- . 1Lenore L. Albert, Esq.SBN 210876 2LAW OFFICES OF LENORE ALBERT 7755 Center Avenue,Suite #1100 3Huntington Beach, CA 92647 4Telephone (714) 372-2264 5Facsimile (419) 831-3376 Email:lenorealbert@msn.com 6 7Joseph Arthur Roberts, State Bar No. 156180 LAW OFFICE OF J. ARTHUR ROBERTS 83345 Newport Blvd., Suite 213 9Newport Beach, CA 92663 1 0Telephone: (949) 675-9900 Facsimile:(888) 989-9309 11Email:Joe@JarLegal.com 12 Attorney for Plaintiff, KENNETH HUEZO, individually, 13And all others similarly situated 14 , i , , i I I J UNITED STATES DISTRICT COURT 15 ." '" 16CENTRAL DISTRICT OF CALIFORNIA 17 r; 0t-

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en W -l KENNETH HUEZO,on behalf of himse andall others similarly situated, CVll-07818 CBM (VBKx) 18 1 9 20vs. 21 Plaintiffs, US BANK NATIONAL ASSOCIATION, 22ASTRUSTEE FOR STRUCTURED 23ASSET SECURITIES CORPORATION MORTGAGE PASS-THROUGH 24CERTIFICATES, SERIES 2006-BC3; and 25DOES 1 through 10, inclusive, 2 6 Defendants. 27 28 CLASS ACTION COMPLAINT signed tothe Honorable: LASS ACTION COMPLAINT 1.15USC 164lg Violation 2.Unlawfu1!Unfair Acts 17200 [DEMAND FOR JURy TRIAL] 1 Huezo v US Bank National Association, as trustee for Structured Asset Securities Corporation Mortgage Pass- ThroughCertificates, Series 2006-BC3 I i r-PI t'J 1Plaintiff KENNETH HUEZO (referred to as "plaintiff'or "Mr. Huezo"), by and 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 6 17 through his attorneys of record, bring tbis action against defendants US Bank National Association, as trustee forStructured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 2006-BC3 ("US Bank") and DOES 1 through10, inclusive, ("Defendants") and alleges the following on information and belief, except as to those allegations which pertain to the Plaintiffs: I.. VENUE 1. The Court has subject matter jurisdiction over this action under 28 USC 1331wherein the action arises under the Constitution,laws or treaties of the United States and/or under 28 USC 1332 wherein this is aclass action over $5,000,000.00 where at least one plaintiff is diverse from one defendant. 2.The Court has personal jurisdiction over the defendants in this action by the 18fact that the Defendants are conducting business inthe state of California. 19 20 21 22 23 24 25 26 27 28 3. Venue is proper in this Court pursuant to 28 USC 1392 because the action involves real property located in the Central District of California; and pursuant to28 USC 1391(b) and a substantial part of the events or omissions on which the claims are based occurred in tbis District. 2 CLASS ACTION COMPLAINT f1uezo vUS Bank National Association, as trustee for Structured Asset Securities Corporation Mortgage Pass-TlrrouglrCertificates,Series 1006-BC3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 II.PARTIES 4.Plaintiff, KENNETH HUEZO, at all times mentioned herein relevant to the complaint was the owner of real property commonly known as26840 Claudette Street #229,Canyon Country,CA. 5. Defendant, USBank National Association, astrustee for Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 2006-BC3 ("US Bank"), has its principal place of business in Minneapolis, Minnesota and regularly conducts business in the State ofCalifomia. 6.Plaintiffs do not know the true names and capacities of the defendants DOESI through 10,inclusive, and, assuch,names said defendants by such fictitious names.Plaintiffs will amend thecomplaint to state the true name and capacity ofthe DOE defendant(s) when such information is ascertained. 7. Plaintiffsareinformed and believe, and allege thereon, that each defendant is responsible in some manner for the occurrences alleged in the complaint, and that plaintiffs'damages were proximately caused bythedefendants at all times mentioned in the complaint. 8. Plaintiffsare further informed and believe, and allege thereon, that each defendant was theagent, servant, representative, and/or employee oftheir co-defendants, and in doing the things hereinafter alleged wereacting in the scope of 3 CLASS ACITON COMPLAINT Huezov US Bank National Association,as trustee for Structured Asset Securities Corporatioll Mortgage Pass-ThroughCertificates, Series 2006-BC3 1their authority asagents, servants, representatives, family members and/or employees, 3 4 5 6 7 8 9 10 and with the permission and consent of their co-defendants. 9. Additionally, plaintiffs are informed and believe, and allege thereon, that each defendant assisted, aided and abetted, adopted, ratified, approved, or condoned the actions of every other defendant and that each corporate defendant, if any, was acting as the alter egoofthe other in the acts alleged herein. III.General Factual Allegations 1110.Tmth in Lending Act 131("TILA") codified at15USC 1641g requires a 12 13 new creditor tonotify the borrower in writing of a transfer intheir Note and Deed of 14Tmst (mortgage). 