: Object to form.

I think -- in a vacuum, I don't think there's

enough information there to make a determination as to whether or not any given borrower is being uncooperative or unserious about their -- their saving their home. In

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my experience, which is not insignificant, I would say that the vast majority of people who want a loan modification and are serious about saving their home send in the correct -- send in the correct information the first time. And if there is a problem, it's There's -- there's no changing of If that makes sense.

resolved immediately. information later on.

In other words, it's a pretty simple piece of information, what is your income. question. It's not a complex

And if you can't answer it honestly and

upfront the first time -- and so, again, my experience tells me that a lot of folks who don't -- and this -and there is another angle in that they get their -they're told on the phone in a lot of cases, Based upon your income, generally, your payment is going to be this. And then they get their loan modification

documents, and they are not happy with that, so they want another shot at the apple. They want to change

their income documentation and try to get a lower payment based upon revised income documentation. Well, it doesn't really play well when we get two different sets of loan information or income information in the same 60-day period. And then in

addition to that, basically, you know, calls from the borrower saying, It's not good enough. I want a better

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A here. Q here? A I don't know if all those things happened I'm just saying -Okay. So you're just talking in general. payment. Q (By Ms. Mack) Okay. But did that happen

You're not -A Q A question. Q Yeah. No, I'm asking you -- I mean, like, you Well --- talking about Mr. Waisome. Correct. Well, you asked me a general

know, if you have an indication that the borrower is not going to accept the trial modification because twice he has called and said you are using the wrong income information, what is the process for verifying the income information to make sure that this doesn't happen again? A The borrower is -MS. CREWS: Object to form.

The borrower -- it's up to the borrower to We don't make it up out of whole cloth. If it's incorrect, it's

send in income.

They supply the information.

incorrect because they provided it incorrectly. Q (By Ms. Mack) So you've never seen an

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instance where perhaps it was entered into the computer incorrectly? A In that -- I think that's a different -- I

think that's a different instance where you're saying the information provided is incorrect versus it was interpreted incorrectly, because there are -- there's limitations to income that can be applied. And you

probably -- I mean, I think most people would have an understanding that you can say that you made this income and you can provide documentation saying you made this income, but it doesn't necessarily mean that all that income can be applied towards any particular loan modification program. So there's definitely some

nuances that in a vacuum, you're not going to get. But if you look at the loan level stuff, you go through the loan and you determine what could actually be used as income and what the borrower is provided versus, you know, if they are providing consistent information or if they're, again, getting an answer they didn't want to hear and then supplementing their income or saying, no, you shouldn't use that because of, you know, it's not true, but they provided the information. So there's a -- you know, I wasn't involved with the process of doing Mr. Waisome's modification

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review, but my -- my review of the records indicate that at some point, he wasn't happy with what was being offered. I'm not sure what his -- if that's related in

any way to the income problems that were going on as far as stating his income, because -- and this is one -there is no way for us to go back and do an income verification on Mr. Waisome. His information and what

he provides to us can only be compared with other information he provides. He will provide his bank

statements and provide his asset information that may be required under any given modification attempt. We do our best to verify that within the scope of the information that is provided. But if he is

providing information or if any borrower is providing information and then later on is saying, No, that's not right, or you shouldn't use this information the way you are using it, I think that's different from us making an error in calculation. So there's a difference, and I

don't know that -- I don't know in which case this falls under, whether there was an error in calculation or whether Mr. Waisome was saying, I make $100,000 a year, and you are putting in, you know, 50, to which I suspect there is some explanation as to why we could only use 50. But, again, in a vacuum, I can't tell you from

this --

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Q Q A Okay. -- whether or not there was a problem with

Mr. Waisome's income information. Q What would you look at? If you wanted to get

that background, what would you -- would you go beyond the LMTN progress notes? A going on? Q Right. One of the issues raised in this case If I wanted to find out more about what was

is whether or not Chase performed its duties under the service participation agreement with the government. And that would involve offering a loan modification to all loans that it services. Obviously, that would be

something they would have to do with good faith, just like any other contract that they were going to enter into. So the question would be if I wanted to know what was -- you know, what was it about Mr. Waisome's income that he was reporting to you that would cause the trial modification to result in three payments of $2,015 apiece? Would there be a package of loan modification

documents that you could plug the numbers into a formula to determine that amount or -MS. CREWS: Object. Do you understand what I am

(By Ms. Mack)

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A saying? MS. CREWS: Object to form.

