transcript ahm dobben testimony_12!9!09

7/31/2019 Transcript Ahm Dobben Testimony_12!9!09

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UNITED STATES BANKRUPTCY COURTDISTRICT OF DELAWARE

IN RE: . Case No. 07-11047 (CSS).AMERICAN HOME MORTGAGE, .HOLDINGS, INC., a . 824 North Market StreetDelaware Corporation, . Wilmington, DE 19801et al., .

.Debtors. . December 9, 2009

. . . . . . . . . . . . .. 10:09 a.m.

TRANSCRIPT OF HEARINGBEFORE HONORABLE CHRISTOPHER S. SONTCHI

UNITED STATES BANKRUPTCY COURT JUDGE

APPEARANCES:

For the Debtors: Young, Conaway, Stargatt & TaylorLLP

By: CURTIS J. CROWTHER, ESQ.MICHAEL S. NEIBERG, ESQ.

The Brandywine Building1000 West Street, 17th FloorP.O. Box 391Wilmington, DE 19899

American Home MortgageBy: EILEEN WANEKA

For the Creditors Hahn & Hessen LLPCommittee: By: EDWARD SCHNITTER, ESQ.

488 Madison Avenue14th and 15th FloorNew York, NY 10022

Audio Operator: Leslie Murin

Proceedings recorded by electronic sound recording, transcriptproduced by transcription service

______________________________________________________________

J&J COURT TRANSCRIBERS, INC.268 Evergreen Avenue

Hamilton, New Jersey 08619E-mail: [email protected]

(609) 586-2311 Fax No. (609) 587-3599


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J&J COURT TRANSCRIBERS, INC.

APPEARANCES (CONTD):

For Mona Dobben: The Law Office of Douglas PettiboneBy: DOUGLAS PETTIBONE, ESQ.

17848 Sky Park CircleSuite CIrvine, CA 92614

For the Dobben The Law Office of Vivian HoughtonPlaintiffs: By: VIVIAN HOUGHTON, ESQ.

800 West Street, 2nd FloorWilmington, DE 19801


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I N D E X

PAGE WITNESSES FOR THE DOBBEN PLAINTIFFS

PAULA RUSH

Direct Examination by Mr. Pettibone 11Cross Examination by Mr. Crowther 46Redirect Examination by Mr. Pettibone 52

ALEX RYAN YAMAMURADirect Examination by Mr. Pettibone 59Cross Examination by Mr. Crowther 70Redirect Examination by Mr. Pettibone 88

MONA DOBBENDirect Examination by Mr. Pettibone 95Cross Examination by Mr. Crowther 116

EXHIBITS I.D. EVD.P-1 Purchase Contract 38 130P-2 Uniform Residential Loan App. 39 130P-4 Appraisal 44 130P-6 Verification Bureau Document 45 130P-17 HUD-1 28 130P-18 Portion of Lender Loan File 24 130P-19 Document 27 130P-22 Clear to Close Authorization 28 130P-22B Document 29 130P-22C Document 31 130P-25A Servicing Records 33 130P-26 Foreclosure Notice 36 130P-26 Notice of Trustee Sale 21 130P-28 Release 14 130P-29D Letter 16 130P-31A Cover for Priority Mail 17 130P-33 12/19/07 Letter 17 130P-34 Letter 18 130P-34C 4/30/08 Letter 19 125P-36 Power of Attorney 20 130P-37 Mortgage Trust Information 23P-56 Document of Mr. Downeys license

revoked 128P-58 Screen shot 128

P-61 Registration of note with MEARS 129P-67 Document 129P-68 Document 130P-71 Document 57 130


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I N D E X (CONTD)

EXHIBITS I.D. EVD. P-72 Document 126D-1 thru

41 Documents 131

CLOSING ARGUMENTSBy Mr. Pettibone 131By Mr. Crowther 149

DECISIONBy the Court 159


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THE CLERK: All rise.1

THE COURT: Please be seated. Good morning.2

UNIDENTIFIED ATTORNEYS: Good morning, Your Honor.3

THE COURT: We are here on the evidentiary hearing in4

connection with the debtors claim objection to the claims of5

Ms. Dobben, or Mrs. Dobben. Did I pronounce that right? Is it6

Dobben or --7

UNIDENTIFIED ATTORNEY: Dobben.8

THE COURT: Dobben. Mrs. Dobben. As the debtor has9

the burden of proof to rebut the prima facie validity of the10

claim, I think it would be appropriate to start with Mr.11

Crowthers case, unless youve agreed otherwise, and then turn12

to Mrs. Dobben. But if you wish to proceed otherwise Im happy13

to hear that. Youre making a face, Mr. Pettibone, so --14

MR. PETTIBONE: Yes. We had prepared it for us to15

meet the burden of proof. If I could have a moment to talk to16

my client?17

THE COURT: Well, Mr. Crowther, if you dont object?18

MR. CROWTHER: I certainly wouldnt object, Your19

Honor --20

THE COURT: All right.21

MR. CROWTHER: -- but I would ask that witnesses be22

asked to leave the courtroom so theyre not here while other23

witnesses testify.24

THE COURT: All right. Mr. Pettibone, do you -- how25


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would you like to proceed? Youre going to go first? I1

believe you have -- intend to call Mrs. Dobben. I have your2

list here -- Ms. Yamamura, and Ms. Rush? Is that correct?3

MR. PETTIBONE: Yes, it is.4

THE COURT: All right. How would you like to5

proceed? Ill hear an opening, if you wish. I mean, however6

you wish to go.7

MR. PETTIBONE: Yes. Well, Id like to address just8

a couple housekeeping issues, for lack of a better word,9

present an opening statement, and then go ahead and call my10

first witness.11

THE COURT: All right. Thats fine. And then when12

you call the witness well ask your other potential witnesses13

to leave the courtroom to make sure that we dont have any14

issues. But you can address that to the Court at the15

appropriate time.16

MR. PETTIBONE: Okay.17

THE COURT: All right. So, lets proceed.18

MR. PETTIBONE: Okay. Your Honor --19

THE COURT: If you would, take the podium?20

MR. PETTIBONE: Yes, sir. Thank you. Your Honor,21

just a couple matters. One, on Monday I gave the debtors an22

amended exhibit list, and the documents that you have are in23

accordance with that amended exhibit list. The one exhibit24

list that was for the claimant in the pretrial memorandum is25


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not the one that we would be using today. I have given the1

debtors not only the exhibits but the amended exhibit list as2

well.3

THE COURT: Is there any objection, Mr. Crowther?4

MR. CROWTHER: Theres no objections to a different5

list. There is objection to the actual exhibits.6

THE COURT: Understood. Okay. Thats fine.7

MR. PETTIBONE: And the other issue, Your Honor, is8

the denial of -- or the Courts ruling on our request for9

production of further documents. I believe this Court came out10

with an order on Monday. I havent seen it, but it was -- I11

know what it said, and that is that our request for further12

production of documents was not to be the subject of a chambers13

conference, and as far as I believe is that we still have an14

issue pending on that.15

We, pursuant to the Courts order, served 2016

additional requests for production of documents upon the17

debtors. They responded and objected, and then I sent a meet18

and confer letter to them to try to resolve what I thought was19

a good faith discovery dispute over documents that were20

relevant and necessary to the case that I have. I didnt21

receive a, you know, response to that meet and confer letter in22

good faith, and having not received that, based upon the strict23

time frames, I submitted to the Court a request for24

intervention on that. And I believe that issue is still25


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pending at this time. I need those documents, and Im prepared1

to ask the Court for a ruling compelling them to produce those2

documents, and if necessary, a brief continuance of the hearing3

to review those.4

THE COURT: All right. Mr. Crowther? I believe I5

ordered -- I received a correspondence, and I believe I entered6

an order --7

MR. CROWTHER: You did.8

THE COURT: -- denying the request for a hearing, and9

ordering there would be no further discovery in the matter.10

MR. CROWTHER: That is correct, Your Honor, and we11

assumed the issue was concluded by that order.12

THE COURT: It is. I reviewed the papers. At some13

point we have to be able to start and go forward with a14

hearing, and what Id like to do is proceed with the hearing on15

the facts and documents we have, and after the evidence is16

submitted, based on where we are in that evidence and any holes17

you think you might need to fill, I would hear requests that18

would go strictly to what you think the holes in your case may19

have been as presented based on the debtors not producing20

certain documents. And I think thats the best way to take it.21

MR. PETTIBONE: Yes, sir. Was there -- I dont know,22

was there a correspondence? I didnt -- was there a23

correspondence from the debtors to me?24

THE COURT: Somebody sent me a list of the discovery,25


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asking for a chambers conference -- I got two -- two requests1

