Reyes v. Premier Home Funding, Inc. et al

Filing 74

STIPULATION AND ORDER To File Cross-Complaint re 70 Stipulation. Cross-Complaint to be filed as a separate docket entry by 1/15/2010. Signed by Judge James Ware on 1/12/2010. (ecg, COURT STAFF) (Filed on 1/12/2010)

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Frederick J. Hickman (#124406) [e-mail] Robert A. Bailey (#214688) [e-mail] ANGLIN, FLEWELLING, RASMUSSEN CAMPBELL & TRYTTEN LLP 199 S. Los Robles Avenue, Suite 600 Pasadena, California 91101-2459 Tel: [phone]; Fax: [phone] Attorneys for Defendants WORLD SAVINGS BANK, FSB renamed and now known as WACHOVIA MORTGAGE, FSB Annette D. Kirkham, Esq. [e-mail] Kim Pederson, Esq. [e-mail] James Zarhadka, Esq. [e-mail] FAIR HOUSING LAW PROJECT LAW FOUNDATION OF SILICON VALLEY 152 N. 3rd St., 3rd Floor San Jose, CA 95112 Tel: [phone]; Fax: [phone] Attorneys for Plaintiff BERNARDO REYES

UNIT ED

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UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA -- SAN JOSE DIVISION ) ) ) Plaintiff, ) ) v. ) ) PREMIER HOME FUNDING, INC., a ) California corporation; WORLD SAVINGS BANK, FSB; WACHOVIA BANK, N.A.; and ) ) JOEL MADERA CANDELARIO, ) ) Defendants. ) BERNARDO REYES, Case No. C08 04606 JW [Hon. James Ware, District Judge] STIPULATION FOR ORDER FOR LEAVE TO FILE CROSS-COMPLAINT BY WORLD SAVINGS BANK, FSB renamed and now known as WACHOVIA MORTGAGE, FSB AGAINST THIRD PARTY Trial Date: May 12, 2010

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CASE C08-4606 JW - STIPULATION FOR ORDER FOR LEAVE TO FILE CROSS COMPLAINT

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The parties hereby stipulate by and through their respective counsel as follows: 1. Defendants and Cross-complainants World Savings Bank, FSB renamed and now

known as Wachovia Mortgage, FSB may be given leave to file the proposed cross-complaint attached as Exhibit A.

Dated: October 28, 2009

ANGLIN, FLEWELLING, RASMUSSEN CAMPBELL & TRYTTEN LLP By: /s/ Frederick J. Hickman Frederick J. Hickman [e-mail] Attorneys for Defendants and Cross-Complainants World Savings Bank, FSB renamed and now known as Wachovia Mortgage, FSB

Dated: October 28, 2009

FAIR HOUSING PROJECT LAW FOUNDATION OF SILICON VALLEY

By:

/s/ Annette D. Kirkham Annette D. Kirkham [e-mail] Attorneys for Plaintiff and Cross-defendant BERNARDO REYES

ATTESTATION PURSUANT TO GENERAL ORDER 45 I, Frederick J. Hickman, attest that concurrence in the filing of this document has been obtained from each of the signatories. I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on October 28, 2009, at Pasadena, California. ______/s/___Fred Hickman _________________ Frederick J. Hickman

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CASE C08-4606 JW - STIPULATION FOR ORDER FOR LEAVE TO FILE CROSS COMPLAINT

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ORDER For good cause shown by the parties' Joint Stipulation for Leave to File Cross-Complaint, IT IS ORDERED THAT: World Savings Bank, FSB renamed and now known as Wachovia Mortgage, FSB have leave to file the cross-complaint attached as Exhibit A. The Cross-complaint shall be is deemed filed as
a separate docket Jointon or before January 15, 2010. of the date the entry Stipulation for Leave to File

Cross-complaint was filed.

Dated:

January 12, 2010

United States District Judge

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CASE C08-4606 JW - STIPULATION FOR ORDER FOR LEAVE TO FILE CROSS COMPLAINT

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Frederick J. Hickman (#124406) [e-mail] Robert A. Bailey (#214688) [e-mail] ANGLIN, FLEWELLING, RASMUSSEN CAMPBELL & TRYTTEN LLP 199 S. Los Robles Avenue, Suite 600 Pasadena, California 91101-2459 Tel: [phone]; Fax: [phone] Attorneys for Defendants WORLD SAVINGS BANK, FSB renamed and now known as WACHOVIA MORTGAGE, FSB

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA -- SAN JOSE DIVISION BERNARDO REYES, ) ) Plaintiff, ) ) v. ) ) PREMIER HOME FUNDING, INC., a ) California corporation; WORLD SAVINGS ) BANK, FSB; WACHOVIA BANK, N.A.; and ) JOEL MADERA CANDELARIO, ) ) Defendants. ) ) ) ) WACHOVIA MORTGAGE, FSB; ) Cross-claimant, ) ) v. ) ) THE ESCROW FORUM, a California ) corporation, ) Cross-defendant. ) /// /// ///
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Case No. C08 04606 JW [Hon. James Ware, District Judge] CROSS- CLAIM BY WACHOVIA MORTGAGE, FSB AGAINST THE ESCROW FORUM, a California corporation, FOR: 1. 2. IMPLIED CONTRACTUAL INDEMNITY; EQUITABLE INDEMNITY

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CASE C08-4606 JW ­ CROSS-CLAIM BY WACHOVIA MORTGAGE, FSB AGAINST THE ESCROW FORUM

Exhibit A to Stipulation - Page 4

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1

The parties hereby stipulate by and through their respective counsel as follows: Defendant and Cross-claimant Wachovia Mortgage, FSB ("Cross-claimant") alleges as follows: 1. This court has supplemental jurisdiction pursuant to 28 USC §1367 (a), which

allows the court to adjudicate state law claims that are transactionally related to the federal claim under the Truth in Lending Act alleged by Bernardo Reyes ("Reyes") in his complaint. This includes claims against any properly-joined new parties. Id. As alleged below, this cross-claim is transactionally related to Reyes' federal claim. 2. Cross-claimant Wachovia Mortgage, FSB is and at all pertinent times has been a

federal savings association organized and existing under the federal Home Owners Loan Act, 12 U.S.C. § 1461 et seq. and regulated by the Office of Thrift Supervision, Department of the Treasury. Prior to January 1, 2008, Wachovia Mortgage, FSB was known as "World Savings Bank, FSB." Effective as of December 31, 2007, World Savings Bank, FSB changed its name to Wachovia Mortgage, FSB. Hereafter, for ease of reference Wachovia Mortgage, FSB, formerly known as World Savings Bank, FSB, will be referred to as "Wachovia" or Crossclaimant. 3. Wachovia made a loan ("Loan") on or about October 5, 2007 to Reyes. The

Loan was secured by a deed of trust in first priority against by Reyes' residence, commonly known as 14030 Aldo Ct., San Jose, California 95127 (hereinafter, the "Security").1 4. Cross-defendant, The Escrow Forum, is a California corporation that acted as

Wachovia's closing agent for the Loan., pursuant to written instructions. Cross-complainant is informed and believes and thereon alleges that cross-defendant's agent or employee, Paul Sepulveda, was the escrow officer principally responsible for the management of Crossdefendant's conduct in executing Wachovia's instructions for consummation of the Loan on its While the cross-claim relates to a loan secured by California real property, this suit does not seek to enforce the Loan, but rather to preserve all rights and interests related to the Loan and its Security. Accordingly, by this action and any claims made herein, Cross-claimants do not intend to waive or compromise the Security for the Loan or the full obligation of the Loan itself in any respect, or to violate the anti-deficiency or one-action rules set forth in the California Code of Civil Procedure §§ 580a, 580b, 580d, 726 or otherwise. 2
CASE C08-4606 JW ­ CROSS-CLAIM BY WACHOVIA MORTGAGE, FSB AGAINST THE ESCROW FORUM

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Exhibit A to Stipulation - Page 5

