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Lawrence Nardi - 5/9/2012

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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