last week.2

MR. CROWTHER: Right. First you received Mr.3

Pettibones request, probably by Federal Express or overnight4

mail. We then filed a response, which we also filed with the5

Court and e-mailed in PDF form to Mr. Pettibone. In fact, I6

think -- remember, we were having some issues with your e-mail.7

I believe Mr. Schnitter had to forward it to you separately8

because my e-mails to Mr. Pettibone repeatedly got bounced back9

and rejected by his Hotmail account. So, Mr. Pettibone would10

be sent an e-mail from me, then I would ask Mr. Schnitter to11

forward it again, and which I would then be C.C.d on the e-12

mail problem. So, he got it twice, plus we actually filed it13

with the Court so its on the docket, so his local counsel14

would have seen it.15

MR. PETTIBONE: I dont have a problem with that,16

Your Honor. I just -- it was new to me, and, yeah, there was17

that issue with the Hotmail account. I am going to be18

addressing certain issues, then, during the course of the19

testimony, Your Honor, especially with regards to, like, chain20

of title. And as you know, or as you will see, Your Honor,21

thats a crucial part of our case in proving the wrongful22

foreclosure. So, I understand your order, and as we get there23

Ill take your lead on that and make appropriate comments at24

the --25


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THE COURT: Well, you can certainly have the -- put1

