3 transcripts of new century mortgage bankruptcy hearings from may 2007

Upload: 83jjmack

Post on 05-Apr-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    1/293

    [BIXKH ^XAXK^ LABO\[ZXNY NE[\X

    HI^X\INX EM HKCAWA\K

    "IB \K4 " Nfazxk| 11

    "Bkw Nkbx{|y X\^ Fechibg~# "Ibn"# kx ac"# "

    "Hklxe|&~)" " Labo|{zxny .:71:81= &ODN)

    """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

    Wic`ibgxeb# HK@ay 8# 4:: z"`"

    X\AB^N\IZX EM XKCKZFEBK NEBMK\KBNKLKME\K XFK FEBE\ALCK OK]IB D" NA\KY

    [BIXKH ^XAXK^ LABO\[ZXNY D[HGK

    AZZKA\ABNK^4

    Me| Xfk Hklxe|&~)4 ^{ttabbk ^" [fcabh# K~q"E'@kc}kby - @yk|~# CCZ

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    2/293

    Me| [L^4 Okixf W" @icck|# K~q"Za{c Fa~xibg~Za|o A}k" Xewk|7; K" ;;xf ^x1~x Mc"Bkw Ye|o# BY 1::

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    3/293

    >

    Me| Libgfa` @nN{xnfkb# CCZ4 X|anky L" Za~xab# K~q"Libgfa` @nN{xnfkb# CCZ>99 Za|o A}k"

    Bkw Ye|o# BY 1::; W" Wanok| H|i}kNfinage# IC =:=:1

    Me| @e|gab ^xabcky @e|xgagk4 Habikc L{xt# K~q"@e||i~ Binfec~ A|~fx- X{bbkcc# CCZNfa~k @abfaxxab Nkbx|k1

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    4/293

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    5/293

    ;

    1 k}kbibg# I lkcik}k ix wa~ eb Az|ic xfk ne`zkb~axieb zcab~ xfax wk|k xfk ~{ldknx em xfk Ibnkbxi}k

    8 \kxkbxieb @exieb# abh wk wk|k gi}kb a kvxkb~ieb em xfk

    ; eldknxieb hkahcibk# m|e` xfk Hklxe|~ ~xabhzeibx# xe |k}ikw abh

    = eldknx xe xfe~k zcab~ zkbhibg xfki| micibg" Xfk |k~x|{nx{|k

    7 zcab~ wk|k mickh eb @ay 1~x# abh xfky |kmcknxkh a mai|cy

    6 ~{l~xabxiac |k~x|{nx{|ibg em xfk z|eze~kh Ibnkbxi}k \kxkbxieb

    9 Zcab~" ^e`k zkezck wk|k ~fimxkh m|e` ebk zcab xe xfk exfk|"

    1: Nk|xaib zk|~eb~ wk|k ahhkh xe xfk zcab~"

    11 Ye{| Febe|# wixf |k~zknx xe xfk |kq{k~x xfax wk}k `ahk#

    1< wk lkcik}k xfax ib cigfx em e{| |k}ikw em xfk zcab a~

    1> |k~x|{nx{|kh xfax ix we{ch lk mixxibg me| xfk |kcikm xfax~

    18 |kq{k~xkh ib xfk `exieb xe lk xalckh zkbhibg xfk neb~ihk|axieb

    1; em xfk X|{~xkk Kva`ibk| @exieb"

    1= XFK NE[\X4 Abh xfax~ ~nfkh{ckh me| fka|ibg eb @ay

    17 1;xf ax 14>:5

    16 @\" @N@AFEB4 Xfax i~ ne||knx" ^{nf xfax xfk fka|ibg

    19 eb xfk X|{~xkk Kva`ibk| ne{ch ge me|wa|h# abh Ye{| Febe|# xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    6/293

    =

    1 enn{||kh z|kzkxixieb" Abh ac~e# ix nebxk`zcaxk~ zexkbxiaccy a

    < l|eahk| men{~ me| xfk kva`ibaxieb"

    > Ye{| Febe|# nk|xaibcy ebk em xfk xfibg~ xfax wk lkcik}k

    8 xfax kixfk| a Nfazxk| 11 X|{~xkk e| ab Kva`ibk| wicc lk heibg

    ; e| ~fe{ch lk heibg# im abh wfkb azzeibxkh# i~ xe |k}ikw xfk

    = bknk~~ixy abh xfk z|ez|ikxy em awa|hibg xfk leb{~k~ xfax fa}k

    7 lkkb |kq{k~xkh# nk|xaibcy ceeoibg ax xfk lkbnf`a|o~ me| zay`kbx

    6 em wfax xfk leb{~k~ xfax fa}k lkkb z|eze~kh abh exfk| i~~{k~

    9 ~zknimin xe xfk zcab~" Abh ib cigfx em abh exfk| axxkbhabx

    1: i~~{k~" Abh# Ye{| Febe|# wk lkcik}k xfax xfax |k}ikw i~

    11 kbxi|kcy azz|ez|iaxk# gi}kb xfk k~zkniaccy ib xfk na~k em a

    1< Nfazxk| 11 X|{~xkk we{ch fa}k nebx|ec em xfk ezk|axieb~ em xfk

    1> Hklxe|~" Abh ix we{ch lk ab azz|ez|iaxk |eck me| ab Kva`ibk|

    18 xe zcay ib cigfx em xfk acckgaxieb~ xfax fa}k lkkb |ai~kh wixf

    1; |k~zknx xe xfk z|kzkxixieb anne{bxibg abh mibabniac ~xaxk`kbx

    1= i||kg{ca|ixik~"

    17 Ye{| Febe|# xfk|k fa}k lkkb ~e`k exfk| hk}kcez`kbx~ ib xfk

    16 na~k wfinf nk|xaibcy manxe| ibxe xfk ["^" X|{~xkk~ nebnk|b~

    19 wixf |k~zknx xe xfk zcab~ abh xfk xi`ibg em xfi~ Ne{|x~

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    7/293

    7

    1 zkxixieb haxk# abh ib cigfx em xfk lexf xfk z|kzkxixieb

    < i||kg{ca|ixik~ abh xfk nebxib{ibg |kh{nxieb~ ib me|nk wfinf xfk

    > Hklxe|~ a|k i`zck`kbxibg# wk lkcik}k xfax xfk# ye{ obew# xfk

    8 ibxkg|ixy em xfk z|enk~~ abh xfk ~y~xk` ax xfi~ zeibx hk`abh~

    ; xfax xfk~k leb{~ zcab~ ciok xfk ebk~ xfax a|k z|eze~kh gkx xfk

    = |k}ikw em ab ibhkzkbhkbx mih{nia|y e| ab ibhkzkbhkbx kva`ibk|#

    7 xe xfk kvxkbx xfax xfi~ Ne{|x i~ ibncibkh xe g|abx xfax |kcikm

    6 eb xfk 1;xf

    9 XFK NE[\X4 Xfabo ye{" Hek~ abyebk kc~k na|k xe lk

    1: fka|h5

    11 @^" [FCABH4 Yk~# xfi~ i~ {ttabbk [fcabh m|e`

    1< E@kc}kby - @yk|~ me| xfk ne`zaby# me| Bkw Nkbx{|y" Wkcc# ye{

    1> obew# d{~x me| `aby em xfk |ka~eb~ xfax wk|k d{~x e| xfk

    18 manx~ abh ni|n{`~xabnk~ xfax fa}k d{~x lkkb kvzcaibkh ly xfk

    1; ["^" X|{~xkk# xfax i~# ye{ obew# xfk }k|y |ka~eb wk nabbex

    1= amme|h xe hkcay xfi~ axxk|"

    17 Mi|~x# Ye{| Febe|# xfk# ye{ obew# xfk e|igibac zcab fah

    16 lkkb ye{ obew# xfk nebnkzx~ em xfk zcab wa~ ~kx eb |kg{ca|

    19 bexink ly xfk xi`k wk ~kx ix me| fka|ibg eb xfk 7xf# abh xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    8/293

    6

    1 xfk [bixkh ^xaxk~ X|{~xkk wixf |k~zknx xe xfk ~nezk em ;:>"

    < Wfax wk mickh# ix hih xaok a hkcilk|axk z|enk~~# abh wfkb

    > wk wk|k ~xicc kbgagkh wixf N|khixe|~ Ne``ixxkk ib xfk~k

    8 hi~n{~~ieb~# l{x hkxk|`ibkh eb @ebhay e| eb X{k~hay xe mick xfk

    ; zcab~ xfax wk fah xe xfk kvxkbx xfax wk fah |k~x|{nx{|kh xfk`"

    = Abh xfkb m{|xfk|# ~ibnk X{k~hay# wk}k nebxib{kh xe we|o wixf

    7 N|khixe|~ Ne``ixxkk xe `aok m{|xfk| knebe`in ~kcknxkh

    6 knebe`in |kh{nxieb~ ib xfk zcab# abh anx{accy m{|xfk|

    9 |k~zebhibg xe ~e`k em xfk i~~{k~ |ai~kh ly xfk X|{~xkk" ^e

    1: xfax wk a|k bew ax a zeibx# a~ em xfi~ `e|bibg# wk fa}k |kanfkh

    11 ag|kk`kbx wixf xfk Ne``ixxkk eb xfk xk|`~ ib anne|habnk wixf

    1< xfk ~x|{nx{|k ~kx e{x ib xfk a`kbh`kbx# agaib wixf ~e`k nfabgk~

    1> m{|xfk| |kh{nibg xfk knebe`in~ wixf lkbkmix em xfk k~xaxk"

    18 Xfk z|enk~~ xfax~ ckah xe xfi~ zeibx fa~ lkkb# ye{ obew#

    1; a fkacxfy hiaceg abh hklaxk# wixf xfk Ne``ixxkk z|k~~ibg xfk

    1= Hklxe| eb xfk l{~ibk~~ bkkh me| xfk~k zcab~" L{x `e|k

    17 i`ze|xabxcy# xfk~k zcab~# ciok acc xfk~k |kxkbxieb zcab~# ce~k

    16 xfki| kmmknxi}kbk~~ k}k|y hay xfax xfky|k bex azz|e}kh" Xfk

    19 `a~~i}k hewb~itibg hih enn{|# e| i~ enn{||ibg" Ye{ obew#

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    9/293

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    10/293

    1:

    1 obew# im xfk z|eze~ac i~ xe a~o xfk~k ibhi}ih{ac~ xe waix

    < a|e{bh# bex ebcy 'xic xfk 1;xf# l{x {bxic a X|{~xkk i~

    > azzeibxkh# we{ch fa}k ab ezze|x{bixy xe ge lano abh |k}ikw xfk

    8 k~~kbxiaccy# ye{ obew# wfax xfk Ackv Za|xbk|~ z|emk~~iebac~

    ; fa}k ac|kahy |k}ikwkh ib l{~ibk~~ d{hg`kbx# wfax xfk N|khixe|~

    = Ne``ixxkk fa~ ac|kahy |k}ikwkh a~ xfk l{~ibk~~ d{hg`kbx# ye{

    7 obew# xfax i~ ib kmmknx hkbyibg xfk zcab~ abh x|{cy

    6 dkeza|hitibg xfi~ z|enk~~ lkna{~k xfax bew n|kaxk~# ye{ obew#

    9 ~{nf ab {bnk|xaib m{x{|k me| xfk~k ibhi}ih{ac~ wfe wk}k lkkb

    1: alck xe |kxaib `e~x em xfk` xe haxk" Wk|k bex |kxaibibg

    11 k}k|ylehy k}kb xfax wk}k ac|kahy z|e`i~kh ab ibnkbxi}k abh

    1< |kxkbxieb zay`kbx xe d{~x lkna{~k em xfk himmin{cxy em xfi~

    1> na~k" L{x xfax we{ch lk a }k|y bkgaxi}k ye{ obew# fa}k a

    18 }k|y bkgaxi}k i`zanx eb xfk geac~ em xfk Hklxe| abh xfk

    1; Ne``ixxkk abh xfk ye{ obew# xe |kanf xe `avi`itk xfk

    1= }ac{k~ abh |kxaib xfk~k k`zceykk~ xe he ~e"

