Investigator Bill Paatalo BlockBuster Finding: WaMu Investor Code “AO1″ Revealed – Chase Stipulates It Represents “WaMu Asset Acceptance Corp.”

(DISCLOSURE: This article is not intended to be construed as legal advice. Seek advice from a licensed attorney in your jurisdiction regarding any of the information provided below.)

High praise to Attorney Ron Freshman in San Diego, CA and his paralegal Kimberly Cromwell who recently obtained this remarkable “Stipulation of Fact” from JPMorgan Chase Bank’s counsel. (See #8 – Chase Stipulated Fact – AO1 – WMAAC).  Last November, I wrote the following article seeking the identity of private investor “AO1.” (See:

Thanks to the aggressive prosecution and discovery efforts put forth by Attorney Freshman and his team, the answer has now been revealed. JPMorgan Chase’s counsel has stipulated in paragraph #8, “Investor code AO1 in the Loan Transfer History File represents WaMu Asset Acceptance Corporation.

Folks, I have opined against Chase for years now that this investor code does not signify “banked owned” loans on the “books of Washington Mutual Bank,” but rather a securitization subsidiary of Washington Mutual, Inc. I’ve been attacked by Chase who has argued vehemently that my opinion is simply dead wrong, and has sought to have my testimony stricken. Well it appears as though I’ve now  been vindicated! This stipulated fact runs contrary to Chase’s long standing position, in thousands of foreclosures across the United States, that it acquired “AO1″ loans because they were “on the books” of  “Washington Mutual Bank” per the Purchase & Assumption Agreement (PAA) with the FDIC. This has been a lie, as these “AO1″ loans could not have been a part of the PAA due to the sale and securitization of said loans by WMB through its “off-balance sheet activities.” More so, Chase’s use of the FIRREA argument against homeowners for loans not on WMB’s books may have suffered a tremendous blow here.

It has long been my opinion that testimony put forth by Chase witnesses, like the following by Peter Katsikas, have been downright false. Again, more vindication. Here’s what Katsikas had to say under oath regarding investor code “AO1″:


called as a witness, having been duly sworn, testified as follows:

(Beginning – P. 43):

Q. And do you know whether or not at the time of the acquisition of the assets that are identified in the purchase and assumption agreement with the FDIC to Chase dated September 2008, did it include a list of the loans that Chase was acquiring?

A. I mean, I didn’t see an actual list, but there’s — it’s in the system. It’s in the MSP servicing — that’s a system the bank uses to service the accounts.

Q. Is it your testimony that the Freeman loans were owned by Washington Mutual F.A. at the time the bank failed?

A. Yes.

Q. Is it your testimony that Washington Mutual Bank or some subsidiary of the bank was not servicing those loan at the time?

MR. HERMAN: Can you read that back, please.

(Question read)

MR. HERMAN: At what time?

MR. WRIGHT: Prior to September 25, 2008, between the time they were made and September 25, 2008.

A. The servicer was Washington Mutual F.A.

Q. Okay. Was there an investor?

A. It was bank-owned. It’s always been bank-owned.

Q. It’s always been bank-owned?

A. Correct.

Q. And you know that because?

A. I reviewed Chase’s books and records.

Q. What in the books and records would indicate to you that it was

bank-owned versus not bank-owned?

A. Well, they’re through the investor screens and also the ID codes,investor ID codes.

Q. Okay. And the ID codes are letters, aren’t they?

MR. HERMAN: Objection.

A. They consist of letters and numerals.

Q. Okay. And what letters would indicate an investor?

A. There’s three digits or three characters.

Q. Two letters and a number?

A. No, it could be a mixture of.

Q. So what three characters — well, let’s put it another way. What characters would indicate a Chase-owned asset — a WaMu-owned asset?

Excuse me.

A. For these two loans?

Q. Yes.

A. AO1.

Q. AO1?

A. Yeah.

Q. And that AO1 stands for what?

A. That’s just the three digit code, which is bank-owned.

Q. AO1?

A. Uh-huh.


Katsikas Depo Transcript

Bill Paatalo – Private Investigator – OR PSID# 49411
BP Investigative Agency, LLC
P.O. Box 838
Absarokee, MT 59001
Office: (406) 328-4075

13 Responses

  1. Not table funded by Freddie. Freddie invested in private entity trusts. And where did private trusts get loans from ???

  2. We know nothing. No investigation. Just settlements that did not help homeowners. Know nothing. Where are the journalists that want to make a name ? To date – none have stepped up to plate. They do nothing.

  3. How do we know that WaMu Asset Acceptance Corporation is not part of the assets owned by WaMU therefore Chase? Chase got $65K in excess funds from me, as the second to my wrongly foreclosed home (after the foreclosing bank took $35K of my equity in “fees”. Don’t worry, I won that one!) I fought them as they did not submit a proof of claim. They presented what I later learned were robosigned deeds from FL to collect my money. Should I sue them for fraud upon the court? Maybe.

    Meanwhile — how do we know for sure this asset was not acquired in the take over by Chase of WaMU? Did you read the FDIC documents for the takeover?

  4. Nine years after the fact. Are any people, like Me, going to see any relief from the money We lost ? I see some of the banks paying millions and billions. To whom ?. I can’t let go of this crap after all of that time.

  5. Which document specifically is the investor code located? In my case, the loan was table funded by Freddie Mac – or so claimed. JPMC was still able to accomplish the foreclosure EVEN though there was no recorded assignment to either party. Prejudice can be proven – court’s didn’t care

  6. Why is there even an “investor” code????

  7. Reblogged this on California freelance paralegal.

  8. Thought Wells code was “936” Who is 936?

  9. patricia, wells originated loans usually contain the investor code 708. Check your statement after the loan went into default.

  10. The A01 code simply means it was Wamu originated, either through its retail division or wholesale division. Either way, the entity that was the responsible party pursuant to the MLPA between the seller and the depositor was WAMU. This does not mean the loan was not made a part of a PLMBS or agency pool, in fact, it just about guarantees that some dujure entity claims the loan as an asset held on behalf of the certificate holders.

  11. How do I find out which codes wells fargo/ASC loans should have? Is this info in some mortgage paperwork? if so, where? thank you

  12. Chase tried to give me a loan mod calling themselves successor to WAMU
    Before Fannie Mae oked the chase wamu deal. Some f$&@@ed up bs.

  13. ASK — Where did the WAMU loan come from ??? How did it get there? Where was it previously? And how was it reported to that entity? You need to go further. This is not enough. WAMU — big purchaser of reported defaults — from WHO???????? Where does every loan start??? Dig deeper. Not enough.

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