in testimony on it, and well see how that goes, whether thats2

sufficient.3

MR. PETTIBONE: Yes, sir. The only other issue, Your4

Honor, is my -- one of my witnesses, Paula Rush, is a crucial5

assistant in this. As the Court knew, I requested a6

continuance of it. I had difficulty preparing on the short7

notice. Im prepared to go forward, obviously, with what I8

have, but I need her to help me, and she is a witness.9

THE COURT: Well, can we start with her?10

MR. PETTIBONE: Sure.11

THE COURT: I mean, that will solve it, right?12


THE COURT: As long as you dont -- and if she has to14

go -- if there is a need to bring her as a rebuttal witness, I15

think well figure that out at that time. I dont think the16

spoilation or advance notice will be an issue.17

MR. PETTIBONE: Thank you, Your Honor.18

THE COURT: Do you have an opening, or do you just19

want to get to it?20

MR. PETTIBONE: We can just get to it.21

THE COURT: All right. Id ask Mrs. Dobben and Ms.22

Yamamura to find a comfortable place.23

MR. PETTIBONE: Your Honor, is Ms. Dobben a party?24

Because shes a party isnt she entitled to be present?25


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Rush - Direct 11


THE COURT: Yes.1

MR. CROWTHER: Theres no objection, Your Honor.2

THE COURT: All right. How about Mrs. Yamamura?3

MR. CROWTHER: There is an objection to Ms. Yamamura.4

THE COURT: There is? All right. If they have a way5

to contact you, feel free to wander the streets of Wilmington6

on a wet, miserable day. Mrs. Rush, take the stand. Remain7

standing.8

PAULA RUSH, WITNESS, SWORN9

THE CLERK: Please state and spell your name for the10

record.11

MS. RUSH: My name is Paula Rush, P-a-u-l-a, R-u-s-h.12

THE CLERK: Thank you.13

MS. RUSH: Do I need my book?14

MR. PETTIBONE: Yes. Your Honor, may I approach the15

witness and hand her the exhibit notebook?16

THE COURT: Yes, you may.17


THE COURT: Mr. Crowther, you may remain seated for19

objections.20

MR. CROWTHER: Thank you, Your Honor.21

THE COURT: That way we can make sure we get it on22

the mike.23

DIRECT EXAMINATION24

BY MR. PETTIBONE:25


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Rush - Direct 12


Q Ms. Rush, would you state your name and spell your last1

name for the record?2

A Paula Rush, R-u-s-h.3

Q And --4

THE COURT: Ms. Rush, would you mind moving the --5

its all -- there you go. Thank you very much.6

Q At some point in time were you retained by Ms. Mona7

Dobben?8

A Mona Dobben and Alex Yamamura found my website, which I9

had uploaded research on, and they had contacted me. They10

thought that there were some issues with the loan transaction,11

and they wanted me to look at the file.12

MR. CROWTHER: Objection, Your Honor. Non-responsive13

and hearsay within the response.14

THE COURT: Overruled. You may continue.15

A They subsequently sent me the loan file and I did the16

initial review of the papers that they actually had in their17

possession on this particular transaction at that time.18

Q Okay. What did Ms. Dobben -- do you know what time that19

was, what date?20

A That was in either late August or early September of 07.21

Q Okay. And do you have a background in auditing files?22

A At that time I was a beginner as far as looking at files,23

and experience. I had done a lot of personal research into24

this subject matter, but the file that they sent me had a lot25


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Rush - Direct 13


of missing documents that are typical in a mortgage1

transaction, as well as problems with dates that werent2

consistent, so I immediately thought this does not look like a3

good file.4

MR. CROWTHER: Objection, Your Honor. Move to5

strike. Competence and foundation. And I would note for Your6

Honor that the discovery order in this case prohibits expert7

testimony.8

THE COURT: I dont think its in the nature of9

expert testimony. I think its in the nature of opinion of a10

fact witness, so, overruled.11

Q Okay. Who first contacted you? Was is Ms. Dobben or Ms.12

Alex Yamamura?13

A Im not sure on the exact day that I was contacted.14

Frequently Mona was at Alexs house and they would be there15

together, so I dont remember that day, whether it was the two16

of them together or if it was just Alex on the phone.17

Q Okay. And Alex Yamamura is Ms. Dobbens daughter?18

A Correct.19

Q Okay. What did you understand your role to be after you20

were contacted?21

A They really just asked me to look at the file.22

THE COURT: All right. Rather than saying what they23

said to you, Id like you to tell the Court what you know about24

what your understanding of what you were supposed to do --25


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Rush - Direct 14


THE WITNESS: Okay.1

THE COURT: -- to try to avoid questions or answers2

where you say Mrs. Dobben told you this, or Mrs. Yamamura --3

THE WITNESS: Okay.4

THE COURT: -- told you this, because that is5

hearsay.6

THE WITNESS: Okay.7

THE COURT: So, what was your understanding of what8

they wanted you to do?9

THE WITNESS: My understanding was that they were10

asking me to look at the file and see if I could help them in11

any way to try to figure out what was going on.12

Q Okay. And what, if anything, did you do next?13

A We basically tried to get -- or, I tried to get14

information, running the names of the parties to the15

transaction, you know, seeing if we could obtain any extra16

documents from lenders, those kinds of things, to try to put17

the pieces together of what was really going on.18

Q Okay. Im going to show you a document Id like to mark19

for Identification as Claimants 28.20

MR. PETTIBONE: Your Honor, would we prefer that we21

introduce the documents after foundation is laid or at the22

conclusion of the testimony?23

THE COURT: Lets do it at the conclusion of the24

testimony. Youre certainly -- well deal with objections as25


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Rush - Direct 15


they go along, but well deal with admissibility at the1

conclusion of the testimony.2

MR. PETTIBONE: Yes, sir.3

Q Can you identify this document?4

A Yes. This is a document that we sent to American Home to5

get a release in order for me to be able to speak on behalf of6

Mona to American Home on September 25th of 07.7

Q Okay. And is that Mona Dobbens signature at the bottom?8

A Yes.9

Q And who is it faxed to, Exhibit 28?10

A I had called in and spoke to Mr. Cruz, and that was the11

fax number that he told me to fax the release to, so it was12

faxed to that number.13

Q Okay. And what, if anything, happened after you sent this14

release in?15

A They refused to speak with me. At one point Santana Cruz16

-- this was Henry Cruz, Santana Cruz did take my call, and said17

that she would look into it and call me back, and she never18

did. She actually called me, like, three months later and said19

she had been transferred to another area, and she couldnt help20

me anymore. So, no one ever responded to my inquiries or my21

phone calls.22

Q Im going to ask you to look at Exhibit 29 marked for23

Identification. It purports to be a November 13th, 200724

letter. Do you recognize this document?25


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Rush - Direct 16


A Yes, I do.1

Q Okay. Can you identify it?2

A Yes. It was a subsequent follow up, again, in my phone3

calls, not being taken. At one point someone said that they4

had not gotten the previous release, and can I send it again,5

so we tried, again, to send a release in on November 13th,6

2007.7

Q Okay. Id like to have you look at Exhibit 29D, which is8

just four pages back in the same exhibit. It purports to be a9

November 13th, 2007 letter. Do you see that?10

A Yes.11

Q Can you identify that for the Court?12

A That was a letter that was sent by certified mail to13

American Home as a qualified written request to try to get them14

to respond in writing.15

Q Was there ever a response?16

A No.17

Q Does this letter contain a request for the owner of the18

note?19

A Yes.20

Q Okay.21

A Under TILA 1641(f)(2), and also under UCC Codes we asked22

for the holder in due course.23

Q Okay. Did Ms. Dobben or yourself ever get an answer to24

that?25


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Rush - Direct 17


A No, we did not.1

Q Okay. I would like for you to turn to Claimants Exhibit2

31 -- 31A, which purports to be a cover for priority overnight3

mail. Do you see that document?4

A Yes.5

Q Can you identify that document?6

A That was just the receipt for the loan file which was sent7

to Mona Dobben on 10/30 in response to a petition that was8

filed into this Court, which was Docket 1490, asking for her9

loan file.10

Q Okay. Up until the time that the docket was filed, the11

petition, had anybody produced the loan file or the holder of12

the note, any chain of title?13

A No.14

Q Id like you to take a look at Claimants Exhibit 33,15

please. And do you recognize that document, which purports to16

be a December 19th, 2007 letter?17

A Yes.18

Q Okay. Can you identify that letter?19

A This letter was sent to me by Young, Conaway, Stargatt &20

Taylor on December 19th, 07, and this letter was them21

notifying me that they would not take any of my phone calls.22

They reference a phone call I made to David Freeman, who was23

the Executive Vice President of AHM Servicing, and they24

basically said that they will not take any calls from me, and25


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Rush - Direct 18


they tell me that Mona should call Scott Ellerby at American1

Home Mortgage, and they sent this identical letter to her.2

Its C.C.d, as you can see, to John Callas (phonetic), David3

Freeman, Mona Dobben.4

Q Did you ever discuss with Mona Dobben the contents of this5

letter?6

A Yes.7

Q Okay. And what did you tell her?8

A We decided that, okay, we need to call Scott Ellerby, and9

we were attempting to make calls to Scott Ellerby. We even10

conferenced called with, you know, her on the line, and they11

just repeatedly refused to take the calls.12

Q Okay. Id like you to refer to Exhibit 34, please. That13

purports to be a March 6th, 2008 letter from Chapman and14

Cutler. Do you recognize this document?15

A Yes.16

MR. CROWTHER: Objection, Your Honor. Hearsay.17

THE COURT: Which -- Im sorry. Which document?18

THE WITNESS: The letter is to me.19

THE COURT: Im sorry. Which document?20

MR. CROWTHER: Exhibit 34 is a letter from Chapman21

and Cutler on behalf of, I believe, Wells Fargo Bank.22

THE WITNESS: To me.23

THE COURT: I understand, Ms. Rush. Well,24

identifying the document is not hearsay, and well see what the25


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Rush - Direct 19


questions are. So, it was to Ms. Rush so she can identify the1