15 16 17 1 8 19 20 2 1 22 23 2 4 25 2 6 27 28 11.The notificationmust include: a.The identity, address, telephone number of the new creditor; b.The date of transfer; c.How to reach an agent or party having authority to act on behalf of the new creditor; d.The location of the place where transfer of ownership of the debt is recorded; and e.Any other relevant information regarding the new creditor within 30 days of the transfer. 4 CLASS ACTION COMPLAINT Huezo v US Bank National Association, as trustee for Structured Asset Securities Corporation Pass- Through Certificates, Series 2006-Bl..,] 1 2 3 4 5 6 12.15USC IMIg was enacted to"ensure [citizens]can actually renegotiate their mortgages if they are in trouble"and to provide "transparency and give[J borrowers an additional tool to fight illegitimate foreclosure or to negotiate loan modifications that would keep them in their homes." Sen.Barbara Boxer comments 7made in theCongressional Record - Senate S5098-99 (May 5, 2009) Exhibit A. 8 9 10 13.These combined legislative purposes are referred to inthis complaint as "due process"rights. 1114.Plaintiff is informed and believes and alleges thereon that defendant US 12 13 14 15 1 6 17 Bank is a creditor violating 15USC1641g causing illegitimate foreclosuresand the unnecessary loss of homes because homeowners are not being given this additional tool to renegotiate their loans. 15.Defendant has a pattern and practice of playing "hide-and-seek"with 18debtors. 1 9 20 21 22 23 2 4 25 2 6 27 2 8 16.The defendant hides its identity as the "creditor"as defined for purposes of 15USC 1641g untilit must reveal its identity to nonjudicially foreclose, more often thannot only revealing itself when the debtor has halted the nonjudicial foreclosure process by seeking safe harbor protection in the United States Bankruptcy Courts. 5 CLASS ACTION COMPLAINT Huezo v US Bank National Association,as trustee for Structured Asset Securities Corporatiotl Mortgage Pass-Through Certijiclltes,Series 2006-BC3 117.Homeowners need to know who the owner is to serve notices or 2 3 4 5 6 7 8 9 10 complaints or confirm the authority of the party initiating a foreclosure action or offering a loan modification and US Bank's conduct ispreventing those needs from being met to the injury of consumers like the pJaintifIMr. Huezo. IV.Mr. Huezo's Facts 18.Onor about July 12,2006 KENNETH HUEZO, a single man, became indebted to BNC MORTGAGE, INC. 1119.Mr.Huezo promised to pay BNC Mortgage, Inc.$276,000.00 plus interest 12 13 14 15 1 6 17 for a loan he received fromBNC Mortgage, Inc. This promise was placed in a Note dated July 12, 2006 and secured by his property located at 26840 Claudette Street #229, Canyon Country, CA in a Deed of Trust. 20.Mr.Huezo never received any notice that US Bank became his new 18creditor until he received a Motion for Relief fromBankruptcy Stay in the USmail. 1 9 20 21 22 23 2 4 25 2 6 2 7 28 21.Mr. Huezo filed for bankruptcy protection earlier that year. 22.On May 4,2011 US Bank moved the US Bankruptcy court for relief from the automatic stay declaring under penalty of peIjury that the movant held a deed of trust on Mr.Huezo's property and a beneficial interest in the Note had transferred to the Movant,"US Bank." 6 Huezov US Bank National Association, as trustee for Structured Asset Securities Corporation MOrlgage Certificates, Series 2006-BC3 123.Mr. Huezo was sent notice ofthis motion and it was the very frrst time he 2 3 learned " USBank"was asserting ownership as his new creditor. 424.Just prior to Mr. Huezo frling for bankruptcy, US Bank caused a 5 6 7 B 9 10 Corporate Assignment of Deed of Trnst to be recorded in Los Angeles County Recorder' s Office purporting MERS assigned the Deed ofTTUst over to US Bank on or about December 1, 2010 for a trust created in 2006. 25.Atrue and correct copy of the Motion and Declaration with Exhibits is 11attached as Exhibit B. 12 26.What is even more curious, the note attached to themotion Had an 13 14 undated Allonge in blank attached as page 17of 20 page note that had riders attached 15 and numbered thereafter. 16 17 27.There is no indorsement or allonge to MERS and nothing from MERS to 1 8US Bank. 1 9 20 21 22 23 24 25 26 27 28 28.The Note did not give MERS any interest or rights. 29.The indorsement from BNC Mortgage, Inc.was Blank and is not dated and BNe Mortgage, Inc. surrendered before 2010. 30.There is no evidence that the creditors made any approval to transfer this Note or the Deed of Trust fromthe bankruptcy estate toUS Bank. 7 CLASS ACTION COMPLAINT Huezn v US Bank National Association, as trustee jor Structured A . ~ s e tSecurities Corporation Mortgage Pass-Through Certificates,Series 1006-BC3 131.There is no assignment of the deed of trust and the NotetoUSBank 2 3 4 5 6 7 8 9 10 before BNe Mortgage, Inc. became defunct.The assignor of the Deed of Trust was clearly defunct when the purported assignment took place. 32.lfthe Deed of Trust split fromthe Note,USBank had nolegitimate right touse the Deed of Trust to enforce the debt and the Note holder cannot usethe property secured by the Deed of Trust inorder tosatisfy that debt. 33.lfMr. Huezo was given proper notification ofthe transfer to the new 11creditor he could have tried to save his home prior todefault. 