The Law Offices of David J. Stern, P.A. Plaintiff, v. Chase Home Finance, LLC, Defendant

8/7/2019 The Law Offices of David J. Stern, P.A. Plaintiff, v. Chase Home Finance, LLC, Defendant

1/118

Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 1 of 118


2/118

TO: Carl Del VecchioJPMorgan Chase Bank, N.A.1 Chase Manhattan Plaza - 20th Floor, Legal DepartmentNew York, NY 10005

Service of ProcessTransmittal03/15/2011CT Log Number 518189654

RE: Process Served in FloridaFOR:Chase Home Finance LLC (Domestic State: DE)

ENCLOSED ARE COPIES OF LEGAL PROCESS RECEIVED BY THE STATUTORY AGENT OF THE ABOVE COMPANY AS FOLLOWS:

The Law Offices of David J. Stern, P.A., Pltf. vs. Chase Home Finance, LLC, Dft.Name discrepancy noted.Summons, Complaint, Cover Sheet, Exhibit(s)Miami-Dade County Circuit Court, FLCase # 11 -8033CA01 (23)Breach of Contract; Failure to pay P laintiff for the legal services provided toDefendant - Seeking $398,979.95C T Corporation System, Plantation, FLBy Process Server on 03/15/2011 at 13:20FloridaWithin 20 days after service, exclusive of the day of serviceJeffrey A. TewTew Cardenas LLPThe Four Seasons Tower1441 Brickell Avenue15th FloorMiami, FL 33131305-536-1112CT has retained the current log, Retain Date: 03/15/2011, Expected Purge Date:04/14/2011

TITLE OF ACTION:

DOCUMENT(S) SERVED:COURT/AGENCY:

NATURE OF ACTION:

ON WHOM PROCESS WAS SERVED:DATE AND HOUR OF SERVICE:JURISDICTION SERVED:APPEARANCE OR ANSWER DUE:ATTORNEY(S) / SENDER(S):

ACTION ITEMS:



3/118

IN THE CIRCUIT COURT OF THE 11 T H JUDICIAL CIRCUIT IN AND FORMIAMI-DADE COUNTY, FLORIDA

THE LAW OFFICES OF DAVID J. STERN, P.A.Plaintiffs,

CASE NO // gO6/Y-DIV .CHASE HOME FINANCE, LLC

Defendant. /SUMMONS

THE STATE OF FLORIDA:TO EACH SHERIFF OF THE STATE:

, 3 1 / 1 / n4 2 - r i / 4/4 s - i c s

YOU ARE COMMANDED to serve this summons and a copy of the Complaint in this action onDefendant:CT Corporation System1200 South Pine Island Road

Plantation, Florida 33324

Defendant is required to serve written defenses to the Complaint on Plaintiff's attorney:Matias R. D orta, Esq.Tew Cardenas LLP



4/118

IMPORTANT

If you are a person with a disability who needs any accommodation to participate in thisproceeding, you are entitled, at no cost to you, to the provision of certain assistance. Pleasecontact the Miami-Dade County Court's ADA Coordinator at Lawson E. Thomas CourthouseCenter, 175 N.W. 1st Ave., Suite 2702, Miami, FL 33128, telephone numbers (305) 349-7175for voice or (305) 349-7174 for TDD and 349-7355 for fax, within two working days of yourreceipt of this document. If you are hearing or voice impaired, please call 711 for the FloridaRelay Service."

IMPORTANTEUsted ha sido demandado legalmente. Tiene 20 dias, contados a partir del recibo de esta

notificacion, para contestar la demanda adjunta, por escrito, y presentarla ante este tribunal. Unallamada telefonica no lo protegera. Si usted desea que el tribunal considere su defensa, debepresentar su respuesta por escrito, incluyendo el numero del caso y los nombres de las partesinteresadas. Si usted no contesta la demanda a tiempo, pudiese perder el caso y podria serdespojado de sus ingresos y propiedades, o privado de sus derechos, sin previo aviso del tribunal.Existen otros requisitos legales. Si lo desea, puede usted consultar a un abogadoinmediatarnente. Si no conoce a un abogado, puede llamar a una de las oficinas de asistencialegal que aparecen en la guia telefonica.

Si desea responder a la demanda por su cuenta, al mismo tiempo en que presenta surespuesta ante el tribunal, debera usted enviar por correo o entregar una copia de su respuesta a lapersona denominada abajo como "Plaintiff/Plaintiffs Attorney" (Demandante o Abogado delDemandante).IMPORTANT



5/118

M IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAt CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA.

AND FOR MIAMI-DADE COUNTY, FLORIDA.IN THE COUNTY COURT INDIVISION 'CIVIL COVER SHEET

CASE NUMBER

//26e / 9 6 . )(dE3 CIVILDISTRICTSFAMILYOTHERPLA INTIF FTHE LAW OFFICES OF D AVID J.STERN, P.A. V S . D E F EN D A N TCHASE HOME FINANCE, LLC CLOCK INThe civil cover sheet and the information contained here does not replace the filing and service of pleadings or other papersas required by law. This form is required by the Clerk of Court for the purpose of reporting judicial workload data pursuant toFlorida Statute 25.075. See instructions and definitions on reverse of this form.TYPE OF CASE (If the case fits more than one type of case, select the most definitive category.) If the most descriptivelabel is a subcategory (is indented under a broader category), place an x in both the main category and subcategory boxes.

001 - Eminent DomainGovernanceTorts

TortIndemnificationDefect

Security

119- Other Real Property Actions $250,000 orBusinessMedicalOther professionalRegulationChallenge - Statute orChallenge - Proposed

12 003 - Contracts and Indebtedness more0, 10 - Auto Negligence III Professional Malpractice1 1 1 022 - Products Liability 094 - Malpractice -023 - Condom inium 095 - Malpractice -Negligence - Other 096 - M alpractice -097 - Business Other098 - Business 120 - Antitrust/Trade099 - Environmental/Toxin 121 - Business T ransactions100- Third Party 122- Co nstitutional 101 - Construction Ordinance 102- Mass Tor t 123- Co nstitutional103- Negligent amendment



6/118

COMPLEX BUSINESS COURTThis action is appropriate for assignm ent to Com plex Business Court as delineated and m andated by theAdministrative Order. Yes 0 No

REMEDIES SOUGHT (check all that apply):monetary;

o non-monetary declaratory or injunctive rel ief;O punitive

NUMBER OF CAUSES OF ACTION: [ 3](specify) Breach of contract, open account, accounts stated

IS THIS CASE A CLASS ACTION LAWSUIT?O Yes

No

HAS NOTICE OF ANY KNOWN RELATED CASE BEEN FILED?No

O Yes If "Yes", l ist all related cases by name, case number, and court.



7/118

IN THE CIRC UIT COURT OF THE 11thCIRCUIT, IN AND FOR MIAMI-DADECOUNTY, FLORID A

THE LAW OFFICES OF DAVID J. STERN, P.A.Plaintiff,

V .CHASE HOME FINANCE, LLC

Defendant

CASE NO.:

COMPLAINT

/ / - geei-e)THE ORIGINAL FILEDONMAR 1 4 2011

IN OFFICERThe Law Offices of David J. Stern, P.A. sues Chase Home Finance, LLC and alleges:

JURISDICTION AND VENUE1. This is an action of excess of $15,000, exclusive of attorney's fees, costs and

interest and within the jurisdiction of this cou rt.2. Plaintiff, The Law Offices of David J. Stern, PA. ("DJSPA"), is a Florida

corporation with its principal place of business in Plantation, Florida.3. Defendant, Chase Home Finance, LLC, ("Chase"), is a foreign limited liability



8/118

5. Venue is proper in Miami-Dade County because Defendant has an office inMiami-Dade County for the transaction of its customary business.

6. All conditions precedent to filing this action have been performed or haveoccurred.

COUNT IBREACH OF CONTRACT

7. DJSPA realleges paragraphs 1 through 6 as if fully set forth herein.8. In early 2006, Chase and DJSPA entered into a contract for DJSPA to provide

legal services to Chase. A copy of the contract is attached hereto as Exhibit A.9. Chase breached the contract by failing to pay DJSPA for the legal services it

provided to Chase.10. DJSPA was damaged by Chase's breach of contract.WHEREFORE, DJSPA demands judgment for damages against Chase, plus interest and

costs.COUNT II

OPEN ACCOUNT



9/118

14. Before the institution of this action, DJSPA and Chase had business transactionsbetween them and on February 25, 2011 agreed to the resulting balance.

15. DJSPA rendered a statement to Chase, a copy being attached hereto as Exhibit C,and Chase did not object to the statement.