document. Letter to you dated March 6th, 2008.2

Q Okay. What, if anything, did you understand your role to3

be around March 2008?4

A I was attempting to contact any parties that I knew of5

that had anything to do with this loan to enlist their help,6

and I knew that Wells Fargo was the master servicer by that7

time because I had figured out where the loan was, so I went to8

Chapman Cutler, who -- they took over monitoring the trust when9

American Home Mortgage went into bankruptcy.10

Q Okay. And did you make that contact with them?11

A I did.12

Q And what did you say to them?13

A I asked them for their intervention into the issues14

surrounding the non-response to inquiries from American Home.15

Q Id like you to look at Exhibit 34C, and Ill just16

identify it for the record as an April 30th, 2008 letter from17

Chapman and Cutler. Do you recognize that document?18

A Yes.19

Q Okay. And what, if anything, had happened in terms of20

your role, what you were doing, between March and April of 08?21

A I was continuing -- basically did not take no answer for22

an answer, and continuing to send e-mails, and letters, and23

make phone calls, trying to enlist someones help. And this24

letter came to me care of me. They recognized me as a25


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Rush - Direct 20


representative for Mona Dobben, and they specifically reference1

that theyre writing me explaining their role as master2

servicer.3

MR. CROWTHER: Objection, Your Honor. The witness is4

now testifying overtly from the contents of a document, and5

shes also testifying to state of mind of the author of the6

letter, who is not in this courtroom, and we say that that7

state of mind is hearsay.8

THE COURT: Give me just a moment.9

(Pause)10

THE COURT: Im going to allow the testimony under11

Rule 807, under the residual exception. Objection overruled.12

Q Okay. Id like you to -- do you know what a master13

servicer is?14

A Yes, I do.15

Q Okay. And what is that?16

A A master servicer is to oversee the servicing of the sub-17

servicer, and they have the role actually of making the18

decision if a loan is to be modified or foreclosed upon, and19

the servicer must communicate to them whats going on at the20

time when a loan is in default.21

Q Okay. Id like you to refer to Exhibit 36, if you would?22

It purports to be a limited power of attorney?23

A Yes.24

Q Do you recognize --25


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Rush - Direct 21


THE COURT: Im sorry. Which exhibit?1

MR. PETTIBONE: Excuse me, Your Honor. Exhibit 36.2

THE COURT: All right. Okay.3

Q Do you recognize Exhibit 36?4

A Yes.5

Q Okay. What was the purpose of this document?6

A The power of attorney was a last ditch effort to try to7

get someone to -- at American Home to recognize my permission8

to speak on behalf of Mona Dobben and to try to stop -- at that9

time this was done for April 14th of 08, which was right after10

we found out at the last minute that a foreclosure was pending.11

Q Now, lets talk about that just briefly. How did you find12

out there was a foreclosure pending with regards to -- can I13

refer to it as the 37th Street property? Or --14

A Yes.15

Q Okay. How did you first find out about that?16

A I had advised Mona that she should file a mail forward17

from that address because we couldnt find out, you know, what18

was going on. And a mail forward came from that address to her19

address in Sun City, and that was the first time we saw the20

foreclosure notice.21

Q Lets just take a moment, as long as were on that22

subject. Okay. Id like you to look at Exhibit 26, please.23

And Ill identify it as a Notice of Trustee Sale. Do you24

recognize this document?25


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Rush - Direct 22


A Yes.1

Q Is this the document that you were just referring to?2

A Yes.3

Q And whose handwritten notation is that in the top right-4

hand corner?5

A Thats either Monas or Alexs. I dont know. One of6

them wrote that on there.7

Q And was this the first notice that you were aware of that8

there was a foreclosure pending on the 37th Street property?9

A Yes.10

Q Id like you to go back, then, to Exhibit 37.11

THE COURT: Im sorry. When did -- if I could back12

up, when did you first contact Wells Fargo as the master13

servicer?14

THE WITNESS: That was around that first letter that15

we were just -- I cant remember which exhibit that was.16

THE COURT: The response was March 6th, so it was on17

or about then?18

THE WITNESS: Yes.19

THE COURT: Okay.20

UNIDENTIFIED SPEAKER: Im sorry. I missed --21

THE WITNESS: It was the March --22

THE COURT: They just didnt hear it, so --23

THE WITNESS: Yes. It was the March 6th time frame,24

right before that.25


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Rush - Direct 23


Q Exhibit 37, what is this document?1

A This is information that I downloaded from the Securities2

and Exchange web site about this particular mortgage trust.3

Q Okay. And what did you find?4

THE COURT: Im sorry. What exhibit are we on again?5

MR. PETTIBONE: Im sorry, Judge. 37.6

THE COURT: Im trying to keep up. Okay.7

A I went on the SEC filings after I figured out which trust8

her loan was in, and I wanted to, you know, find out who the9

parties were that were possible contact points in reference to10

this loan, so this is the information that I downloaded as far11

as the parties to this securitized trust.12

Q Okay. Did you ever get -- or, you testified that you did13

get the lender loan file, correct?14

A Right. In --15

Q And that was after petitioning the Court?16

A That was October 30th of 2007.17

Q And after -- it was sent to Mona Dobben?18

A Yes, at her Sun City address.19

Q All right. And after Mona Dobben received the loan file,20

did she send it to you for review?21

A Yes.22

Q Okay. And did you review it?23

A Yes.24

Q Okay. Id like you to refer to Exhibit 17 if you would?25


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Rush - Direct 24


Do you recognize this document?1

A Yes.2

Q And what is it?3

A This is the document, the HUD-1 that Mona had when she4

sent me the first profile. This was a document that she had in5

the very beginning.6

Q And Id now like you to look at Exhibit 18.7

A Yes.8

Q Do you recognize Exhibit 18?9

A Yes.10

Q Okay. Did you compare Exhibit 17 -- where did you get11

Exhibit 18?12

A Exhibit 18 was part of the lender loan file that was sent13

out on October 30th, 2007.14

Q Did you compare the information between Exhibits 17 and15

18?16

A I did.17

Q Okay. And did you notice any discrepancies?18

A The discrepancy is that -- its not a discrepancy, but19

its -- things were added to this one that werent on her20

document.21

Q When you say they were added to this one, youre talking22

about they were added to Number 18?23

A Right. It was the sellers side of the transaction, which24

in California the purchaser does not see the sellers side of25


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Rush - Direct 25


the transaction, so its not that they did anything wrong in1

not putting that on there, but thats where all of the entries2

at the additional settlement charges that were added that were3

not there on her copies. She didnt see that there was a4

$44,000 purported note payable to Alex Ryan Yamamura5

Landscaping.6

Q And can you show where that is? Is that on 18B?7

A Yes. Thats Line 1305.8

Q And it says note payable to Alex Ryan Yamamura9

Landscaping?10

A Yes.11

Q And did you give any significance to that?12

A Yes, because I had already had conversations with them and13

there was no --14

THE COURT: With whom? Im sorry. You said them.15

THE WITNESS: With Mona Dobben and Alex.16

THE COURT: Okay.17

THE WITNESS: And there was no knowledge of --18

MR. CROWTHER: Objection. Calls for hearsay.19

THE COURT: Overruled, again, under the residual20

exception. Go ahead. There was no knowledge --21

THE WITNESS: There was no knowledge that any such22

transaction of that nature took place in reference to this23

loan.24

Q Okay. And any conversation that you had with Mona Dobben,25


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Rush - Direct 26


a claimant, a party to the case, did you ask her if that1

company existed?2

A Yes.3

Q Okay. And to your knowledge, or hers, did that company4

exist?5

A No.6

MR. CROWTHER: Objection. Calls for hearsay.7

THE COURT: Given the -- Im going to overrule it and8

just sort of prospectively, given the circumstances of this9

case, I really dont, and Ms. Rushs position as attorney-in-10

fact at least at some times in this case, I really dont view11

communications that Ms. Rush received from Ms. Yamamura or Mrs.12

Dobben to constitute hearsay. Im going to continue to13

overrule your objection. You can have a standing objection14

based on hearsay, but Im going to overrule them on the basis15

of the residual exception.16


THE COURT: At least the communications between --18

the statements of Mrs. Dobben and Ms. Yamamura.19

Q Was there anything else added to this Document 18 that you20

noticed that wasnt in 17?21

A It was primarily the sellers side of the transaction, and22

I think that was the only thing that was different on here.23

The -- you know, there was a natural hazard disclosure report24

and two wire fees to tighten escrow, but, you know, again,25


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Rush - Direct 27


those were charged to the seller, not to her, so, you know, Im1

not sure that theres anything wrong with them adding something2

like that. Im not sure.3

THE COURT: And the landscaping charges is charged to4

the seller?5

THE WITNESS: It is charged on the sellers side of6

the transaction.7


Q In Exhibit 18A, do you see up in the top box the9

settlement date of April 19th, 2007?10

A Yes.11

Q Okay. When you were reviewing the file did you find any12

significance with regards to that date?13

A I did.14

Q And what was that?15

A That the documents that were produced had a date -- well,16

they had a lot of different dates on them, but the settlement17

papers purported to be signed on April 17th of 2007, so I18

wondered how they could have a HUD-1 that was produced on the19

19th for a settlement that took place on the 17th.20

Q Id like you to refer to Exhibit 19, please. Can you21

identify this document?22

A Yes.23

Q And where did this document come from?24

A This came from the lender loan file that was delivered on25


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October 30th of 07.1

Q Did you review this document when you received it from Ms.2

Dobben?3

A Yes.4

Q Okay. Did you identify any issues with regards to this5

document?6

A Yes. This one had a date on it of 4/10/07, and was7

purported to be the final Truth in Lending, and the filing8