1 2 34.But the disclosure of US Bank asserting it was the beneficiary of the 13 1 4indebtedness on Mr. Huezo' s Note came too late. 15 35.Mr. Huezo had already been thrown intodefault and no longer had the 16 17 opportunity to use this information totry to stop an illegitimate foreclosuresale or to 18 try to attempt to renegotiate his loan with the current creditor because his home prior 19 todefault. 20 2136.Through the lise of these documents, US Bank received an order of relief 22 23 24 2 5 2 6 27 28 from the automatic stay and US Bank has set tosell Mr. Huezo's home on October 11 , 201 1although it has no right to nonjudicially forecloseon Mr. Huezo's home. 8 Buezo v US Bank National Association, as trustee for Structured Asset Securities Corporation Mortgage Pass-Through Certificates, &ries 1006-BC3 137.Mr. Huezo is further informed andbelieves and alleges thereonthat US 2 3 4 5 6 Bank has already iliegitmately auctioned off other homes of thosesimilarly situated through a foreclosure. V.Class Action Allegations 738.Plaintiffs bring this action under Rule 23of the Federal Rules of Ci viI 8 9 10 11 12 13 14 15 1 6 Procedure, on behalf of the themselves and on the following Classes: All (1)borrowers who did not receive a Notification from defendant as required under 15USC 1641 g and(2) so long asthe original Lender named on the Note is not the defendant 39.Excluded fromthe Class are defendants, and their affiliates, subsidiaries, current or former employees, officers, directors, agents, representatives, and their family members. 1740.Plaintiffs do not know the exact size or identities of the members of the 18 19 20 21 22 23 proposed class, since such information is in the exclusive control ofthe Defendants. Plaintiff is informed and believes and alleges thereon the class size consists of anywhere from 250 to 2,000 borrowers.Therefore, the proposed Class isso numerous that joinder of all members is impracticable. 2441 .A class actionissuperior to other methods for the fast and efficient 25 26 27 2 8 adjudication of this controversy and to avoid the risk of disparate and inconsistent 9 CLASS ACTION COMPLAINT Hueto v US Bank National Association, as t r u ~ 1 e efor Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 2006-BC3 1rulings indifferent courts.A class action regarding theissues in this case does not 2 3 create any problems of manageability. 442.A pattern and practice of conduct by defendants exist inthis case wherein 5 6 7 8 9 1 0 11 12 13 14 15 16 17 common questions of fact and law predominate over any questions affecting only individual members including, but not limited tothe following: a.Whether defendant's actions or failure to act constituted a violation of 15 USC1641g; b.Whether defendant's actions or failure to act constituted a violation of California Business & Professions Code 17200; c.The amount of damages appropriate for violation ofl5 1641g and Cal B&P 17200 in thiscontext; and d.Whether injunctive relief is appropriate. 1843.This is a matter of important public policy because the fair treatment of 19 clistressed borrowers isstate and national policy priorities. 20 2144.The claims of the indi vidual named Plaintiffs are typical of the claims of 22 23 24 25 26 27 28 the Class and donot conflict ''lith the interests of any other members of the Class. 45.The individually named Plaintiffs will fairlyand adequately protect the interests ofthe Class.They are committed to the vigorous prosecution of the Class' claims and have retained attorneyswho are qualified to pursue this litigation. 10 Huez{)v US Bank National Association, as trIlstee for StrIlctured Asset Securities Corporation Mortgage Pa5s- ThroughCertificates,Series 2006-BC3 146.The putative class action meets the requirements of Federal Rules of Civil 2 3 Procedure 23(a), 23(b) and/or 23(c). 447.The nature of notice to the proposed class required andlor contemplated is 5 6 7 8 9 10 the best practicable method possible and contemplated the defendant's list when disclosed would most likely be media outlets, mailing to the property addresses affected by the filed foreclosures and internet and other general notices are contemplated toensure notice. 1148.Defendants have acted or refused to act on grounds that apply generally to 12 13 14 15 1 6 17 1 8 19 20 the Class sothat fmalinjunctive relief or corresponding declaratory relief is appropriate respecting the Class as a whole. VI.CLAIMS FIRST CLAIM 15 USC 1641g Violation (Against USBank) 49.Plaintiff incorporates the allegations above in this claim as though fully 21set forthherein. 22 23 24 50.Plaintiffs bring this claim on their own behalf and on behalf of each member of the Class described above. 