    17 XFK NE[\X4 Xfabo ye{" Hek~ abyebk kc~k na|k xe lk

    16 fka|h5

    19 @\" IBHKCINAXE4 Yk~# Ye{| Febe|" Xfi~ i~ @a|o

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    11/293

    11

    1 Xfi~ wa~ a `exieb# Ye{| Febe|# xfax wa~ mickh ib wfinf

    < xfky ~e{gfx zay`kbx~ ib kvnk~~ em (7 `iccieb xe a }a|ikxy em

    > xfki| k`zceykk~" Xfk Ne``ixxkk ibixiaccy xech xfk Hklxe|~ xfax

    8 xfky fah ~igbiminabx z|elck`~ wixf xfax" Wk}k we|okh wixf

    ; xfk` abh gexxkb ix xe xfk zeibx wfk|k xfky}k mickh ab a`kbhkh

    = ebk# wfinf wa~ ~xicc# ib xfk Ne``ixxkk~ `ibh# xee |inf" Wk

    7 wkbx lano wixf xfk` abh wk bkgexiaxkh m{|xfk|# abh wk}k gex

    6 ~igbiminabx ahhixiebac |kh{nxieb~# wfinf wk nab ge xf|e{gf wixf

    9 xfk Ne{|x eb @ebhay ax xfk azz|ez|iaxk fka|ibg"

    1: Xe ckah xfi~ Ne{|x xe lkcik}k xfax xfk|k~ be ibhkzkbhkbx

    11 mih{nia|y wfe~ waxnfibg e}k| xfi~ k~xaxk me| xfk lkbkmix em

    1< N|khixe|~# I webx ~ay I xaok emmkb~k xe ix# l{x I lkcik}k ix~

    1> a `i~be`k|" Xfk Ne``ixxkk fa~ lkkb anxi}kcy ib}ec}kh ib k}k|y

    18 ~xkz em xfi~ na~k abh fa~ ncka|cy lkkb waxnfibg e{x me| xfk

    1; lkbkmix em N|khixe|~# abh xfky a|k mih{nia|ik~ abh xfky fa}k

    1= lkkb anxibg |k~zeb~ilcy"

    17 Wixf |k~zknx xe xfk ["^" X|{~xkk~ `exieb# Ye{| Febe|# ebk

    16 em xfk xfibg~ xfax fa~ nebnk|bkh xfk N|khixe|~ Ne``ixxkk i~ xfk

    19 manx xfax# a~ Hklxe|~ ne{b~kc ~xaxkh# k}k|y hay xfax wk waix

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    12/293

    1 xe lk fka|h"

    18 ACC4 &Be }k|lac |k~zeb~k)"

    1; XFK NE[\X4 Acc |igfx# ge afkah"

    1= @\" @N@AFEB4 Ye{| Febe|# l|ikmcy" Mi|~x# ebk em xfk

    17 a|g{`kbx~ ~aih ly lexf xfk Hklxe|~ abh xfk Ne``ixxkk i~ xfk

    16 bkgaxi}k i`zanx xfax ix wicc fa}k eb xfk Hklxe|~ k`zceykk~"

    19 Wkcc# xfk|k a|k xf|kk oky ~ack~ xfax a|k fa}k lkkb xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    14/293

    18

    1 a|k bew kmmknxi}kcy ly xfk way~ihk# `kabibg xfax xfe~k ~ack~

    < fa}k nebnc{hkh" Xfk|k we{ch lk al~ec{xkcy be z|kd{hink ib

    > z{~fibg xfk fka|ibg eb xfi~ `exieb emm zkbhibg a fka|ibg eb xfk

    8 X|{~xkk Kva`ibk| @exieb wixf |k~zknx xe xfk k`zceykk~ ib}ec}kh

    ; ib a~~i~xibg ib xfax ~ack"

    = Wixf |k~zknx xe xfk ~k|}inibg# Ye{| Febe|# xfk z|e`i~k em

    7 xfe~k k`zceykk~ fa}ibg a del wfkb xfi~ z|enk~~ i~ gebk i~ xfk

    6 i`ze|xabx neb~ihk|axieb fk|k lkna{~k xfky a|k kmmknxi}kcy

    9 `aoibg a hkni~ieb wfkxfk| xe ~xay e| ge la~kh {zeb xfax abh bex

    1: la~kh {zeb wfkxfk| e| bex xfky|k gkxxibg a leb{~" Xfk kmmknx

    11 em xfk |kcikm xfax xfk ["^" X|{~xkk i~ |kq{k~xibg we{ch fa}k be

    1< ck~~ a hkxk||kbx e|# ~ay# a bkgaxi}k kmmknx {zeb xfk k`zceykk~

    1> xfab geeh maixf bkgexiaxieb~ lkxwkkb xfk Ne``ixxkk abh xfk

    18 Hklxe|~ e}k| xfk |kcikm xfax~ lkkb |kq{k~xkh" Im xfk zcab~

    1; ~xa|xkh ax V abh fa}k kmmknxi}kcy lkkb |kh{nkh ~igbiminabxcy#

    1= `kabibg xfk ne`zkb~axieb z|eze~kh {bhk| ix# xfkb nk|xaibcy

    17 wfaxk}k| kvzknxaxieb~ xfax nk|xaib k`zceykk~ fah wixf |k~zknx

    16 xe xfk zcab a~ wa~ ibixiaccy mickh fa}k ac|kahy lkkb

    19 m|{~x|axkh" Abh I` bex ~ayibg xfax xfax bknk~~a|icy# Ye{|

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    15/293

    1;

    1 xfk Ne``ixxkk~ fa}ibg wixf xfk Hklxe|~ we{ch fa}k eb xfk

    < z|enk~~"

    > Wixf |k~zknx xe xfk ibhkzkbhkbnk em xfk ne|ze|axk

    8 neb~{cxabx abh Ackv Za|xbk|~# xfk ibhkzkbhkbx ne`zkb~axieb

    ; neb~{cxabx ab~wk|~ xe xfk Lea|h" Ib manx# ix~ lkkb |kxaibkh

    = xe z|e}ihk neb~{cxibg ~k|}ink~ xe xfk Lea|h# abh Ackv Za|xbk|~

    7 i~ xfk |kxkbxieb i~ z|eze~kh# xfk >=> |kxkbxieb# wfk|k ab

    6 Ackv Za|xbk|~ zk|~eb we{ch lk ~k|}ibg a~ ab emmink| wixf

    9 nk|xaib ~{zze|x ~xamm" Xfky a|k bex ibhkzkbhkbx ib xfk ~kb~k

    1: xfax xfky he bex {cxi`axkcy ab~wk| e| neb~{cx wixf xfk Hklxe|~

    11 ibZe~~k~~ieb"

    1< Abh Ye{| Febe|# wixf |k~zknx xe xfk ibhkzkbhkbx mih{nia|y

    1> a|g{`kbx# e{| zeibx wa~ bex xe ~{ggk~x xfax xfk Ne``ixxkk hek~

    18 bex fa}k a |eck xe zcay ib xfk z|enk~~ e| xfax xfk Ne``ixxkk i~

    1; bex ibhkzkbhkbx nk|xaibcy" L{x xfk n|ixinac xfibg xe |k`k`lk|

    1= i~ xfax xfk Hklxe|~ a|k xfk kbxixik~ xfax a|k ne`ibg me|wa|h

    17 wixf xfk |kq{k~x me| |kcikm" Xfky|k xfk ebk~ xfax a|k ~kkoibg

    16 xe zay xfk leb{~k~" Xfi~ `exieb wa~ bex z|eze~kh ly xfk

    19 Ne``ixxkk# abh xfk i~~{k i~ wk|k xacoibg ale{x |k}ikw em ab

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    16/293

    1=

    1 Kva`ibk| @exieb"

    < XFK NE[\X4 Acc |igfx" @|" @n@afeb# wfax I` geibg xe

    > he i~ ~nfkh{ck xfk fka|ibg# xfk ["^" X|{~xkk~ @exieb

    8 fka|ibg eb xfk ["^" X|{~xkk~ @exieb xe Nebxib{k xfk Fka|ibg eb

    ; xfk Hklxe|~ `exieb abh ~nfkh{ck ix me| fka|ibg eb @ebhay" Abh

    = fk|k~ wfax I kb}i~ieb" Lexf ~ihk~# I xfibo# `aok a|g{`kbx~

    7 xfax fa}k `k|ix" ^e ckx `k ~kk wfax |kne|h i~ hk}kcezkh ib

    6 ~{zze|x em xfk Hklxe|~ `exieb eb @ebhay" Ckx `k ~kk wfax

    9 ezze|x{bixy xfk ["^" X|{~xkk kixfk| fa~ e| fa~bx fah xe |k}ikw

    1: xfk caxk~x ixk|axieb em xfax xe wfinf xfk Ne``ixxkk abh xfk

    11 Hklxe| abh zk|faz~ exfk|~ fa}k ag|kkh abh xfkb `aok a hkni~ieb

    1< ale{x wfkxfk| xe neb~ihk| g|abxibg ~{l~xabxi}k |kcikm e|

    1> wfkxfk| ix ~fe{ch lk hkcaykh m{|xfk|"

    18 Ceeo# xfk na~k na`k ib wixf wa|x~ xfax wk}k xacokh ale{x

    1; lkme|k# ~e I xfibo xfk ["^" X|{~xkk i~ |igfx xe ~ay# ,Waix a

    1= `ib{xk# ye{ obew# xfk~k xfibg~ bkkh xe lk ceeokh ax", Eb xfk

    17 exfk| fabh# I ag|kk wixf xfk Ne``ixxkk abh xfk Hklxe| xfax xfk

    16 `e~x i``khiaxk nebnk|b i~ xfax ib a l{~ibk~~ xfax i~ abh fa~

    19 m|e` xfk lkgibbibg ~aih ix ibxkbh~ xe ciq{ihaxk# `aoibg ~{|k

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    17/293

    17

    1 ^e I` geibg xe ~igb xfk e|hk| ~nfkh{cibg xfk ["^" X|{~xkk~

    < @exieb xe Nebxib{k xfk Fka|ibg me| @ebhay ax 1: e'nceno" A|k

    > xfk|k aby q{k~xieb~5

    8 @^" [FCABH4 Be# Ye{| Febe|" Xfabo ye{"

    ; XFK NE[\X4 Acc |igfx" Ckx~ x{|b xe xfk ~knebh

    = `axxk|# abh xfax i~ [L^ @exieb me| Kvxkb~ieb em Xi`k xe Mick

    7 ^{zzck`kbxac @k`e|abh{`# kx nkxk|a" Icc fka| m|e` [L^"