reporting fee was listed at two fifty when the HUD-1 said 87.9

And it was dated 4/17/09.10

THE COURT: Im sorry. It was --11

THE WITNESS: It was dated --12

THE COURT: Its dated 4/10, but the signature of Ms.13

Dobben is 4/17?14

THE WITNESS: Correct.15

THE COURT: All right. And it indicates the final?16

All right. Thank you.17

MR. PETTIBONE: Okay. Thank you.18

Q Id like you to look at Exhibit 22, please. Do you19

recognize this document?20

A Yes.21

Q And can you identify it?22

A This is a document, again, that came with the Lender Loan23

File on 10/30/07, and it is -- it looks like the Clear to Close24

Authorization from the underwriter, Randy Dostelick (phonetic),25


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Rush - Direct 29


and its signed by him on 3/29/07, and it has a statement that1

was written on it by -- it was on this document when we2

received it. It looks like his handwriting. I dont know.3

Pat, signing today.4

MR. CROWTHER: Objection, Your Honor. Move to5

strike. Competence.6

THE COURT: Hearsay and competence. Sustained.7

MR. PETTIBONE: Thank you.8

THE COURT: As to whose note it is.9


Q This note, Pat signing today, was on the document when you11

received it?12

A Yes.13

Q And the underlying person that worked with Mona Dobben was14

Pat Downey?15

A Correct.16

Q Is there anything else that you saw on this document of17

significance when you received it from Mona Dobben other than18

what youve already identified?19

A On Number 2 it says borrowers credit from sellers not to20

exceed three percent. And, you know, they listed it as a note21

payable. I dont know -- I honestly dont know what that22

purpose was for that.23

Q Lets take a look at 22B. Did this document come from the24

lender loan file?25


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Rush - Direct 30


A Yes.1

Q Can you identify what debtor entities are recipient of the2

fees?3

A American Home Mortgage Acceptance was the administrative4

origination fee. American Home Mortgage Acceptance was the5

prepaid interest. American Home Mortgage Acceptance was the6

wire fee. American Brokers Conduit was a tax service fee.7

And American Brokers Conduit was a flood hazard fee.8

THE COURT: Im sorry. I think I have the wrong9

exhibit. Which exhibit?10

MR. PETTIBONE: 22B, sir.11

THE COURT: Oh. Okay. I was in 23. So, just give12

me a moment.13

Q Could you identify where that is on 22B?14

A Its right at the top left corner.15

Q So --16

THE COURT: B as in boy?17


THE COURT: Okay. Ive got it. Thank you. Sorry.19

Q And so, the fee section headnote on the left as what you20

were just identifying?21

A Correct.22

Q And then the recipients, identified as vendor on the23

right, was what you just identified?24

A Yes.25


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Rush - Direct 31


Q And then you described the various entities in the record,1

correct?2

A Yes.3

Q Is there a broker fee on this document?4

A Yes. They put a broker premium. It says by lender,5

6,307.88.6

Q Where do you -- and can you identify where that is?7

A Thats in the -- sort of to the middle bottom, on the left8

hand side of the document.9

Q Okay. Lets go to 22C, please. Do you see this document?10

A Yes.11

Q Can you identify it for the record?12

A This is the same document, but theres differences in this13

document.14

Q What are the differences?15

A This document has a wire date of 4/5/07, whereas 22B, its16

blank where theres a wire date. And this one the broker17

premium is different. Its 5,807.25. And other than that I18

think the fees were the same to the same parties. There is a19

difference between the prepaid interest. This document has20

three forty-three forty eight, nineteen days. So, that would21

have been a closing that was going to take place at a different22

time of the month. This first one has a daily prepaid interest23

of two thirty five oh two, thats 22B, and that says thirteen24

days of interest. So, these were from two different25


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Rush - Direct 32


transactions, different dated transactions.1

Q Is that the significance of that prepaid interest being2

different on these two documents?3

A Correct.4

Q Is there anything else different --5

THE COURT: Im sorry. Is -- Im having a little6

trouble reading it -- well, looking -- I understand the total7

prepaid interest is different. Is the daily rate different?8

THE WITNESS: Yes. Its right under it. It says9

daily breakdown. Its really small. 19 days on 22C, and 1310

days on 22B.11

THE COURT: Right. But its eighteen oh eight a day12

on both documents as I read it. Is that correct?13

THE WITNESS: What are you saying?14

THE COURT: It says -- the number of days are15

different, but the daily rate is the same, eighteen oh eight?16


THE COURT: Okay.18

Q Where did the 22B come from?19

A 22B came from the lender loan file.20

Q Okay. And which document was the one Mona Dobben had21

given to you when she first sent you her file?22

A Its 22C.23

THE COURT: All right. So, Ms. Dobben gave you 22C24

and 22B came from the loan file?25


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Rush - Direct 33



Q Did you identify everything that was different that you2

noticed the difference between these documents?3

A I think so.4

Q Can you look at Exhibit 25, please? 25A?5

A Yes.6

Q Can you identify this document?7

A Yes.8

Q What is it?9

A These were the servicing records which were sent with the10

loan file October 30th of 07.11

Q And do you know whose handwriting that it that said12

refused all calls?13

A Yes. Thats my handwriting.14

Q Okay. And why did you write that on Exhibit 25A?15

A I have a habit, a bad habit of just writing whatever I am16

thinking at the time on documents, which you will see17

throughout this -- these documents. I was just frustrated, and18

that day I wrote this on this.19

Q So, when the document came to you it didnt have refused20

all calls on it?21

A No.22

Q Okay. And what do you understand Exhibit 25A to show?23

A Well, they obviously were calling her after we had asked24

them not to. We had asked, obviously, before previous to this25


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Rush - Direct 34


time to call me on her behalf, and they were obviously1

generating calls out of the servicing unit to her phone number.2

Q These are the collection calls?3

A Correct.4

Q On the loan?5

A Collections. Right.6

MR. CROWTHER: Objection. Theres nothing about7

collections on the -- about what the purpose of the calls were.8

THE COURT: I dont know what the -- well, I dont --9

agreed on the purpose. The document indicates its a10

collection history profile. But the purpose of the calls,11

again, is hearsay because we dont know. So, sustained to that12

extent.13

Q Do you know if Mona Dobben was receiving collection calls?14

A Yes.15

Q Okay. And were those collection calls -- how do you know16

that?17

A She was upset and we eventually got her a caller I.D. so18

that she could -- she was getting bombarded with calls from19

multiple lenders.20

MR. CROWTHER: Objection, Your Honor. Relevance.21

This is -- this -- they just introduced is an exhibit that22

identifies that she didnt answer any of the, quote, collection23

calls. Now shes testifying about other lenders making Ms.24

Dobben upset because she received calls from them. What the25


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Rush - Direct 35


relevance is to this case is beyond me. In addition, it seems1

contrary to the very evidence that he just introduced that,2

quote, refused all calls.3

THE COURT: Ill strike the evidence about receiving4

calls from other lenders on relevance grounds, but Ill allow5

the evidence that Ms. Dobben was upset about getting calls, and6

obviously that she eventually got a caller I.D. Ill accept7

that evidence.8


Q Do you know if any of the collection calls were from the10

-- American Home Mortgage loan to Mona Dobben?11

A Yes.12

Q Okay. And how do you know that?13

A She told me the -- she would tell me the phone numbers14

that the calls were coming from.15

Q Now, did Mona Dobben sign a release for you to speak with16

American Home?17

A Yes.18

Q Okay. Did we cover that?19

A Yes. That was nine -- the first release was 9/25/07.20

Q And did she send that, or did you?21

A She did.22

Q Okay. And have we introduced that document yet?23

A Yes.24

Q Okay. Sorry. Did you ever call American Home and attempt25


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Rush - Direct 36


-- how many times did you call American Home Mortgage and1

attempt to get them to contact you with regards to the2

foreclosure?3

A Many. I couldnt put a number on it. It would be dozens.4

Q Okay. I would like you to take a look at -- lets go back5

to 26 again, which is the foreclosure notice that we had6

previously identified, what, if anything, happened with regards7

to you and Mona Dobben after you received this Notice of8

Trustee Sale?9

A Well --10

THE COURT: Lay a -- if you lay a foundation on --11

since its dated October could you lay a foundation on where it12

came from?13


Q Where did this document come from?15

A This document was mail forwarded from the 37th Street16

property to her Sun City address, and she received it on17

4/11/08.18

THE COURT: Thank you.19

Q Okay. Did you make any -- did you call anybody as a20

result of this?21

A Yes. We tried to call TD Service, who was the foreclosure22

agent, and we did speak to Kimberly Coonrat (phonetic) at TD23

Service.24

Q Okay. And what did --25


37/163

Rush - Direct 37


A She told me that --1

MR. CROWTHER: Objection. Hearsay.2

THE COURT: Sustained. Wait a minute. Let me back3

up a minute on that ruling. When did the preliminary close on4

the servicing sale happen?5

MR. CROWTHER: November of 07. The final close was6

actually before April 11th of 08.7

THE COURT: Well, before the receipt of this letter8

in April?9

MR. CROWTHER: Yes. The actual final close took10

place before 10/08, so she received it on 4/11, the final close11

had already occurred.12

THE COURT: Well, I think its a little unclear as to13

whether TD Services could be considered an authorized agent of14

the debtor entities at this time, so under the statement15

against interest exception Ill allow, at least preliminarily,16

pending further decision, or, sorry, perhaps to strike, and17

Ill overrule the hearsay objection for now. So, you may18

answer the question. What did she tell you?19

THE WITNESS: Kimberly Coonrat informed us that she20

would call the debtor -- or, I dont know if it was the debtor21

at that time. Were confused about that. She would call22

American Home Mortgage Servicing and ask them if they had23