16. Chase owes DJSPA $398,979.95 with interest since February 24, 2011 on theaccount.

WHEREFORE, DJSPA demands judgment for damages aga i n o Chase, plus interest andcosts.D A T E D :March 14, 2011

Respectfully submitted,TEW CARDENAS LLPCounsel for The L aw O ffices of David J.Stern, P.A .The Four Seasons Tower1441 Brickell Avenue, 15 t h FloorMiami, Florida 33131-3407Telephone: 305.536.1112Facsimile: 305.536.1116



10/118

Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 10 of118


11/118

Page 1 of 13

Schedule #1TO CHASE HOME FINANCE LLCATTORNEY/TRUSTEE AGREEMEN TChase Agreement No.?Th

This Schedule #1 (hereinafter called the "Schedule"), effective February 8, 2006, is a supplement to theAttorney/Trustee Agreement (hereinafter called the "Agreement") entered into by and between David J.Stern, P.A. and Chase Home Finance LLC dated February 8, 2006, and incorporates, by reference, allterms and conditions therein contained.This Schedule is subject to the conditions enumerated below. In the event of a conflict between the termsof this Schedule and the terms of the Agreement, the terms of this Schedule shall prevail. The Exhibit(g)to this Schedule, if any, shall be deemed to be a part hereof. In the event of any inconsistencies betweenthe terms of the body of this Schedule and the terms of the Exhibit(s) hereto, the terms of the body of-thisSchedule shall prevail. Capitalized terms not otherwise defined in this Schedule shall have the meaningset forth in the Agreement.Site Of PerformanceServices related to this Schedule shall be for Columbus, Ohio.Scope Of WorkARTICLE I - GENERAL1. Monthly status reports must be provided to our office. These reports should include our loan number,loan type, borrower name, property address, file status and comment section. The monthly status

reports must be provided in accordance with the Contact List CHF provides you from time to time.Your firm agrees to commit the necessary resources to technology advancement, as it becomesavailable to transmit the status reports to CHF electronically to avoid paper copy in the future.



12/118

Page 2 of 13

description of the work required and the estimated amount of time required to complete the work (theBudget). Management must approve the Budget in writing in advance of the work being performed.You are not permitted to bill a borrower separately for any other amount that is not approved inadvance by CHF, but in no event will you charge an amount (i) that is not authorized by theborrower's loan documents or (ii) that violates relevant law. The per hour charge, which may onlybe charged for litigated issues or upon CHF requested special projects, will be in accordance with theattached Exhibit B. Any charges in excess of the allowed rate or hourly billings must be approved byCHF in writing prior to billing. Bills in excess of the allowed rate or hourly billings not previouslyapproved by CHF will not be paid. Document retrieval fees will be reimbursed when it is necessaryto obtain documents from third parties (e.g., county or district clerks, county recorders, etc.) in orderto proceed with and/or complete the foreclosure and bankruptcy process timely. Costs for phone calls,postage, copying, courier and faxing will not be paid in addition to the allowable or hourly rate unlessapproved by CHF in writing prior to billing and payment.

2. BILLINGSA. A separate bill for all bankruptcy, replevin, and foreclosure matters for each loan number is to beprepared and remitted to CHF on the standardized billing format, a copy of which is attached hereto,as Exhibit A. All bills are to be sent separate from other correspondence or attachments notspecifically and solely relating to the bill for Services. Each bill must include a detail of the servicesrendered along with any outstanding amounts. Your firm understands that failure to comply with therequired format will result in nonpayment of, or delay in payment of, your bill.

All invoices must be remitted in accordance with the following:(i)For matters referred by Columbus, Ohio:

Chase Home Finance LLCATTN: Compliance Invoice ProcessingP.O. Box 342980Columbus, Ohio 43234-2980Fax: 614-422-7860



13/118

Page 3 of 13

filing a foreclosure action.D. All charges in a bill must be in compliance with HUD Mortgagee Letter 2001-19 ifapplicable. Expenses for telephone calls, express or certified mail, postage and copying, will notbe reimbursed except for charges incurred to perfect service or notify borrowers in compliancewith Applicable Law. If those charges are required under Applicable Law, please indicate so onyour invoices.

ARTICLE III - FORECLOSURES1. COMMENCING PROCEEDINGS

A. Adherence to all instructions contained in our transmittal letter is required. Copies of allpleadings must be sent to CH F and any other parties we may specify in our transmittal uponrequest by Off.

B. You must offer the borrower the option of pursuing alternatives to foreclosure through Chase'sHomeowner's Assistance Department. If a borrower requests a work out, the file should bereferred back to the foreclosure technician with recommendations that the file be referred toCHF's Homeowner's Assistance Department.

C. Upon receipt of a file from our office, you are obligated to review the file and notify CHFimmediately if you believe commencing a foreclosure is problematic. For instance, if you believeCHF may have committed a servicing error, which resulted in the borrower's default, you shouldnotify ClIF immediately as described in this Agreement. If commencing a foreclosure does notappear problematic, please send notification in accordance with Applicable Law to the debtoradvising that you are representing us and foreclosure proceedings are being initiated.

D . All foreclosures must be initiated within 30 days of receipt of the files for matters referred byColumbus, (i) unless Applicable Law prohibits you from doing so, in which case you agree toprovide substantiating documentation to CHF or (ii) CHF advises you to delay foreclosure as aresult of your notification of a problem in doing so .



14/118

Page 4 of 13

H.On all FHA loans:(i) For all matters referred by Columbus, your office must send the HUD occupancy lettersas required by HUD, except in states where the 70 to 90 day time frame falls before the

referral of foreclosure.

(ii) For all Columbus matters, evictions should begin immediately upon completion of theForeclosure sale on properties occupied at the time of sale. The eviction should beginwithout waiting for instruction after sale from CIT.

2. FORECLOSURE REINSTATEMENTS/PAYOFFSA. For all Bankruptcy Serviced in Columbus, we will direct all inquiries for reinstatements andpayoff fi gures to your office. You agree that prior to accepting payoff funds on behalf of CI-1F,

you will contact CHF immediately with regards to matters referred by Columbus or to the linestaff member handling the case. For matters referred by Columbus, all payoff funds on FHAloans must be received by the Columbus office the last day of the month or an additional month'spayment is due from the borrower. All payments received must be sent overnight mail to ouroffice within one business day of receipt to ensure prompt application within our office. Allinquiries for reinstatements and payoff figures will be directed to your office. You agree that,prior to accepting payoff funds on behalf of CHIP, you will contact CHF immediately (via theVoice Response Unit) with regard to matters referred by Columbus or direct line to the staffmember handling the case to get updated information. For matters referred by Columbus, allpayoff funds on FHA loans must be received in our office by the last day of the month or anadditional month's payment is due from the borrower. All payments received must be overnightmailed to our office within one business day of receipt to ensure prompt application within ouroffice. You may not charge a reinstatement fee on any foreclosure or bankruptcy actions. To theextent you receive a short payment, for either reinstatement or payoff, you should notify CHFimmediately to determine whether CIE is willing to accept such short payment.

B. Except as provided in B and C below, if you are requesting payoff or reinstatement figures, pleasee-mail your request to CHFfclpayreinQipmchase.com . Turnaround time for these requests is



15/118

Page 5 of 13

Loan NumberMortgagor NameProperty AddressInvestor (if applicable)Date Cancelled or Postponed and By WhomReason (if known)

"Cancelled Sale Reports" must be sent as follows:For matters referred by Columbus, Foreclosure Manager, 3415 Vision Drive, Columbus, Ohio43219.

Sale results must be sent via electronic mail to the proper foreclosure analyst on the date the sale occursso CIIF can properly notify investors, as necessary. Repeated non-compliance will result in CHF'spassing any investor/Agency fines on to your office.CHF''s prior approval must be obtained before postponing a foreclosure sale. An immediate telephone

call to our office is necessary if you believe a sale should be postponed. To the extent a borrowergives you a reasonable basis to believe that a loan has improperly been referred for foreclosuredue to a servicing defect, you should contact CHF immediately.1. It is your responsibility to escalate matters to the appropriate senior levels within CHT

management or to the Legal Department.2. All telephone calls need to be returned promptly whether they are from CHF personnel or the

borrower.3. You must immediately communicate any reinstatement attempts by the borrower and be very

responsive to the borrower.4. Bankruptcy and foreclosure bills should be billed in amounts and in accordance withAgency/Insurer Requirements and may only quote reinstatement and other reasonable