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part as Cross-claimant's closing agent. OPERATIVE FACTS 5. On or about October 3, 2008, Reyes filed this case against Wachovia, among

others, alleging claims purportedly arising from the Loan. Among other things, Reyes alleges violation of certain duties incumbent on a lender under the Truth in Lending Act, 15 U.S.C. § 1601 et seq., including: [That] on the night Mr. Reyes signed the closing documents of the aforementioned transaction [i.e., the Loan], Defendants provided no copies of any of the loan documents, including the document notifying Mr. Reyes of his right to rescind. Mr. Reyes was provided with a copy of his Notice of Right to Cancel, and other loan documents, weeks after the loan closed. He then attempted to rescind but was told that it was "too late." Reyes First Amended Complaint, ¶13 (emphasis in original). 6. Cross-defendant had a contractual duty to Cross-claimant to provide Reyes with

the Notice of Right to Cancel ("Notice"), and to obtain his signature on the Notice prior to or concurrent with the closing, as well as to provide other documents and disclosures necessary for loan origination, and also to obtain Reyes signature on some of the same, pursuant to written instructions from Cross-claimant, as described herein. Prior to the Loan closing, Wachovia and cross-defendant The Escrow Forum entered into a written contract ("Contract") by which The Escrow Forum agreed to serve as Wachovia's "closing agent" in connection with the Loan. The agreement is memorialized by, "Amended Lender's Closing Instructions," dated October 5, 2007. A true and correct copy of the "Amended Lender's Closing Instructions" ("Closing Instructions" or "Contract") is attached as Exhibit 1 and incorporated by reference herein. 7. In the Closing Instructions, cross-defendant committed itself and warranted to

Wachovia, inter alia, that it would comply with all instructions and conditions in the Closing Instructions before closing the Loan and paying out any of Wachovia's funds. (Ex. 1, Section 1 ¶2). Cross-defendant further committed itself to and warranted it would assure: "the
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CASE C08-4606 JW ­ CROSS-CLAIM BY WACHOVIA MORTGAGE, FSB AGAINST THE ESCROW FORUM

Exhibit A to Stipulation - Page 6

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authenticity of the signatures of each party executing each document..." and "all original documents must be signed and dated were applicable." (Id. at parag. 4). 8. The Closing Instructions further provide:

[Y]ou are instructed to have the following documents properly executed and notarized (as required). Documents to be reported must be submitted for recording immediately upon settlement. See Page 2 for instructions for returning documents. ON THE DAY THE DOCUMENTS ARE SIGNED, YOU MUST GIVE BORROWERS A COPY OF ALL DOCUMENTS IN CONNECTION WITH THIS LOAN. Ex. 1, Section 7, emphasis in original. 9. The Closing Instructions list the documents subject to the instruction quoted in

Paragraph 11, above. The listed documents include the Notice. (Id.). 10. Based on the alleged failure by Cross-defendant to provide him with the Notice

and other loan documents as set forth in the allegation quoted in paragraph 9 above, Reyes seeks rescission of the Loan and damages. 11. Cross-claimants are now forced to defend this action which, if Reyes'

allegations are correct, is the proximate result of culpable conduct by cross-defendant in violation of the Closing Instructions. 12. Cross-claimant therefore seek indemnity based on the theories alleged below. FIRST CLAIM FOR RELIEF (Implied Contractual Indemnity against The Escrow Forum by Wachovia) 13. forth in full. 14. Wachovia complied with each and every term, condition and covenant required Wachovia incorporates the allegations of paragraphs 1 through 12 as though set

of it by the Contract. 15. While Wachovia does not concede the truth of Reyes' complaint and is

vigorously contesting it, Wachovia hereby demands of The Escrow Forum that it comply with its implied covenant to indemnify Wachovia for all damages, defense costs, settlement payments, judgments and fees it incurs as a proximate result of the Reyes complaint. To date,
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CASE C08-4606 JW ­ CROSS-CLAIM BY WACHOVIA MORTGAGE, FSB AGAINST THE ESCROW FORUM

Exhibit A to Stipulation - Page 7

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The Escrow Forum has failed and refused to comply with, and has breached its implied covenant to indemnify Wachovia. 16. As a proximate result of the breach of implied covenant by The Escrow Forum,

Wachovia has suffered damages in a sum subject to proof. 17. As a result of Wachovia's demand on The Escrow Forum for indemnity and the

cross-defendant's refusal, Wachovia is entitled to an award against cross-defendant of its attorneys' fees, costs, and expenses incurred to defend itself in a sum according to proof under Code of Civil Procedure section 1021.6. SECOND CLAIM FOR RELIEF (Equitable Indemnity--Against Cross-defendant) 18. 19. Cross-claimants reallege and incorporate herein paragraphs 1-17. Cross-claimant has been or will be damaged as a proximate result of the

negligent, improper, inequitable or illegal conduct of the cross-defendant. Such damages have arisen and continue to arise from the alleged failure by cross-defendant to provide Reyes with the Notice and, allegedly, to obtain his signature. Cross-claimants have also suffered additional damages in that the enforcement of the Loan and Security has been made more difficult and costly, and if the allegations are proved at trial, will potentially subject the Loan to rescission pursuant to the Truth In Lending Act, with a concomitant loss of interest and closing costs actually paid by Reyes, and which jeopardizes the Security. 20. The conduct of Cross-claimant with respect to the Notice and the Loan and the

execution of the Closing Instructions and Contract, which were entirely within the control of Cross-defendant. Cross-claimant is entitled to equitable indemnity from Cross-defendant in a sum according to proof. 21. Cross-claimant has demanded and hereby demands that cross-defendant

indemnify it, but cross-defendant fails and refuses to do so. Accordingly, Cross-claimant is entitled to an award against cross-defendant of its attorneys' fees, costs, and expenses incurred to defend themselves in a sum according to proof under Code of Civil Procedure section 1021.6.
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CASE C08-4606 JW ­ CROSS-CLAIM BY WACHOVIA MORTGAGE, FSB AGAINST THE ESCROW FORUM

Exhibit A to Stipulation - Page 8

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PRAYER ON THE FIRST CLAIM FOR RELIEF 1. For damages for implied contractual indemnity, and for attorneys' fees and

costs, pursuant to California Code of Civil Procedure section 1021.6; ON THE SECOND CLAIM FOR RELIEF 2. For damages for equitable indemnity and for attorneys' fees and costs, pursuant

to California Code of Civil Procedure section 1021.6; AND GENERALLY, 3. 4. 5. For pre-judgment interest as permitted by law; For costs of suit; And for other relief as determined appropriate by this Court.

Dated: October 28, 2009

ANGLIN, FLEWELLING, RASMUSSEN CAMPBELL & TRYTTEN LLP By: /s/ Frederick J. Hickman Frederick J. Hickman [e-mail] Attorneys for Defendants and Cross-Complainants World Savings Bank, FSB renamed and now known as Wachovia Mortgage, FSB

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CASE C08-4606 JW ­ CROSS-CLAIM BY WACHOVIA MORTGAGE, FSB AGAINST THE ESCROW FORUM

Exhibit A to Stipulation - Page 9

(Page 1

of

11)

I

WORLD SAVINGS
23161 I.AEE CENTER DRIVE, LAKE FOREST, CA 92630

I
SUITE 120

AMENDED LENDER'S CLOSING INSTRUC11ONS

`TO: THE ESCROW FORUM

ATTE: PAUL SEPULVEDA (949) 380--9701 Fax# (949) 380"7899 TICOR TITLE COMPANY OF CALIFORNIA 898L93--12 BORROWER PHONE NUMBERS HOME: (408) 937--8971 WORK:(408)892--7436
***

DATE: October 5, 2007 LOAN NUMBER: 0047328505 CONCURRENT LOAN NO.: N/A GFIORDER/FILE NO.: 87990 BORROWER(S), BERNABDO MORALES REYES

PROPERTY ADDRESS; 14030 ALDO CT SAN JOSE, CA 95127--4101
***

ATTENTION CLOSING AGENTS

THESE CLOSING INSTRUCTIONS DATED 10/05/2007 SUPERCEDE AND REPLACE OUR CLOSING INSTRUCTIONS DATED 10/02/2007 WElCH ARE HEREBY WITIWEAWN.