another address for Mona Dobben. And it was, again, we were24

calling every day to ask if there was any response and at the25


38/163

Rush - Direct 38


-- you know, when the response came a few days later, she said1

that she had been informed that they said they had no other2

address for Mona Dobben and they were going forward with the3

foreclosure.4

Q And they had the 37th Street address? Is that what they5

were telling you?6

A Correct.7

Q What is a securitized trust?8

A A securitized trust is they pull a large group of loans9

and they package them into a security where they then sell10

interest out of the trust to investors. And in some cases the11

originator will hold some securities, residual interests in the12

trust.13

Q Do you know whether or not Ms. Dobbens loan, the subject14

loan, was part of the securitized trust?15

A I did find her loan. I located it. Its listed in the16

securitized trust documents. They do not list it by her loan17

number. I frequently find in the trust that they list them one18

through 5,000, and you have to search by the loan level data19

points, and I found her loan, it was Number 1381 in this20

particular trust.21

Q Id like you to refer to Exhibit 1, please. Can you22


A Yes. This was the -- this came from the lender loan file,24

and this was the purchase contract for this 37th Street25


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Rush - Direct 39


property.1

Q Did you ever have any conversations with Ms. Dobben2

whether or not this was her signature on 1B?3

A Yes.4

Q And what did she say?5

A She said it was not.6

Q Id like you to refer to Exhibit 2, please. Oh, let me7

back up. Whats the date on this document?8

A There are some dates on this document that appear to have9

been changed. If you look at the February, and then the 27th,10

28, in the very beginning of the document, it appears somebody11

whited some date out and made a change, and put that date in.12

Q Id like you to refer to Exhibit 2, please. Could you13


A This is the uniform residential loan application.15

Q And did this come from the lender loan file?16

A Yes.17

Q Did you ever have any conversations with Ms. Dobben as to18

whether or not that was her signature?19

A Yes.20

Q And was it?21

A She told me it was not.22

Q Okay. Did you review this document?23

A Yes.24

Q Do you see in the lower left hand half of the document25


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Rush - Direct 40


where it says home phone number?1

A Yes.2

Q Do you know if that is, in fact, Ms. Dobbens home phone3

number?4

A Yes. Her home phone number was on these documents.5

Q Do you know whether or not Ms. Dobben ever received a call6

from anybody from American Home, or the underwriters with7

regards to this loan?8

A Not --9

MR. CROWTHER: Objection. Competence, Your Honor.10

She wasnt retained until long after the closing.11

THE WITNESS: Mona can answer that question.12

THE COURT: Yes. Sustained.13

Q Did you ever have a conversation with Ms. Dobben as to14

what her income was?15

A Yes.16

Q Okay. Id like you to refer to, if you would, the second17

page of Exhibit 2, where it says base income, $8,300. Do you18

see that?19

A Yes.20

Q Does Ms. Dobben have an income of $8,300?21

A No, she does not.22

Q Do you see up in the top left hand corner of Exhibit 223

where it says retired?24

A Yes.25


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Rush - Direct 41


Q Wasnt -- to your knowledge was Ms. Dobben retired?1

A Yes.2

THE COURT: Wheres the income on the document?3

MR. PETTIBONE: Im sorry, Your Honor. Its the4

second page.5

THE COURT: Ah.6

MR. PETTIBONE: It has a Bate stamp -- its American7

Home Mortgage Bate stamp 002.8

THE COURT: Exhibit 2?9


THE COURT: I only have one page. 2D? Is that what11

Im supposed to be -- oh, yes. 2D?12

MR. PETTIBONE: I want to make sure I -- Im at13

Exhibit 2, Your Honor, and in the bottom it has American Home14

Mortgage Bate stamped 001, the next page is 002, and 003. You15

dont have that?16

THE COURT: No.17


THE WITNESS: Do you want to give him --19

THE COURT: Not as that exhibit. Its the -- I have20

two pages, one appears to be a fax dated 4/4/07, and at least21

the fax line at the top, and the other appears to be one page,22

it looks like the first page of a uniform residential loan23

application.24

THE WITNESS: Do you want to give him my document?25


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Rush - Direct 42


MR. PETTIBONE: May I show these to counsel and1

submit these to Your Honor?2

THE COURT: Sure. You can show them to counsel.3

Well figure out whether I can -- I can get them after he has4

had a chance to look at them.5

(Pause)6

MR. PETTIBONE: Okay. There is a stipulation that7

this is what is in Exhibit 2 binder, and somehow it didnt make8

it to the Court. May I approach, Your Honor?9

THE COURT: Yes. Im going to replace this with what10

Ive just received, and put it in as Exhibit 2 in my binder,11

pursuant to the stipulation. All right. Were on Page 2? Is12

that right? Or three?13

MR. PETTIBONE: Two, Your Honor.14

THE COURT: All right. And -- income? 9,037?15


THE COURT: Okay. Got it.17

MR. PETTIBONE: And then, at the top, retired.18

THE COURT: Right. Okay.19

Q Now, in Exhibit 2 is a document, the next document, which20

has a Bate stamp, 005. Its another uniform residential loan21

application?22

MR. PETTIBONE: Do you have that one, Your Honor?23

THE COURT: Yes.24



43/163

Rush - Direct 43


MR. PETTIBONE: And since the witness gave you our1

other copy, may I approach the witness and show her?2

THE COURT: Yes.3


Q Okay. Im showing you a document marked as -- its5

Exhibit 2, but its beginning 0005. Do you see that?6

A Yes.7

Q Okay. Can you identify that document?8

A This is another uniform residential loan application.9

Q And when did you receive this document?10

A This also came from the lender loan file.11

Q And did you have a conversation with Ms. Dobben as to12

whether or not that was her signature?13

A Yes.14

Q Okay. And is it her signature?15

A No. She said it was not.16

Q Okay. In this document it says that Ms. Dobben had a17

face-to-face -- let me back up a little bit. On the18

residential loan application Bate stamped 00005, and then the19

next page, 06, do you see Bate stamp 06?20

A Yes.21

Q Okay. Do you see any income listed in the residential22

loan application?23

A No. On this application its blank.24

Q Do you Greg Clark?25


44/163

Rush - Direct 44


A No, I do not.1

Q In this document does it state that Mona Dobben had a2

face-to-face meeting with Greg Clark?3

A Yes.4

Q And did you have a conversation with Ms. Dobben about5

that?6

A Yes.7

Q Did she ever have a face-to-face meeting with--8

A She said she did not.9

Q Okay. And then, the prior document, Loan Application 00110

through 004, there was an indication that Ms. Dobben had a11

face-to-face meeting with Brianne Offerman (phonetic)?12

A Yes.13

Q Did you have a conversation with Ms. Dobben about that?14

A Yes.15

Q Did she ever have a face-to-face meeting?16

A She said she did not.17

Q Okay. Id like you to refer to Exhibit 4, please. Can18

you identify what this document is?19

A This was the appraisal for 37th Street property.20

Q And this came in the lender loan file?21

A This came in the lender loan file.22

Q And we only have the -- basically the face sheet and the23

second sheet in our exhibits, correct?24

A Correct.25


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Rush - Direct 45


Q And the date on the appraisal?1

A Is 3/6 of 2007.2

Q Okay. Id like you to refer to Exhibit 6 if you would?3

Ill identify it as a Verification Bureau. Do you see this4

document?5

A Yes.6

Q Did you have a conversation -- what is this document?7

A This is a verification -- supposed verification for fraud8

prevention and it was acting as an agent on behalf of American9

Brokers Conduit, it says. And its supposed to be her signing10

-- verifying that that is who she is, and this is her11

information, authorization for Social Security to release12

social security number verification to American Brokers13

Conduit.14

MR. PETTIBONE: Your Honor, in the interest of time,15

the next documents were going to be the same types of16

questions. Theyre basically Exhibits 7 through 16, and I was17

just going to have the same testimony, which I can do through18

Ms. Dobben, just to identify that those are not her signatures19

on those documents.20

THE COURT: All right. Well, it certainly would be21

preferable to have Ms. Dobben --22

MR. PETTIBONE: Yes.23

THE COURT: -- make those statements.24

MR. PETTIBONE: Okay. I have nothing further, Your25


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Rush - Cross 46


Honor.1

THE COURT: All right. Cross? And again, Mr.2

Pettibone, if youll move that mike -- it doesnt move much,3

but if you move the mike a little closer, you can remain seated4

during objections.5


CROSS EXAMINATION7

BY MR. CROWTHER:8

Q When did you first realize that Ms. Dobbens loan was9

securitized into a trust?10

A After I received, or she received the loan file and sent11

it to me that the lender sent out on 10/30/07, I spent hundreds12

of hours trying to figure out, because I couldnt get the13

answer. So, I ended up cross referencing a I.N.V. number that14

was on her servicing records with bank account records that15

American Home had submitted into this case, and by that process16

figured out where it was, and then I had to go on the SEC17

filings to actually find it, locate it, confirm that it was18

there.19

Q So, you knew at that point that American Home Mortgage20

accepted saying it was not the owner of the loan any longer,21

correct?22

A No, thats not true.23

Q You knew it was in a trust, correct?24

A I have reviewed several different chains of supposed title25


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Rush - Cross 47


of where the loan went. Theres one thats in the servicing1

records, theres a different one that the trust presents, and2

theres a different one on the foreclosure notice, so theres3

no -- just because something is supposed to be in a certain4

place doesnt mean that its there or that it was assigned5

properly to that particular place.6

Q So, you didnt verify whether or not, in fact, it was in7

the 2007-5 trust? Do I understand you correctly?8

A I verified it in the way that I found it listed on the SEC9

filing, but we have never been able to get documents that prove10

any chain of assignments that it actually went, and even the11

foreclosure notice does not have that particular chain of12

assignment on it. It doesnt say Deutsche Bank foreclosing for13

the certificate holders of AHMA 2007-5 trust, which under Reg.14

A-B violation is typically how a foreclosure is done if a loan15

is in a trust.16