C 1 11 21039 PCH D 1 2 E d FLSD D k 03/25/2011 P 16 f


16/118

Chase Manhattan Mortgage Coritionpage 6 of 13Time and M aterials- Schedule4. ESCALATION PROCEDURESCHF is committed to providing a high level of service to expedite foreclosure matters. If you do notreceive requested information or documentation within the timeframes specified in this Agreement, or inorder to m eet applicable deadlines, you are required to escalate the m atter to the applicable departmentsupervisor and then to the applicable department manager. Y ou will be held accountable for performance ifyou fail to escalate matters to the appropriate CHF management.5. THE FOLLOWING INFORMATION RELATES TO FHA LOANS:A. All FHA foreclosures must be completed within the timeframes as required by the FHA

in accordance with all Applicable Law and Agency /Insurer Requirements. Y ou agree tosubmit documentation for exceeding these timeframes and to be liable for anycontrollable delays. A chronology letter is required on all foreclosure cases referred toyour office. This is to include any foreclosure, bankruptcy, and eviction proceedings.B. A title policy in the name of the Secretary of Housing and Urban D evelopment isrequired for all FHA loans within 30 days after the D eed to HUD is recorded. This should be sentimmediately to HUD with a copy to CMAX at the CMAX Address, and included with the title

package sent subsequent to conveyance.C. All FHA foreclosures must have property taxes paid prior to deed recordation. If you areaware that taxes are due, kindly notify our office to allow for CHF's pay ment of saidtaxes.6. THE FOLLOWING INFORMATION RELATES TO VA LOANS:A. Y ou agree to order the VA appraisal on behalf of CHF at least 60 day s, but no later than 90 days,(or at the earliest possible time before sale if the sale date is less than 60 days from the date ofreferral) before the sale date. VA appraisal bills should be sent directly to Com pliance InvoiceProcessing at CHF. This information should be reflected on y our monthly status report.


C 1 11 21039 PCH D t 1 2 E t d FLSD D k t 03/25/2011 P 17 f


17/118

Chaie Manhattan Mortgage Corpionpage 7 of 13Time and Materials- Schedule8. POST-SALEA. If FHA property is known to be occupied based on the occupancy status noted on the biddinginstructions at the time of the foreclosure sale and CHF is the successful bidder at the sale, eviction

proceedings are to begin immediately after the sale or upon expiration of the applicable redemptionperiod. No eviction shall be started until written instructions are received from CBE Prior approvalmust be obtained before postponing an eviction action.

B. You agree to deliver good marketable title, in accordance with applicable Agency/InsurerRequirements, under the law of the state in which the foreclosure was completed. Title searchesshould be completed to insure all property taxes and liens are paid prior to conveyance.

C. For matters referred by Columbus, your firm must submit title evidence and all other title approvalletters (27011A), directly to FHA or VA, with a copy to CMAX, attention Chase Home FinanceLLC Processor, at 12395 First American Way; Poway, CA 92064 ("CMAX Address"), or any CHFdesignated personnel. You will be responsible for any penalties incurred by CHF as a result ofthese documents not being forwarded to the appropriate Agency within the time required byAgency/Insurer Requirements, unless the applicable request for extension has been submittedwithin the proper timeframe.

D . Any outstanding property taxes and/or liens, up to a maximum of $1,000, that hinder the timelyconveyance of a property within the Agency/Insurer Requirements should be advanced by youaccording to the Agency/Insurer guidelines (FHA 2002-19). Reimbursement for these advancesmust be forwarded to the CHF Invoice Processing Department, accompanied by a completebreakdown of the taxes or liens paid, a copy of the invoice and the check used to pay these taxes orliens. Taxes or lien invoices greater than $1,000 should be forwarded to the appropriate post-Foreclosure analyst for immediate payment directly through CHF's Invoice ProcessingDepartments.

E. For matters referred by Columbus, you agree to file the appropriate extensions in accordance withapplicable Agency/Insurer Requirements. You will incur penalties to CHF as a result of the non-filing of these documents.


Case 1:11 cv 21039 PCH Document 1 2 Entered on FLSD Docket 03/25/2011 Page 18 of


18/118

Chase Manhattan MortgageCo orationpage 8 of 13Time and Materials- Scheduleyou may NOT charge a fee for collecting rent on behalf of CHF.9. LITIGAT ION

A. If an Answer contesting foreclosure is filed and/or discovery is sought, please notify us in writingwith the proposed billing structure attached as follows:For matters referred by Columbus: Default Resolution Manager, Phone: 614-422-3749, Fax: 614-422-2043.

B. If a Counterclaim, Adversary Action, or other filing for which a significant legal issue is raised(e.g., TILA, Fair Lending, RESPA, etc.) please fax a copy immediately as follows:Chief Litigation Counsel, Phone: 732-205-8882, Fax: 732-205-8838.

Please note that if new litigation is filed against CHF, you are not permitted to accept service on behalf ofCHF. However, if you are provided a courtesy copy of such litigation, you must immediately notify CHFlitigation counsel.10. DEFICIENCY JUDGM ENTSCHF, our investor or insurer will make decisions regarding seeking deficiency judgments.

ARTICLE V REPLEVINS1. Adherence to all instructions contained in our transmittal letter is required. Copies of all

pleadings must be sent to CHF and any other parties we may specify in our transmittal.

2. Upon receipt of a file from our office, you are obligated to review the file and notify CHFimmediately if you believe commencing a replevin is problematic. For instance, if you believeCHF may have committed a servicing error, which resulted in the borrower's default, you shouldnotify CHF immediately as described in this Agreement. If commencing a replevin does not appear


Case 1:11 cv 21039 PCH Document 1 2 Entered on FLSD Docket 03/25/2011 Page 19 of


19/118

Chase M anhattan Mortgage CowdriationTime and Materials- Schedulepage 9 of 137. Adherence to Applicable Law and applicable Agency /Insurer Requirements is mandatory inperforming Services hereunder and you agree to c omply with all Applicable Law and applicableAgency/Insurer Requirements. Any exceptions must be approved by CHF. In the event that an

extension is warranted, you ag ree to assist us in subm itting justification to an A gency/ Insurer orprocuring written Agency/ Insurer acknowledgment and acceptance of y our request.8. Y ou agree to contact our office immediately if y ou are advised that a home is vacant, damaged, orenvironmentally contam inated or if there is any other m aterial matter with regard to the hom e or theborrower. This information should also be reflected in y our monthly status report.9. It is y our responsibility to elevate matters to the appropriate senior levels within CHF management

or to the Legal D epartment.10. All telephone calls must be returned promptly whether they are from CHF personnel or theborrower.11. Y ou must immediately communicate any reinstatement attempts by the borrower and be veryresponsive to the borrower.12. All correspondence must include CHF's loan number, borrower name and address.

ARTICLE IV - BANKRUPTCIES1. GENERALA. Y ou must notify CH F via electronic means the day you receive notice of the commencement ofbankruptcy by a CHF borrower so as to enable CHF to comply w ith the automatic stay.

Instructions must be obtained from CHF's Banlatiptcy D epartment before your firm'srepresentation of CH F in a bankruptcy if it interrupts a foreclosure, unless your firm is alreadyhandling such foreclosure. For all Bankruptcies serviced in the Columbus servicing facility, pleasecall 1-800-332- 3412. Turnaround time for these requests will be within three business days. If y ou


Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 20 of


20/118

Chase Manhattan Mortgage Co oration page 10 of 13Time and Materials- Scheduleweeks from our request for these Services.

E.You must advise us in cases where you have identified that the debtor has filed bankruptcypreviously. In these cases we will discuss what our best options will be on a case-by-case basis soas to assist in preventing bankruptcy abuse. You must also advise us whenever you have reason tobelieve that a debtor has justifiably filed bankruptcy to delay a foreclosure that was imprudentlycommenced by CHF in any way related to a servicing defect.1. You must notify the Bankruptcy technician managing the account of any hearings scheduled

related to the account. You must also bring to the Bankruptcy specialist's attention anydisputed items or objections (i.e., payment disputes, objection to proof of claim, etc.). Ifspecialist has not provided needed information or documentation within ten (10) days, youmust immediately notify the Bankruptcy specialist's supervisor or manager to insure properattention is given to the matter. It is your responsibility to escalate matters as necessary to theappropriate senior levels within CHF management or to the Legal Department. If the matter isnot brought to the proper attention, any losses will be billed to your firm and could result insuspension of future referrals.

2. You must verify the Bankruptcy Proof of Claim figures provided and ensure compliance withApplicable Laws.

3. You must adequately protect CHF in all agreed orders or stipulations.4. On loans for which you are handling for the foreclosure and bankruptcy, we require you to

resume the foreclosure action immediately after relief from stay is granted or the bankruptcyhas been dismissed or discharged, unless the state has adopted a statutory holding period beforethe foreclosure process can resume. If the loan needs to be re-breached (due to acceptance ofpayments in the bankruptcy) you should notify the assigned Foreclosure Specialist.

5. Any debtor payments received by your firm should be immediately mailed to: Chase HomeFinance LLC, Attn: G-7 - PP, Bankruptcy Payment Processing, P. 0. Box 342010, Columbus,OH 43234-2010.