THIS DOCUMENT CONSTITUTES WORLD SAVINGS' CLOSING INSTRUCTIONS FOR LOAN NUMBER 0047323505, WHICH (S TO BE A FIRST UEN.

INDEX SECTION I' SECTION Il' SECTION III, IV, V AND VI GENERAL INSTRUC11ONS. PAGE 2 `ERANSACTION TERMS AND COST ALLOCA11ONIBREAKOOWN, PAGE 3

ThIRD PARTY SETTLEMENT SERVICE PROVIDER NAME(S); PAYEES, FEES PAID AT CLOSING BY LENDER; FEES PAID OUTSIDE OF CLOSING, PAGE 4 WORLD LOAN DOCUMENTS, PAGE 6 DOCUMENTS PREPARED OR FORWARDED BY CLOSING AGENT PAGE 6
TiTLE INSURANCE, PAGE 7 TAXESIHAZARDIFIRE/FL000 INSURANCE; STATE SPECIFIC REQUIREMENTS, PAGES

SECTION VII SECTION VIIF
SECTION IX SECTION X AND XI'

SECTION XI AND XI SECTION XIII'

STATE SPECIFIC REQUIREMENTS CONTINUED; AODONAL REQUIREMENTS PAGE 9 SPECIAL INSTRUCTIONS, PAGE 10, ii

SECTION XIV'

FUNDING INSTRUCTIONS, LAST PAGE

PLEASE TAKE A MOMENT TO REViEW OUR CLOSING INSTRUCTIONS. QUESTIONS
For questions concerning:
· the closing or funding of this loan, please call our 1400473-7340; or

Final Documentation Department at:

· the Payoff of an existing World loan, please call our Payoff Department at; 1-800-642-0257. Note; To ensure quality customer service, your call may be monitored or recorded.
--

TO REQUEST FUNDS Call the World Savings' Automated Funding System at:

1.800-873-7340

(3F440A (2004-83-3)

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Exhibit A to Stipulation - Page 10

(Page 2

of

11)

WORLD SAVINGS

[
SECTION I

LENDER'S CLOSING INSTRUCTIONS
LOAN NUMBER: 0047328505 CONCURRENT LOAN NUMBER: N/A

DATE: October 5, 2007 GFIORDERJFILE NUMBER 81990 BORROWER(S): BERNADO MORA!-RS REYES

GENERAL INSTRUCTIONS

YOU MUST COMPLY WITH ALL INSTRUCTIONS AND CONDI11ONS IN ThESE CLOSING INSTRUCTIONS BEFORE YOU CLOSE AND FUND THIS LOAN. EXCEPT AS EXPRESSLY PROVIDED OThERWISE IN ThESE LENDERS CLOSING INSTRUCTIONS, ANY MODIFICATIONS OR AMENDMENTS HERETO MUST BE IN wRmNdg AND SIGNED BY WORLD SAVINGS. 1. AUTHORIZED CLOSING AGENT World Savings (`we') requires that an Independent third party, called a `closing agent ryou')," coordinate the settlement of every real estate loan we make Depending on local Ouslom, a closing agent may be an escrow company, a title insurance company or an attorney A borrower, a mortgagor or a real estate broker or any other person who is a party to the transaction cray not act as the closing agent You represent and warrant that you are not a party to the transaction You further represent and warrant that you are an escrow company, a title Insurance company or an attorney, duty lIcensed and legally authorized to perforon the services required by these instructions. AGREEMENT TO ADHERE To CLOSING INSTRUCTIONS By closing the above referenced loan, you represent end warrant that you have followed each 01 the requirements and instructions set forth in these Lender's Closing Inutructions IMPORTANT NOilCE- Compliance wIth the USA Patriot Act. SectIon 126 U S, CITIZEN BORROWERS You are instructed to photocopy the borrower(s)' authentic state issued driver's license or other state issued photo idenuitication used to venfy the borrower(s)' identity arid to forward the photocopy to World Savings with the closing package NON(LS. CITiZEN BORROWERS You are instructed to photocopy the borrower(s)' passport or similar foreign government issued picture rderititlcation (Ii S state issued dnve?s license is NOT sufficient) after verifying authenticity of the document and the borrower(s)' identity and forward a legible copy to World Savings with the dosing package The copy must show at least the number of the passport or other document and the picture of the borrower 4. SIGNATURE REQUIREMENTS You warrant the authenticity of the signatures of each party esectitug each document and the authonty of each representahee esecuting any document on behalf of another, escept to the extent such signatures are warranted by a Unaed Slates Nabonal Bank All original documenrs must be signed and dated where applicable For Eqoity Lines of Credit that are not closing concurrently with another World loan: If you were authorized ln.mrltyig by Wortd to use a signing agent to obtain signatures from the esecuting panties, you witI venfy the signing agent's compliance with each of our instructions given in the Documents To Be Signed At ClOsing' form
6. NOTARYIWITNESS REQUIREMENTS

2.

1.

Cur Security Instrument requires acknowledgement/notarrzatron Prepare and attach rrotarrai acknowledgement(s) With current notarial stamp as required by state law If state statute so requires, please have each borrower's signature witnessed 6. ALTERA11ONS1ERASURES ON DOCUMENTS Alterations or Erasures are riot permitted on any document without poor wnitteyi approval from our Final Documtntation department Any approved alterations or sttachrnents must be initialed by the parties concerned POSSESSION OF DOCUMENTS REQUIREMENTS DO NOT MAIL out or othelwrse release documents from hour office without our post written approval II we give written approval for you to release documents from your office for any reason you will remain responsible for the documenis and for compliance with alt aspects of these Lender's Closing Instructions MORTGAGE BROKER DISBURSALS! ThIRD PARTY FEE DISBURSALS YOU ARE INSTRUCTED TO PAY ONLY THE MORTGAGE BROKER FUNDS AND THIRD PARTY FEES IDENTIFIED ON PAGES SAND 4 OF THESE INSTRUCTIONS, AND ONLY AT THE TIME OF THE FINAL DISBURSAL OF ThE LOAN FUNDS. BROKER 2'IINDS 1tD OThER THIRD I'ARTY ll'UNDS ARE INCLUDED IN YOUR TOTAl. WIRE DISBURSE14ENT. DOCUMENT EXPIRATION DATE The loan documents are VOID and must be returned to World Savings Tor cancellation within 24 hours If tIre documents are not executed and you have irot disbursed the loan funds by: 11IO1!2507, THE INTEREST PAID TO DATE, OR l1lO3I2007, ThE COMMITMENT EXPIRATION DATE, WHtCHEVER IS EARLIER. Yeur scheduled clesmg data may l?ect time fez pailbrnianee. Please call it you have arty quesfioris.
"

7.

B.

9.

10.

REDRAW REQUIREMENTS To request a redraw, (a) contact your loan originslion otfice, (b) return tIre voided loan documents and any loan hinds to World, as applicable, (NOTE World will not redraw documents unless we are in receipt of previously issued documents and funds,) and (c) notify the borrower that they may be charged a $20000 redraw fee pen occurrence INSTRUCTIONS FOR RETURNING DOCUMENTS Ensure that all orrgmal documents are signed arid dated as required Please retain the documents to be recorded Forward CERTIFIED copies of the documents sent for recording, together with all other ongrnal signed documents including the final HOD-I or HUD-IA Settlement Statement, to. WORLD SAVINGS, A1TN.. IMAGING DEPARTMENT. 41111 WISEMAN BOULEVARD. BLDG. #108, SAN ANTONIO, TEXAS 78291, WITHIN 24 HOURS AFTER LOAN DISBURSAUSEflLEMENT VIA OVERNIGHT COURIER.
WORLD SAVINGS WILl. ROT PAY COURIER FEES.