Q Are you familiar with California law on foreclosures?17

A A little bit.18

Q Can you tell me what the procedure is for foreclosure in19

California?20

A They foreclosed under MEARS (phonetic), and it appears21

from the documents that we have, which arent complete, that22

the loan went --23

Q No. I asked you what the procedure is, not what the24

documents show. What is the procedure for foreclosure in25


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Rush - Cross 48


California?1

A The procedure? I dont understand what youre saying.2

Q I asked you if you were familiar with the procedure for3

foreclosure in California. You told me you were. I asked you4

to describe for us the procedure for foreclosure in California.5

A The procedure for foreclosure in California is non-6

judicial, as I understand it, and youre -- you know, youre7

able to substitute a trustee, and initiate a foreclosure on a8

note. And theres a time line, and theres certain required9

steps that they have to take for proper notice on foreclosures10

if its a non-judicial trustee sale. They have strict notice11

requirements on those kinds of sales.12

Q So, there was a trustee sale here; is that correct?13

A From what I can tell.14

Q Who was the trustee at the time of the sale?15

A TD Service was assigned the right of substitution trustee.16

Q Were any of the debtors a trustee in the sale?17

A It was assigned from -- I need the document. What number18

exhibit is that?19

THE COURT: If you dont know, you dont know.20

A 26.21

THE COURT: So, dont answer because you dont know.22

THE WITNESS: Well, I just -- I know what the23

document says. Thats all I can tell you, the document of24

substitution of trustee says that Robert Hardman, as vice25


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Rush - Cross 49


president for American Home Mortgage Servicing, Inc., signed1

for them to initiate the substitution of trustee to TD Service.2

Q So, at the time of the trustee sale TD Service Company was3

the trustee?4

A Yes.5

Q At the time you sent your November 13th, 07 letter, you6

already had the lender file, correct?7

A Correct.8

Q And from that lender file you had already ascertained that9

the loan was part of a securitized trust, correct?10

A No, thats not correct. It took me months to figure it11

out.12

Q The information that you needed to figure that out started13

with that loan file, didnt it?14

A Thats correct.15

Q And that was your starting point to get to the answer of16

where that loan was securitized, correct?17

A Correct.18

Q Did Ms. Dobben tell you that she signed mortgage documents19

on April 17th of 07?20

A She did not tell me she signed anything on the 17th. She21

told me that that would have been impossible because she was22

not available on the 17th.23

Q Did Ms. Dobben tell you that she hand wrote April 17th,24

07 on mortgage documents?25


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Rush - Cross 50


A She didnt -- we did not discuss that. Again, I saw it in1

your deposition. I dont think that she remembers exactly what2

day it was, but she has -- youre going to have to ask her,3

because she has since looked at her calendar and looked up the4

dates.5

Q Youre aware that she testified that the handwritten date6

on the mortgage documents is her own handwriting, arent you?7

A I only know what I saw in the depositions. I really think8

you need to ask her the questions about the dates.9

Q Do you know how settlements in California are performed?10

A They can be performed different ways.11

Q Do you know what an escrow is in California?12

A Yes.13

Q What is an escrow in California?14

A When somebody purchases a house it goes into escrow, and15

then it closes at a later date.16

Q Do you know if there is one date where a settlement17

occurs? Or can it occur over a period of time?18

A Im sure it can occur over a period of time.19

Q So, someone can sign mortgage documents on one day, but20

the settlement can actually happen on a different day, correct?21

A I dont know that to be the case. I cannot testify to22

that.23

Q Do you have any reason that that would not be the case?24

A I really would not want to give an opinion about what goes25


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Rush - Cross 51


on in California.1

Q So, youre not familiar with how escrows work in2

California, then?3

A Im familiar. Im not familiar -- Im not a settlement4

agent. I do not do settlements, so no, Im not going to give5

an opinion on that. No.6

Q Did you contact Wells Fargo as a master servicer under the7

trust itself?8

A Under the trust?9

Q Yes.10

A No. When I first contacted them it was as a general11

master servicer, just because I knew that they were master12

servicer. They had testified in this Court that they were a13

master servicer on quite a few of American Homes trusts.14

Q So, you knew that Wells Fargo was a master servicer of15

securitized mortgage trusts?16

A Correct.17

Q And you just took the gamble that they were, in fact, the18

master servicer under the 2007-5 trust?19

A I did.20

Q Did you choose to contact them because you thought they21

might be the servicer, the master servicer, under the trust22

that Ms. Dobbens mortgage was in?23

A Yes.24

MR. CROWTHER: No further questions.25


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Rush - Redirect 52


THE COURT: Redirect?1

MR. PETTIBONE: Just briefly, Your Honor.2

REDIRECT EXAMINATION3

BY MR. PETTIBONE:4

Q With regards to the questions that were asked regarding5

your verification of the chain of assignment --6

A Yes.7

Q -- do you recall that question? Now, if you look at8

Exhibit 26, do you have that in front of you?9

A Yes.10

Q Okay. It shows that the trustee was Gateway originally?11

A Yes.12

THE COURT: Where are you looking?13

MR. PETTIBONE: Oh, Im sorry, Your Honor. Im on14

Exhibit 26.15

Q And where does it show that Gateway was the trustee?16

A Gateway -- and the substitution of trustee, which is 26C,17

it says Gateway Title was the original trustee in the deed of18

trust.19

Q Okay. Then, from there, where does the chain of title go20

according to this document?21

A According to this document it was a MEARS, acting as22

nominee for American Home Mortgage Servicings.23

Q And then from there where does it go, the chain of title?24

THE COURT: Were going backwards, right? Were25


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Rush - Redirect 53


moving backwards?1


THE COURT: So, TD, and then Gateway, and then MEARS3

as agent for servicing. Right?4

MR. PETTIBONE: I think its --5

Q Is it Gateway to MEARS, to TD? Is that --6

A Yes. It was Gateway, and then to MEARS --7

THE COURT: Oh.8

A And then American Home Mortgage Servicing, Robert Harman,9

vice president, signed, I guess, as the vice president, or10

officer that can, you know, sign for MEARS foreclosures to TD11

Service.12

Q Now, when you received the loan file, did you receive the13

servicing records?14

A Yes.15

Q Can you identify those servicing records that you16

received? Maybe you can look at the exhibit list? I think it17

might be 24.18

A Yes.19

Q Now, what do the servicing records show the chain of20

assignment to be?21

A It showed, on 6/1/07, that the loan was funded on a22

warehouse line, which 011, and again, I cross referenced that23

with the bank accounts. And then it says it immediately went24

to 421, which on the bank account said was Countrywide Bank.25


54/163

Rush - Redirect 54


And then --1

THE COURT: Where are you? Im sorry.2

THE WITNESS: Its 24.3

MR. PETTIBONE: 24A?4

THE COURT: 24A.5

THE WITNESS: Do you see 011 and 421?6

THE COURT: No. All right. 4/6/07 the loan happens.7

All right. And then theres a couple other charges, and then8

4/30/07. Is that the transfer? 011?9

THE WITNESS: 011 is a warehouse line for American10

Home Mortgage on their warehouse accounts. And the 4/21, which11

is -- do you see where it says old investor pool, new investor12

pool?13

THE COURT: Yes.14

THE WITNESS: 421 is Countrywide Bank.15

THE COURT: Okay.16

THE WITNESS: And then the next page, it goes from,17

on 7/1/07, from 421 to 356, and again, 421 is Countrywide. 35618

was cross referenced to be the bank account for the AHMA 2007-519

trust.20

THE COURT: All right. So -- well, I dont -- kudos21

to you -- first of all, kudos to you for figuring this out.22

THE WITNESS: It took hundreds of hours, literally.23

THE COURT: All right. So, this indicates that the24

loan -- it looks -- well, I dont know when the loan was25


55/163

Rush - Redirect 55


funded, but on April 30th it goes from old investor pool, which1

you say is a warehouse line for the debtor, or one of the2

debtors, to a new investor pool, which was Countrywide?3


THE COURT: And then Countrywide sends it to --5

THE WITNESS: AHMA --6

THE COURT: -- to the trust?7

THE WITNESS: Right.8

THE COURT: Right. Okay. And this is the actual9

ownership of the loan?10

THE WITNESS: Right.11


THE WITNESS: And the next page has the 356 and 42113

account --14

THE COURT: Right.15

THE WITNESS: -- from one of the filings. And I16

dont have the page that has the warehouse lines. They were17

the first ones. And 11 was one of the warehouse lines which18

Im assuming at this point was acceptance, but we dont know.19

BY MR. PETTIBONE:20

Q Okay. So, the servicing records, does it show that the21

loan originated with the conduit?22

A It -- the loan records in total show that acceptance and23

American Brokers Conduit had a hand in the origination of the24

loan.25


56/163

Rush - Redirect 56


Q From there it goes to the warehouse line, correct?1

A Right.2

Q So, it goes from Conduit to accept -- in the servicing3

records its Conduit acceptance to the warehouse line, to4

Countrywide, to the American Home Mortgage trust savings C.D.?5

A Right.6

Q Okay. And then the foreclosure documents show that it7

went from Gateway, to MEARS, to trustee service, TD?8

A Right. And then theres another wrinkle which was9

produced in the debtors document, which was -- I think its10

either 62 or 65. Hold on.11

MR. CROWTHER: Your Honor, at this point Im going to12

object. Were going way beyond the scope of cross examination,13

and were getting way, way, way far afield.14

MR. PETTIBONE: He asked the --15

THE COURT: He asked about -- go ahead.16

MR. PETTIBONE: He asked if she verified the chain of17

title.18

THE COURT: Overruled. So, were looking at Document19

60? Is that right?20

MR. PETTIBONE: No, I think the document that shes21

looking for now is -- was produced -- I have a copy of it here22

-- by American Home Mortgage, Bate stamped 00229.23

MR. CROWTHER: What exhibit?24

THE COURT: Its not in the exhibit binder?25


57/163

Rush - Redirect 57


MR. PETTIBONE: No, sir.1