    6 @\" @ICCK\4 Ye{| Febe|# xfi~ i~ Okixf @icck| m|e`

    9 Za{c Fa~xibg~" Wixf `k i~ \infa|h Nfk~cky" Ye{| Febe|# wk

    1: ly way em lanog|e{bh# eb @ay ;xf [L^ mickh a ne`zcaibx abh a

    11 @exieb ^kkoibg a Xk`ze|a|y \k~x|aibibg E|hk|" Z|ie| xe xfk

    1< fka|ibg eb Az|ic 1 acebg wixf [L^# kbxk|kh ibxe ab ag|kk`kbx xe ahde{|b xfk X\E

    18 @exieb ax xfax xi`k" Ax xfk Az|ic 1

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    18/293

    16

    1 Wk hih |knki}k xwe |knebniciaxieb~ m|e` xfk Hklxe|~? ebk

    < wfax wk ncai` xe lk ze~xzkxixieb# ebk i~ z|kzkxixieb" Xfk

    > way wk ceeo ax ix i~ xfk z|kzkxixieb we{ch lk xfk @a|nf

    8 |knebniciaxieb" Xfk ze~xzkxixieb i~ xfk |knebniciaxieb

    ; lkxwkkb Az|ic 1~x abh Az|ic 1 ~zkao xe xfk Hklxe| abh x|ikh xe gkx a lkxxk| {bhk|~xabhibg em

    18 wfy xfk~k ceab~ wk|k bex eb a |knebniciaxieb" [bme|x{baxkcy#

    1; lkna{~k I xfibo em a b{`lk| em ~nfkh{cibg z|elck`~# wk wk|k bex

    1= alck xe fa}k xfax neb}k|~axieb {bxic yk~xk|hay amxk|beeb"

    17 H{|ibg yk~xk|hay caxk amxk|beeb# wk fka|h me| xfk mi|~x

    16 xi`k xfax xfk |ka~eb xfk ceab~ wk|k bex eb xfk |knebniciaxieb

    19 i~ lkna{~k I xfibo xfk ze~ixieb xfk Hklxe|~ a|k bew xaoibg me|

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    19/293

    19

    1 z|e}ihkh me| ib xfk \kz{|nfa~k Ag|kk`kbx abh xfk exfk|

    < hen{`kbx~"

    > ^e {bme|x{baxkcy# wk mkcx xfax xfk|k wa~ a bkkh xe kvzcaib

    8 xfk ~ix{axieb abh kvzcaib wfax fa~ lkkb fazzkbibg" Abh

    ; xfk|kme|k# wk mickh xfk~k zazk|~ yk~xk|hay me| Ye{| Febe|~

    = neb~ihk|axieb"

    7 XFK NE[\X4 Ckx k fka| m|e` xfk Hklxe|"

    6 @\" X\[IXX4 Yk~# Ye{| Febe|# xfi~ i~ L|kbx X|{ixx em

    9 Fkbbigab# Lkbbkxx - He|`ab me| xfk Hklxe| Hkmkbhabx~" Mi|~x em

    1: acc# xfk~k ~{zzck`kbxac micibg~ na`k a~ a ne`zckxk ~{|z|i~k xe

    11 {~ ca~x bigfx" Xfk|k wa~ be kmme|x xe hi~n{~~ xfk` wixf {~#

    1< wfinf i~ nebxk`zcaxkh ly Cenac Hi~x|inx \{ck 7"1"1"# k}kb

    1> xfe{gf wk wk|k ib hi~n{~~ieb~ wixf [L^ yk~xk|hay amxk|beeb"

    18 Wfax xfky mickh wa~

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    20/293

    Ix~ kbxi|kcy bkw `axk|iac xfax wk|k ~kkibg me| xfk mi|~x

    8 xi`k"

    ; Fewk}k|# k}kb im ix wk|k a |kzcy# ix we{ch lk {bxi`kcy

    = {bhk| Cenac \{ck 7:71# wfinf wk lkcik}k hek~ azzcy" Wk a|k ib

    7 ab ah}k|~a|y z|enkkhibg nebxkvx" Abh xfki| e|hk| ~nfkh{cibg

    6 xfk kvzkhixkh e|hk| ~nfkh{cibg a fka|ibg eb xfk X\E# wfinf wa~

    9 eb neb~kbx# hih bex nebxk`zcaxk a |kzcy" Xfky mickh a Bexink

    1: em Ne`zckxieb em L|ikmibg wfinf hih bex ibnc{hk aby |kzcy e|

    11 aby `kbxieb xfax ebk wa~ me|xfne`ibg"

    1< ^e Ye{| Febe|# wfax wk a~o me| i~ a ~fe|x ahde{|b`kbx em

    1> @ebhay~ fka|ibg ~e xfax wk lk gi}kb ab ezze|x{bixy xe |k~zebh

    18 xe xfk ~{zzck`kbxac zazk|~ ib w|ixibg# bex d{~x me| {~# l{x me|

    1; xfk Ne{|x xe fa}k xi`k xe |k}ikw xfki| zazk|~# a~ wkcc a~ aby

    1= |k~zeb~k wk `igfx ~{l`ix" Al~kbx xfax# ab ahde{|b`kbx# wk

    17 we{ch eldknx xe xfk micibg em xfk {bxi`kcy zazk|~ abh a~o xfax

    16 xfky lk ~x|inokb m|e` xfk |kne|h"

    19 XFK NE[\X4 Wkcc# ckx k a~o xfi~ em xfk Hklxe|"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    21/293

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    22/293

    hi~n{~~ieb# xfax i~ a bkw |kq{k~x em xfk Ne{|x# wfinf i~ bex

    18 z|ezk|cy lkme|k xfk Ne{|x# be| fa}k wk fah xi`k xe ahkq{axkcy

    1; |k~zebh xe xfax" ^e xfax~ bex a zkbhibg `exieb lkme|k xfk

    1= Ne{|x# Ye{| Febe|" \igfx bew xfk ebcy xfibg lkme|k xfk Ne{|x

    17 i~ xfki| |kq{k~x xe mick caxk ~e`k zazk|~ me| a fka|ibg xfax~

    16 ~nfkh{ckh xe xaok zcank eb @ebhay `e|bibg"

    19 XFK NE[\X4 Wkcc# wfinf I a` ibncibkh xe g|abx" L{x

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    23/293

    1 ix~ a mai| nebnk|b" ^e k}kb im [L^ fah bex |ai~kh ix# xfk

    < Ne{|x we{ch fa}k" ^e# I `kab# xfk|k~ xfk nfeink" I g{k~~

    > Icc cka}k ix xe xfk Hklxe|" I `kab# ebk way xe azz|eanf ix i~

    8 me| `k xe g|abx xfk |kcikm abh xfax im xfk Hklxe| wabx~ `e|k

    ; xi`k xe neb~ihk| xfk bkw ibme|`axieb# ix bkkh~ xe neb}ibnk `k

    = xfax [L^ wicc bex lk fa|`kh ly xfk hkcay" Bew# wfkxfk| xfax

    7 `kab~ k~n|ewibg m{bh~ e| ~e`kxfibg kc~k# I webx ~ay" ^e

    6 fk|k~ wfax I` geibg xe he" Icc z{x xfk I a` geibg xe

    9 g|abx xfk |kcikm xfax~ lkkb |kq{k~xkh# l{x ax @ebhay~

    1: fka|ibg# im xfk Hklxe| z|e}ihk~# ax cka~x xe xfk Ne{|x~

    11 ~axi~manxieb e| ab a||abgk`kbx wixf wfinf [L^ exfk|wi~k ag|kk~#

    1< xfax ix webx ~{mmk| z|kd{hink a~ a |k~{cx em a hkcay# Icc z{x

    1> xfk fka|ibg e}k| xe xfk 1;xf e| ~e`k m{x{|k haxk im xfk za|xik~

    18 ag|kk"

    1; ^e fk|k~ wfax I` geibg xe he" Eoay# Icc ~igb xfk e|hk|

    1= ~kxxibg g|abxibg xfk |kcikm xfax [L^ fa~ |kq{k~xkh wixf

    17 |k~zknx xe micibg xfk ~{zzck`kbxac `k`e|abh{`# l{x {bhk|~xabh

    16 ix~ wixfe{x z|kd{hink xe xfk Hklxe| xe z|k~~ ix~ |kq{k~x xfax

    19 xfk fka|ibg lk m{|xfk| ze~xzebkh lkna{~k em xfk micibg em xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    24/293

    XFK NE[\X4 Acc |igfx" Ne{b~kc# xfabo ye{ acc me|

    8 `aoibg ye{|~kc}k~ a}aicalck eb ~{nf ~fe|x bexink" I azz|kniaxk

    ; ix"

    = [BIHKBXIMIKH ZKAOK\4 Ye{| Febe|5 Xfabo ye{# Ye{|

    7 Febe|"

    6 XFK NE[\X4 Abh I wicc ~kk ye{ @ebhay" Xfax nebnc{hk~

    9 xfi~ fka|ibg" Ne{|x i~ ahde{|bkh"

    1: &Ne{|x ahde{|bkh)

    11

    1< NK\XIMINAXIEB1> I nk|ximy xfax xfk me|kgeibg i~ a ne||knx x|ab~n|izx m|e` xfk18 kcknx|ebin ~e{bh |kne|hibg em xfk z|enkkhibg~ ib xfk ale}k1; kbxixckh `axxk|"1=

    17 Ckwi~ Za|fa` ;%16%:716 UUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUU19 ^igbax{|k em X|ab~n|ilk| Haxk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    25/293

    [BIXKH ^XAXK^ LABO\[ZXNY NE[\XHI^X\INX EM HKCAWA\K

    IB \K4 " Na~k Be" :71:81=ODN""

    BKW NKBX[\Y X\^ FECHIBG^# "IBN"# kx ac"# " 6

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    26/293

    Me| Mihkcixy4 Laok| Fe~xkxck|Ly4 HEBACH WE\O@AB# K^Q"Wa~fibgxeb ^q{a|k# ^{ixk 11::1:;: Nebbknxin{x A}kb{k# BWWa~fibgxeb# HN =;>:8

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    27/293

    >

    D-D NE[\X X\AB^N\ILK\^# IBN"

    AZZKA\ABNK^ &Nebx'h")

    ^`ixf Oaxtkb~xkib M{|cew CCZLy4 OAXFCKKB @ICCK\# K^Q"Xfk Ne|ze|axk Zcata6:: Hkcawa|k A}kb{kZ"E" Lev 81:Wic`ibgxeb# HK 19699

    Me| xfk Hklxe|~4 \infa|h~# Cayxeb - Mibgk|# Z"A"Ly4 @A\NE^ A" \A@E^# K^Q"

    @INFAKC @K\NFABX# K^Q"NF\I^XEZFK\ @" ^A@I^# K^Q"

    Ebk \ehbky ^q{a|k9

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    28/293

    8

    D-D NE[\X X\AB^N\ILK\^# IBN"

    AZZKA\ABNK^ &Nebx'h")4

    Zkzzk| Fa`icxeb# CCZLy4 HA]IH L" ^X\AXXEB# K^Q"Fk|n{ck~ Zcata^{ixk ;1::1>1> @a|okx ^x|kkxZ"E" Lev 17:9Wic`ibgxeb# HK 19699

    Me| Z|k`ik| Z|ibxibg4 ^xk}kb~ - CkkLy4 DE^KZF G\KY# K^Q"11:; Be|xf @a|okx ^x|kkxWic`ibgxeb# HK 196:1

    Me| Wkcc~ Ma|ge%NLa~~4 F{bxeb - Wiccia`~Ly4 DA^EB FA\LE[\# K^Q"

    LKBDA@IB ANOK\CY# K^Q"\i}k|m|ebx ZcataKa~x Xewk|9;1 Ka~x Ly|h ^x|kkx\inf`ebh# ]A

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    29/293

    ;