21/118

Chaie Manhattan Mortgage Coi6 ationpage 11 of 13Time and Materials- Schedulecourt.

D. For matters referred by Columbus, attendance at the 341 creditors meeting is required for allbankruptcy matters handled by your firm if necessary to protect CHF's interest. The 341-fact sheetmust be filled out and (sent via electronic mail) to us imme diately after the m eeting so as todetermine the feasibility of one of our w orkout alternatives. All schedules must be obtained for ourreview along with a copy of the plan for each case. The schedules should be reviewed prior tosending them to Chase w ith an opinion on whether we should object to the plan. If a w orkoutalternative may be possible, we may seek you r assistance in the handling of the matter.

E. Inform O ff immediately upon learning of a cramdown proceeding.3. CHAPTER 7 AND 11 BANKR UPTCIESA.For matters referred by Columbus, attendance at the 341 creditors meeting is REQUI RED ifnecessary to protect CH F's interests, and completed 341 fact sheets for all bankruptcy mattershandled by your firm is also required. The 341-fact sheet m ust be filled out and faxed to usimmediately after the m eeting so as to determine the feasibility of one of our w orkout alternatives.All schedules must be obtained for our review along with a copy of the plan for each case. If aworkout alternative ma y be possible, we m ay seek your assistance in the handling of the ma tter.

B. In Chapter 7 asset cases we will require that a Proof of Claim be timely filed byyour firm on our behalf. All Chapter 11 cases w ill also require a Proof of Claim tobe timely filed.C. If a Proof of Claim referral is sent, it should be filed on C hase's behalf regardlessof Chapter type. Proof of Claim must be filed within 30 days of request.

4. MOTIONS FOR RELIEFA. For matters referred by Columbus, all motions for relief must be filed within five business days

Case 1:11 cv 21039 PCH Document 1 2 Entered on FLSD Docket 03/25/2011 Page 21 of118



22/118

Chaie Manhattan Mortgage Corporationpage 12 of 13Time and Materials- Schedule #WInDepartment must be notified via Electronic mail. If your firm was handling the prior foreclosureaction, then your firm should restart the foreclosure proceedings immediately following the relief ofstay, dismissal or discharge, provided the mortgagor has not brought the loan contractually current.CHF is to be notified via e-mail or fax within 24 hours of the foreclosure being reinstated.

6. OBJECTION TO CONFIRMATIONAttorneys in states that fall under the jurisdiction of the 9th circuit (Alaska, Arizona, California, Guam,Hawaii, Idaho, Montana, Nevada, Oregon and Washington) will object to confirmation of any Chapter 13plan that does not contain language that negates the effect of the Peters decision. To the extent decisionssimilar to the Peters decision are reached in other circuits, then you must likewise object to confirmation ofany Chapter 13 plan that does not contain language that negates the effect of such decision. Failure toobject will result in your firm's being required to reimburse GEE for any damages, costs and expenses thatCHF suffers resulting therefrom.You must immediately inform CHF of any Chapter 13 plan that does not adequately protect CHF'sinterests, and object to such plan.7. BILLINGUpon completion of each service rendered in connection with the bankruptcy (i.e., proof of claim has beenfiled, motion for relief has been prepared, etc.), a bill must be submitted with supporting documentationunder separate cover to CHF as follows:For matters referred by Columbus: Chase Home Finance LLC, ATTN: Default Invoice Processing, 3415Vision Drive, Columbus, OH 43219.

ARTICLE VI- ALTERNATIVES TO FORECLOSUREA loan is classified as an Alternative to Foreclosure if one of the following occurs:1. A deed-in-lieu of foreclosure is approved by CHF

Case 1:11 cv 21039 PCH Document 1 2 Entered on FLSD Docket 03/25/2011 Page 22 of118



23/118

Chase Manhattan Mortgage Cocq .ationpage 13 of 13Time and Materials- ScheduleC. CHF must be notified of deed recordation on VA and Conventional loans by telephoneor electronic mail within one business day.D . A Title Policy in accordance with Agency/Insurer Requirements must be issued and received byCHF on all deeds-in-lieu within 30 days from deed recording on VA and Conventional loans and in

accordance with FHA requirements on FHA loans.

E. If CHF is in second lien position, you must obtain current payoff information and figures throughcompletion.2. LOAN MODIFICATIONIf we require a Loan Modification Agreement, our request letter will contain all applicable terms andconditions to be included in the Agreement.3. PARTIAL CLAIMSWithin one business day of receipt of the approved Partial Claim from CHF, you will e-mail a copy of thecover letter to the Recorder's Office to CHF's Post Sale Department.

g118

Page 1 of 13Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 24 of


24/118

Schedule #2TO CHASE HOME FINANCE LLCATTORNEY/TRUSTEE AGREEMENTChase Agreement No.

This Schedule #2 (hereinafter called the "Schedule"), effective February 8, 2006, is a supplement to theAttorney/Trustee Agreement (hereinafter called the "Agreement") entered into by and between David J.Stem, P.A. dated February 8, 2006, and incorporates, by reference, all terms and conditions thereincontained.This Schedule is subject to the conditions enumerated below. In the event of a conflict between the termsof this Schedule and the terms of the Agreement, the terms of this Schedule shall prevail. The Exhibit(s)to this Schedule, if any, shall be deemed to be a part hereof. In the event of any inconsistencies betweenthe terms of the body of this Schedule and the terms of the Exhibit(s) hereto, the terms of the body of thisSchedule shall prevail. Capitalized terms not otherwise defined in this Schedule shall have the meaningset forth in the Agreement.Site Of PerformanceServices related to this Schedule shall be for San Diego, California.Scope Of WorkARTICLE I - GENERAL1. For matters referred by San Diego, the attached Wired Funds Transfer Security Agreement must becompleted and returned to us with the executed Agreement (Exhibit D). CHF will then conduct a

one-time call back process to the individual(s) designated in the agreement in order to verify the wireinstructions provided. As part of your representation of CHF, there are instances when we arerequired to wire funds to you. Depending on the loan type, these instances often include bidding at a

g118



25/118

Page 2 of 13

ARTICLE II- REIRIBURSEIVIENT FOR SERVICES RENDERED1. FEES

A. All fees will be within applicable Agency/Insurer Requirements according to the type of file youare handling, irrespective of whether state law permits a greater fee. For subprime loans referred bySan Diego, the allowable fees are those designated by FNMA. If additional fees are necessary as theresult of required, non-routine work, you must provide a written request for additional fees with anappropriate detailed description of the work required and the estimated amount of time required tocomplete the work (the Budget). Management must approve the Budget in writing in advance of thework being performed. You are not permitted to bill a borrower separately for any other amount thatis not approved in advance by CHF, but in no event will you charge an amount (i) that is notauthorized by the borrower's loan documents or (ii) that violates relevant law. The per hour charge,which may only be charged for litigated issues or upon CHF requested special projects, will be inCarl.ol/1 dance with the attached Exhibit C. Any char ges in excess of the allowed rate or hourly billingsmust be approved by CIE in writing prior to billing. Bills in excess of the allowed rate or hourlybillings not previously approved by CHF will not be paid. Document retrieval fees will bereimbursed when it is necessary to obtain documents from third parties (e.g., county or district clerks,county recorders, etc.) in order to proceed with and/or complete the foreclosure and bankruptcyprocess timely. Costs for phone calls, postage, copying, courier and faxing will not be paid in additionto the allowable or hourly rate unless approved by CHF in writing prior to billing and payment. If afile is closed within two weeks of referral, you may bill only $250 plus your costs.B. Foreclosure/Replevin - To be sent to our office on an interim basis during the foreclosure/replevinprocess: (i) upon filing of the complaint; and (ii) immediately upon completion of sale or when theforeclosure/replevin action is interrupted by a bankruptcy, unless indicated differently on attachedSchedules. For subprime matters referred by San Diego, one-half of the allowable fee may be billedafter the filing of the complaint, and the remaining half may be billed immediately upon completionof the sale, or when the action is interrupted by bankruptcy or placed on hold by CHF.

2. BILLINGS

118

Page 3 of 13Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 26 of118


26/118

B. In the event that the firm has a properly submitted invoice which has not been satisfied by CHFwithin 60 days, the firm will send a copy of said invoice which has been stamped or labeled as a"copy" as follows:

For matters referred by San Diego,Chase Home Finance LLCATTN: Accounts Payable SupervisorP.O. Box 501830San Diego, California 92150-9011

C. For matters referred by Columbus, and San Diego monitoring fees will not be paid since allforeclosures and CHF personnel monitor bankruptcies. Notwithstanding, you must ensure that abankruptcy has not been filed prior to filing a foreclosure action.