I think I understand it, but the -- the answer

is I don't know if there is a formula or a document that is produced to give an outcome based upon numbers plugged into it. I don't know whether -- whether that

is the case or not. I -- my understanding is that it's -- a lot of it is software driven. of a waterfall. It goes into kind of a -- kind

Like, they start at the basic, you

know, can we get the borrower back into a performing status without modifying the terms of the loan? they afford to reinstate over time? level first. Can

They work on that

If that is not available, then they look So it goes through these different

at other options. select levels.

There is also -- a very important factor -- a very important piece of it is we need to gauge the seriousness of the borrower as to whether or not they are going to participate in this partnership. is the trial modification. Q A (By Ms. Mack) Okay. And that

If they are not willing to make three payments

on their loan in order to keep their home so that we can permanently modify their loan in the future, then

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basically it's kind of a -- they're -- the bank is at an impasse. We can't modify something that the borrower is

not willing to participate in. And I know for a lot of people that means making a payment larger than what your normal payment is for a period of time. But generally, that is after you So we -- the bank

have not made payments for two years.

is going to expect that the borrower is going to have some money put away because you haven't been making your payments for a couple years, and even with reduced income and given your status. If you are coming to us for a modification, part of it -- and saying, Hey, I've recovered, or at least partially, I can probably make some payments. I

just need help, and I need to get this loan back under control. So it's set up in such a way that it's going to be a test to the borrower to make sure they can -they have the ability to pay, because we don't want to set them up for another default later on. pointless. It's So

You are going to repeat the process.

part of it falls into, you know, the whole trial modification to see if they have the willingness, the ability to pay, and then we have the -- you know, the permanent modification steps.

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A Q Thank you for explaining that. I just have

one more question about the -- just another shot of the same -- it looks like a sequence of entries on that LMTN system. (Defendant's Exhibit 31 was marked.) Q I've labeled that as 31. MS. MACK: I'll be right back. Are we off the record? Yeah.

THE REPORTER: MS. MACK:

Oh, I'm sorry.

(A recess was taken.) Q (By Ms. Mack) You notice, Mr. Nardi, at the

bottom of Exhibit 31, there's indication on April 10, 2009 that there did not pass TMQ for HASP. Could you please translate that for me? I really can't. I'm not well-versed in

these -- well, I think it's probably got to be a shortened version for TMQ, standing for something else. And HASP, I am not familiar with. couldn't translate it. Q A That's okay. I don't work -- I don't work enough loss I'm sorry. Well, I really

mitigation stuff to tell you. Q Okay. Are you familiar with a collateral

valuation report? A With what it is? Yes. Sure.

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to? A Well, let me take a look at some of these Bear with me a sec. It doesn't seem to match the Well, it actually contains the that. (Defendant's Exhibit 32 was marked.) Q Okay. I'm going to point this out to you I only Q Okay. MS. MACK: Again, that's something that was

produced in discovery. A Q Do we want to mark this? (By Ms. Mack) Oh, I'm sorry. Sorry. About

because it's kind of hard to read, Mr. Nardi. have one question for you on this. Okay.

Do you see underneath the box at the It starts with 03-22 --

top there is a loan number? it's kind of faint. A Q

I'm sorry, I -- okay.

Yes.

Do you know what that loan number would refer

other documents here. No, I don't.

loan number on the loan.

loan number, if you read it, barring the first one, two, three, four, five -- six digits. And if you leave out It's just got

all the hyphens, it's the loan number. some kind of prefix on it. Q

Do you know what that prefix is, what it

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fee? A stands for? A Q I don't. Okay. Have you heard of an entity called EDE

Home Loans? A Q A Q EDE Home Loans? Correct. I have not. Okay. And would you have any knowledge as to

why Mr. Waisome was charged twice for a nonrefundable loan application fee? MS. CREWS: Object to form.