    D-D NE[\X X\AB^N\ILK\^# IBN"

    AZZKA\ABNK^ &Nebx'h")4

    Me| Labo em A`k|ina4 Oayk nfeck| CCZLy4 BINFECA^ N\K@EBA# K^Q"8 Be|xf @a|okx ^x|kkxWic`ibgxeb# HK 196:1

    Me| @{||ay Nazixac @{||ay Nazixac @abagk`kbx# Ibn"@abagk`kbx# Ibn"4 Ly4 @A\XI @[\\AY

    Me| Wa~fibgxeb @{x{ac4 Nebbeccy Le}k Cehgk - F{xtLy4 @A\N ZFICCIZ^# K^Q"Xfk Bk`e{|~ L{ichibg1::7 Be|xf E|abgk ^x|kkxWic`ibgxeb# HK 19699

    Me| BY ^xaxk Xkanfk|~ Cewkb~xkib ^abhck| ZN\kxi|k`kbx y~xk`4 Ly4 I\A CK]KK# K^Q"

    =; Ci}ibg~xeb A}kb{k\e~kcabh# Bkw Dk|~ky :7:=61791

    Me| HaxaCibo%Mi~k|{4 Zficciz~# Gech`kb - zkbnk

    Ly4 \ELK\X GECH@AB# K^Q"1

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    30/293

    =

    D-D NE[\X X\AB^N\ILK\^# IBN"

    AZZKA\ABNK^ &Nebx'h")4

    Me| HIZ Ckbhk|~4 Zanf{c~oi xabg Tikfc Ye{bg Debk~- Wkibx|a{l CCZLy4 XI@EXFY Z" NAI\B^# K^Q"Wic`ibgxeb# HK Emmink919 Be|xf @a|okx ^x|kkx#17xf Mcee|Z"E" Lev 67:;Wic`ibgxeb# HK 1969967:;

    Me| E|anck [^A4 @ebtano abh @ebane# Z"A"Ly4 OK]IB @ABGAB# K^Q"1:=

    xfe~k lebh~ we{ch kvzi|k gkbk|accy ib caxk Az|ic e| ka|cy @ay"8

    Ix }a|ikh m|e` ~xaxk xe ~xaxk" L{x xfk hklxe|~ wk|k manibg a;

    n|i~i~" Im xfe~k lebh~ xk|`ibaxkh z{|~{abx xe xfk bexink~# Bkw=

    Nkbx{|y we{ch bex fa}k cinkb~k~ xe ezk|axk" Aby z|e~zknx me| a7

    geibg nebnk|b ~ack# xfk ~k|}inibg l{~ibk~~ we{ch lk oicckh"6

    Aby kmme|x xe ~kcc xfk ceab e|igibaxieb zcaxme|` ~i`ica|cy9

    we{ch lk oicckh" Abh a~ a |k~{cx# xfk hklxe|~ kbgagkh ib1:

    bkgexiaxieb~ wixf xfk Fa|xme|h e}k| ze~~ilcy |k~nibhibg xfe~k11

    bexink~ em xk|`ibaxieb e| |kanfibg ab anne``ehaxieb"1

    za|x em Az|ic# a hkac wa~ ~x|{no" Bkw Nkbx{|y we|okh fa|h xe18

    za|k hewb xfk b{`lk| em lebh~ ix bkkhkh# |kaccy ceeoibg fa|h ax1;

    xfk ~xaxk |kq{i|k`kbx~# xe `aibxaib a geibg nebnk|b l{~ibk~~1=

    me| xfk ceab e|igibaxieb zcaxme|` abh ac~e xfk ~k|}inibg17

    l{~ibk~~"16

    Xfk xexac lebh~ agg|kgaxkh ale{x (="7 `iccieb mank19

    a`e{bx" Abh xfk Fa|xme|h wa~ wiccibg xe kvxkbh xfe~k me| 1

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    36/293

    1

    \e`k fa}k |k}ikwkh acc xfki| cinkb~ibg abh xfky'}k wk'}k18

    gexxkb ne`me|xalck xfax xfax'~ ebk em xfk |ka~eb~ xfk b{`lk|~1;

    fa}k ne`k hewb" Xfax xfk|k wk|k kvnk~~ cinkb~k~ e| kvnk~~1=

    lebh~ e{x xfk|k xfax wk|k d{~x bex bkkhkh ib cigfx em wfax17

    kvanxcy xfky wk|k heibg ib kanf ~xaxk" ^e abh ]k|`ebx wa~16

    ebk em xfk kva`zck~" Wk wk|k wk gex `e|k ne`me|xalck xfax19

    xfax i~ bex |kq{i|kh"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    44/293

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    45/293

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    46/293

    |kg{caxe|y ammai|~ em xfk ne|ze|axieb" ^e xfk~k lebh~ a|k8

    wixfib fi~ d{|i~hinxieb";

    Fk deibkh Bkw Nkbx{|y ib Enxelk| em

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    47/293

    D-D NE[\X X\AB^N\ILK\^# IBN"

    hklxe|~ nabnkccaxieb bexink~ me| acc xfe~k lebh~ xfax wk|k1

    kmmknxi}k gkbk|accy ib caxk Az|ic e| ka|cy @ay" Fk we{ch

    em Az|ic# xfk hklxe|~ kbgagkh ib bkgexiaxieb~ wixf xfk Fa|xme|h8

    ale{x ze~~ilck kvxkb~ieb~ e| xk|`ibaxieb~ em xfe~k nabnkccaxieb;

    bexink~"=

    Abh fk wicc xk~ximy amxk| ~{l~xabxiac gi}k abh xaok7

    x|ab~zi|ibg ~k}k|ac wkko~# {cxi`axkcy ab ag|kk`kbx wa~ |kanfkh6

    xfax wa~ ~kx me|xf ib xfk e|igibac `exieb# wfk|k xfk Fa|xme|h9

    hih ag|kk xe kvxkbh xfk nabnkccaxieb bexink~ {bxic xehay# wfinf1:

    wa~ ~kcknxi}k lkna{~k ix wa~ xfk bkvx e`bil{~ fka|ibg haxk11

    wfinf ne{ch accew xfi~ `exieb xe lk fka|h eb |kg{ca| bexink me|1

    em E|anck I xfibo xfax ix'~ ac~e x|{k wixf |k~zknx xe xfk [bieb8

    Labo eldknxieb abh I fa}k be z|elck` |k~k|}k ~zkaoibg caxk|";

    L{x I d{~x wabxkh xe `aok xfk ~a`k ~xaxk`kbx"=

    XFK NE[\X4 Acc |igfx"7

    @^" [FCABH4 Xfabo ye{# Ye{| Febe|" Xfk a~~kx~ xfax6

    xfk hklxe| i~ ~kkoibg azz|e}ac xe ~kcc xehay neb~i~x~ em ix~#9

    wfax wk |kmk| xe a~ ix~ ceab ~k|}inibg zcaxme|`"1:

    Xfk ceab ~k|}inibg zcaxme|` ibnc{hk~ ix~ `e|xgagk11

    ~k|}inibg |igfx~" Xfk~k a|k xfk nebx|anx{ac |igfx~ xe ~k|}ink1 `iccieb" Abh ib ahhixieb# ib1=

    nebbknxieb wixf xfk Na||ibgxeb ~ack# xfk hklxe|~ a|k ac~e# wixf17

    |k~zknx xe xfk ~ack xe Na||ibgxeb# ~kccibg xfki| ~k|}inibg16

    l{~ibk~~" Ib exfk| we|h~# xfk geibg nebnk|b a~zknx~ em xfk19

    ~ack ibnc{hibg nk|xaib zexkbxiaccy nk|xaib nebx|anx{ac

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    56/293

    >>

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Z|ie| xe xfk a{nxieb# xfk hklxe|~# Cata|h abh xfk1

    N|khixe|~ Ne``ixxkk hkxk|`ibkh xfax xfk lih m|e` @e|gab

    ^xabcky m|e` ix~ elcigaxieb xe lk a lano{z lihhk|"18

    Xfk hklxe|~# amxk| neb~{cxaxieb wixf xfk N|khixe|~1;

    Ne``ixxkk# hkxk|`ibkh xfax ix we{ch ne``ix xe {~k ix~1=

    hi~n|kxieb xe |kcik}k @e|gab ^xabcky m|e` lkibg a lano{z lihhk|17

    im ix we{ch ~{l`ix xfax lih"16

    Xfk|kamxk|# Na||ibgxeb lih abh xfax a`e{bx em19

    azz|evi`axkcy (1;: `iccieb# e| g|e~~ lih em azz|evi`axkcy (168

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    59/293

    >;

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Ib neb~ihk|ibg xfk Na||ibgxeb lih xe lk xfk figfk~x1

    abh lk~x lih# xfk hklxe|~ neb~ihk|kh xfax ib a neb~{cxaxieb=

    D-D NE[\X X\AB^N\ILK\^# IBN"

    N|khixe|~ Ne``ixxkk xfax xfk Na||ibgxeb lih |kz|k~kbxkh xfk1

    figfk~x abh lk~x lih"

    xfk kbxi|k e|hk|" L{x k~~kbxiaccy# xfk ~{l~xabnk em xfk18

    ag|kk`kbx wa~ wfax wk ~kbx e}k|"1;

    K~~kbxiaccy# xfk ahkq{axk a~~{|abnk~ eldknxieb~ fa}k1=

    lkkb |k~ec}kh kbxi|kcy a~~{`ibg xfax z|ie| xfk nce~ibg haxk#17

    xfk nebhixieb~ abh xfk ~k|}inibg ag|kk`kbx~ ^knxieb =:< e| ;:

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    64/293

    8:

    D-D NE[\X X\AB^N\ILK\^# IBN"

    abh xfi~ wa~ |kah ibxe xfk |kne|h ax xfk a{nxieb abh fa~ lkkb1

    |kmibkh ib lexf xfk e|hk| abh xfk AZA" Xfk cabg{agk i~

    Cata|h ac~e ibixiaxkh ne``{binaxieb~ wixf za|xik~8

    z|k}ie{~cy ihkbximikh a~ lihhk|~" A~ za|x em xfi~ z|enk~~#;

    Cata|h ~zeok wixf azz|evi`axkcy 8: ibxk|k~xkh za|xik~ abh=

    azz|evi`axkcy >: za|xik~ kvkn{xkh bebhi~nce~{|k ag|kk`kbx~ abh7

    k}ac{axkh xfk a~~kx~"6

    Fk we{ch m{|xfk| xk~ximy xfax xfk z|eze~kh ~ack abh9

    a{nxieb em xfk a~~kx~ wk|k z{lcinaccy ah}k|xi~kh ib xfk1:

    baxiebac khixieb em xfk Wacc ^x|kkx De{|bac eb Az|ic >:xf#11

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    73/293

    89

    D-D NE[\X X\AB^N\ILK\^# IBN"

    ^zkniminaccy# fk we{ch xk~ximy xfax xfk hklxe|~1

    |knki}kh xf|kk q{acimikh lih~ me| xfk a~~kx~" Xfk za|xik~ ib

    Kccibgxeb @abagk`kbx G|e{z# CCN# Kccibgxeb? @e|gab ^xabcky8

    @e|xgagk Nazixac# Ibn"# @e|gab ^xabcky? abh a deibx lih ly;