D . All charges in a bill must be in compliance with HUD Mortgagee Letter 91-14 if applicable.Expenses for telephone calls, express or certified mail, postage and copying, will not bereimbursed except for charges incurred to perfect service or notify borrowers in compliance withApplicable Law. If those charges are required under Applicable Law, please indicate so on yourinvoices. For matters referred by San Diego, the following will not be reimbursed:Mileage/Parking, Referral Fees, Deed Preparation Fees, and Fees for Conversations with CHFEmployees.

ARTICLE Di - FORECLOSURES1. COMMENCING PROCEEDINGSA. Adherence to all instructions contained in our transmittal letter is required. Copies of allpleadings must be sent to CHF and any other parties we may specify in our transmittal uponrequest by CHF.

118



27/118

E. You agree to provide .a prompt response in providing property sales results and to provideverifications of recording information within one business day and then follow up via Lenstar tothe attention of the appropriate CHF employee.

F. Adherence to Applicable Law and applicable Agency/Insurer Requirements is mandatory inperforming Services hereunder and you agree to comply with all Applicable Law and applicableAgency/Insurer Requirements. Any exceptions must be approved by CHF in writing. In theevent that an extension of time is warranted in a particular matter, you agree to assist us insubmitting justification to an Agency/Insurer or procuring written Agency/Insureracknowledgment and acceptance of your request.

G. You agree to contact our office immediately if you are advised that a property is vacant, damagedor environmentally contaminated or if there is any other material matter with regard to theproperty or the borrower. This information should also be reflected on your monthly statusreport. For matters referred by San Diego, notification must be via Lenstar. CHF will process allinsurance claims.

2. FORECLOSURE REINSTATEMENTS/PAYOFFSA. For all Bankruptcy Serviced in San Diego, we will direct all inquiries for reinstatements andpayoff figures to your office. You agree that prior to accepting payoff funds on behalf of CHF,

you will contact CHF immediately with regards to matters referred by Columbus or to the linestaff member handling the case. All payoff funds on FHA loans must be received by theColumbus office the last day of the month or an additional month's payment is due from theborrower. All payments received must be sent overnight mail to our office within one businessday of receipt to ensure prompt application within our office. You agree that, prior to acceptingpayoff funds on behalf of CHF, you will contact CHF immediately (via the Voice Response Unit)with regard to matters referred by Columbus or direct line to the staff member handling the caseto get updated information. All payments received must be overnight mailed to our office withinone business day of receipt to ensure prompt application within our office. You may not charge areinstatement fee on any foreclosure or bankruptcy actions. To the extent you receive a short

118



28/118

3. FORECLOSURE SALESWithin the first five business days of each month, you must provide a "Cancelled Sale Report" which willreflect the sales that were cancelled during the prior month. This report must include the followinginformation:

Loan NumberMortgagor NameProperty AddressInvestor (if applicable)Date Cancelled or Postponed and By WhomReason (if known)

For subprime loans referred by San Diego, a Cancelled Sale Report is not required, but the cancelled salenotification is to be sent by Lenstar.CHF' s prior approval must be obtained before postponing a foreclosure sale. An immediate telephonecall to our office is necessary if you believe a sale should be postponed. To the extent a borrower givesyou a reasonable basis to believe that a loan has improperly been referred for foreclosure due to aservicing defect, you should contact CHF immediately.

1. It is your responsibility to escalate matters to the appropriate senior levels within CHFmanagement or to the Legal Department.2. All telephone calls need to be returned promptly whether they are from CHF personnel or

the borrower.3. You must immediately communicate any reinstatement attempts by the borrower and bevery responsive to the borrower.4. Bankruptcy and foreclosure bills should be billed in amounts and in accordance with

Agency/Insurer Requirements and may only quote reinstatement and other reasonable

118

Chase Home Finance LLCpage 6 of 13Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 29 of118


29/118

Time and Materials- Schedule gam

If you have not received bidding instructions within three days before the scheduled sale, please contact therelevant CHF personnel listed in the Contact List, provided from time to time.4. ESCALATION PROCEDURESCHF is committed to providing a high level of service to expedite foreclosure matters. If you do notreceive requested information or documentation within the timeframes specified in this Agreement, or inorder to meet applicable deadlines, you are required to escalate the matter to the applicable departmentsupervisor and then to the applicable department manager. You will be held accountable for performance ifyou fail to escalate matters to the appropriate CHF management.5. IRE FOLLOWING INFORMATION RELATES TO FHA LOANS:A. All FHA foreclosures must be completed within the timeframes as required by the FHA

in accordance with all Applicable Law and Agency/Insurer Requirements. You agree tosubmit documentation for exceeding these timeframes and to be liable for anycontrollable delays. A chronology letter is required on all foreclosure cases referred to

your office. This is to include any foreclosure, bankruptcy, and eviction proceedings.B. A title policy in the name of the Secretary of Housing and Urban Development isrequired for all FHA loans within 30 days after the Deed to HUD is recorded. This should be sent

immediately to HUD with a copy to CMAX at the CMAX Address.C. All FHA foreclosures must have property taxes paid prior to deed recordation. If you are

aware that taxes are due, kindly notify our office to allow for CHF's payment of saidtaxes.6. THE FOLLOWING INFORMATION RELATES TO VA LOANS:A. You agree to order the VA appraisal on behalf of CHF at least 60 days, but no later than 90 days,

118



30/118

Time and Materials- Schedule

8. POST-SALEA. If FHA property is known to be occupied based on the occupancy status noted on the bidding

instructions at the time of the foreclosure sale and CHF is the successful bidder at the sale, evictionproceedings are to begin immediately after the sale or upon expiration of the applicable redemptionperiod. You should not wait for instructions from CHF to begin this process.

B. You agree to deliver good marketable title, in accordance with applicable Agency/InsurerRequirements, under the law of the state in which the foreclosure was completed. Title searchesshould be completed to insure all property taxes and liens are paid prior to conveyance.

D . Any outstanding property taxes and/or liens, up to a maximum of $1,000, that hinder the timelyconveyance of a property within the Agency/Insurer Requirements should be advanced by you.Reimbursement for these advances must be forwarded to the CHF Invoice Processing Department,accompanied by a complete breakdown of the taxes or liens paid, a copy of the invoice and thecheck used to pay these taxes or liens. Taxes or lien invoices greater than $1,000 should beforwarded to the appropriate post-Foreclosure analyst for immediate payment directly throughCHF's Invoice Processing Departments. For subprime matters referred by San Diego, invoicesshould be forwarded to P.O. Box 501830, San Diego, CA 92150-9011.

E. You agree that all CHF documents relating to the foreclosure process, including invoices, should bemade readily available, without charge to CHF, throughout the post-foreclosure process and asneeded subsequent thereto. In accordance with applicable state and federal law, clear and legibleimaged documents will be accepted.

F. For matters referred by San Diego, your firm must present its final invoice prior to the time CHFmakes its referral of the final Agency/Insurer claim for reimbursement of these expenses. Failureto present your invoice prior to this time could require CHF to incur costs for filing a supplementalclaim, or could result in the Agency/Insurer failing to reimburse Chase Home Finance LLC. Youwill be responsible for all such costs and reimbursements.

G. You agree to record deeds on third party sales unless it violates the foreclosure procedures in your

118



31/118

Time and Materials- Schedule /MFor matters referred by San D iego: Foreclosure Manager, Phone 858- 618 -5093, Fax: 888- 371-3821.

B.If a Counterclaim, Adversary Action, or other filing for which a significant legal issue is raised(e.g., TELA, Fair Lending, RESPA, etc.) please fax a copy immediately as follows:Chief Litigation Counsel, Phone: 732-205-88 82, Fax: 732-205-8 838.

Please note that if new litigation is filed against CHF, you are not permitted to accept service on behalf ofCHF. However, if you are provided a courtesy copy of such litigation, you must immediately notify CHIPlitigation counsel.11. DEFICIENCY JUDGMENTSCHF, our investor or insurer w ill make decisions re garding seeking deficiency judgments. For mattersreferred by San D iego, you will take all necessary steps to ensure that CI-IF 's rights to deficiency balancesare protected in accordance w ith applicable state law.

ARTICLE IV REPLEVINS

1. Adherence to all instructions contained in our transmittal letter is required. Copies of allpleadings must be sent to CHIP and any other parties we may specify in our transmittal.2. Upon receipt of a file from our office, you are obligated to review the file and notify CH Fimmediately if y ou believe comm encing a replevin is problematic. For instance, if you believeCHF m ay have committed a servicing error, which resulted in the borrower's default, you shouldnotify CHF imm ediately as described in this Agreeme nt. If commencing a replevin does not appearproblematic, please send notification in accordance with Applicable Law to the debtor advising thatyou are representing us and replevin proceedings are being initiated.3. Y ou are required to verify the tax status on each referred account including obtaining informationon delinquent amounts owed and advise CHF of such status.

118



32/118

Time and Materials- Scheduleprocuring written Agency/Insurer acknowledgment and acceptance of your request.

