DISCOVERY AND PRACTICE TIPS: SEC RULE DISCLOSURE DOCUMENTS Carrington Mortgage – Stanwich – EMC Mortgage Corporation – New Century Mortgage Corporation (“NCMC”

FROM drhDe.u5a.htm

This is both a HERS post and a general post for those seeking discovery of documentation. You can Google this information also. This is also what I am asking all of you to send in to me for posting. I’m backdating the HERS posts like this generally to February and March so as not to crowd out current articles but if you look at the search index and bring up “HERS or even the particular name of an institution or unfamiliar name of an individual company or institution it will come up with increasing frequency as we expand this aspect of the blog.

DISCOVERY: You ask for all SEC filings including but not limited to 8k filings and back-up documents, custodians of those records, and people with personal knowledge of the information contained in those filings, together with their names, addresses, phone numbers, title, scope of duties etc. Then you call them and ask them what they know where there are other documents. Note these are words of art and have a general meaning that cannot be disputed in the industry. CFR= Code of Federal Regulations

EMC Mortgage Corporation transferred the servicing of mortgage loans with respect to the Carrington Mortgage Loan Trust Asset-Backed Pass-Through Certificates, Series 2007-HE1, to Carrington Mortgage Services, LLC. Prior to November 1, 2007, the Mortgage Loans were serviced by EMC Mortgage Corporation pursuant to the Pooling and Servicing Agreement, among Stanwich Asset Acceptance Company, L.L.C., Wells Fargo Bank, N.A., EMC Mortgage Corporation, Carrington Mortgage Services, LLC and HSBC Bank USA, National Association, a copy of which was filed as Exhibit 10.1 pursuant to Form 8-K on July 27, 2007 under the same Central Index Key (CIK) as this periodic report on Form 8-K (the “Pooling and Servicing Agreement”). On and after November 1, 2007, Carrington Mortgage Services, LLC will service the Mortgage Loans pursuant to the Pooling and Servicing Agreement. These are the SEC entries of data relating to this event.

STANWICH ASSET ACCEPTANCE COMPANY, L.L.C., on behalf of Carrington Mortgage Loan Trust, Series 2007-HE1 Asset-Backed Pass-Through Certificates

(Exact name of registrant as specified in its charter)

SEC File 333-139507-02

Carrington Mortgage Loa..2007-HE1

8-K{6

Mayer Brown & Platt/FA

11/01/07

Carrington Mortgage Loan Trust/Series 2007-HE1

STANWICH ASSET ACCEPTANCE COMPANY, L.L.C.

STANWICH ASSET ACCEPTANCE COMPANY, L.L.C. (as depositor under a Pooling and Servicing Agreement, dated as of June 1, 2007, providing for, inter alia, the issuance of Carrington Mortgage Loan Trust, Series 2007-HE1 Asset-Backed Pass-Through Certificates)

(Commission File Number)333-139507-02

Delaware

(IRS Employer Identification No.) 20-2698835

Seven Greenwich Office Park
599 West Putnam Avenue

Greenwich, Connecticut

06830

(203) 661-6186

Rule 425 under the Securities Act (17 CFR 230.425)

Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Written communications pursuant to Rule 425
Pre-commencement communications pursuant to Rule 14d-2(b)
Pre-commencement communications pursuant to Rule 13e-4(c)
Item 6.02.  Change in Servicer or Trustee

Carrington Mortgage Services, LLC (“CMS”) is a Delaware limited liability company and a wholly-owned subsidiary of Carrington Capital Management, LLC. CMS maintains its executive and principal offices at 1610 E. St. Andrews Place, Santa Ana, CA 92705. Its telephone number is (949) 517-7000.

On June 29, 2007, CMS acquired substantially all of the servicing assets of New Century Mortgage Corporation (“NCMC”), an indirect wholly-owned operating subsidiary of New Century Financial Corporation (“New Century”) as provided in the prospectus filed pursuant to Rule 424 of the Securities Act of 1933, as amended, on July 11, 2007 under the same Central Index Key (CIK) as this periodic report on Form 8-K (the“Prospectus”)