    N|khixla~kh A~~kx ^k|}inibg abh ^kn{|ixitaxieb# CCN# NLa~~?=

    abh La|ncay'~ Labo# ZCN# La|ncay'~"7

    Fk we{ch xk~ximy xfax amxk| xfk lih~ wk|k |knki}kh#6

    xfk hklxe|~# Cata|h abh xfk N|khixe|~ Ne``ixxkk abh xfki|9

    z|emk~~iebac~ k}ac{axkh abh hi~n{~~kh xfk knebe`in xk|`~ em xfk1:

    }a|ie{~ lih~ a~ wkcc a~ xfk xk|`~ abh nebhixieb~ em xfk11

    z|eze~kh a~~kx z{|nfa~k ag|kk`kbx~ ~{l`ixxkh ly xfk lihhk|~"1

    a{nxieb z|enk~~# xfky ne{ch i`z|e}k lexf xfk knebe`in abh beb18

    knebe`in a~zknx~ em xfk z|eze~ac~"1;

    Amxk| |k}ikwibg xfk }a|ie{~ lih~# xfk hklxe|~ abh1=

    Cata|h beximikh Kccibgxeb# @e|gab ^xabcky abh xfk deibx17

    lihhk|~# NLa~~ abh La|ncay'~ xfax xfky wk|k q{acimikh lihhk|~"16

    Xfk hklxe|~ abh Cata|h ac~e beximikh acc q{acimikh lihhk|~ xfax19

    @e|gab ^xabcky fah ~{l`ixxkh xfk figfk~x abh lk~x lih me| xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    74/293

    ;:

    D-D NE[\X X\AB^N\ILK\^# IBN"

    ag|kk xe i`z|e}k xfk xk|`~ em xfk ag|kk`kbx" @e|gab ^xabcky1

    ag|kkh xe a `ade|ixy em xfk z|eze~kh `ehiminaxieb~"

    xfk hklxe|~# Cata|h abh xfk N|khixe|~ Ne``ixxkk abh ix~8

    ah}i~e|~# Na||ibgxeb abh xfk exfk| q{acimikh lihhk|~#;

    Kccibgxeb# @e|gab ^xabcky abh NLa~~%La|ncay'~# a~~k`lckh ax=

    xfk emmink~ em E'@kc}kby @yk|~ ib Bkw Ye|o ax 1: a"`" me| xfk7

    a{nxieb"6

    Xfk hklxe|~ xfk|kamxk| ne``kbnkh xfk a{nxieb wixf xfk9

    @e|gab ^xabcky lih em 1;< `iccieb abh xfk i`z|e}kh a~~kx1:

    z{|nfa~k ag|kk`kbx xk|`~ a~ xfk xfkb figfk~x abh lk~x lih xfax11

    ne`zkxibg lihhk|~ we{ch fa}k xe xez"1

    kanf lih eb a bkx la~i~" Ax xfk ne``kbnk`kbx em xfk a{nxieb#18

    xfk hklxe|~ kvzcaibkh xe acc em xfk lihhk|~ xfk hklxe|~1;

    abacy~i~ em xfk @e|gab ^xabcky'~ lih abh xfk hklxe|~ hk|i}axieb1=

    em xfk bkx la~i~ em xfax lih" A~ kvzcaibkh ly xfk hklxe|~ xe17

    acc q{acimikh lihhk|~# @e|gab ^xabcky'~ g|e~~ lih em 1;

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    75/293

    ;1

    D-D NE[\X X\AB^N\ILK\^# IBN"

    abacy~i~ em knebe`in abh bebknebe`in xk|`~ abh xfk bkx la~i~1

    em xfk lih"

    lkxwkkb |e{bh~ em lihhibg me| za|xik~ xe neb~ihk| xfk knebe`in8

    abh bebknebe`in xk|`~ emmk|kh ly xfk figfk~x abh lk~x lih ib;

    xfk z|k}ie{~ |e{bh" H{|ibg xfk~k zk|ieh~# xfk hklxe|~# Cata|h=

    abh xfk N|khixe| Ne``ixxkk kvxkb~i}kcy hi~n{~~kh xfk xk|`~ em7

    xfk lih~ wixf xfk lihhk|~ abh `ahk ~{ggk~xieb~ eb few xfk6

    lihhk|~ ne{ch i`z|e}k xfki| lih~"9

    E}k| xfk ~{l~kq{kbx |e{bh~ em lihhibg# xfk z{|nfa~k1:

    z|ink abh exfk| xk|`~ em xfk x|ab~anxieb i`z|e}kh ~igbiminabxcy11

    abh xfk b{`lk| em lihhk|~ ib xfk a{nxieb hkncibkh" \kcaxi}kcy1

    NLa~~%La|ncay'~ kanf nfe~k bex xe ~{l`ix a figfk| lih abh18

    }ec{bxa|icy h|ezzkh e{x em xfk a{nxieb" Xfk|kamxk|# ebcy1;

    Na||ibgxeb# lihhibg eb xfk zcaxme|`# xfk @^\~ abh ah}abnk~# abh1=

    @e|gab ^xabcky# lihhibg ebcy eb xfk @\^~ abh ah}abnk~ |k`aibkh"17

    Na||ibgxeb abh @e|gab ^xabcky xfkb kbgagkh ib ~k}k|ac16

    |e{bh~ em fkahxefkah lihhibg z|eh{nibg ib kanf ~{nf |e{bh19

    `e|k knebe`in }ac{k me| xfk hklxe|~ abh xfki| k~xaxk~"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    76/293

    ;: z"`" Ka~xk|b ^xabha|h Xi`k# xfk1:

    a{nxieb nebnc{hkh"11

    Ib hknca|ibg Na||ibgxeb xfk figfk~x abh lk~x lih# xfk1

    manxe|~ ibnc{hibg418

    &1) Na||ibgxeb emmk|kh xfk figfk~x e}k|acc z{|nfa~k1;

    z|ink me| xfk a~~kx~ ib a g|e~~ a`e{bx em azz|evi`axkcy (1681=

    `iccieb wixf xfk ne||k~zebhibg bkx }ac{k xe xfk k~xaxk em 1;:17

    `iccieb?16

    &

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    77/293

    ;>

    D-D NE[\X X\AB^N\ILK\^# IBN"

    ~{l~xabxiaccy acc |kck}abx n{||kbx k`zceykk~# xfk|kly kb~{|ibg1

    nebxib{ixy em xfk l{~ibk~~ abh a}eihibg zexkbxiaccy ne~xcy

    &;) Na||ibgxeb ag|kkh xe zay e| a~~{`k ann|{kh abh8

    {bzaih }anaxieb xi`k me| ~{l~xabxiaccy acc |kck}abx k`zceykk~?;

    &=) Na||ibgxeb ag|kkh xe a~~{`k nebx|anx n{|k ne~x~=

    e| nebx|anx~ exfk| xfab xfk ~k|}inibg ag|kk`kbx~? abh7

    &7) xfax Na||ibgxeb ag|kkh xe xfk `ehiminaxieb ib xfk6

    a~~kx xe xfk a~~kx z{|nfa~k ag|kk`kbx abh ~ack e|hk|~9

    |kq{k~xkh ly za|xik~ nk|xaib exfk| za|xik~ibibxk|k~x"1:

    M{|xfk|# @|" Ckmoewixt we{ch xk~ximy xfax xfk11

    a{nxieb# wfinf xeeo zcank e}k| 1: fe{|~ abh 16 |e{bh~ em1

    a~ a ~xenoibg fe|~k lihhk|~# wa~ wkccnebh{nxkh abh ezkb abh18

    mai| xe acc za|xinizabx~ abh na{~kh lihhk|~ xe ~{l`ix figfcy1;

    ne`zkxixi}k lih~ ib ibn|ka~ibg a`e{bx~? xfax xfk kmme|x~ em xfk1=

    hklxe|~# Cata|h abh xfk N|khixe|~ Ne``ixxkk xe kbne{|agk17

    lihhk|~ xe i`z|e}k xfk knebe`in abh bebknebe`in ib xfk xk|`~16

    em xfki| lih~ manicixaxkh xfk a{nxieb z|enk~~ abh ~{l`i~~ieb em19

    i`z|e}kh abh figfk| lih~? abh m{|xfk|# xfax kanf em xfk za|xik~

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    78/293

    ;8

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Ckmoewixt5 I fka| be |k~zeb~k" Hklxe|~ fa}k abyxfibg kc~k ib1

    ~{zze|x em xfk `exieb5

    e{xne`k# xfk hklxe|~ abh xfki| k`zceykk~"18

    XFK NE[\X4 Acc |igfx" Nab ye{ bew waco `k xf|e{gf1;

    xfk eldknxieb~ abh |k~zeb~k~ xfax a|k ci~xkh eb xfk agkbha51=

    Xkcc `k wfax |k`aib~ e| wfax wk'|k fka|ibg ax xfk n{|k fka|ibg"17

    @^" [FCABH4 Yk~# Ye{| Febe|" Ckx `k m|a`k xfi~16

    l|ikmcy eb wfax wk wk ~kbx wk mickh a bexink hk~igbkh xe19

    he a ne{zck em `axxk|~"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    79/293

    ;;

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Wk'|k bex ~kkoibg xe e}k||{ck aby a~zknx em xfe~k eldknxieb~1

    xehay"

    xfk|k wicc lk be |ka~eb xe fa}k a fka|ibg eb xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    83/293

    ;9

    D-D NE[\X X\AB^N\ILK\^# IBN"

    ~x|ka`cibk ~e`k em xfi~" ^e xfk |kcikm lkibg ~e{gfx xehay i~1

    xe hkac wixf xfk Hk{x~nfk abh xfk Wkcc~ Ma|ge Labo eldknxieb

    xfk `avi`{` n{|k a`e{bx~" Abh I xfibo lkyebh xfax k}k|yxfibg8

    i~ lkibg ahde{|bkh" Abh xfax'~ |kaccy wfax wk'|k a~oibg xfk;

    Ne{|x xehay"=

    XFK NE[\X4 Acc |igfx" Ckx `k xfkb fka| m|e` aby em7

    xfk eldknxe|~ eb xfk ci~x wk'}k d{~x lkkb xf|e{gf"6

    @\" HE^FI4 Xfabo ye{ kvn{~k `k" Xfabo ye{# Ye{|9

    Febe|" A`i~f He~fi wixf Hay Zixbky eb lkfacm em E|anck [^A#1:

    Ibn" Ye{| Febe|# i~ I `ay# ix'~ a cixxck lix em lanog|e{bh xe11

    oibh em d{~x ~kx me|xf xfk nebnk|b~ wk fa}k abh ahhixiebac1

    lkibg ~e{gfx xe a~~{`kh e| a~~igbkh# xfk n{|k a`e{bx i~8

    ~igbiminabxcy figfk|";

    ^e# wfick xfky'|k ~kkoibg xe ahde{|b nk|xaib i~~{k~#=

    ax xfk ~a`k xi`k# xfk n{|k a`e{bx i~ lkibg mivkh a~ wkcc a~ 7

    abh ~zkniminaccy I |kmk| xe za|ag|azf~ 8 em xfk6

    z|eze~kh e|hk|# wfk|k

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    86/293

    =

    Mi|~x# wk fa}k a g|kax hkac em k`zaxfy me| wfax xfk18

    AZA ~nfkh{ck~ ~ay e| heb'x ~ay" Xfky'}k lkkb a za|xin{ca| a|ka1;

    em nebnkbx|axieb abh x|yibg xe gkx xfk ~nfkh{ck~ ann{|axk abh1=

    |igfx abh ne`z|kfkb~ilck i~ ~e`kxfibg wk'}k ~zkbx e| x|ikh xe17

    ~zkbh a cex em xi`k eb" ^e# ib xfax ~kb~k# a~ I ~aih# I fa}k a16

    cex em k`zaxfy"19

    Wixf |k~zknx xe xfk nebnk|b ale{x xfk (1

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    88/293

    =8

    D-D NE[\X X\AB^N\ILK\^# IBN"

    xf|e{gf ix wixf E|anck# wk'cc gkx xe xfk |igfx a`e{bx" E|1

    wk'cc cixigaxk ix" Xfky'cc fa}k acc xfki| |igfx~ xe cixigaxk

    ci~xkh a~ a nebx|anx abh wk ag|kk abh wk'cc miv xfax ib xfk18

    ~nfkh{ck~"1;