8. You agree to contact our office immediately if you are advised that a home is vacant, damaged, orenvironmentally contaminated or if there is any other material matter with regard to the home or theborrower. This information should also be reflected in your monthly status report.

9. It is your responsibility to elevate matters to the appropriate senior levels within CHF managementor to the Legal Department.10. All telephone calls must be returned promptly whether they are from CHF personnel or the

borrower.11. You must immediately communicate any reinstatement attempts by the borrower and be very

responsive to the borrower.12. All correspondence must include CHF' s loan number, borrower name and address.

ARTICLE V - BANKRUPTCIES1. GENERALA. You must notify CHF via Lenstar the day you receive notice of the commencement of bankruptcy

by a CHF borrower so as to enable CHF to comply with the automatic stay. Instructions must beobtained from CHF's Bankruptcy Department before your firm's representation of CHF in abankruptcy if it interrupts a foreclosure, unless your firm is already handling such foreclosure. Forall Bankruptcies serviced in the San Diego servicing facility, please call 1-800-332-3412.Turnaround time for these requests will be within three business days. If you have a rush request,

. fax to (614) 422-5435 Attention: Bankruptcy Payoff/R.einstatement Department. Please include theChase Loan number. Please do not fax your request unless it is truly a rush request.

B. CHF's approval must be obtained before proceeding with bankruptcy Services including, but not

118



33/118

Time and Materials- Schedule1. You must notify the Bankruptcy technician managing the account of any hearings scheduled

related to the account. You must also bring to the Bankruptcy specialist's attention anydisputed items or objections (i.e., payment disputes, objection to proof of claim, etc.). Ifspecialist has not provided needed information or documentation within ten (10) days, youmust immediately notify the Bankruptcy specialist's supervisor or manager to insure properattention is given to the matter. It is your responsibility to escalate matters as necessary to theappropriate senior levels within CHF management or to the Legal Department. If the matter isnot brought to the proper attention, any losses will be billed to your firm and could result insuspension of future referrals.

2. You must verify the Bankruptcy Proof of Claim figures provided and ensure compliance withApplicable Laws.3. You must adequately protect CHF in all agreed orders or stipulations.4. On loans for which you are handling for the foreclosure and bankruptcy, werequire you to resume the foreclosure action immediately after relief from stay is granted or the

bankruptcy has been dismissed or discharged, unless the state has adopted a statutory holdingperiod before the foreclosure process can resume. If the loan needs to be re-breached (clue toacceptance of payments in the bankruptcy) you should notify the assigned ForeclosureSpecialist.

5. Any debtor payments received by your firm should be immediately mailed to:For matters referred by San Diego, request the information via Lenstar.

F.For matters referred by subprime San Diego, you will comply with the parameters in Exhibit G.2. CHAPTER 13 BANKRUPTCIESA. We do not require you to monitor post petition payments, but we will accept reports from your firm

if available. However, we do not expect to be charged monitoring fees. We will advise your firm

' Chase Home Finance LLCpage 11 of 13Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 34 of118


34/118

Time and Materials- Schedule atON3. CHAPTER 7 AND 11 BANKRU PTCIESA. If a workout alternative may be possible, we may seek your assistance in the handling of the matter.B. In Chapter 7 asset cases we will require that a Proof of Claim be timely filed by your firm on ourbehalf. All Chapter 11 cases will also require a Proof of Claim to be timely filed.C. If a Proof of Claim referral is sent, it should be filed on Chase's behalf regardless of Chapter type.Proof of Claim must be filed within 30 days of request.4. MOTIONS FOR RELIEFA. For matters referred by San Diego, all motions for relief must be filed within five business days

from the date the motion is requested.B. Under no circumstances should CHF's motion for relief be withdrawn after we have been charged

for it without written authorization from CHF.C. For consideration of a repayment agreement with a debtor, we will not entertain an agreement that

will exceed six months unless there are extenuating circumstances. CHF requires you, and youagree, to seek enforceable orders. Stipulated agreements should not be negotiated or approvedwithout CHF's prior consent.

5. TERM INATION OF AUTOM ATIC STAYA. All orders terminating the bankruptcy (i.e., orders for relief, dismissals, etc.) must be sent viaelectronic mail to our office the day they are received by your firm. For subprime (San Diego)

notification of the order is to take place via Lenstar.B. The day relief is granted or you are notified of a dismissal, discharge, etc., CHF's Bankruptcy

Department must be notified via Electronic mail. For subprime (San Diego,) notification of theorder is to take place via Lenstar. If your firm was handling the prior foreclosure action, then your



35/118

Time and Materials- Schedule

7. BILLINGUpon completion of each service rendered in connection with the bankruptcy (i.e., proof of claim has beenfiled, motion for relief has been prepared, etc.), a bill must be submitted with supporting documentationunder separate cover to CHF as follows:For matters referred by San Diego: Chase Home Finance LLC, P.O. Box 501830, San Diego, CA 92150-9011.ARTICLE VI- ALTERNATIVES TO FORECLOSUREA loan is classified as an Alternative to Foreclosure if one of the following occurs:

a. A deed-in-lieu of foreclosure is approved by CI-ITb. A loan modification is approved by CHFc. Another workout arrangement is approved by CHF

1. DEED-IN-LIEUA. All deeds-in-lieu of foreclosure require prior CHF authorization for acceptance and should not be

processed unless a good title in accordance with all applicable Agency/Insurer Requirements andApplicable Law is obtained. Preliminary title review results are to be communicated to CHF, viaelectronic means within 14 days of referral to your office.

B. When you determine that a title is clear in accordance with Applicable Law and Agency/InsurerRequirements, all deed-in-lieu documents should be sent to the appropriate parties for executionwithin three business days of the title examination. It is your responsibility to follow-up with theborrower and CHF for return of the executed documents.



36/118

Time and Materials- Schedule3. PARTIAL CLAIMSWithin one business day of receipt of the approved Partial Claim from CHF, you will e-mail a copy of thecover letter to the Recorder's Office to CHF's Post Sale Department.



37/118

Schedule #3TO CHASE HOME FINANCE LLCATTORNEY/TRUSTEE AGREEMEN TChase Agreement No. Teati,N

This Schedule #3 (hereinafter called the "Schedule"), effective February 8, 2006, is a supplement to theAttorney/Trustee Agreement (hereinafter called the "Agreement") entered into by and between David J.Stern, P.A. and Chase Home Finance LLC dated February 8, 2006, and incorporates, by reference, all termsand conditions therein contained.This Schedule is subject to the conditions enumerated below. In the event of a conflict between the termsof this Schedule and the terms of the A greement, the terms of this Schedule shall prevail. The Exhibit(s) tothis Schedule, if any, shall be deemed to be a part hereof. In the event of any inconsistencies between theterms of the body of this Schedule and the terms of the Exhibit(s) hereto, the terms of the body of thisSchedule shall prevail. Capitalized terms not otherwise defined in this Schedule shall have the meaning setforth in the Agreement.Site Of PerformanceServices related to this Schedule shall be for Milwaukee, Wisconsin.Scope Of Work

ARTICLE I - GENERAL1. The Attorney/Trustee is required to maintain current and accurate records for each individual loanhandled. These files shall be available to CHF or its authorized representatives for audit purposes at

any time. You agree upon reasonable notice to provide CHF or its authorized representatives full andcomplete access to Bank files, documents and other items, including but not limited to funds held byyou, with regard to the services to be performed here under ("Bank Documents"), at any time duringbusiness hours and to make available knowledgeable personnel for the purpose of responding to



38/118

3. Unless otherwise arranged in a subsequent writing, all funds necessary to meet the costs and expensesrequired in handling the foreclosure, bankruptcy or alternatives to foreclosure, etc., will be advanced bythe Attorney/Trustee. CH F will reimburse you in accordance with the billing procedures set forthherein in this Schedule.4. Weekly foreclosure status reports sent by CHF are to be returned completed within 7 days of receipt.D o not send status reports via fax transmission, but via e-m ail in an Excel or .txt format. The e-ma ilshould be sent to the designated address: [email protected] . D o not send thestatus report to individual Bank associates.5. Y ou agree that it is y our responsibility to maintain updated policies and procedures in accordance withall FNMA Standards and Applicable Law and that C HF is under no obligation to inform y ou ofchanges in FNMA Standards and/or A pplicable Law.6. All inquires or correspondence, in addition to checks, should be sent to the attention of the appropriatedepartment (e.g., Foreclosure or B ankruptcy). All incoming information must be identified by C M.'loan number, mortgagor name, property address and type of action such as foreclosure, bankruptcy, etc.A contact list that provides Retail Asset Management ("RA M") contact information (names bydepartment, e-mail addresses and phone numbers), will be provided to your firm with applicableupdates from time to time, and this list, or others provided, must be used for all escalation ma tters asoutlined below in this Schedule.ARTICLE II- REIMBURSEMEN T FOR SERVICES RENDERED1. FEESA. All fees shall be within applicable FNM A Standards. Y ou agree to provide loan status and accountinformation to us upon request and w ithout any charge. In addition, copying, postage, courier, faxing,long distance phone charges and other such ancillary expenses are all considered a cost of doingbusiness and will not be paid by CHF. If a dditional fees are nece ssary as the result of required, non-routine work, you must provide a w ritten request for additional fees with an appropriate detaileddescription of the work required and the estimated amount of time required to complete the work (the"Budget"). Management m ust approve the Budget in writing in advance of the work being performed.