2551.These defendants are "creditors" under TILA. 26 27 28 11 CLASS ACTION COMPLAINT Hue'ZovUS Bank National Association, astrustee for Structured Asset Securities Corporation Mortgage Pass-Througlt Certificates,Series 2006-BCJ 152.USBank was required tonotifY the plaintiff in writing of the transfer of 2 3 theloan from the original lender, such as BNC Mortgage, Inc. , to US Bank. 453.The notification needed to include: 5 6 7 8 9 10 11 12 13 14 15 1 6 17 a.The identity, address, telephone number of the new creditor; b.The date of transfer; c.How to reach an agent or party having authority to act on behalf of the new creditor; d.The location of the place where transfer of ownership of the debt is recorded; and e.Any other relevant information regarding the new creditor within 30days of the transfer which occurred on or about September 15,2010. 54.US Bank failed to notifY :Mr.Huezo and those similarly situated within 30 18days of the purported assignment or transfer it presented to theUSBankruptcy court to 19 20 21 22 23 24 25 2 6 27 28 show it had standing tomove for relief from automatic stay. 55. US Bank violated 15USC1641g by failing to notifY the plaintiff in writing of said transfer within 30 days including: a.The identity, address, telephone number of the new creditor; b.The date of transfer; 12 CLASSACTION COMPLAINT Huezo v US Bank National Association, as trustee jor Structured Assel Securities COrpOrtltion Mortgage Pass-Through("'ertijicates,Series ZOO6-BC3 1 2 3 4 5 6 7 8 9 10 11 1 2 13 c.How to reach an agent or party having authority toact on behalf of the new creditor; d.The location of the place where transfer of ownership of the debt is recorded; and e.Any other relevant information regarding the new creditor. 56.As a result of defendants'violation of 15 USC 1641g, Mr. Huezo' s due process rights for notice and opportunity to be heard were violated; he has incurred attorney' s fees and expenses and is losing and/or lost his home through a California non-judicial process that plaintiff would have been able to try to stop if he had the 14information required by 15USC l64lg in a timely manner. 1 5 1 6 17 1 8 1 9 2 0 21 22 2 3 2 4 25 2 6 2 7 28 57.Plaintiff is informed and believes and alleges thereon that US Bank' s conduct was part of a pattern and practice resulting inthe same injury to a multitude of similarly situated (former) homeowners. 58.Plaintiffs have been danlaged in an amount to be proven at trial,including but not limited to actual danlages resulting fromsaid violation, statutory damages of $4,000.00per homeowner, attorney fees and costs. Wherefore plaintiff demands judgment against defendants as set forthbelow. SECOND CLAIM Unfair and Unlawful Practices (Against Alldefendants and Does 1 through 10) 13 CLASS ACTION COMPLAINT Huezo v US Bank National Association,as trustee fur Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series ZOO6-BC3 159.Plaintiffs incorporate in this claim all of theallegations above as though 2 3 set forth in fullherein. 460.Plaintiffs bring this claim ontheir own behalf and on behalf of each 5 6 7 8 9 10 member of the Class described above. 61.California' s Unfair Competition Law (UCL) defmeslmfair competition to include any "unlawful, unfair, or fraudulent"business act or practice. CalBus &Prof Code 17200 et seq. 1162.Defendants engaged in"unlawful"business practices under the UCL 12 basedon the violation ofl5 USCl64Ig (TILA BIg) as alleged above. 13 1463.The defendants failedto follow TILA and worm Mr. Huezo that his Note 15 and mortgage had a new creditor as required by statute. l6 17 64.US Bank through its authorized representative caused a declaration and 1 8 motion made under penalty ofpeIjury to be filed with the Uni ted States Bankruptcy 1 9 making representations that it either knew to be false or had no reason tobelieve that 20 21the statements were true that were material to Mr. Huezo losing his due process rights. 22 23 24 65.Onor about May 4, 2011said movant declared in paragraph7 of page 7 of 13of the motion that "Movant holds a deed of trust that encumbers the Property"and 25that a copy of the assignment evidenced that the movant was the rightful creditor. 26 27 28 (Exhibit B) 14 CLASS ACTION COMPLAINT Hilezo v US Bank National Association, as trustee for Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 1006-BC3 166.The true facts are that the Borrower named on the Note was not US Bank; 2 3 it was BNC Mortgage, Inc.that was now defunct. 467.Furthermore there was no indorsement or allonge attached to the Note 5 6 7 8 9 10 assigning anything to US Bank. 68.The further true facts are that the Borrower named on the Deed of Tmst was not US Bank; it was BNC Mortgage, Inc. 69.Furthermore, the purported assignment occurred 4 years fl.ikr. the Note 11was allegedly placed in the US Bank designated 2006 trust. 12 70.But the true factsare MERS wasn' t given any interest or authority in the 13 1 4 Note and BNC was defunct in 20 10 and US Bank could not legally resurrect BNC from 15 the dead in order toassign the Deed of Tmst in2010. 16 17 71. There were material representations as to the authority of US Bank to 1 8proceed with a nonj udicial foreclosureunder California law without petitioning the 1 9 court. 