DISCOVERY HINT. IN ORDER TO GET APPROVALS THEY HAD TO SUBMIT FORMS (APPLICATION ETC.). ASK FOR THOSE FORMS AND THE DISCLOSURES ON THOSE FORMS FROM BOTH THE COMPANY YOU ARE SEEKING INFORMATION ABOUT AND THE AGENCY UNDER THE FREEDOM OF INFORMATION ACT. CMS has the approvals necessary to service mortgage loans in accordance with the related servicing agreements. CMS is qualified to service mortgage loans on behalf of Freddie Mac, a corporate instrumentality of the United States, and has received the approval of the Secretary of Housing and Urban Development to service mortgage loans. CMS has received approvals from the rating agencies with respect to the acquisition of the servicing platform. The residential mortgage servicing operations of CMS are currently rated -RPS4” by Fitch Ratings (“Fitch”). PRACTICE HINT: FILE AN ADMINISTRATIVE GRIEVANCE WITH THE AGENCY REGARDING THE VIOLATIONS YOU ARE ALLEGING. IN MANY CASES IT IS QUICKER AND THREATENS THE ABILITY OF THE SERVICER TO CONTINUE BUSINESS. DISCOVERY HINT: ASK FOR MATERIAL SUBMITTED FOR RATING FROM BOTH THE COMPANY (ISSUER) AND THE RATING AGENCY. SUBPOENA IF NECESSARY. DO DEPOSITIONS UPON WRITTEN QUESTIONS ON RATING AGENCIES AND GOVERNMENT AGENCIES TO ESTABLISH POINTS THAT YOU FEEL WILL BE UNCONTROVERTIBLE ONCE ENTERED INTO THE RECORD. PRACTICE HINT: IN ORDER TO DO THAT YOU WILL PROBABLY NEED TO FILE A MOTION TO TAKE THE DEPOSITION IN LIEU OF LIVE TESTIMONY THUS GIVING THE OTHER SIDE AN OPPORTUNITY TO CROSS EXAMINE THE WITNESS EITHER LIVE OR IN PERSON. YOU COULD ALSO TAKE THE BETTER ROUTE OF GETTING THE DEPOSITION DONE BY TELEPHONE OR VIDEO BUT THESE CAN GET EXPENSIVE. EITHER WAY MAKE SURE EACH DOCUMENT IS SPECIFICALLY LABELED AS AN EXHIBIT AND EVENTUALLY BATES STAMPED. START CREATING AN INDEX OF EXHIBITS WITH SHORT SUMMARIES OF WHAT YOU WANT TO SUE THEM FOR IN WORD FORMAT OR SOME OTHER SPREADSHEET OR DATABASE FORMAT SO THAT YOU CAN DO EASY SEARCHES. PRACTICE HINT: THE LONGER YOU MAKE THE JUDGE WAIT FOR THE PRODUCTION OF THE DOCUMENT, THE LOWER YOUR CREDIBILITY. SHUFFLING PAPERS AROUND MAKES IT LOOK LIKE YOU MAY NOT KNOW WHAT YOU ARE TALKING ABOUT AND THAT YOU ARE UNPREPARED.

Stanwich Asset Acceptance Company L.L.C.
By:
Name:  Bruce M. Rose
Title:  President