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DISTRIBUTiON

1 COPY-CLOSER

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Exhibit A to Stipulation - Page 11

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of

11)

WORLD SAVINGS
-

SECTION II TRANSACTION TERMS AND COST ALLOCATION TERMS OF TRANSACTION: Sales Price .00 $ Amount of this Loan 375,000.00 $ ADDITIONAL FINANCING: Amount MonttityPaynnent DISBURSAL INFORMATiON WortdLoanAmount

I

LENDER'S CLOSING INSTRUCTIONS
-

LOAN NO: 0047329505

See Section VI for Fees Outside of Closing (POC) Mortgage Broker Fee (Broker to submit demand to closer) S Provide Copy of Dowripnymerrt Funds to Close $
lntereidRate Term(Years)

.00

$
$

.00 .00 $

.000

BrokerFeePaidbyLender Broker Fee Paid by Seller (% +8 ) * II seller paid fees EXCEED what in shown on these
WE WILL L,...n,..,, , n roALOWING Worlds Loan Fee Vdsrlds Discount Fee Saleable Loan Discount Fee Mortgage Broker Fee 1.750%i-$850.O0 $ Total Broker Check Interest from date of WIRE to 11/01/07 at $84.76duy
Escrow Account Breakdown County Tax __Q_ Pyml$ .00

8
instructions as closing

375,000.00 7,500.00

FIRST PAYMENT DUE DATE

12/01/07 .00

S agent you era required b ontaot 1400.573.7340, for approval PAID BY BORROWER PAID BY SELLER .00 .00 5 $ .00 $ .00 $ .00 S S .00
$

°

7,412.50

.00 $ ``c BZ DfltlFaN5D $ .00 $ .00 $ .00 .00 .00 $ _OO
Flood Ins $ .00 .._L. Pyml $ .00 Hazard Ins ._.Q_.. Pymt$ .00 $ 0n MortgageIns_3.._PymtS.0O $ .00 NO RAZD INSURANCE ESCROW NO TA3C ESCROW SC .00) Less Aggregate Accounting Adjustment

CityTax

SchoolTax WaterTax Sp Den Tax _Pymt 8.00 Bond _D_Pymt$.O0
_,

--D._Pymt$.O ._D_Pymt$.O0 Pymt$ .00

Escrow Deposit Net Funded at Close per RESPA Regulations Application Fee Apprasial/Property Evaluation Fee Appraisal Review Fee Buydown Fee Third Party Buydown Fee Commitment Fee Fannie Mae Automated Underwriting Fee Document Preparation Fee Equity Builder Servicing Fee Flood Zona Initial Determination Fee Flood Zone Ongoing Monitoging Fee Funding Fee Holdback Loan Origination Fee Mortgage Credit Certificate (MCC) Fee Mortgage Insurance Premium Payoff World Loan Number Processing Fee Redraw Fee TaxSe,viceFee Trust Review Fee Loan Sales Processing Fee Employment Verification Fee CLOSING COSTS PAID BY WORLD (added to Funds to Closing Agent) Notary Fee Courier Fee Recording Fee Title Insurance Closing/Settlement Fee Mortgage Tax Paid By Lender TOTAL FUNDS TO CLOSING AGENT

$ 8 S 8 S S 8 8 S S S S S 8 S 8 $ S 8 $ $ $ $

tin .00 325.00 .00 .00
-

.00 .00 .00 50.00 .00
C

nfl

RO.tifl .00 .00 .00 .00

310.00 200.00 61.00*0. .00 .00

$ 8 $ $ $ $ $

.00 .00 .00 .00 .00 .00 TO BE DETERMINED

AItP Assistance Total .00 $ DPA Grant Amount Total FUNDS FOR CLOSING AGENT DISBURSAL 14 .912.50 Funds to he disbursed to Broker $ Mortgsge Insurance Premium 00 *00 $ (1) PAYEE 4): .00 °° Funds Payable to 00 *00 (2) Funds Payable to (3) Funds Payable to . 00 $ WiRE AMOUNT TO RE DETERMINED $ Deduction of Ihe teen listed is pursuant to our agreement to finonce these loan costs Borrower is not to pay these amounts out of his/tier own cash See Page 4 torThird Party Settlement Service Provider Names. if apphcable NOTE: The HUD-l or IIUD-l A Settlement Statement or Summary of Closing Fees must reflect the actual disbursat)ftrndinrg date (I), (2), 43) See Page 4 for Payees.
$_________________________

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GF44iIC(2004-03-1)

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Exhibit A to Stipulation - Page 12

(Page 4

of

11)

WORLD SAVINGS

1.ENDER'S CLOSING INSTRUCTIONS
-

LOAN NO: 0047328505

SECTION III ThIRD PARTY SETTLEMENTSERVICE PROVIDER NAMEISI To assist you with preparation of the HUD-1 or HIID-1A Settlement Statement, listed below are the names and addresses of the firms receiving the payments shown, if applicable SETTLEMENT SERVICE
. Appraisal!Property Inspection WaFer Fee

SETFLEMENT PROVIDER World

Savings

Bank

· ·
P

Credit Report Provider Fannie Mae Automated Underwriting Fee

CBC Corripenies, Equifax Information Service, Trans Union Corporation, Expenan Consumer Center

Employment Venfication Fee · Mortgage Broker Fee PREMIER HOME FUNDING, INC. 25332 CABOT ROAD, #100 Z.AGtJNA HILLS, CA 92653

· Mortgage Insurance Premium

·

NHSA Affiliate Fee
Initial Flood Determination Feel

Neighborhood Housing SeNices otAmence AffilIated Organization First Amenceri Real Estate Tax Services
First American Flood Data Servicee

· Tea Service Fee
·

Ongoing Flood Zone Monitoring Fee SECTION IV PAYEE(S) The following names arid addresses are provided to assist you with (a) disbursal ol loan proceeds and (b) preparation of the HUD-I or HUD-IA Settlement Statement.
-

PAYEE(S) NAME AND ADDRESSEES)

2

3

SECTION V FEES PAID AT CLOSING BY LENDER
-

Recording Closing/Setllement Couner Application
Notary

$ S $ $

.00 .00
.

Title Insurance
ProceasiiW

$
$

.00
.00

O

.00

$
-

.00

Appraisal Mortgage! Intangible properly! Recording lair

$
$

.00
.01)

SECTION VI FEES PAID OUTSIDE OF CLOSING The followIng fees were paId outsIde of closIng. Please reflect the fees on the HUD-1 or HUD-IA Settlement. DO NOT COLLECT ThESE FEES AT CLOSING. FEES PAID OUTSIDE OF CLOSING (POC) BY BORROWER:
(These are not credits)

FEES PAID OUTSIDE OF CLOSING BY LENDER: .00
.

Application Appraisal Trust Review Telte-Out Commilment Initial Flood Zone Determination Mortgage Broker NHSA Affiliate Processing Mortgage Credit Certif (MCC) Rate Lock-In

$ $ $

oo
00

.

$
$

.00
3 · 00

CreditRepor't Loan Submission Electronic Facility Mortgage 8rokerCash ReflJnd to Borrower Tax Service Initial Flood Zone Determination Real Estate Agenl Services Employment Verification Fee

$ $

3.55 .00

$
$

.00 .00
.00 .00 .00 .00

$ $
$ $ $

.00
00 97 .00 . 00 .00
.