Twice for a nonrefundable loan application Within the same -- I wouldn't really -- I mean,

I -- I haven't seen anything that shows that, so I don't know that it happened. But I can give you an example of

why he may be charged twice for a loan application fee because if he applied for two different loans, he's going to have two different loan application fees. could be a possible explanation. That

But having not seen

any documentation, I don't know why he would have that. Q (By Ms. Mack) Okay. Were you able to review

any of the documents that were produced for purposes of this deposition before you came in? A I -- I could -- I could review all of them

because they are all part of our normal recordkeeping

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A none. Q A Q Okay. The answer is none. Okay. Thank you. How -- how about -- yeah. Do you have any How A Q A Q A practices. Q But did I review every single document? Okay. Okay. All right. Hold on a second. No.

What training did you have in the past

year to two years in preparing affidavits of any sort, whether it's an affidavit of indebtedness -- well, a verified complaint? MS. CREWS: Object to form.

Describe your timeframe again? (By Ms. Mack) The last year to two years.

In training on for executing documents? Well, in preparing affidavits. I don't really prepare affidavits as my --

All right.

about executing the affidavits?

training from either WAMU or JPMorgan Chase in executing affidavits? MS. CREWS: Object to form. You call

We recently did some best practices.

it training.

I call it a conference call just to go

over general guidelines for the bank regarding newly implemented best practices for executing any document,

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really. And that -- that was to cover basically like

who can -- you know, you've got to make sure that you actually can sign documents and that you have authority, number one. Secondly, like, you know, you need to make sure that you're -- only, you know, a Chase-approved notary can notarize your document, and you have to be in their presence. And basically best practices. And it

was more of like a refresher of things we already knew to be the case, but we do it every year just because -and I think it may even be part of the OCC consent orders to basically implement kind of yearly refreshers on this stuff. Q A (By Ms. Mack) Okay. Like I said, I think it was

So very informal.

a conference call, like some web -- like follow along stuff. Q What's the word I'm looking for? Handouts.

As to note ownership that is attested to in

affidavits of indebtedness -- so generally, it goes -- I think your affidavit is in here somewhere. It generally

goes plaintiff is the owner and holder or the servicer for the owner and the holder, and they have the note. Are you familiar with that type of language? I mean, I can pull your affidavit and -MS. CREWS: Object to form. And his

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A Q affidavit -- he didn't sign an affidavit of indebtedness. MS. MACK: judgment? MS. CREWS: indebtedness. MS. MACK: MS. CREWS: counterclaims. MS. MACK: Okay. Thanks, Rachel. Okay. Oh, okay. Okay. All right. That was not an affidavit of The new one in support of summary

It was summary judgment as to your

(By Ms. Mack)

Well, do you know what the --

what review of -- back up. Okay. Do you know in general as the

representative for JPMorgan Chase what employees who execute affidavits of indebtedness would review in order to execute those affidavits of indebtedness to determine who owns the note if it's not the plaintiff, or if it is the plaintiff, or if it's just the servicing relationship? MS. CREWS: Objection to form. And those processes have

I don't know.

undergone some changes recently in light of the OCC consent orders, so they -- I just don't have any idea as to even generalities anymore. I think a year ago, I

might have been able to say a little bit of what I knew

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A at the time, but now it's all changed and is completely different now. Q (By Ms. Mack) Okay. So do you know if the

new -- the changes that have been implemented that you have been talking about, are they memorialized in some training manual or other type of instructive aid? A documents. I don't, because I don't execute the There's a pretty well-defined set of folks

that do that. Q A What are they called? I think it's still called document execution

or -- I think it's still called document execution generally. I think they might officially have a

different name, but basically they are known as document execution, and they handle those matters. Q Okay. In the Waisome case, did you review a

loan to date servicing history to see if there were any servicing issues? For example, unusual suspense account

activity or fees that were not recorded and placed in, I guess, suspense or just hanging out there? MS. CREWS: Object to form.

Well, I didn't review any one document in

particular that would have told me that there was something out of the ordinary or any errors. And I

forget the terms that you used, but my review was the

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A A loan in its totality, everything from originating documents to default documents to documents related to the foreclosure process, in addition to the servicing system. So -- but nothing in that totality has led me

to believe there was any irregularities in the loan. Q (By Ms. Mack) Did you perform any type of

sampling tests of the numbers or any type of audit at all when you were reviewing the servicing records? MS. CREWS: Object to form.