    Fewk}k|# d{~x ~e wk'|k ncka|# xfk neccaxk|ac wixf1=

    |k~zknx xe xfax `a~xk| ~kn{|ixy ag|kk`kbx i~ ibnc{hkh ib xfk17

    a~~kx~ xfax wk'|k anq{i|ibg" ^e ix'~ `e}ibg xfax ze|xieb em16

    GKNN'~ ncai` m|e` xfk kvkn{xe|y nebx|anx l{nokx xe xfk z|k19

    zkxixieb ~kn{|kh ncai` l{nokx" Xfk cikb wixf |k~zknx xe

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    92/293

    =6

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Wk |k}ikwkh xfk ~nfkh{ck~ xfax a|k azzkbhkh xe xfk a~~kx1

    z{|nfa~k ag|kk`kbx abh ix'~ bex ncka| xfax acc em xfk a~~kx~ ib

    e| xfky'|k bex" Abh I l|e{gfx xfax xe xfi~ Ne{|x'~ axxkbxieb8

    h{|ibg xfk lihhibg z|enkh{|k~ fka|ibg" Wk ~{zzcikh nezik~ em;

    e{| ~nfkh{ck~ xe ne{b~kc me| xfk hklxe|" Abh I {bhk|~xabh xfi~=

    i~ `e}ibg q{inocy# Ye{| Febe|# abh I k`zaxfitk wixf acc ne{b~kc7

    ib x|yibg xe hkxk|`ibk wfax a~~kx~ a|k lkibg ~ech"6

    I xfibo xfk hklxe| fa~ axxk`zxkh xe `aok xe hkac9

    wixf xfi~ ib a ne{zck em way~" Ebk# ly z|e}ihibg xfax e{|1:

    cikb# xe xfk kvxkbx wk fa}k a cikb ib xfk a~~kx~ xfax a|k lkibg11

    ~ech# wicc axxanf xe xfk z|enkkh~ em ~ack" Ib ahhixieb#1

    Ckk" I |kz|k~kbx Z|k`ik| Z|ibx abh ^k|}ink~ G|e{z" Wk mickh8

    la~inaccy wfax a`e{bx~ xe a n{|k eldknxieb bew" Abh I he fa}k;

    ebk bkw i~~{k wfinf a|i~k~ m|e` xfk zazk|~ wk |knki}kh xfi~=

    `e|bibg# xfk bkw me|` em e|hk|" Ix'~ a `ibe| ebk# I nab xaco7

    xe ne{b~kc" L{x la~inaccy# I'h ciok xe ~kk ~e`kxfibg ib xfk6

    e|hk| e| ax cka~x ~e`kxfibg eb xfk |kne|h xfax `aok~ ix ncka|9

    xfax bexfibg ib xfi~ e|hk| i~ geibg xe i`zai| xfk |igfx~ em1:

    n|khixe|~ xe ne`k ib abh ~kko i``khiaxk a~~{`zxieb e|11

    a~~igb`kbx a~~{`zxieb e| |kdknxieb em xfki| nebx|anx~" I1

    e|hk| i`zai|~ xfax bew# l{x I d{~x wabx xe `aok ~{|k"18

    XFK NE[\X4 Acc |igfx" Abyebk kc~k na|k xe lk fka|h51;

    @\" M\KK@AB4 Yk~# Ye{| Febe|" La||y M|kk`ab me|1=

    [bieb Labo# Dkmmk| @abgck~" I~ ix acc |igfx xe ~zkao bew517

    XFK NE[\X4 Yk~"16

    @\" M\KK@AB4 Eoay" Wk fa}k a ci`ixkh eldknxieb19

    wfinf |kcaxk~ xe a mkw i~~{k~" Ebk i~ ihkbximinaxieb em xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    95/293

    71

    D-D NE[\X X\AB^N\ILK\^# IBN"

    fkczm{c"1

    Abh xfkb xfk z|i`a|y nebnk|b i~ a |kmk|kbnk xe a~~{`k

    a ~kn{|ixy ag|kk`kbx ~kn{|kh ly ~kn{|ibg a |ki`l{|~k`kbx8

    elcigaxieb {bhk| a ebk em ~k}k|ac ckxxk|~ em n|khix xfax;

    wk|k i~~{kh xe xfk hklxe|" Xfi~ ebk# I wk lkcik}k i~ me|`=

    we|ok|~ ne`z abh ix fa~ na~f neccaxk|acitkh ly ale{x (6::#:::7

    zc{~ ~e`k ann|{kh ibxk|k~x" Abh ix'~ bex ncka| kvanxcy# mi|~x6

    em acc# im ix nab lk a~~igbkh"9

    L{x ib gkxxibg e}k| xfax i~~{k# kvanxcy xe d{~x1:

    a~~igb xfk ~kn{|ixy ag|kk`kbx wixfe{x hkacibg wixf xfk ckxxk|11

    em n|khix abh xfk |ki`l{|~k`kbx elcigaxieb abh xfk na~f hek~b'x1

    D-D NE[\X X\AB^N\ILK\^# IBN"

    {bxic Ye{| Febe| fa~ xfk e|hk|" ^e ~fe{ch I ax cka~x hk~n|ilk1

    wfax I xfibo xfk |k~ec{xieb i~ bew xe z|k~k|}k xfk eldknxieb~5

    XFK NE[\X4 Be# be" Im xfe~k eldknxieb~ fa}k lkkb8

    |k~ec}kh# I heb'x bkkh xe fka| xfk` bew";

    @\" ZEWK\4 Wkcc# xfk|k i~ ebk =

    XFK NE[\X4 Wfax I wabx xe obew bew i~ lkme|k I7

    cka}k# d{~x me| xfk l|kao# i~ 6

    @\" ZEWK\4 Eoay"9

    XFK NE[\X4 xe fka| I wabx xe obew wfax'~ ckmx"1:

    @\" ZEWK\4 Xfax'~ mibk# Ye{| Febe|" Abh im ye{11

    ne{ch d{~x ag|kk xfax xfe~k za|xik~ ne{ch |ai~k aby eldknxieb~1

    D-D NE[\X X\AB^N\ILK\^# IBN"

    ~{zk|ie| cikb" Wk heb'x wabx xe ag|kk xe ab ah`ibi~x|axi}k1

    kvzkb~k abh xfkb fa}k ~e`k ahkq{axk a~~{|abnk cikb z|i`k {~ abhC em xfk AZA,#16

    abh I'` bex geibg xe |k|kah ix# l{x wk'|k geibg xe |kib~k|x xfk19

    ~a`k cabg{agk xfax I |kah ka|cik| xfax i~ geibg xe lk ib~k|xkh# xfk z|e}ihkh fewk}k| cabg{agk"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    108/293

    68

    D-D NE[\X X\AB^N\ILK\^# IBN"

    ne~x~#, abh wk'|k geibg xe ahh xfk ~kbxkbnk xfk|k# ,a~ em xfk1

    haxk em xfk micibg em xfk eldknxieb,"

    xe z{x xfki| zfebk~ eb `{xk" Eoay" I'h ciok xe a~o xfk ne{|x8

    nacc ezk|axe| xe hi~nebbknx m|e` xfk zfebk nacc# xfax zk|~eb;

    wfe'~ xyzibg I nab fka|"=

    XFK EZK\AXE\4 Yk~# Ye{| Febe|"7

    XFK NE[\X4 I hihb'x obew wk ne{ch n{x e{x d{~x ebk6

    zk|~eb" I cka|bkh xfax ebcy |knkbxcy"9

    @^" [FCABH4 Abh# Ye{| Febe|# ax xfk kbh em za|ag|azf1:

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    109/293

    6;

    D-D NE[\X X\AB^N\ILK\^# IBN"

    lk &1) zaih ly Na||ibgxeb xe xfk kvxkbx ~{nf a~~igbkh nebx|anx1

    lkne`k~ ab annkzxkh nebx|anx? e| &

    ~axi~mik~ xfk ah`ibi~x|axi}k z|ie|ixy n|ixk|ia {bhk| 11 [^N8

    ;:>&l)&1)",;

    Ib exfk| we|h~# Ye{| Febe|# wk'}k hkacx wixf xfk gaz=

    zk|ieh lkxwkkb xfk haxk xfk eldknxieb~ wk|k mickh abh xfk7

    a`e{bx~ a|k mivkh abh xfk haxk em nce~ibg# ~e im abyxfibg6

    ann|{k~ h{|ibg xfax zk|ieh# kixfk| Na||ibgxeb wicc zay im xfky9

    xaok xfk nebx|anx e| xfk hklxe| wicc zay ix im xfky heb'x xaok1:

    xfk nebx|anx# ~{ldknx xe e{| |igfx~ xe eldknx xe xfk accewabnk11

    em xfk a`e{bx abh ac~e wfkxfk| ix'~ a z|ie|ixy e| bex" Abh1

    |ai~kh abh xfk eldknxe|~ |ai~kh"18

    @\" FATKCXIBK4 Ye{| Febe|# im I `ay l|ikmcy# Wiccia`1;

    Fatkcxibk eb lkfacm em Wkcc~ Ze~xac ^ec{xieb" I ~zeok wixf1=

    hklxe|~ ne{b~kc h{|ibg xfk l|kao" Wk fa}k ab a`e{bx xfax I17

    xfibo ax xfk xi`k xfk eldknxieb wa~ mickh wa~ bex ib a||ka|~#16

    ~e ix wa~b'x ib hkma{cx" I anx{accy nab z|e}ihk fi` wixf xfax19

    a`e{bx amxk| xfk fka|ibg"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    110/293

    6=

    D-D NE[\X X\AB^N\ILK\^# IBN"

    lkkb z|e}ihkh xfax fa}kb'x lkkb licckh ykx" I xfe~k a|k# a~1

    I {bhk|~xabh ix# xfk ebk~ xfax a|k lkibg ann|{kh" Xfabo ye{#:# Ye{| Febe|# abh I lkcik}k xfi~ i~ xe;

    ahh|k~~ ~e`k em xfk nebnk|b~ zk|faz~ em xfk [bixkh ^xaxk~=

    X|{~xkk" Ix'~ xe nca|imy ix wicc bew |kah# ,Xe xfk kvxkbx7

    em aby ibneb~i~xkbny lkxwkkb xfk z|e}i~ieb~ em xfi~ ~ack e|hk|6

    abh xfk Na||ibgxeb ag|kk`kbx# xfk hi~ze~ixieb hen{`kbx~ e| aby9

    hen{`kbx~ kvkn{xkh ib nebbknxieb xfk|kwixf# xfk z|e}i~ieb~1:

    nebxaibkh ib xfi~ ~ack e|hk| ~facc ge}k|b",11

    Ib za|ag|azf >8# abh I'cc d{~x |k|kah xfi~ ebk a~1

    ~kbxkbnk wicc |kah abh xfkb xfk lacabnk em xfk za|ag|azf i~8

    ~x|inokb";