$ $
$ $ $

COMPLETE THE ROD--i OR Ht)D-1A SETTLEMENT STATEMENT, WHICHEVER XE APPLZCASZ.2, AT THE TIME OF CLOSING AND FORWAND A CKRTIFIED COPY WITH THE CLOSING PACKAGE, WITHIN 24 HOURS AFTER SETTLEtiOT TO: World SavIngs Attn.: IMAGING DEPARTMENT 4101 Wisemen Boulevard, Bldg. # 108, Sari AntonIo, Texas 78251 NOTE: The HUD-1 or HIJD.IA Settlement Statement must reflect lhe ectual disbursal!funding date
GF4400 gooit-03-5) 0l$TRiot.rilON 1 COPY-CLOSER Pane 4 I COP V4,OitN CENTER

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1 COPY-LOAN FILE

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Exhibit A to Stipulation - Page 13

(Eage 5

of

11)

WORLD SAVINGS

I

LENDER'S CLOSING INSTRUCTIONS
SECTION VII WORLD LOAN DOCUMENTS
-

LOAN NO: 0047328505

You are instructed to have the following documents properly executed and notarized (as required) Documents to be recorded must be submitted for recording immediately upon settlement See Page 2 for instructions for returning documents ON THE DAY THE DOCUMENTS ARE SIGNED, YOU MUST GIVE BORROWERS A COPY OF ALL. DOCUMENTS IN CONNECTION WITH THIS LOAN. RECORD THE DOCUMENTS BELOW (NOTARY REQUIREDI x Secunty Instrument dated O/05/O7 for $375,000.00 including the attached Exhibit "A Legel Description (see instructions for prepanng Exhibit "A on Page 6 of these instructional
DO NOT RECORD (RETURN SIGNEDj

X

X
Security Instrument securing the Downpayment Assistance Repayment Agreement dated for S including the attached Exhibit A Legal Description (see instructions for preparing Exhibit "A on Page Sot these instructions) K

I

X K

RIDERS TO THE SECURITY INSTRUMENT
RIDERS WI'rROUT A ItECORDING REQUEST ZitOST BE ATTACHED TO THE SECURITY INSTRUMENT AND RECORDED TOGETHER. K X

Promissory Note Rider to Promissory Note temporary Payment Options Accaunl Opening Advance Request BLOC Agreement and Disclosure Statement Moditication to Note Regulation Z Disclosure Loan Program Disclosure Document Correction Agreement Holdback Agreement Buydown Agreement Notice of Fire/Hazard Insurance Requirements Notice of Right to Cancel (each consumer with en ownership interest in the property, including non-borrowing spouse when applicable, must acknowledge receipt and be given two copies to keep)
-

(x)

)

) Rider-Second Home
Rider-Borrowers Warranty of Financing Terms (00) Rider-Fixed Rate Rider-Fixed/Adjustable Rate Rider-i -4 Family Rider, Assignment of Rents Rider-Planned Unit Development Rider-Adjustable Rate Rider-Additional Collateral Pledged Rider-Fised Rate Option Feature Rider-Condomssium Rider-Demand Provision Rider-Cross Collateralization and Defeult OThER DOCUMENTS Request for Notice (see preparation instructions in section VIII on Page 6 of these instructions) Homestead Waiver Exemption (GO) Waiver of Borrowers Rights/Closing Attorney AftdavitiForeclosure Diolosure (GA) Voluntary Designation or Homestead and Exhibit "A with legal description Texas Home Equity Affidavit and Agreement Transfer of Lien (TX) including the attached Exhibit "A" Legal Description (see instructions for prepanng Exhibit "A" on PageS of these instructions)

Information Sheet for Non-pnmary Ii S Applicant Tax Bill Authorization Letter Acknowledgement Letter Prepay Feature Acknowledgement Letter Notice of Special Flood Hazard Insurance Loan Application Addendum -Second Request for Information Lenders Release and Indemnity Agreement (MOC Program) Personal Guaranty (include mailing address of trot signer) Notitication of Rate Lock-in Period and Estimated Processing Time (VA)

(

(K) Escrow Account Agreement Employee Benefit Disclosure I) Initial Escrow Account Statement (XI Referral Notice(s) WEIA (K) Mortgage Servicing Transler Disclosure (each borrower must sign) ( I Security Agreement and Secionty Assignment Under Land Trust (Assignment of Beneltc.al Interest) (IL) I Addendum to Note and Security Agreement and I Security Assignment Under Land Trust (Assignment of Beneficial Interest) (Esculpetary Rider) (IL>

I) Disclosure Regarding Availability of Interim Financing,
Legal Representation and Appraisat (CT) (X) Verification of Personal Information I) Cloning Agent Transmittal (MA> I I Equity Builder EFT Authorization I I Mortgage Insurance Notice I I ACORN Closing Certificate I I Actcnowtedgernent of Value-Notarized (TX) Receipt of Closing Documents (TX) I) Texas Equity Special Closing Instructions (TX) Equity Line of Credit-Final Confirmation ol Closing Fees pad by World Savings Attomey/lnsurerioe Preference Form (SC) (each borrower must sign)
-

(

I

( ( I

I I Texas Equity Loan Application Addendum (TX) I Location For Notices Tesas Equity Loans (TX)

IXI x)

IRS W-4 Employee WIthholding Allowance Certificate, Adtustment Notice (MCC) Valuation Disclosure c/VA) Itemization of the Amount Financed FACTA Notice to Home Loan Appticantl Credit Score Notification Addendum to Welcome Latter

(XI Request for Initial Payment Amount Pick-A-Payment Loan

( I

I I

I

I

SEE NEXT PAGE FOR ADDITIONAL DOCUMENTS
PageS GF44OE (2004.05-14) DISTRiBUTiON 1 CopY-CLOsER
I COPY-LOAN CENTOR

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1 COPY-LOAN FILE

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Exhibit A to Stipulation - Page 14

(Page 6

of

11)

j

WORLD SAVINGS SECTION VIII

J
-

LENDER'S CLOSING INSTRUCTIONS

LOAN NO: 0047328505

I

DOCUMENTS PREPARED OR FORWARDED BY CLOSING AGENT

PREPARE ANDIOR ENSURE EXECUtiON OF THE FOLLOWING DOCUMENTS. RETURN WITH CLOSING PACKAGE TO WORLD If there are any changes In the temis on this page. call 1-800475-7340 to request verbal approval. X

) HUD-l or HIJO-1A Settlement Statement
Certified copies of Buyers Affidavit of TItle arid Seller's Affidavit of Title (NJ) Certified copies of Affidavit to insure against mechanics/matenalmens lien(s)

X

) I

Special Closing Instructions for Land Trusts (IL) Lead Paint form(s) Notification and Indemnification, if applicable (MA) Smoke Detector form(s) Qert,tcation and Indemnification (MA) Septic System form(s) Certification end Indemnification, if appircabte (for properties with septic systems) (MA) 60 Certificate (for condominium loans in MA) Cerliteit copy of the Homestead Demgnation Affidavit (TX) For 00 loans, provide evidence of the source of funds for the downpaymenit end closing costs You may record a concurrent secunty instrument, securing a note, in the amount of S as subordinate junior lien to our first lien Please forward a certified copy of the note and security instrument
-

You must record a Subordination Agreement in the amount of $ subordinating a prior recorded lien to our Security Instrument (You are insuring our first lien position) Please forward a certified copy of the Subordination Agreement Forward a certified copy of the GRANTIWARRANTY DEED1BARGAIN AND SALE DEED

NOTE: Ir the vesting on the GranhiWarranty DeedlBargain and Sale Deed differs from our Security Instrument, YOU must call 1-800473-7340 IMMEDIATELY.
For all states with a Request for Notice of Default andlor Sale (i) complete alt blank sections of the Request for Notice, (ii) attach the legal description to the Notice if the Notice references an Exhibit A or if the legal description ia necessary for recording, (iii) sign the Notice as l.imrted Agent for World, and have the signature notarized, and (iv) send the Notice to be recorded Forward a CERTIFIED copy of the Notice sent for recordIng to the address shown on Page 2 of these instructions FOR ALL STATES EXCEPT MISSISStPPI AND WASHINGTON

I X ) Preparing Exhibit "A'S Detach the legel description from your Preliminary Title
-

ReportlCornmttment to Insure dated 09/11/07. Using clear tape, attach the legal description to the Exhibit "A" page and photocopy. THE CORRECT LEGAL DESCRIPTION MUST BE ATTACHED TO ThE APPLICABLE DOCUMENT IT IS SIGNED BY THE BORROWER. Attach the photocopy of the legal description to our Security Instrument and submit for recording.