MR. PETTIBONE: So, I would offer it -- its not in3

their exhibit notebook. It was produced during discovery. Im4

not sure of the procedure, but I would ask that it be -- I5

could show it to Ms. --6

THE COURT: Yes. Go ahead.7

MR. CROWTHER: Can I see it?8


(Counsel confer)10

MR. PETTIBONE: Your Honor, may I make it -- identify11

it for Identification as Claimants 71?12

THE COURT: Yes.13


Q Im going to show you a document that purports to be a15

printout from American Home Mortgage --16

A Thats the one Im looking for.17

Q -- Bate stamped 00229, and this is the only copy we have18

right now.19

A Yes.20

Q Okay? Is that the document you were looking for?21

A Yes.22

Q Okay. And what does the document show?23

A This document says that the loan was assigned and sold to24

Countrywide Bank on 3/20/07.25


58/163

Rush - Redirect 58


MR. PETTIBONE: May I show that -- submit that to the1

Court?2

THE COURT: Let me look at it.3

(Pause)4

THE COURT: All right. You can take it back.5

MR. PETTIBONE: All right. I have no further6

questions, Your Honor.7

MR. CROWTHER: No more questions for the witness,8

Your Honor.9

THE COURT: All right. Thank you, Ms. Rush. You may10

step down. Who will be your next witness?11

MR. PETTIBONE: My next witness, then, will be Alex12

Yamamura.13

THE COURT: All right. Well take a recess, short14

recess, while you find Ms. Yamamura and prepare.15


(Recess)17

MR. PETTIBONE: Judge, Id like to call Alex18

Yamamura.19

THE COURT: All right. Take the stand and remain20

standing. I know its cold in here, but --21

(Laughter)22

UNIDENTIFIED SPEAKER: Its freezing.23

THE COURT: Its the way I like it.24

COURT OFFICER: Raise your right hand.25


59/163

Yamamura - Direct 59


ALEX YAMAMURA, PLAINTIFFS WITNESS, SWORN1

COURT OFFICER: Please state and spell your name for2

the record.3

MS. YAMAMURA: Alex Yamamura. A-l-e-x, Y-a-m-a-m-u-4

r-a.5

COURT OFFICER: Thank you.6

DIRECT EXAMINATION7

BY MR. PETTIBONE:8

Q Good morning. Your relationship with Mona Dobben is9

youre her daughter?10

A Correct.11

Q Okay.12

THE COURT: Im sorry, maam. Sit any way you want,13

but if you move the mike just a little -- just twist it over to14

your side, or move a little closer. There you go. Thank you.15

Perfect.16

Q Did you introduce your mother to Pat Downey?17

A Yes.18

Q Okay. And who is Pat Downey?19

A Hes a business acquaintance of mine.20

Q Okay. And how long had you known him before you21

introduced him to your mother?22

A I have known him between seven and ten years, but there23

was a period of time when I had no contact with Pat at all. I24

had reconnected with him less than 12 months before I believe I25


60/163



introduced my mom to him.1

Q When you say business acquaintance, maybe -- can you just2

say what that -- what is that?3

A Sure. Pat was interested in my projects through4

production.5

Q And thats what you do, right? You -- can you describe6

what you do --7

A Sure.8

Q -- regarding the films and the production, I mean.9

A Sure.10

Q I create projects for motion picture development, ultra11

low budget. You know, I work with the writers. I have a12

production attorney that works with me.13

Q And why did you introduce Pat Downey to your mother?14

A Oh. I had had a premiere on my first ultra low budget15

project. The premiere was at Manns Chinese Theater. Anyone16

who is a Screen Actors Guild member, which Pat Downey is, is17

entitled to show up at any of my sets. Theyre permitted to18

eat. I have no control over what a Screen Actors Guild member19

would do. Pat happened to be a the premiere. Most of the20

people that I work with dont know anything, or very little21

about me personally, and everyone was real curious. I had22

invited my mom.23

Q Okay. So, your mom was invited. And why did you24

introduce Pat Downey to her, though?25


61/163



A He just happened to be there. People were coming up in1

groups, trying to find out who the pretty lady was standing2

beside me.3

Q Okay. Did the idea of real estate investing come up at4

any time?5

A No.6

Q Okay. When did that first come up?7

A Oh, that was months and months after the premiere.8

Q Okay. And how did that come up?9

A Pat Downey had called me on the phone. He said that he10

had a deal that he had been putting together, and it was11

blowing up. He told me that he was looking for new people to12

hold his transaction together and asked if I knew of anybody13

who might be interested in investing.14

Q Okay. Is that -- are we talking real estate?15

A Real estate. Yes.16

Q Okay. And what did you say to him?17

A I said it was possible. I mean, I didnt know. And I18

gave him a -- ran through a list of potential people.19

Q Okay. And in those potential people was your mother?20

A Yes.21

Q Okay. Do you know what your -- at that time -- do we have22

a time frame of when that was in relation to the purchase of23

the 37th Street -- or, alleged purchase?24

A Is your question from the time that he had called and said25


62/163



he was looking for investors for real estate?1

Q Do we know when that date was?2

A I dont know the exact date.3

Q Can you estimate it?4

A It was -- I apologize. Im trying to think back. The5

premiere took place in 2006, and --6

Q Thats fine. So, some time between 2006 you gave your7

moms name to Pat Downey, along with other names?8

A Correct.9

Q Okay. And do you know, at that time that he contacted10

you, what your mothers financial situation was?11

A No.12

Q You knew that she was retired?13

A Yes.14

Q Did you know how much money that she had in retirement, or15

savings?16

A No. I had no idea.17

Q Okay. Did you ask your mom -- did you tell your mom that18

you had told Pat Downey that you had given -- let me say that19

-- did your mom know that you had told Pat Downey -- given Pat20

Downey her name?21

A Yes.22

Q Okay. And did you tell your mom that she should be23

investing in real estate?24

A No.25


63/163



Q Did you know at the time that you introduced Pat Downey to1

your mom that he didnt have a brokers license?2

A No, I did not.3

Q Let me move forward. When did you first find that out?4

A That was on my own transaction, thats identity theft5

mortgage fraud. It was probably not until -- its a little6

confusing because things unfold, and they were very complex.7

They still are. I still dont know a lot. But it was through8

my own fraud investigator with my lender, that it was9

discovered. That was approximately May of 2007 that I10

discovered that he did not have a brokers license.11

Q That it had been revoked?12

A Yes.13

Q And that he had been convicted as a felon?14

A Yes. That is what I believe he was indicating, that Pats15

license had been taken under frauds and swindles.16

Q Okay. Did you know -- when did you first know that Pat17

Downey had contacted your mom?18

A I actually dont know. I mean, later to learn that, yes,19

they had been communication, but I dont now exactly when they20

actually conversed on the phone.21

Q Okay. When did you first learn that your mom had made an22

investment through Pat Downey? Was it after the loan -- after23

the investment had already been made?24

A Yes.25


64/163



Q And what were the circumstances under which you learned1

your mother had invested with Pat Downey?2

A Well, I was probably a little more acutely aware of some3

things, because I had my own problem that I had just4

discovered, and as it was starting to unfold. Mom had called5

and said there was something funny going on.6

Q Can you explain that more of what she told you?7

A That there were not mortgage payment coupons. That she8

had left a couple of messages for Pat. By that point in time I9

had already contacted another mortgage broker that I had known10

for years that had indicated to me that I had fraud in my11

transactions likely, and I had already made contact with my12

production attorney looking for a referral to an attorney to13

help me. So by the time mom was saying that there was14

something wrong, that things werent making sense, she didnt15

have mortgage payments, the concern was starting to kind of16

mimic some of the things that were in my own transaction.17

Q And was your transaction with Pat Downey?18

A Yes.19

Q So what, if anything, did you do after this -- you can20

strike that. How did you end up contacting Ms. Rush?21

A When mom sent me her loan packages, and there were a22

number of them, some that looked like they were successful23

transactions, some that looked like maybe something wasnt24

complete on them, I started contacting the FBI, the DAs25


65/163



Office. Id gone in to do research on what do you do if there1

is fraud, since it had been indicated by the other mortgage2

broker that I knew. I started following lists on what it was3

indicating what I should do on the Internet. So it was the4

FBI, the police department, the DA, the Attorney General. And5

by the time that my production attorney had made contact back6

with me with a referral to an attorney for us to talk with, I7

already had moms packages.8

I continued to follow with the Internet and had9

looked up my own lender, and I found a connection to Paula in10

regard to EMC Mortgage, and I sent her an e-mail note11

immediately and I got a response immediately.12

Q Okay. And prior to -- do you know when that was,13

approximately September 07, June?14

A October into September, general, yes, time frame. A lot15

was going on.16

Q Prior to contacting Ms. Rush, had you ever made or17

attempted to make any contact with any of the debtor entities,18

trustees, title companies, anything like that?19

A No.20

Q So you and your mother retained basically Ms. Rush to21

assist you with this?22

A Yes.23

Q And the other matter, your mother was involved in other24

properties through Pat Downey, correct?25


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A Correct.1

Q Four total, correct? Nine potential.2

MR. CROWTHER: Objection, Your Honor, leading the3

witness and relevance.4

THE COURT: Ive been waiting for that objection.5

Dont lead the witness.6

MR. PETTIBONE: Sorry, Your Honor.7

THE COURT: And whats the relevance of Mr. Downeys8

other deals?9

MR. PETTIBONE: Just background. Ill withdraw and10

move on, Your Honor. Thank you.11

THE COURT: All right, very good.12

Q What if anything then did you and Ms. Rush do with regards13

to discovering what had happened -- let me say this, contacting14

American Home Mortgage?15

A When I found Paula I had done up several sets of binders16

with the documents that I had and that my mom had. Had sent17

those off to Paula so she could take a look at what I was18

looking at. Paula indicated the first thing that I should do,19

if I hadnt already done it is put fraud alerts on our credit20

reports. And then Paula and I started digging. There were a21