20 2172.There were also material representations as to the identity of Mr. Huezo' s 22 23 24 25 26 27 28 true creditors and interests and whether these transfers (as it appears) resulted in splitting the Note from the Deed of Tmst making his debt unsecured under California law where no creditor under the Deed of Tmst had a right to take his home for nonpayment on the Note. 15 CLASSACTION COMPLAJNT Huezo v US Bank National Association, as trustee for Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 2006-BC3 1 2 3 4 5 6 7 8 9 10 11 12 13 73.Because US Bank failed to comply with 15USC 1641g and notifY Mr. Huezo that it believed it became Mr. Huezo' s new creditor under the Deed of Trust and Promissory Note within 30 days, Mr. Huezo' s due process rights were violated.He was not given any meaningful notice or opportunity to seek judicial declaratory relief and demand a judicial forecloslrre in order to identifY his creditor and that creditor' s claims toany interest in his property, if any. 74.Plaintiff is informed andbelieves and alleges thereon that US Bank has a pattern and practice of violating 15USC 1641 g by failing and refusing to disclose it is the new creditor untilit is in the midst of foreclosureproceedings and/or moving for 14relief from an automatic stay in the United States Bankruptcy Court. 15 16 17 18 19 20 75.As a result, USBank engaged in "fraudulent" or "unfair" business practices under the UCL by failing to follow federal and state laws or correct their errors whenit became obvious when they filed their claim with the US Bankruptcy court that they had no proof of standing to nonjudicially foreclose. 2176.Instead of following the California laws and procedures put in place when 22 23 2 4 25 26 27 28 records are not illorder in order to claim aninterest inrealproperty, the defendants used the USBankruptcy court system to cut off the homeowner's rights. 77 .Defendant USBank also engaged in "fraudulent," "unfair" or "unlawful" actsby violating various state laws and federal regulations, standards and/or policies in 16 CLASS ACTION COMPLA1NT Huezo v US Bank National Assoeiation, as trustee for Structured Asset Securities Corporaiion iWortgage Pass-Through Certijicaies, Series 2006-BC3 1falsely stating that the notes were being assigned into trust and suchwhen there was no 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 6 l7 such assignment fromone entity to the other. The Note wasn' t even properly endorsed yet they relentlessly pursued Mr. Huezo on these falsepremises. 78.Plaintiffs are further informed and believe and allege thereon that each of these defendants'unlawful,unfair and fraudulent business practices are likely to deceive the public and are likely tocontinue to induce members of the public into relying to their detriment on statements and agreements made or not made asthe case may be which will result in more members of the public losing their due process rights. 79.Defendants'acts, and each ofthem, violate the unfair competition laws of the state of California and specifically California Business and Professions Code 17200, et seq.as indicated above. 80.As a proximate result of defendants'conduct, plaintiff was injmed 18financially and/or to his property rights.Said conduct as set forth herein resulted in 19 20 statutory, general and special damages. 2181.Plaintiffs are further entitled to injunctive relief andany other equitable 22 23 24 25 2 6 2 7 28 relief that the court deems appropriate. Wherefore plaintiff demands judgment against defendants as set forthbelow. 17 CLASS ACTION COMPLAINT Huezo v US Bank National Association, as trustee for Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 2006-BC3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 6 17 18 19 20 21 22 23 2 4 25 26 27 2 8 VII.PRAYER FOR RELIEF WHEREFORE, Plaintiffs pray for judgment against defendants, and each of them, as follows: a.Anorder certifying the plaintiff class, appointing named plaintiffs as the representatives of the class and appointing the law fmn(s) representing the nan1ed plaintiffs as counsel for the class; b.Pursuant to Business and Professions Code 17203, that all Defendants, their successors, agents, representatives, employees,and all persons who act in concert with them be permanently enjoined fromcommitting any acts of unfair competition' violation of 17200, including, but not limited to,the violations alleged herein. c.Actual,Special and General Damages as proven at trial; d.Statutory damages and civil penalties; e.Costs; f.Attorneys'fees; g.Prejudgment interest at the statutory rate; h.Post-judgment interest; i.Such other and further relief as the Court finds necessary and proper. 18 CLASSACTION COMPLAINT Huezo v US Bank National Association, as trustee for Structured Asset Securities Corporation Mortgage Pass-Through Certificates,Series 2006-BC3 1 2 3 VIII. DEMAND FOR JURy TRIAL 4Plaintiffs hereby demand a jury trial. 