Return a certified copy of the Security Instrument including the legal description in the closing package.

FOR TEXAS EQUITY LOANS ONLY THE CORRECT LEGAL DESCRIPTION MUST BE ATTACHED TO THE APPLICABLE DOCUMENT 5g IT IS SIGNED BY THE BORROWER. Attach a photocopy of the legal description to the voluntary desIgnatIon of homestead and submit for recording. Return a certified copy of the Voluntary Designation or Homestead including the legal description in the closIng package. FOR MISSISSIPPI STATE ONLY Preparing Exhibit "A" Complete the Indexing Information section located on the attached Eohlbut "A"

page of the Security Instrument
.

Detach the legal descrIption from your Preliminary Title ReportlComenltrnent to Insure dated Using Clear tape, atlach the legal description to the Exhibit "A" page and photocopy. Attach the photocopy of the legal descriptIon to Worlds Security Instrument, As Exhibit `A", the correct Legal Description must be attached to tile Security Instrument and the lndealng Information must be completed before the Security Instrument Is signed by the Borrower. SubmIt the entire signed and dated Security Instrument for recordIng. Return to World a certified copy of the Security Instrument, including the legal description, in the closing package FOR WASHINGTON STATE ONLY

Washington State County Auditor!Recorder's Indraing Form (Cover Sheet) Detach the abbreviated legal description from your Preliminary Title Repont!Commilment to Insure dated Using clear tape, attach tile abbreviated legal description to the Cover Sheet and photocopy. Attech the photocopy of the Cover Sheet to the Deed of Trust prior to recording.
-

Preparing Exhibit "A" Detach the legal description from your Preliminary Title ReportlCommnitment to Insure dated Using clear tape, attach the legal description to the Exhibit "A' page and photocopy. THE CORRECT LEGAL DESCRIPTION MUST BE ATTACHED TO THE APPLICABLE DOCUMENT BEFORE IT IS SIGNED BY ThE BORROWER. Attach the photocopy of the legal description to our Security Instrument and submit for recording.
-

.

Return a certified copy of the Security Instrument Including the legal description In the closing package.

SEE NEXT PAGE FOR "TITLE INSURANCE" REQUIREMENTS
GF44OF (2004-03-7)
DISTRISUUOO1 1 COPY-CLOSER

Page S I COPY-LOAN CENTER

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i COPY-LOAN RLE

WM64

Exhibit A to Stipulation - Page 15

(Eage 7

of

11)

WORLD SAVINGS

LENDERS CLOSING INSTRUCTIONS SECTION IX --TITLE INSURANCE

LOAN NO: 0047328505

I

THE NAMES SHOWN ON THE ENCLOSED SECURITY INSTRUMENT MUST BE EXACTLY AS TITLE TO ThE PROPERTY IS HELD. IF THE NAMES ON ThE SECURITY INSTRUMENT DIFFER FROM THE NAMES ON TiTLE, PLEASE CALL 1-800.873-7340. YOU MUST SEND ThE TITLE POLICY OR TITLE PRODUCT CHECKED BELOW TO THE ADDRESS INDICATED ON ThE SECOND PAGE OF THESE INSTRUCTIONS WITHIN THE TIME FRAME REQUIRED.

X

) WORLD SAVINGS WILL ACCEPT AN ORIGINAL ALTA

T FORM LENDERS TITLE POLICY. THE ORIGINAL SHORT FORM TITLE POLICY MUST REFERENCE OUR LOAN NUMBER AND BE RE'flJRNEO TO US WITh THE EXECUTED CLOSING PACKAGE WITHIN 24 fj5 AFTER SETTLEMENT.

X

) In the event a Short Form Title Policy Is not available. World Savings will accept an original Long Form Lender's Title Policy. The
orIgInal Long Form Title Policy must reference our Loan Number and be received by us within 30 business days after settlement.

IK

WORLD SAVINGS WILL ACCEPT A CREDITORS RIGHTS EXCEPtiON ONLY IF IT IS IN THE FORM OF THE 1992 REVISION TO THE ALTA POLICY OF TITLE INSURANCE Collect for Survey/Improvement Location Certificate and remit to survey company, if applicable

Provide survey, certified copy of survey, or existing survey affidavit, whichever is apphcabte/required
X

) TheTitiePolicymustiricludetheIollowirigEndorsements 100, 111.8, 116, 8.1, 103.5, 103.1, 100.23

X ) The Title Policy may only include the following Exceptions Identified ifl your Preliminary Title Report/Commitment to Insure dated 09/11/07 · A-C P/C, 0, Z, 1

X

) The Title Policy must jg contain an exception to coverage for the interest of any spouse
EQf,fiTYLINES OF CREDIT LOANS ONLY

I WORLD SAVINGS REQUIRES THE FOLLOWING TYPE OF `tiTLE PRODUCT WHICH MUST BE PROVIDED TO US NO LATER THAN
30 DAYS AFTER SETTLEMENT: X

) The Secunty Instrument in the amount of
Policy or Title Product checked above ii any

$375,000.00 is to be recorded in FIP.S1' lien position This must be reflected on the Title

K

Issue the Lender's Title Insurance Policy or Title Product, as checked above, in the amount of $375,000.00 to WrId Savings. its successors end/or assignees

K

) No secondar,, financing is permitted Notify World prior to dosing, If there is a concurrent closing of another loan, or any transfer Of title to the
same property

FOR LOANS CLOSING CONCURRENTLY WITH ANOThER WORLD LOAN

I Refer to the Closing Instructions for tire `rtd concurrent loan number

for additional title coverage instructions

FOR TEXAS RATE AND TERM REFINANCES ONLY (NO EQUITY LOANSI You are to obtain P-Cfig (b) Express Insurance with the litte pobcy insuring against "Possible defect in the lien of the insured rnoltgage because gf the Insured's inclusion of closing costs including mortgage broker compensation in the original pnncipal of tire indebledness secured by the insured mortgage"

SPACE INTENTIONALLY LEFT BLANK.

GF4400 (2004-03-3) DISTRISUTION
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Pace 7

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WM65

Exhibit A to Stipulation - Page 16

(Page 8

o

11)

I

WORLD SAVINGS

I

LENDERS CLOSING INSTRUCTIONS
SECTION X
-

LOAN NO:004'7328505

I
X

TAXESIHAZG.RDIFIREIFLOODIINSURANCE

) TAXES AND ALL ASSESSMENTS (including Homeowner's Asociatior, Assessxnenls) PROPERTY TAX BILLS RELEASED OR DUE
WITHIN 90 DAYS OF CLOSING MUST BE PAID CURRENT. Complete and return the Escrow Account Agreement form with the HUD-l or HUD-1A Settlement Staleraent ii taxes are paid at closIng

x) Please review the attached "Closing Agent Notification of FirelHazard Insurance Requirements" form, which is incorporated herein by reference
Ensure that at requirements are net prier b loan settlement Including, but not lenited to, the policy amount and standard mortgagee clause X) As closing agent you are responsible for ensuring that the borrower brings acceptable proof of insurance arid evidence of payment as Outlined in item #7 of the "Closing Agent Notification of Flreiflazard Insurance Requirements" tonnn. You must deliver This proof of insurance and evidence of payment to World Savings within 24 hours of loan setttement along with the execuied documents This loon requires food Insurance Please review the attached `Closing Agent Noliltcation ot Flood Insurance Requirements" form to ensure that alt requirements are met prior to loan settlement Borrower must provide proof of paid flood insurance policy prior to closing.