No, there was really not a reason for me to.

I didn't see any indication that there was a question in the -- in terms of this litigation as to accounting errors or misapplied payments. There was no claim that So in

we received payments and didn't apply them.

general, I wouldn't go looking for that unless it was -unless it was a claim made. Q (By Ms. Mack) Okay. Fair enough.

And do you know who inputs the information into MSP systems as to Chase's ownership of the Waisome note, beginning with the receivership? MS. CREWS: Object to form.

I don't know the individual who would put that

information in. Q (By Ms. Mack) I think you previously

testified that that would be contained in some sort of

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mini. log of folks that would access the system. That was a

long time ago in the scope of this deposition. MS. MACK: Okay. Let me just check with my Just one

folks here, but I think we are done. second. (A recess was taken.) Q (By Ms. Mack) Okay.

Mr. Nardi, are you aware

of any other purchase and assumption agreement besides the one we've talked about today between the FDIC, Chase and -- sorry -- FDIC as receiver for WAMU, and Chase? Any purchase and assumption agreement that may be out there that we have not talked about today? A Not that I'm aware of. I've never heard

reference to or seen any other agreements, no. Q Okay. MS. MACK: Mr. Nardi, we are going to order

this deposition, so you have the right to read it. MS. CREWS: We'll read it. Do you need a copy? Mini and full size

THE REPORTER: MS. CREWS: and ASCII. MS. MACK:

Yes, please.

I would like full size and the ASCII, please.

I'll take it all, please.

(The deposition concluded at 6:35.) - - - - -

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______________________________ CINDY CONNER, CSR, RPR, NOTARY PUBLIC AND COURT REPORTER STATE OF FLORIDA COUNTY OF ORANGE C E R T I F I C A T E ) )

I, Cindy Conner, Certified Shorthand Reporter and Registered Professional Reporter, do hereby certify that I was authorized to and did stenographically report the deposition of LAWRENCE NARDI, Volumes 1 and 2; that a review of the transcript was requested; and that the foregoing transcript, Pages 1 through 326, is a true and complete record of my stenographic notes. I further certify that I am not a relative, employee, attorney, or counsel of any of the parties attorneys or counsel connected with the action, nor am I financially interested in the action. Dated this 21st day of May, 2012 at Orlando, Orange County, Florida.

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__________________________ CINDY CONNER, CSR, RPR NOTARY PUBLIC STATE OF FLORIDA COMMISSION # DD-0901700 STATE OF FLORIDA COUNTY OF ORANGE CERTIFICATE OF OATH ) )

I, Cindy Conner, Registered Professional Reporter, Certified Shorthand Reporter, Notary Public State of Florida, certify that LAWRENCE NARDI personally appeared before me on the 9th day of May, 2012 and was duly sworn. WITNESS my hand and official seal this 21st day of May, 2012.

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________________________________________________________ DATE LAWRENCE NARDI cc: Jacqulyn Mack, Esquire PAGE ERRATA PAGE DO NOT WRITE ON TRANSCRIPT - ENTER CHANGES IN RE: JPMorgan Chase Bank, N.A. vs Sherone Waisome Case No. 2009 CA 005717 May 9, 2012; Lawrence Nardi, Vol 1 & 2 LINE CORRECTION

________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ Under penalties of perjury, I declare that I have read the foregoing document and that the facts stated in it are true.

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cc: Jacqulyn Mack, Esquire CINDY CONNER, CSR, RPR FIRST-CHOICE REPORTING SERVICES, INC. Sincerely, IN RE: JPMorgan Chase Bank, N.A. vs Sherone Waisome Dear Ms. Crews: I have enclosed the original errata sheet with your copy of the transcript, Volumes 1 and 2, so LAWRENCE NARDI may read and sign. Please have him make whatever changes are necessary on the errata sheet and sign it. Then make a copy for your copy of the transcript. Please then forward the original errata sheet to Jacqulyn Mack, Esquire, at Mack Law Firm Chartered, 2022 Placida Road, Englewood, Florida 34224. Your prompt attention to this matter is appreciated. Rachel Crews, Esquire Gray Robinson, P.A. 301 East Pine Street Suite 1400 Orlando, Florida 32801 May 21, 2012

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