FORECLOSURE DEFENSE AND OFFENSE DISCUSSED: APPRAISAL FRAUD

QUESTION/COMMENT: ANSWERS IN BOLD

A client in NorCal was referred to me.  She took out an 80/20 loan first and second for about $650,000 total in 2005.  She has paid over $150,000 towards interest, payments and fees. SEE APPRAISAL FRAUD, CNN ARTICLE FOR 2005, APPRAISAL FORUM SPEECH FROM 2006, RECENT POSTS. TITLE COMPANY/TRUSTEE, LENDER AND OTHERS MAY BE LIABLE FOR INTENTIONALLY MISLEADING BORROWER AND INVESTORS UPSTREAM AS TO VALUE OF PROPERTY, WITHHOLDING FEES THAT THEY HAD KNOWLEDGE OF, KICKBACKS AND REBATES.
Besides the typical servicing, standing, and fraudulent assignment issues, I found the following after reviewing the file. The original lender is infamous New Century.  NEW CENTURY TAKEN OVER BY CMS FOR SERVICING ONLY. WELLS FARGO IS TRUSTEE. NEW TRUSTEE MIGHT BE REPLACING TRUSTEE IN DEED OF TRUST EVEN IF THEY DIDN’T MEAN TO DO SO. ACTUAL BENEFICIARY AS A RESULT OF POOLING AGREEMENT DATED AROUND SEPTEMBER 1, 2006 SHOWS THAT REAL PARTIES IN INTEREST (HOLDERS IN DUE COURSE) ARE HOLDERS OF PASS THROUGH CERTIFICATES OF ASSET BACKED SECURITIES. IN papers, they claim New Century still was beneficiary of deed when foreclosure started a few months ago then they substituted parties and trustees. IMPOSSIBLE. NEW CENTURY SOLD SERVICING RIGHTS AND OTHER ASSETS UNDER BANKRUPTCY COURT ORDER IN DELAWARE IN 2007.
In any event, TILA and ALL disclosures including the 2nd note (they did not provide copy of first note) shows a 30 yr term. Good faith estimate, payment coupons, EVERY DOC EXCEPT ONE shows show 30 yr term and final balloon payment in December of 2035 (30 years after taking out in dec 2005).
However, there is ONE DOC given at closing that shows loan is a 40 year LIBOR ARM NEWS ARTICLES SHOW THAT LIBOR RATES WERE WRONG BECAUSE OF FRAUDULENT REPORTING FROM AMERICAN BANKS) 2 year lock and details THAT loan program that she signed up for. THIS ALONE IS PROBABLY GROUNDS FOR RESCISSION AND BRINGING UP REAL PARTIES IN INTEREST, REPLACING TRUSTEE, REQUIRING JUDICIAL FORECLOSURE RATHER THAN NON-JUDICIAL SALE ETC.
Next, a letter she received when rate changed shows “remaining” 456 months due on note (minus 24 months = 480 for 40 years!) IMPROPER DEMAND: BASIC BLACK LETTER LAW, THEY HAD NO RIGHT TO PROCEED UNDER NORMAL COLLECTION LAWS.
I also cannot find right to rescind notices. RESCISSION AVAILABLE THROUGH MANY MEANS AND IF THE APPRAISAL FRAUD WAS BIG ENOUGH IT MIGHT INCREASE THE APR TO USURY RATES, WHICH ENABLES THE NOTE TO BE DECLARED VOID AND THE MORTGAGE SATISFIED. IF NO RIGHT TO RESCIND WAS EVEN PRESENTED THEN THE TILA-BASED RESCISSION TIME LIMITS WERE TOLLED MEANING YOU COULD DO IT ANYTIME.
Here’s the $300,000 question!!!!
The house NOW is only worth $350,000 for a $300,000 loss and almost half its value (maybe some appraisal fraud, they wont giver her appraisal).
So, if she rescinds and demands all money paid back, she’d have to tender the $650,000!  I know there are recoupment options in foreclosure (btw, she is Plaintiff in her suit and they are defendants)  but, what options on rescission do we have when someone is so upside down and does it even make sense to rescind or should we rescind on common law fraud and just ask  for money back and give the house back?
What do we do for all the people upside down when it comes to rescissions? I AM FOR THE ALL OR NOTHING STRATEGY THAT AIMS TO GET RID OF THE NOTE AND MORTGAGE IN THEIR ENTIRETY AND I HAVE DEVELOPED NUMEROUS STRATEGIES SUPPORTING THAT POSITION. LEGALLY YOU ARE NOT SAYING YOU WANT THE HOUSE FOR NOTHING, YOU ARE SAYING THAT THE REAL HOLDER IN DUE COURSE IS THE INVESTOR AND THAT THEY ARE THE ONLY ONES WHO CAN FORECLOSE. BUT IN ANY EVENT, BECAUSE OF THE APPRAISAL FRAUD AND THE DAMAGES CAUSED BY THAT, THE MORTGAGE CAN BE VASTLY REDUCED BY EQUITABLE POWERS OF THE COURT. KEEP IN MIND THAT DEBT CONVERTS FROM SECURED TO UNSECURED. IT IS THEN POTENTIALLY DISCHARGEABLE IN BANKRUPTCY BUT BE CAREFUL WITH PEOPLE WHO HAVE OTHER ASSETS AND IN STATES WHERE HOMESTEAD EXEMPTION IS LIMITED. FILING BANKRUPTCY LIMITS HOMESTEAD EXEMPTION TO $125,000 EVEN IN FLORIDA WHERE IT IS THOUGHT TO BE UNLIMITED. NEW BANKRUPTCY BILL MADE IT RISKY TO GO INTO BKR COURT IN FLORIDA BECAUSE OF THAT.
Nye
PS if workable, will be sending you her file in PDF later for audit, but before we spend money on audit, need to figure if anything to be gained! GET THE AUDIT!!!!
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