I

SECTION XI STATE SPECIFIC REQUIREMENTS
-

ITEMS MARKED WITH AN `X ARE REQUIREMENTS FOR YOUR STATE.
FOR LOANS IN ALL STATES X ) You are authorized to record our documents and disburse funds only when you have complied with all of our instructions and there are 02 unauthorized ailerations FOR RIDERS A'fl'ACHED TO ThE SECURITY INSTRUMENT FOR RECORDING x FOR ALL STATES EXCEPT PA, you are lnstnlcted ID ensure that all riders to the Security Instrument Included in the closing package are 1) executed, (2) attached to our Security Instrument and (3) submitted for recording. FOR ALL ARIZONA TITLE PRODUCTS ONLY Even if tire name(s) of the borrower(s) in Uris transaction ha&hsve riot been searched in the pubflc records tha title insurer must issue a pohcylproduct that insures that our lien is supesor to matters such as proceedings, tens, or decrees against buyer(s) that do not specifically describe the property securing our loan, but may affect the title or Impose hens or encumbrances thereon FOR CONNEC'flCUT LOANS ONLY Please delwer to the Mortgage Broker for this transaction, whose came sod address appears on these Closing lnstnjctions, signed copies or tire Federal Truth In Lending Disclosure. Notice of Right to Cancel (if applicable), Initial Escrow Account Statement (II applicable), Promissory Note, Mortgage, and HIJD-I or HUD-IA Settlement Statement [CONN GEN STAT §35A-493 I FOR GEORGIA LOANS ONLY You crust ensure that "Total Broker Fees Paid" and other points and fees as defined in the Georgia Fair Lending Act carmot exceed 499% of the loan amount Do tint close This lean if (I) them are any addiloiaI tacker fees that are rrol on Vrthrtd's Georgia Preferred Mortgage Broker Demand Statement or, (2) taist points and fees exceed 499% FOR ILLINOIS LOANS ONLY For loans closed in Cook County, Illinois, pnor to funding, the closer must obtain the necessary Certificate of Compliance or Certificate of Exemption (as applicable), as issued by the Illinois Department of Financial and Professional Regulation Predatory Lending Daiabsoe in accordance with the provisions of 765 ILCS 771770 at saq FOR LOUISIANA LOANS ONLY The closer is instructed to complete the name of the Borrower(s)' spouse(s) on psge 19, the ldenhfcation and Martai Status page of the Security Instrument Photocopy the signed and dated Secunty Instrument Send the photocopy to the recording office with the onglnai signed and dated Secunty Instrument Request thaI tIre photocopy of the Secunty Instrument be stamped and returned to WORLD SAVINGS. ATTN.' IMAGING DEPARTMENT, 4101 WISEMAN BOULEVARD, BLDG #108 SAN ANTONIO, TEXAS 78281 EGB,MARVI.ANO L'jMrj,,,.,nu, Do nol add Refinance Transfer lnfoirnation language directly onto our Deed of Trust IMien applicable, prepare an Affidavit of Refinance, attach to our Deed of Trust end submit to the county recorder's office for recording FOR NEW YORK LOANS ONLY
Pnorto recording; complete section 25 `Borrower's Statement Regarding the Properly ofthe Security Instrument for fixed rate loans

I

FOR PENNSYLVANIA LOANS ONLY You are instructed to ensure that (a) all niters to lire Secuety Instrisrient included in the closing package are recorded as separate documents and (b) at pages of the documents sent for recording are arranged in nLtlleflcal Order DO NOT ATTACH ThE RIDERS TO OUR SECURITY INSTRUMENTS. FOR TENNESSEE LOANS ONLY For Fannie Mae fixed. Closed 2nds, and ELOC loans. Complete the Eon'oWer's source of interest paragraph appearing to our Security Instrument, prior to recording. The Borrower's source of interest paragraph appears on Page 1 of our Security Instrument fur closed second and second loans and PageS of our Security Instrument for Fannie Mae fixed rate loans. For ARMs: Include the Borrower's source of interest paragraph as a part of Exhibit `A" to tore Security Instrument.

SEE NEXT PAGE FOR ADDITIONAL "STATE SPECIFIC REQUIREMENTS"

GF440N (2004-03.7) OisTivlStJTION

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WM 66

Exhibit A to Stipulation - Page 17

(Page 9

of

11)

I

WORLD SAVINGS

I

LENI3ER"S CLOSING INSTRUCTIONS
SECTiON XI
-

LOAN NO:0047328505
-

I

I
FOR TEXAS LOANS ONLY

STATE SPECIFIC REQUIREMENTS CONTINUED

I

ITEMS MARKED WITH AN "X"ARE REQUIREMENTS FOR YOUR STATE.
Please issue Express Insurance, t after review of the property survey, your title policji will include any esception(s) in Schedule B for encroachments, lot violatIons, etc Please issue Deletion 01 Arbitration ProvIsion as part of the fInal title policy Do Sot SiQfl, record or return Ibis provmron as an individual document
signed and recorded Homestead Designation Affidavit from borrower venfying some other property as the homestead If borrower as married, borrowers spouse must sign as well Signatures must be notarized You must record the Affidavit in the county where the homestead property is located end submit a ceititied copy including recording information to Woild Savings

ff the Prooertv is Non-Owner Occunied, World requires a

If the Property Is the borrower's homestuad and the loan proceeds exceed the amount necessary to pay off the existing purchase money loan and permitted costs, you may ng( close this loan Instead you must return the loan documents to Vdarld to be redrawn together with tIre loan funds

(

) IfthlsisaTe

refer to Special Closing Instructions for Texas Equity loans for additional instructions If you did not receive these instructions, contact us immediately

If this is a Texas Eauity Loan, you must (a> fill in the name of the current record title holder on the Voluntary Designation of Homestead form prior to the signing and recording, (ir) erisuura that The Designation is property mgned and notarized (if borrower is mamed. you must obtain the Spouse's signature as well), and (c> record the Designation and return the recorded copy to World Savings II this is a Texas Equity Loan, you must ensure that the Location For Notices Texas Equity Loans document is signed by all borrowers and returned to World FOR WISCONSIN LOANS ONLY This loan requires a Personal Guaranty All Gusrantora must sign the Personal Guaranty If the Guarantor(s) isa married person gthe spouse is not also a Guarantor on the loan, the spouse must sign the Spouaal Consent signature page located as the hat pege of the document

SECTION XII ADDITIONAL REQUIREMENTS
-

X

I SPECIAL POWER OF ATTORNEY
If the borrower is granting power of attorney to a person who will act as attomey-in'fact end sign the loan documents, we require a certified copy of tIre valid Special Power of Attorney which specifically references (1) the name of the person who will act as attorney-in-fact, (2) the property which is the subject of-the loan transaction, (3) the transaction must be identified as a purchase or a relinance and (4) the date the Special Power of , 5 Attorney was granted, which must be within the previous six months Vanutions in the requirements set forth in items I through 4, ID 0 Special Power of Attorney, are acceptable cnly when necessary to comply With state law Note: World isiS not CosepI a eawar of attorney for a trustee ore

You are instructed to type or legibly print the "Special Power of Attorney" designation on the signature page of the security documents
a

For Texas Equity loans, the Special Power of Attorney must specifcally authorize a loan under Section 50(a)(6), Article XVI of the Teitas Constitution (X) PERSONAL INFORMATION You shall hold Personal Inforrvstion in strict confidence and take all measures reasonably necessary to preserve its confidentiality and to dispose of it property Personal Information means information identifiable tea particular World customer

(K)

CO NOT DISBURSE ANY FUNDS PRIOR TO THE EXPIRATION OF THE CANCELLATION PERIOD DESCRIBED IN THE ENCLOSED "NOTICE OF RIGHT TO CANCEL"

K

) HUD EARLY CLOSING BONUS CHECKS
When applicable, forward lender's "Early Closing Bonus" check from I-lUG to World Savings with tile closing documents

PAYOFF OF EXISTING WORLD LOANS Payoff loan number will be by separate payoff demand at closing/escrow