39/118

3. BILLINGSA. Invoices must be submitted through the iClear web-based billing system in accordance with the

timeframes below:B. Standard Foreclosure - Invoices must be submitted no more than TWICE during the process: (i) upon

filing of the complaint or other first legal action; and (ii) within five (5) days of the completion of saleor when the foreclosure . action is interrupted by a bankruptcy. Sheriff costs / confirmation costs mustbe submitted within twenty-four (24) hours of receipt.

C. Bankruptcy Invoices must be submitted within ten (10) days of completion of each service renderedin connection with a bankruptcy (i.e., proof of claim has been filed, relief from the automatic stay hasbeen requested, etc.), a bill must be submitted. All bankruptcy actions undertaken are per our request.We will onlypayment for services that we have requested that your firm perform in writing.

D . Contested Foreclosures - Invoices must be submitted on a monthly basis in order to allow us the abilityto better monitor the case and settlement possibilities and in accordance with other areas of thisSchedule.

E. Reinstatement/Payoff - Invoices must be submitted when the funds are tendered to our office.F. Alternatives to Foreclosure - Invoices must be submitted upon completion of each service rendered, or,

if requested by CHF, within forty-eight (48) hours of CHF's request. If CHF requests that theforeclosure action be placed on hold pending the completion of a repayment agreement, you agree tosubmit your invoice within 48 hours of receiving the request.

G . NEVER SUBMIT DUPLICATE INVOICES! If follow up is necessary, an e-mail or letter is to besent to the appropriate department manager referencing the outstanding invoice, the amount, theFortracs account number, the invoice type, and the status of your firm's account. This should only bedone when a bill becomes sixty (60) days past due.

H. If your office receives funds on behalf of CHT (i.e., reinstatements, payoffs, etc.), Attorney/Trustee fees



40/118

K . The address to send "traditional" paper invoices is:Chase Home FinanceAccounts Payable Department111 E. Wisconsin Ave.Mail Code WI1-4030Milwaukee, WI 53202

Note that the automated electronic billing software system (once activated) must be used forsubmission of invoices in lieu of sending "traditional" invoices.

L. Any invoice submitted more than thirty (30) days outside the above referenced guidelines may besubject to a reduction in fees. Failure to submit invoices within sixty (60) days of the final action willresult in full non-payment of the invoice. Double or duplicate billing will result in a termination ofnew referrals.

M. If there exists a good faith dispute with regard to an item appearing on an invoice, CHF has the right towithhold such disputed amount while the parties attempt to resolve the dispute. CHF's withholding ofsuch payment shall not constitute a breach of this Schedule, nor shall it be grounds for the firm tosuspend its performance of services, so long as CHF pays on a timely basis those amounts that areundisputed and owing.

ARTICLE III - FORECLOSURES1. CONEVIENCING PROCEEDINGSA. Upon receipt of a file from our office, you are obligated to review the file and notify CHF immediately

if you believe commencing a foreclosure is problematic. For instance, if you believe CHF may havecommitted a servicing error, which resulted in the borrower's default, you should notify CHFimmediately as described in this Schedule. If commencing a foreclosure does not appear problematic,please send notification in accordance with Applicable Law to the debtor advising that you arerepresenting us and foreclosure proceedings are being initiated.

Pages of 12Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 41 of118


41/118

days or at the earliest possible date of receipt of the foreclosure referral. If a demand letter is required,all complaints must be filed within twenty-four (24) hours of the expiration of the demand.

E. You agree to provide the appropriate CHF employee(s) with prompt sales results and verifications ofrecording information within twenty-four (24) hours of the completed action or on the next businessday. If the foreclosure begins to run past the applicable FNMA timelines, your office agrees to providea chronology to CHF detailing the delays in the completion of the foreclosure. Failure to provide thiscould cause the firm to be liable for penalties/fees reduction.

F. Adherence to Applicable Law and FNMA Standards is mandatory in performing services hereunderand you agree to comply with all Applicable Law and FNMA Standards. Any exceptions to FNMAStandards must be approved in writing by CHF. In the event that the delay is due to a failure on thepart of the firm, the firm will be liable for penalties/fee reductions and any lost interest (calculated atthe contract rate of the specific loan account) associated with the delay.

G. You agree to contact our office immediately if you are advised that a property is vacant, damaged,environmentally contaminated or of any other material matter with regard to the property or the statusof the mortgagor. CHF will process all insurance claims unless otherwise noted.

2. FORECLOSURE REINSTATEMENTS/PAYOFFSA. All necessary information needed to quote reinstatements and payoff figures will be directed to youroffice even if CHF has requested you to place the action on hold pending the completion of a

forbearance plan. You agree that prior to accepting payoff funds on behalf of CHF, you will contactCHF immediately via the payoff/reinstatement e-mail addresses listed below. All reinstatements andpayoffs received by your office must be sent via overnight mail to our office within twenty-four (24)hours of receipt to insure prompt application within our office. Your fees should no t be taken out ofthe reinstatement or payoff proceeds. The full amount of the reinstatement or payoff must be remittedto CHF, and a subsequent bill must be submitted for all related fees and costs. You may not charge areinstatement fee on any foreclosure or bankruptcy actions. To the extent you receive a short payment,for either reinstatement or payoff, you should notify CHF immediately to determine whether CELF iswilling to accept such short payment.



42/118

3. FORECLOSURE SALESA. You must contact us at least five (5) business days prior to a foreclosure sale to obtain a bid.

1. It is your responsibility to escalate matters to the appropriate senior levels within Bank management.2. All telephone calls need to be returned promptly whether they are from Bank personnel or theborrower.3. You must immediately communicate any reinstatement attempts by the borrower and be very

responsive to the borrower4. You may not charge a reinstatement fee on any foreclosure or bankruptcy actions.5. You must provide a direct dial or extension number to CHF so that it may quickly reach you.6. All correspondence must include CHF loan number, borrower name and property address.7. If you have not received bidding instructions within three days before the scheduled sale, please

contact the relevant Bank personnel.

B. CBI's prior approval must be obtained before postponing a foreclosure sale. An immediate telephonecall to our office is necessary if you believe a sale should be postponed. To the extent a borrower givesyou a reasonable basis to believe that a loan has improperly been referred for foreclosure due to aservicing defect, you should contact CHF immediately. If a foreclosure sale is postponed without priorwritten approval of CHF and your firm has been given a bid, then your firm will be responsible for anyand all costs, fees and damages associated with setting and completing a new foreclosure sale as well asany additional interest that accrues on the loan, for the entire period of the delay. If your firm is madeaware of issues that would, in your opinion, not make it in CHF' s best interest to take title to theproperty and is unable to obtain prior authorization to postpone the sale, a detailed explanation must beprovided to CHF foreclosure manager and your firm will not be held liable for fees, costs and damagesassociated with the rescheduling of the sale unless the failure to obtain authorization was due to yourdelays.



43/118

4. ESCALATION PROCEDURES

CHF is committed to providing a high level of service to expedite foreclosure matters. If you do notreceive requested information or documentation within the timeframes specified in this Schedule, or inorder to meet applicable deadlines, you are required to escalate the matter to the applicable departmentsupervisor and then to the applicable department manager. You will be held accountable for performance ifyou fail to escalate matters to appropriate Bank management.5. CONVENTIONALAll foreclosures must be completed within the allowable timeframes and other Agency/InsurerRequirements and in accordance with all Applicable Law. You will be asked to submit documentation forexceeding the timeframes and will be held liable for controllable delays, except as otherwise stated herein.All private investor foreclosures will be completed in accordance with all Applicable Law and unlessotherwise instructed by CHF, will be processed in accordance with the Agency Requirements of FNMA.6. POST-SALEA. You agree to deliver good title, in accordance with applicable FNMA Standards and Applicable Law of

the location of the property. CHF retains the right to conduct all title work with our designated titlecompany. If CHF chooses to retain the services of a specific title company, your office will be notifiedat the time of referral. In such cases the specified title company will be retained throughout theforeclosure and REO processes.