5 6 7 8 9 10 11 12 13 14 15 1 6 17 1 8 19 20 21 22 23 2 4 25 26 27 28 Dated:September 20,2011 CLASS ACTION COMPLAINT LA W OFFICES OF LENORE ALBERT Is!Lenore A l b e ~ ~ ~ LENORE L. ALT, ESQ. Attorney for Plaintiff, KENNETH HUEZO and All others similarly situated 19 Huezo v US Bank National Association, as trustee for Structured Asset Securities Corporation Mortgage Pass-ThroughCertifzcates, Series 2006-BC3 S509l:! CONGRESSIONALRECORD-SEl';fifEMay 5,2009 ACTINGPRESIDENTprotem-pore,The Senator fromConnecticut. Mr.DODD.Mr.President.weare waitingforsomeon etocomewithan amendment.Inthemeantime.Is ug-gest the absence of aquorum. TheACTINGPRESIDENTprotem-pore. TIle clerk will callthe roll. Thelegislativeclerkproceededto call the roll. Mr.BOND.Mr.Pre3ident. Iask unan-imousconsentthattheorderforthe quorum call be rescinded. TheACTINGPRESIDENTprotem-pore.Withoutobjection.itissoor-dered. Mr.BOND.Iasktobepermittedto speak as in morning business forupto 6 minutes. Mrs.BOXER.Reservingtherightto object , and Iwill not object, if the Sen-atorcouldamendthat tosaySenator BoXERwin 1;6calledonto talk about a couple of amendmentsfollowing his re-ma.rks. Iwould really appreciate it. Mr.BOND.Mr.P r esiden t.itwll1be anhonortoaskthatSenatorBOXER, thechairoftheEPWCommitteeon whichIa mproudt oaerve,berecog-nizedafter myremarksare completed. TheACTINGPRESIDENTprotem-pore.W1thoutobjection,itissoor-dered. Mrs.BOXER. Ithank theSenator. GUA.NTANA).'IOBAY Mr.BOND.Mr.President,keeping theAmerfcanpeoplesafeistheGov-elnment'shighestpriority.Keeping OW'Nati onsafeshouldnotbeapolit-icalissue:it isan Americanone.That iswhyIwasdisappointedwhenthe WhiteHousemadeanearlynational security decisionbasedonpoliticsand notwhatisinthebestinterestsof keepingAmerlca.:nssafe .Iamtalking abou tthe President's plantoclosethe terror istdetentioncenteratGuanta-n a.mo Baywithout abackup plan. Ihavebeen soundingthealarmover thisrashdeoisionsincethePres ident announcedi tinJanuary.Butit isnot justmysideoftheaisle.theRepub-li cans,whoareQuestioningthePresi-dent' sdecisiontocl oseGnantanamo withDOplanon howtohandlethede-tainees,theterroristshousedthere. Yesterday,DemocraticHouseAppro-priationsCommitteechairmanDAVID OBEY"So far aswecan tell there isnoconcr eteprogram."Thatismy point exactly. Thisisaclassicexampleof"ready, fire.aim."Thatisastrategywecan-nota.fford.Ipreferaimingbefore shooting,whicbiswhyIkeepcalling onthePresi den ttotelltheAmerican peopl ehowhisplantocloseGuanta-namowithoutanyplansrightDOWto dealWiththedetaineeswillmakeour Nation safer. ThePresidentneedstohonorhis pledgeoftransyarency prQ:videthe Americanpeople with answersto these questions.HowthePresidentanswers these questions is even more important nowthatsomeoftheterroristscould be coming soon to aneighborhood near you.Tha.t15right.Someoftheter-rorist-traineddetaineescouldbecom-ingto American communities. LasttheObama administration admittedasmuch.DefenseSecretary Gatest estifiedbeforeourSenateAp-propriationsDefenseSubcommittee thatasmanyas100Guantanamode-taineescouldbecomingtotheUnited States.Wbethert heseterroristsare comingto aprison in n earby Kansasor ahalfwayhouseinacityinMissouri or any other State. Icantell youthis: Americansdonotwantterroristsin their neighborhoods. Thatiswhy ,whenweputittoa vote,theSenatevoted94to3against importingdetaineest oAmericansoil. even if that meant deporting them to a maximum secW'ity prison. Americansa.l sodonotwantthese terroriStssentbacktothebattlefield to ldllourtroops.Weknowtheterror-ists detained.at Guantanamo have gone backtofighteventheoneswhowere supposedtobel essdangerous.l ess likel yt odoAO.The Pentagonhas con-firmedthata.tl east18detaineeswho werereleasedhavegonebacktothe figh t,and43morearesuspectedof doingt hesame. Therearenoeasysolutions.Soin-steadofmeetinganarbitrarydeadline tocloseGuantanamoBay.Isincerely h ope the \Vbite House will reconsider. I hopethePresidentwillrealizethat closingGuantanamoBaywithouthav-ingaplantodealwiththeterrorists clU'rentlythereandfutureterrorists capturedonthebattlefieldisnotin Oill'Na ti on ' sbestinterest.Closing Guantanamowithnoplan,noplan.is one campaign promise that cannot hold up to nat10nal secw'ity priorities. Iyieldthe fl oor . Isuggest the absence of aQuorum. ThePRESIDINGOFFICER(Mr. UUALLof Co]orado.) Theclerk will call ther oll . Thelegislativec lerkproceededto call t her oll . l'1rs.BOXER.Mr.President.Iask unanimousconsentthattheorderfor the quo 111mcall be rescinded. ThePRESIDINGOFFICER.Without objection, it is soorder ed. __AMENDMENT NO.1035 Mrs .BOXER.Mr.President,Iwillbe offer ingt wo amendments,one of which isgOingt obesecond-degreedbySen-atorENSIGN,afriendlyamendmentwe haveworkedwithhimon.Sowewill have avote on that amendment. Thent hefinalvoteontheother Boxeramendmentcanbeavoicevote withoutproblem.Butt hesearetwo a mendmentsthatareveryimportant tot hefinancialsecurityofthecoun-try. One deals wit hthe toxic asset pur-chaseprogram,theoth eronedeals with lllaking s ureour peoplecaD actu-allyrenegotiatetheirmortgagesi f theyareintrouble.Iwillstartwith that one first. It seemslikecommonsenseif you haveamortgageonyourhome,yon oughttoknowwhoholdsthemort-gage.Butint oday'srealestatemar-ket ,wheretheor iginallenderoften sellsthel oantoanotherentity.you can l oset r ack andnoth"D.oWwho allyownsyourmortgage.Soweare doing averysimple a mendment-and I thank Senator DODDand staif.because theyhaveworkedsocloselywithusto drawthisupinagoodway.It isvery