I For questions regarding Payoffs please call 1-800442-0251 or Fax [phone]
PREPAID INTEREST CALCULATION INOT APPLICABLE TO ELOC)
World calculates prepsid interest from either (a) the date the funds are wired to you, or (b) the scheduled loan settlement (disbursement) date if funds are provided to you by check If the actual settlement date shown on the certified settlement statement is later than tIre scheduled settlement date, World may

owe the borrower a refund Al `rdVcirld's discretion, any prepaid interest may either be cmdited to the pnncipel balance of the borrower's loan or refunded directly to the borrower by check World will not send a refund check to any party other than the borrower Please close this loan based on the figures shown on page 3 of this document

SEE NEXT PAGE FOR "SPECIAL INSTRUCTIONS"
0F440l (200403-6) CNSTRIBU11ON I COPY'CLOSER

Paaa e
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WM67

Exhibit A to Stipulation - Page 18

(Page 10

of

11)

I L

WORLD SAVINGS

LENDER'S CLOSING INSTRUCTIONS SECTION Xlii SPECIAL INSTRUCTIONS
-

LOAN NO: 0047328505

SPECIAL INSTRUCTIONS:

x)

In compliance with Subsection §6045 of the Inten,aI Revenue Code end as the person responsible for closing this real estate transaction, you wilt ide as the Reporting Person an information retom with the Internal Revenue

FACTA Compliance

x)

Deliver each FACTA Notice to Home Loan Applicant/Credit Score Notiticehon to the applicable Borrower

Non-Titled Spouse Signature Requirements 5 If the Borrower(s) is named and holds or is taking title individuaty, the non-tilted spoune(s) most sign either (1) the regular signature page of the Security Instrument, or (2) the special BORROWER(S) SPOUSE(S) egnature page if provided Alternatively, the non-titled spouse may at their election, divest him/herself of any and alt interest that they may have in the property If the non-titled spouse elects to divest hint/herself of their interest in the property, you must provide World with a cerhlied copy of the eaecuted and recorded Duitclaim or other deed evidencing such divestiture tf an ALTA Lenders title insurance policy is required under Section IX of these Lenders Closing Instructions, end such policy wilt be issued without eeception for the interest of the son-titled spouse, World may waive the requirements of (1) and (2) above in wnting Contact Wortd at 2104434222 to obtain a wnEen waiver Rig)tto Rescind )c

) ) )

This loan is subtect to the right to rescind The Nobce of Right to Cancel form is date aeretive You must ensure that the dates on the Notice of Right to Cancel are correctly completed ea eel forth in the attached `Notice of RIght In Cancel Instructions' Provide each parson having a right to rescind this transaction with two (2) copies of the Notice of Right io Cancel tons and one copy of the Regulatioe Z Disclosure no bier than the day they sign the loan documents DO NOT DISBURSE ANY FUNDS PRIOR TO THE EXPIRATION OF TNE CANCELLATION PERDD DESCRIBED IN The NOTICE OF RIGHT TO CANCEL"COMpLETED AS SET FORTH IN TNE ATTACHED `NOTICE OP RIGHT TO CANCEL tNSTRUCTIONS.

x (x

NOTICE OF RIGHT TO CANCEL INSTRUCTIONS I. Make Certain the Noltce of Right to Cancel Contatna the Correct Dales:

Included in World's loan document pactrego are three copws of the Notes of Right to Cancel (Notice') for each person entitled to receive copies of the Notice under the federal Truth In Lending Act You must take the following steps in regard to the Notice A Contirrn that the specihc date slated in subsection (1) of the `Ynur Right to Cuecet" Sectmn of each copy of the Nosce m the actual date the borrowers sign the Note and Seconty Instrument If the date tha borrowers agn the Note and Security lnstnjweni is different then the dete set forth in subsection (1) of the "Your Right to Cancel" Sectmn of the Notice, then the date sel forth in aobsection (1) of enery copy of the Notice must he changed to the date the borrowers sign the Note end Security Instrument You must then have the corrected date on each copy initiated by the person who is to receive that Notice Cnntrm that the specific date stated in the Thuw To Cancef' Section of the Notice is the third business day, as determined below, following the B date the borrower signs the Note and Security Instrument (the `Ttnrd Eunineos Day') If the date in the `How To Cancel" Section is not the Third Business Day, you are instructed to cross out the incorrect date and insert the correct Third Business Day on alt copies of the Notice You must then have the corrected Third Bumness Day on each copy initiated by the person who sb receive that Notice For purposes of celcolabng the Third Business Day · Saturday is always counted as a business day · Day 1 a the business day after the borrower signs the Note and Secunty Agreement · Sundays and fedemt tegal holidays are not counted as businoss days (See the Federal Legal Holidays Chart below)
-

F

L.

New Years Day Martin Luther king Jr Day Presidenfa DaL Memorial Day Independence Day Labor Day Columbus Day Veteran's Day Thanksgiving Day Chretmas Day

Federal Legal HotWsye January 3rd Monday of January 3rd Mcnduy of February Last Monday of May July 4 1st Monday of September 2nd Monday of October November 11 4th Thursday of November December25

p

ProvIde Copies to Persona EndUed to Rescind:

You must provide each person having a right to rescind this transaction under the terms of the federal Truth In Lending Act with two (2) copes of the Notice and one copy of the "Fedeml Troth In Lending Disclosure Required by Regolatron t on the day that thea aion the loan documents Have each recipient of the Notice sign tho Acknowledgement of Receipt of Copies section of the third copy of the Notice provided to you for that person end return it with the dosing package THE SPECIAL INSTRUCTIONS SECTtON IS CONTINUED ON
OF44OJ p504-os-a)
oisTRleunDN t COPY-CLOSER

THE NEXT PAGE
CR 1 CDPY.LOAN RLe

Page 10
I COPY-LOAN CENTER

WM 68

Exhibit A to Stipulation - Page 19

(Page 11

of

11)

WORLD SAVINGS

I

LENDER'S CLOSING INSTRUC11ONS
-

LOAN NO: 0047328505

SECTION Xlii -SPECIAL INSTRUCTIONS CONTINUED

(K)
(K) (X)

RECEIPT OF SIGNED WORLD SAVINGS LOAN DISCLOSURES.
NON-BORROWING SPOUSE TO SIGN W.14 CONTACTS;

SECUIRTY INSTRUMENTS
-

*PROCESSOR: TESS?, KUNS ThX# 866-490-1631, TKUNZ7 4 6@W0RLDSAVII4GS. CON S'IAC VERSU SVERSH451@WORLDSAVINGS . CON -->PLEASN EMAII US FOR FILE STATUS AND FAX ALL CONDITIONS TO TESSA. WE CAN ALSO BE REACHED 5 [phone]. THANK YOU
-

CX) (X) (X)

CERTIFIED COPY OF AN ESCROW ANMENOMENT REGARDING I.ENDER,RATE AND TERM ATTENTION CLOSING AGENTS
-

PLEASE REFER TO PAGE 2,

ITEM #3

-

PATRIOT ACT.

LOAN APPLICATION ADDENDUM TO BE COMPlETED AND SIGNED TO INCLUDE SOCIAL SECURITY NUMBER ON PAGE 4 OF 4 AND RETURNED WITH CLOSING PACKAGE BORROWER. TO SIGN REQUEST FOR INITIAL PAYMENT AND RETURN WITH CLOSING PACKAGE. PROOF OF HAZARD INSURANCE TO BE PROVIDED Al' CLOSING AND RETURNED WITH CLOSING PACK ATTN CLOSING AGENT: IF BROKER FEES DIFFER FROM WHAT IS DISCLOSED ON THE LENDERS CLOSING INSTRUCTIONS, PLEASE CALL 1-800-873-7340 FOR SPECIFIC APPROVAL OR FURTHER INSTRUCTION.

(X)

CX)

(X)

*****

SPACE INTENTIO3LLY LEFT BLANK

GF44OK (2006-04-3) DISTRIBUflON I COPY-CLOSER

* 9 Pa 11 I COPY.LOAN CENTER I COPY-LOAN FILE

CA

WM69

Exhibit A to Stipulation - Page 20