B. Copies of the court stamped foreclosure deed with the correct vesting and/or the recorded originals ofthe foreclosure deed must be forwarded to our offices within 30 days of sale unless restricted byapplicable state and Federal laws (i.e. in the cases of some redemption laws, the foreclosure deedcannot be filed until the redemption period expires) at which time the certified copies and/or originalsare to be forwarded within thirty (30) days of expiration of such period.

C. If property is known to be occupied based on the occupancy status noted on the bidding instructions atthe time of the foreclosure sale and CHF is the successful bidder at the sale, eviction proceedings are to



44/118

indicate projected legal fees and your firm's preliminary status and projection for the outcome. CHF'sLegal Department will then provide the firm with instructions on how to proceed.

8. DEFICIENCY JUDGMENTSAll decisions regarding actions for deficiency judgments will be made solely by CHF with counselingfrom your firm. You are required to preserve our rights to pursue a deficiency in all applicablestates.

ARTICLE VI REPLEVINTSA. Adherence to all instructions contained in our transmittal letter is required. Copies of all

pleadings must be sent to CHF and any other parties we may specify in our transmittal.B. Upon receipt of a file from our office, you are obligated to review the file and notify CHF immediately

if you believe commencing a replevin is problematic. For instance, if you believe that CHI' may havecommitted a servicing error, which resulted in the borrower's default, you should notify CHFimmediately as described in this Schedule. If commencing a replevin does not appear problematic,please send notification in accordance with Applicable Law to the debtor advising that you arerepresenting us and thatreplevin proceedings are being initiated.

C. You are required to verify the tax status for each referred account including obtaining information ondelinquent amounts owed and advise CHF of such status.D . All replevins must be initiated within three (3) days of receipt of the files (i) unless Applicable Law

prohibits you from doing so, in which case you agree to provide substantiating documentation to CHFor (ii) CHF advises you to delay replevin as a result of your notification of a problem in doing so asdescribed in paragraph B above.

E. You are required to notify CHF immediately in writing upon receipt of the Writ.F. All writs are to be obtained within 90 (ninety) days of receipt of the file. If the Writ will not be

obtained within 90 days of receipt of the file, you are to advise CHF immediately and in writing of the



45/118

K . You must immediately communicate any reinstatement attempts by the borrower and be veryresponsive to the borrower.

L. All correspondence must include CHF loan number, borrower name and address.ARTICLE VII- BANKRUPTCIES:1. GENER AL:A. Instructions must be obtained from CHF's Bankruptcy Department before your firm's representation ofCIE in a bankruptcy, when the filing interrupts a foreclosure.B. CHF's approval must be obtained before proceeding with additional bankruptcy services including, but

not limited to, stipulations, amended claims, and plan objections. CHF must approve all breakdownsand amounts used in drafting any agreed/consent orders before submission to the debtor's attorney orthe court. If CHF approval is not obtained in accordance with the above, any additional fees or costsassociated with correction will be waived, and your firm will indemnify CHF for any correspondinglosses/damages.

C. Strict adherence to all instructions contained in our referral is required.

D . Copies of all completed services (i.e., proof of claims, motion for relief, consent orders, dismissals,discharges, etc.) must be immediately sent to our office.E. It will be necessary for your firm to advise CHF in cases where you have identified that the debtor has

filed bankruptcy previously. In these cases we will discuss what our best options will be on a case-by-case basis so as to assist in preventing bankruptcy abuse.

2. CHAPTER 13 BANK RU PTCIES:A. Monitoring of post-petition payments is not to be done by your firm, as this process is done solelywithin CHF's Bankruptcy Department. Therefore, we do not expect to be charged monitoring fees.

We will advise your firm if filing for appropriate relief is necessary.

.Page 10 of 12Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 46 of118


46/118

3. CHAPTER 7 BANKRUPTCIES:In Chapter 7 asset cases we may require that a Proof of Claim be filed by your firm on behalf of CHF.All legal fees incurred by your firm or a previous foreclosure or bankruptcy firm prior to the currentbankruptcy filing must be included in the Proof of Claim or provided to CHF. Names of previouscounsel will be included in the proof of claim referral if applicable. Notify CHF immediately of anyamended proof of claim figures.

4. MOTIONS FOR RELIEF:A. All motions for relief must be filed within 10 days from the date the motion is requested in writing byCHF.B. Under no circumstances should CBI's motion for relief be withdrawn after we have been charged for itwithout prior written authorization from CHF or under extenuating court circumstances. If the motion

is withdrawn without written consent from CHF then the cost of refiling the motion and any additionallosses will be billed to your firm and could result in suspension of future foreclosure and bankruptcyreferrals. CHF will not pay any invoice where the motion for relief was not filed prior to the date ofdischarge.

5. TERMINATION OF AUTOMATIC STAY:All orders terminating bankruptcy (i.e., orders for relief, dismissals, etc.) should be e-mailed or faxed toour office the day they are received by your firm. bankruptcy processor should also be notified by e-mail. If your firm was handling the prior foreclosure action then your firm should restart theforeclosure proceedings immediately following the relief of stay, dismissal or discharge, provided themortgagor has not brought the loan contractually current. CHF is to be notified via e-mail or fax withintwenty-four (24) hours of the foreclosure being reinitiated.

6. OBJECTION TO CONFIRMATION:Attorney/Trustees in states that fall under the jurisdiction of the 9th Circuit (Alaska, Arizona,



47/118

1. Deed-in-lieu of Foreclosure2. Loan Modification3. Stipulated Repayment Plans1. DEED-1N-LIEU:A. All Deed-in-Lieu of foreblosure require prior written Bank authorization for acceptance and should not

be processed unless clean title in accordance with all applicable FNMA Standards and Applicable Lawhas already been obtained. Preliminary title review results are to be communicated to CHF (via fax ore-mail) within 14 days of the Deed-in-Lieu referral to the Attorney/Trustee office. If CHF is in secondlien position, you must obtain current payoff information and figures through completion.

B. When the Attorney/Trustee determines that title is clear in accordance with Applicable Law and FNMAStandards, all Deed-in-Lieu documents should be sent to the appropriate parties for execution withinthree (3) business days of the completed title examination. It is your responsibility to follow up withthe Mortgagor and CIE (or any other parties) for return of the executed documents.

C. CHF must be notified of deed recordation by telephone or e-mail/fax within twenty-four (24) hours.D . A Title Policy in accordance with FNMA Standards must be issued and received by CBI on all Deed-

in-Lieu within thirty (30) days from date of the deed recording.2. LOAN MODIFICATION:

If we request a Loan Modification Agreement, our request letter will contain all applicable terms andconditions to be included in the Loan Modification Agreement unless your firm has made prior writtenarrangements to use its own modification agreements. A rough draft of the Agreement must bedelivered to CHF within 48 hours of the request from CHF. A final copy of the Agreement must bedelivered to the mortgagor within 48 hours of CHF's approval. CHF must be notified within 48 hoursof receipt of the executed Agreement.

3. STIPULATED REPAYMENT PLANS:



48/118

financial loss to CHF, CHF shall seek recovery of those financial losses from the firm.ARTICLE X - CONCLUSION:

CBF may terminate your services at any time without prior written notice. This Schedule and itscorresponding Agreement in no way constitute a guarantee of referrals or casework of any kind. Upontermination, you agree to properly execute substitution of counsel documents on pending matters and toimmediately forward all Bank Documents and the executed substitutions of counsel documents inaccordance with CBI's written instructions.

Chase Home Finance,LLCPage 1 of 11Agreement # CAIJ I 19 63-7Case 1:11-cv-21039-PCH Document 1-2 Entered on FLSD Docket 03/25/2011 Page 49 of118


49/118

CHASE HOME FINANCE LLCATTORNEY/TRUSTEE AGREEMENTFebruary 8, 2006

INTRODUCTIONChase Home Finance, LLC and JPMorgan Chase Bank, N.A. (individually and collectively"Chase", "we" or "us") may retain your law firm David J. Stern, P.A. ("Attorney/Trustee", "thefirm" or "you") to provide attorney/trustee services in connection with foreclosures,bankruptcies; replevin actions and alternatives to foreclosure on loans serviced by Chase as morespecifically set forth in this Agreement (the "Services"). By executing this Agreement whereindicated below, you agree that you will comply with the terms of this Agreement when handlingail such matters on behalf of Chase.Whenever used herein, the following words and phrases will have the following meaning:

a. Agency/Insurer: The Federal National Mortgage Association (Fannie Mae), theFederal Home Loan Mortgage Corporation (Freddie Mac), the Veteran'sAdministration (VA), the Federal Housing Administration (FHA) / U. S. Departmentof Housing and Urban Development (HUD), or the private mortgage insurance

Date post:	08-Apr-2018
Category:	Documents
Upload:	foreclosure-fraud
View:	217 times
Download:	0 times