easy:WhenYOll rmortgageissoldor transferred,the homeowner must be in-formedwhoownsthatmortgage.Thi::r-isthe way i tusedto be years ago.Ir e-membermanytimesreceivingthose noticesbntsuddenlyitstoppedhap-pening. Iwantt ogiveyoutheexampleof James and MaryMeyers,whotookout ahigh -ratehomeloanwithArgent Mortgage in 2004.Because the loan vio-l atedthet r uth-in-l endinglaws,they laterattemptedtoexercisetheirera1rightstocanceltheloan.Butthe serviceI'.whobappen edtobeCountry-wideatthetime,refusedtoidentify who owned the loan.So by the timethe MeyerSdiscoveredthat"thecWT6nt noteholderwasDeutscheBank,the deadlineforcancelingtheloanhad passed.TheCOUl'tdismissedtheMey-ers'cl aim,eventhoughitfoundthat thereweregrounds,legitimately.for the Meyer st o cancel the l oan. Sothiskindofhide-and-seektionhasreal-lifelamifications.It cer-tainlydoeswiththePr esident 'splan nowthatsays,if someonehas amort-gagetha.tisunderwater,theycanre-negotiate.theyhaveachance.Butif theydonotknowwhoholdsthe mort-gage,itisahollowkindofplan.We knowthatcw-rentlawdoesrequire homeownersbeinformedwhenthe serviceroftheirloanhaschanged. Thati sinthela.w.AndFederallaw doesr equirethattheserviceI'tellthe homeownertheidentifyoftheperson holdingtheir mortgage. Butservicersroutinelyi gnorere-Questsfromhomeownersfori nforIll8.-tionon the noteholder.Sothis is pret-ty simple.Simplyput.i tisworth say-ing.ifsomeODenewisholdingyour mortgage.thes ervicer 30dayst o inform you as t o who that person is. Whileserv1cersarerequiredtodis-closethisinformation,thereareno pena ltieeinthelawfornoncompliance and no remedies forahomeowner faced with arecalcitrant serviceI'. Thel awhasa.lsofailedtoprotect homeowner sbecausethereisnospe-cificr equirementthatservicersiden-tifytheagentorpartywiththeau-thoritytoactonbehalfofthenote holder. TheBoxeramendmentprovidesbor-rowerswiththebasicr ighttoknow whoownstheir l oanby .leqru.tingt.hat. anytimeamortgagel oanissoldor transferred.thenewnoteownershall notifytheborrowerwithin30daysof thefollowing:t h eiden ti ty.address. andtelephonenumber of t heDewcred-itor:the dateof transfer:h owto reach an agent 01'party witht he authority to actonbehalfofthenewcreditor;the location of the place wherethe transfer is r ecorded;andanyother relevant in-ormation regardingthe new creditor. May 5,2009CONGRESSIONALRECORD-SEl\ .. CE85099 TuL":!clear,t he amendment doe5notThat is cleru.'lyano-no.Youcannot do require borrowersto l'eceiveanotificathat. tioneverytimeamortgage backedse- UndertheBoxer-Ensignlanguage. curitywtthasliceoftheirmortgaget hatwouldnot beallowed.TheTreas-changeshands.Thosearetransactionsurywouldputforwardregulationsto betweeninvestors and donot involve amakeSlueit isnotallowed.Wewould ohangeinowner3hlpofthephysioa.lgivetheTARPlnspectorgeneral$15 note.milliontoperformauditsofselected [This amendment only Vfovides recipients50wecan makesureweare parencyanllgivesborrowernanaddl - followingUDwithauditsandmaking t ionaltooltofightillegitimateforesure there isno collusion. cl osures or to negotiate l oanmodifica- Wewouldguaranteethereisaccess tionsthatwouldkeepthemintheirtofinancialdatafromtheP ublic-Pri-homes.vateInvUlstmentfundthat m necel:it:laIY Idonotunderstandwhywehavetotoperformtheseaudits,andwewould haveavoteont his.IknowSenatorrequire regulations that are very clear, DODDbas signedoff onthis.It is averyso thatr--listen to thi&-the private sec-important amendment.IWillreadintotorcannotusemoneytheyhavebor-theRECORDalistofthosesupportingrowedfromotherFederalprogramsto this.Itisawholelistofconsumerpump into the system. groups.Iwant to list who has endorsedTheymightbeabletousesome thisamendment:theNationalCon- loans,butwedonotwant100percent sumerLawCenter,theNationalAsso- of that moneybeingrecycledagain.In eiationofConsumerAdvocates,Con- otherwords.theycouldt akealoan surnel'Action,theConsumerFedera- fromtheGovernment.thentheygo tion of America.ConsumersUnion,thebuyanasset,andallofthemoney National Association of Neighborhoods,beingusedintheprogramisGovern-theNationalCouncilofLaRaza.androent money, the NationalFair Housing Alliance.TheBoxer-Ensign amendment. which ThisIsaverynarrowlytargetedisendorsedbySenator DODD.andIbe-amendmentwithlittlecosttothein- lieveSenatorSHELBY,Ibelievehas dustry.Butthebenefittohomeownersbeensignedoffbyboth.If Imisspeak. andcommunitieswouldbeabsolutelyIamsureIwillbetoldthat.Itisa enormous.Soitisa.Simpleamend- very "good government"amendment. ment.commonsense.IhopewewiDIt essentially says as webeginto buy havean overwhelmingvote for it.thesetoxicassetsfromthebanks,we Iwant to make my statement at thisare going t omake surethere is nocol-time.andhowever thechairman wantslusion, no fraud.no conflict of interest. to disposeof t he amendment, if it is ac- Weare going to givethe inspector gen-ceptedbyvoice.that i sfinewithme.emitheability to get theinformation Butif wehavetodotoarollcallbe- heorsheneedstogoin,performan cause wecannot clear it. Iaskthat weaudit. and keep this program clean. have arollcall vote.Thelastthing taxpayerswant isan-AMENDMENTNO.lll38otherscandalthatr evolvesaround Thesecondamendmenttwillbeof- thesehanksandallofthethingsthey feringisonethatSenatorENSIGNwilldidbefore.Sothisisanimportant be offeringasecond-degr ee amendmentamendment . to.It isa.ver yfriendlyaecond-degreeAt this time, Ithink Ihave explained amendment.Again,IthanktheBank- bothof myamendment s.Iawait hear-ingstaff onbothsidesoftheaisleforingfromthechairmanastoatimeto workingwithus-SenatorDODD,incomebackandspeakforperhapsa particul ar--tomakethisaverygoodminute to generally summarize bothof amendment.them. Whatwea rebaaica.llysayingi s ,asAgain,mydeepestthanks to Senator wego into an ew program whichistheDoDD.Hehasworkedsohard.Without Public-PrivateInvestmentProgram.hishelp,wecouldnotbeat this point which basically says that when we takeonboth these important amendments. toXic assetsoff the books of the banks,ThePRESIDING OFFICER.TheSen-wewanttheprivatesectortocomeinator fromConnecticut. andgiveavaluetothoseassets,wedoMr.DODD.Letmefirstthankour not want the Government doing it.colleaguefromCaliforniaforherl ead-ThepriVat esectorplaysa.ver yim- ershipont hisissue.Theyarevery portant rol e.What Senator ENSIGNandcommonsense.straightforwardpro-Ibelieveisvery important,a ndChair- posalstha.twethinkcanimprovethe manDODDhasagreed.istomakesut'elegislation. it isaverycleanprocess,andthere1sAnditisalmost,inaway-Iwas not aprocess forcollU8ion between thethinking.asmycolleagueandfri end parties.andnochancetodefraUd.wastalking,itisa lmostsadthatwe frankly,t hetaxpayer s.havetoh aveanamendmentsuchas Howcouldthathappen?Hypo- this.Youwouldalmostt hinkthat thetically,you can have abank that isthere has got to be some law someplace tryingtounloadatoxicasset.Theythatwouldsaywhatshe1ssuggeRting want the most they can get foI'it. Theyby her amendment would be covered. can goto aprivate party andaay:Hey,Inawayitisatragi ccommentary betweenus,bidalittlebitmoreforonthetimeswearein,t heidea where t histoxicasset.wewillgiveyouawehaveto saythat. by theway.coll u-kickback Jater.Theycouldnotcallits ianisnotpermissible.Ididnot think that.Wewilltakecareofyoulater,itwasanyway.Butheramendment makesitcertaininthislegislation that that isthe case. Iamnots W'etheoforder,butthe firstcommentsmycolleaguegavere-garding information aboutt heir mort-gages,againthisispI'etty.straight-forward. IseeSenatorENSIGNisonthefloor. andIwill be brief,becauseIwant him to be able to offer his amendment sowe canmove forward. ButtheideathatyoucanHnrlout whoownsthemortgageispretty ::ltl'aightfol'Wal'u,Those ofuswith alit-tle grayhair onour head-andmy col-l eaguefromCalifornia has none,Iwant the RECORDto show. Mr s.BOXER.Itt W'Il ed blond. Mr.DODD.IdorememberwhenI bought myfirst home.an old1710cen-ter chimney cape house in Connecticut. Iwent down to the OldStone Bank and gotamortgage.Icouldgodownevery dayforaslongasthatmortgagewas aroundand look at it.seeit,andpick Itupif Iwantedtoand hold it and do wba teverrwantedtodowiththat mortgage. Today.ofcourse.becausetheworld haschanged.peoIllebuyahome--and. of course,putasidetheissneof preda-torylendingandsubprimemortgages andthe rest-and that mortgage,with-in 8to 10 weeks,on average ,i ssold off. It i ssecuritized, asthey call it. This is true of alot of debt. It is student loans, it 15creditcards,it isallkindof debt that gets seCW'itized. Bytheway,that is notabadthing, becausethatprovidesliquidity,that provides assets forpeopleso morepeo-ple can afford to buy homes. ButtheSenatorfromCaliforniahas pOintedoutthatyououghttoknow whothat is. That seems t omealogical request.If that mortgage hasbeen sold off,whoOWDBit?Soifaborrower wantstobeabletodosomething with it. youought n ot to have to go t hrough and hire aprivateinve:3tigatory agency to findout who holds your mortgage. Sowhil ewerespecttheideathat securitizationcanactuallybebene-fichutot hecommunityat l arge.if it deprivestha.townerofthemortgage theopportunitytodeterminewhoi s the holderof that mortgage,obviously thenwehavelostsomething:inthe process.TheSenatorfromCalifornia has proposedavery worthwhileamend-ment. TheNewYorkTimesstor yof April 24,2009.notes: Advocateswanting to engagelendel'5" face achallenge e venfindingsomeonewith whom tobegl.ntheconversation,"accordingtoa report by NeighborWorks America. ThatisexactlywhattheSenator fromCaliforniaaddresseswithher amendment.Wjthwhomdoyoubegin theconversation?Theconversation oughttobewiththepersonwhois holding thatIendorseberamendmentandurge my colleagues to do so as welL Regardingthesecondameudment, theotheramendmentofferedbySen-atorBOXERdealswiththecollusion Case 2: 11-bk-25627- _.LDoc11Filed 05f04f11Entered 05f04f1109:33:34Desc M"inP"" .. 1nf 1? ,.Ittton"leyor P....-p,Bci"M'J-';'6 J:.liiS_il1 ;:_:iSJ .'1:--' C;j,ti:'p,';:':t,{",'::; ;j"gtic :r:w;:::h Ch';mg.e I)(CUr3 til.';:"C-urreri.I f!he: i s[!(,i cud\Jf15 d::-,y,,;,hi: - ctr:.t:; :,:'!.;'.: ", !v.'l:! ;:.toHO!C:;;T,Tht)f t11;::;.hargebe 5-of my.?-:.J : "xiii('n ... ;;'.i,(:h pJ)"ruclII {!1)i:i:tfdU:t a::""'", J 11",del":'; !"-;lJtt':i\""f';'-jtij/=me i::_;;1!.yIlT; ::-fic-.::;,at.elyt.hefJ :; of!V':E: lj,;-.;,r's.i. 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