    ,Bexfibg nebxaibkh ib xfk ~ack e|hk|# xfk Na||ibgxeb=

    ag|kk`kbx e| hi~ze~ixieb hen{`kbx~ ~facc lk hkk`kh xe |kcka~k#7

    hi~nfa|gk e| z|kd{hink ncai`~# im aby# Wkcc~ Ma|ge e| HL abh XN6

    `ay fa}k agaib~x &1) xfk e|igibac e| z|knce~ibg bebhklxe|9

    za|xik~ xe xfk zk|xibkbx ~kn{|ixitaxieb hen{`kbx~? &) hklxe| kbxixik~ wfe a|k za|xy1

    |kcaxk xe ~{nf a~~{`kh ag|kk`kbx~", Abh xfk lacabnk em xfax18

    za|ag|azf wicc xfkb lk ~x|inokb"1;

    @\" HE^FI4 Kvn{~k `k# Ye{| Febe|51=

    XFK NE[\X4 Yk~"17

    @\" HE^FI4 Xfi~ i~ A`i~f He~fi eb lkfacm em E|anck16

    [^A# Ibn" Agaib# I heb'x wabx xe ibxk||{zx ne{b~kc# l{x I d{~x19

    wabx xe bexk xfax xfk nfabgk~ |kmk|kbnk ib za|ag|azf >8# wk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    112/293

    66

    D-D NE[\X X\AB^N\ILK\^# IBN"

    @\" HE^FI4 Xfabo ye{"1

    @^" [FCABH4 Ye{| Febe|# wixf |k~zknx xe za|ag|azf

    n{|k a`e{bx# ix ~fe{ch ~ay ,a~ em Az|ic >:xf#

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    113/293

    69

    D-D NE[\X X\AB^N\ILK\^# IBN"

    |kne|h# I lkcik}k xfi~ wa~ xfk Z|k`ik| Z|ibxibg eldknxieb# xfax1

    xfk hklxe|~ anobewckhgk xfax xfky |k~k|}k xfk |igfx xe l|ibg

    eb lexf# a bexink mkax{|k abh a z|enk~~ mkax{|k xfax gkx~ {~8

    lano ib m|ebx em ye{ im wk nab'x we|o ix e{x";

    XFK NE[\X4 Eoay" ^kk`~ xe `k xfax xfax we{ch lk xfk=

    way xe lk eb xe ix abyway" Few hek~ E|anck mkkc ale{x xfax57

    @\" HE^FI4 I nebnkzx{accy# Ye{| Febe|# im xfk6

    cabg{agk ~xaxk~ xfax xfky we{ch bkkh E|anck'~ neb~kbx# ye{9

    obew# ib xfk ibxk|i` zk|ieh# I xfibo xfax we{ch lk ~{mminikbx"1:

    Abh Ye{| Febe| 11

    XFK NE[\X4 I'` bex I'` bex 1

    Ix'~ Ib |k W"H" Fac CCN &zfebkxin)" Abh I'cc anobewckhgk xe18

    xfi~ Ne{|x xfk|k'~ a ~zcix em a{xfe|ixy e}k| wfkxfk| }ac{k1;

    ibhinaxk~ xfk mank a`e{bx em ncai`~# e| wfkxfk| }ac{k ibhinaxk~1=

    wfax xfk }ac{k em xfk neccaxk|ac i~ lkibg ~ech i~" I lkcik}k17

    ib xfi~ za|xin{ca| hi~x|inx# ax cka~x# xfk ebcy na~k I ne{ch16

    mibh eb xfax i~~{k wa~ D{hgk Wac|axf'~ ezibieb ib Okcc~x|e`"19

    Abh ly ib hi~n{~~ibg >=>&m)&>)# ~fk ibhinaxkh xfax xfax ~ack

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    125/293

    1:1

    D-D NE[\X X\AB^N\ILK\^# IBN"

    ^e# I g{k~~ ib nebnc{~ieb# Ye{| Febe|# wfax I'`1

    ~{ggk~xibg abh wk'|k a~oibg xfk Ne{|x xe he i~ wk heb'x wabx xe=>&m)" Wk lkcik}k xfax xfk1:

    Ne{|x ne{ch azz|e}k xfk ~ack# eoay# e}k| xfk eldknxieb im wk11

    wk|k z|e}ihkh wixf ahkq{axk z|exknxieb ib xfk me|` em a1

    nce~ibg" Abh xfax'~ ib k~~kbnk wfax wa~ z|e}ihkh ib xfk18

    Okcc~x|e` hkni~ieb"1;

    Al~kbx abh al~kbx xfax# Ye{| Febe|# I xfibo# ye{1=

    obew# xfax xfk ~ack nabbex lk azz|e}kh e}k| e{| eldknxieb# ax17

    cka~x wixf |k~zknx xe e{| za|xin{ca| kq{iz`kbx xe xfk kvxkbx16

    ix'~ lkibg ~ech a~ za|x em xfk ~ack"19

    XFK NE[\X4 Acc |igfx" Ahkq{axk z|exknxieb# xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    126/293

    1:

    D-D NE[\X X\AB^N\ILK\^# IBN"

    z|eh{nkh# wk xfibo xfax wicc lk `e|k fkczm{c me| a ~xkz e}k|"1

    Wixf |k~zknx xe xfk ahkq{axk z|exknxieb abh xfk ~ack

    xfk na~k fk i~ nixibg i~ ab A|xinck < na~k" Ib |k~zknx# ix8

    ib}ec}k~ ye{ obew# ix ib}ec}kh zayibg xfk m{cc z{|nfa~k;

    z|ink em a~~kx~ {bhk| ab A|xinck < ag|kk`kbx" Ix wa~ bex a=

    ~kn{|kh ncai` A|xinck 9"7

    XFK NE[\X4 Wkcc# ix wa~ ix wa~b'x xknfbinaccy a6

    cikb# xfk Ne{|x bexkh" L{x ix fah xe he wixf xfk |igfx~ em xfk9

    ~kcck| wfe fahb'x ykx hkci}k|kh geeh~"1:

    @^" [FCABH4 \igfx"11

    XFK NE[\X4 ^e I webhk| m{bnxiebaccy# wfkxfk| me|1=>&m) ~ay~ abh ix1;

    ahh|k~~k~ xfk ibxk|k~x em a hklxe| >=>&m) xaco~ ale{x1=

    ~kccibg m|kk abh ncka| ab ibxk|k~x ib z|ezk|xy" Abh ib xfi~17

    na~k# Ye{| Febe|# wk we{ch za{~k ix xfax wixf |k~zknx xe GKNN'~16

    ~kn{|kh ncai`# xfax xfk|k ibxk|k~x ib z|ezk|xy |kmk||kh xe ib19

    >=>&m) i~ xfki| ~kn{|kh ncai` {bhk| xfk Nehk# bex xfki|

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    128/293

    1:8

    D-D NE[\X X\AB^N\ILK\^# IBN"

    em xfk ~ack wixf xfk ~a`k }acihixy# z|ie|ixy# me|nk abh kmmknx1

    xfax xfky bew fa}k agaib~x xfk z{|nfa~k~ a~~kx~"< `iccieb" Anne|hibgcy# xfk ~ack1;

    z|enkkh~ fa~ ~{l~xabxiac }ac{k ib kvnk~~ ~{l~xabxiac ~ack1=

    z|enkkh~ ib kvnk~~ em xfk GKNN ~kn{|kh ncai`~# k}kb im a~~k|xkh17

    ax xfki| m{cc a`e{bx"16

    ^e a~ a la~kh eb xfk |kne|h ~e ma| ib xfk na~k abh19

    xfk HIZ ceab xfax'~ |kmk|kbnk ib xfk ~ack e|hk| abh xfk Nixi

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    129/293

    1:;

    D-D NE[\X X\AB^N\ILK\^# IBN"

    na||ikh xfk hklx~# xfki| mank }ac{k a|k ck~~ xfab xfk z|enkkh~"1

    @^" [FCABH4 Yk~# xfax'~ ne||knx# Ye{| Febe|" ^e xfk

    ~{l~xabxiac kq{ixy ib xfk ~ack z|enkkh~# im ye{ wicc# xfax8

    xfki| cikb i~ ahkq{axkcy z|exknxkh zkbhibg xfk hkxk|`ibaxieb em;

    xfk xexac ~kn{|kh a`e{bx em xfki| ncai`"=

    XFK NE[\X4 Abh wfax a~~{|abnk we{ch GKNN fa}k xfax7

    ~{nf z|enkkh~ we{chb'x lk hi~~izaxkh56

    @^" [FCABH4 Wk ne{ch nebmi|`# Ye{| Febe|# eb xfk9

    |kne|h xfax wk `aibxaib ib a# ye{ obew# a lacabnk ib HIZ1:

    anne{bx em xfax xexac a`e{bx em xfki| ncai` zkbhibg xfk11

    |k~ec{xieb em xfki| ~kn{|kh ncai`"1

    Ne``ixxkk" Ye{| Febe|# wk fa}k ebk na}kax xe xfax z|emmk| ly8

    hklxe| abh Na||ibgxeb eb xfk k~xaxk'~ lkfacm";

    GKNN'~ ncai`# a~ I {bhk|~xabh ix# i~ lim{|naxkh"=

    Xfky fa}k azz|evi`axkcy < `iccieb e| ~e agaib~x xkckzfebk7

    ~y~xk`~" Ix'~ {bncka| ykx wfkxfk| ~e`k em xfe~k ~y~xk`~ a|k6

    lkibg ~ech a~ za|x em xfi~ x|ab~anxieb e| a~ za|x em xfk9

    e|igibaxieb zcaxme|`" ^e I wabx xe `aok ix ncka| xfax wfax wk1:

    |k~k|}k me| e{x em xfk ~ack z|enkkh~ i~ xfk ncai` |kcaxibg xe11

    ~e`k em xfk kq{iz`kbx xfax'~ lkibg ~ech fk|k# bex xfk kbxi|k1

    fa}k xe we|o xf|e{gf xfax i~~{k a~ xe kvanxcy wfax'~ lkibg18

    ~ech# l{x wk'|k bex |k~k|}ibg me| la~inaccy a~~kx~ xfax a|kb'x1;

    lkibg ~ech" Ix |kaccy fa~ xe lk xfk ncai` |kcaxkh la~k1=

    a`e{bx em xfk ncai` |kcaxkh xe xfk a~~kx~ lkibg ~ech"17

    XFK NE[\X4 Wkcc# I xfibo xfax'~ acc xfax'~ |kq{i|kh16

    z|e}ihkh xfk|k'~ a way xe `aok xfax accenaxieb" I'` a~~{`ibg19

    xfax xfk|k i~"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    131/293

    1:7

    D-D NE[\X X\AB^N\ILK\^# IBN"

    `a~xk| cka~k fk|k"1

    ^e wk'cc x|y xe we|o ix e{x# l{x I d{~x wabx xe lk

    `iccieb# I heb'x xfibo xfax'~ wfax wk'|k xacoibg ale{x ib xfi~8

    ~ack" Abh xe xfk kvxkbx wk a|k# wk wicc z{x (7 `iccieb e|;

    wfaxk}k| xfk ncai` i~" L{x xe xfk kvxkbx ix ebcy |kcaxk~ xe=

    xfk `a~xk| cka~k abh bex xfk exfk| kq{iz`kbx# xfkb xfax wicc7

    bex lk |k~k|}kh me|" Xfax'~ ~i`zcy xfky'|k geibg xe gkx6

    xfki| kq{iz`kbx lano {bck~~ wk nab ~kcc ix me| `e|k" Xfabo9

    ye{"1:

    @\" GACCK\ITTE4 Im I `ay nca|imy# Ye{| Febe|# xfi~11

    fa~ lkkb geibg ma~x" Xfk `a~xk| ~kn{|ixy ag|kk`kbx xfax wa~1

    ag|kk`kbx xfax |kcaxk~ xe mi}k z|e`i~~e|y bexk~ abh xfax `a~xk|18

    ~kn{|ixy ag|kk`kbx# wk fa}k cikb~ agaib~x a fe~x em a~~kx~#1;

    eoay" I `kab# xfk|k I wabx xe ~ay xfe{~abh~ em ne`z{xk|~#1=

    kx nkxk|a"17

    I heb'x obew wfax @|" Na||ibgxeb abh fi~ ncikbx a|k16

    x|yibg xe z{|nfa~k a~ za|x em xfi~ ~ack" I heb'x xfibo fk19

    obew~ ax xfi~ zeibx" Abh xfax |k`aib~ xe lk hknihkh"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    132/293

    1:6

    D-D NE[\X X\AB^N\ILK\^# IBN"

    `ihhck" I d{~x I heb'x obew few ab accenaxieb nab lk `ahk1

    abh aclkix xfk |ka~eb wfy ix'~ a z|elck` h{|ibg a ~ack lkme|k

    @\" GACCK\ITTE4 [bhk|~xeeh" Wk'|k bex axxk`zxibg 18

    wfax I'` x|yibg xe he# Ye{| Febe|# i~ z|k~k|}k acc |igfx~" Abh1;

    wk'|k bex x|yibg xe fech {z 1=

    XFK NE[\X4 Abh I heb'x xfibo abylehy fk|k i~17

    ibxkbhibg xe i`zai| xfk` ib xfax way"16

    @\" GACCK\ITTE4 ^e im wk ne{ch ibnc{hk ~e`k cabg{agk19

    ib xfk|k xfax ibhinaxk~ a~ ~{nf# wk'h a~o xfax"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    134/293

    11:

    D-D NE[\X X\AB^N\ILK\^# IBN"

    @\" OI\IAOE^4 Yk~# xfabo ye{" I xfibo xfk cabg{agk1

    xfax I ~{ggk~xkh ib xk|`~ em ~zkniminaccy |kmk|kbnibg xfk

    nebbknxieb wixf xfe~k cikb~ gi}k~ GKNN k}k|yxfibg xfky bkkh eb8

    xfax |k~k|}axieb" Abh wfaxk}k| xfki| |igfx~ a|k# wfaxk}k|;

    xfki| ncai`~ a|k# wfaxk}k| xfki| accenaxieb i~ xfky nab m{ccy=

    |k~k|}k xe migfx xfe~k e{x caxk| a~ cebg a~# ye{ obew# xfk|k'~7

    be neccaxk|ac axxano eb xfk ~ack amxk| ix fazzkb~"6

    XFK NE[\X4 Acc |igfx"9

    @^" [FCABH4 Abh a~ I {bhk|~xeeh xfk |k~k|}axieb#1:

    fk'~ bex |k~k|}ibg xfk |igfx xe ge amxk| acc xfk z|enkkh~" I~11

    xfax ye{'|k |k~k|}ibg xe ge amxk| xfk m{cc |k~k|}k a`e{bx#1

    @\" GACCK\ITTE4 Wk'|k |k~k|}ibg xfk |igfx xe ge18

    agaib~x xfk m{cc |k~k|}k a`e{bx# xfax'~ ne||knx"1;

    @^" [FCABH4 Eoay"1=

    @\" GACCK\ITTE4 Xfax~ ne||knx"17

    XFK NE[\X4 Acc |igfx" Hek~ xfax 16

    @\" ZEWK\4 I'` ~e||y# I d{~x xfe{gfx I'h ibxk|dknx"19

    @a|o Zewk|# ne{b~kc me| xfk Ne``ixxkk" Wk a|k bex ag|kkibg ) abacy~i~" Abh I wabx xe `aok ncka| xfax

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    135/293

    111

    D-D NE[\X X\AB^N\ILK\^# IBN"

    XFK NE[\X4 I'` bex `aoibg a hkxk|`ibaxieb"1

    @\" ZEWK\4 Eoay" Xfabo ye{# Ye{| Febe|"

    wfinf I a` wiccibg xe lck~~"8

    @^" [FCABH4 ^e# Ye{| Febe|# wk we{ch xfkb# ib;

    anne|habnk wixf xfk ame|k`kbxiebkh ag|kk`kbx# ibnc{hk xe=

    za|ag|azf > a nca|iminaxieb wixf |k~zknx xe cikb~ xfax ix7

    ibnc{hk~ wixfe{x ci`ixaxieb# ahkq{axk z|exknxieb ncai`~ abh wk6

    wicc m{|xfk| z|e}ihk xfax wk wicc |k~k|}k m|e` xfk z|enkkh~ xfk9

    ncai` a`e{bx em GKNN" Xfk ~kn{|kh ncai` wkcc# xfk xexac1:

    ncai` a`e{bx a~ ezze~kh xe xfk cka~k a`e{bx em GKNN"11

    @\" GACCK\ITTE4 Abh xfk|k wicc lk a |k~k|}axieb em1

    mickh eldknxieb~# abh la~inaccy# ix ~xicc ne`k~ xe xfk8

    |kenn{||ibg i~~{k em wfax a~~kx~ a|k lkibg ~ech" Abh e{|;

    ze~ixieb i~ al~ec{xkcy xfk ~a`k" Wk d{~x nab'x ihkbximy=

    wfkxfk| e| bex Baxiebac Nixy'~ a~~kx~ a|k ibnc{hkh ib xfk ~ack7

    e| bex"6

    ^e wixf |k~zknx xe aby ~ack~ e|hk| xfax i~ z|eze~kh9

    xe xfk Ne{|x# wk |kaccy we{ch ciok xe ~kk ~e`k cabg{agk xfax1:

    wicc z|e}ihk me| wfkb a ci~x wicc lk z|e}ihkh ~e xfax wk nab11

    ahkq{axkcy z|exknx e{| |igfx~ e| bex" Ix'~ d{~x |kaccy1

    @^" [FCABH4 Xfabo ye{# Ye{| Febe|" Wixf xfax# wk18

    a|k z|kza|kh xe `e}k xe xfk bkvx agkbha ixk` wfinf i~ xfk1;

    mibacitaxieb em e{| e|hk| |kga|hibg xfk kva`ibk|"1=

    Ye{| Febe|# wk 17

    &Za{~k# abbe{bnk`kbx)16

    @^" [FCABH4 Ye{| Febe|# a~ xfk Ne{|x i~ awa|k# lexf19

    xfk [bixkh ^xaxk~ X|{~xkk abh xfk hklxe|~ abh xfk N|khixe|~

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    141/293

    117

    D-D NE[\X X\AB^N\ILK\^# IBN"

    za|xik~ m|e` xfk zeibx em }ikw em xfk [bixkh ^xaxk~ X|{~xkk'~1

    emmink"

    wa~ e{| axxk`zxkh ne`z|e`i~k" E{| {bhk|~xabhibg i~ xfax xfk8

    X|{~xkk kixfk| hek~b'x e| hek~b'x fa}k a{xfe|ixy xe ag|kk xe;

    xfax cabg{agk bew" @|" Ibhkcinaxe wa~ geibg xe waco xf|e{gf=

    ~e|x em wfk|k wk a|k bew" Fk'~ lkkb men{~kh eb xfax a~ I'}k7

    lkkb xikh {z wixf xfk ~ack z|enk~~ me| xfk za|xik~"6

    @\" @N@AFEB4 Im I `ay azz|eanf# Ye{| Febe|" De~kzf9

    @n@afeb me| xfk [bixkh ^xaxk~ X|{~xkk" Ye{| Febe|# wk1:

    ~{l`ixxkh a z|eze~kh me|` em e|hk| abh wk a|k xacoibg ale{x xfk11

    [bixkh ^xaxk~ X|{~xkk'~ `exieb me| azzeibx`kbx em ab kva`ibk|1

    Abh wfick xfky wk|k xfe~k hi~n{~~ieb~ wk|k fkczm{c ib8

    {bhk|~xabhibg wfk|k xfk za|xik~ wk|k ne`ibg m|e`# I xfibo wk;

    ~xicc fa}k ~e`k m{bha`kbxac himmk|kbnk~ ale{x wfinf me|` xfk=

    e|hk| ~fe{ch xaok"7

    XFK NE[\X4 Acc |igfx" Ge afkah" Bew wfax ~fe{ch I6

    fa}k ib m|ebx em `k# @|" @n@afeb"9

    @\" @N@AFEB4 Ye{| Febe|# im I `ay# I we{ch ciok xe1:

    azz|eanf abh fabh ye{ a nezy em xfk e{| me|` em e|hk| wixf11

    b{`lk|kh za|ag|azf~" Abh ac~e# xfk me|` em e|hk| xfax wa~1

    a{xfe|itk xfk azzeibx`kbx em ab kva`ibk|"8

    Za|ag|azf = hkac~ wixf z|enkh{|k~ me| ahh|k~~ibg;

    hen{`kbx |kq{k~x~ ~{ldknx xe |kck}abnk abh z|i}ickgk=

    eldknxieb~" Hkac~ wixf xfk i~~{k em xfk azzcinalicixy em7

    z|i}ickgk"6

    Za|ag|azf 7 hkac~ wixf xfk azza|kbxcy ~{ggk~x~9

    xfax xfk kva`ibk| we{ch xaok hen{`kbx~ m|e` xfk Ne``ixxkk1:

    ~{ldknx xe nk|xaib nebmihkbxiacixy z|e}i~ieb~" Ncka|cy wfax11

    xfk {cxi`axk ammknx em xfax we{ch lk eb xfk i~~{abnk em1>:"18

    Xfax ix i~ ix i~ xfax xfe~k z|enkh{|ac nfkno~ z|e}ihk xfk1;

    ck}kc em ne`me|x abh nk|xaibxy xfax xfi~ Ne{|x bkkh~ ib e|hk|1=

    xe ahh|k~~ xfk kva`ibaxieb geibg me|xf"17

    ^e# Ye{| Febe|# xfe~k# I g{k~~# me{| xfe~k a|k xfk16

    me{| oky nebnk|b~ xfax wk fa}k# Ye{| Febe|" I wicc bexk xfax19

    wixf |k~zknx xe xfk z|ka`lck em xfk hklxe|~' e|hk|# wk fah ~e`k

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    152/293

    1

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    153/293

    1

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    154/293

    1>:

    D-D NE[\X X\AB^N\ILK\^# IBN"

    |k~xaxk`kbx~ wk|k fazzkbibg" Abh ~e xfax'~ wfax wk lkcik}kh1

    xfk ~nezk wa~ xe lk abh I lkcik}k eb lkfacm em xfk Ne``ixxkk#

    hklxe| neb~kbxkh xe a~ wkcc"8

    Xfk ["^" X|{~xkk'~ e|hk|# Ye{| Febe|# fewk}k|# I;

    xfibo xaok~ xfax a cixxck m{|xfk|" Abh im ye{ ceeo ax xfk way=

    xfky ceeo ax xfk ~nezk em ix# I g{k~~ ix'~ ib xfki| xfi|h7

    hkn|kkh za|ag|azf eb zagk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    155/293

    1>1

    D-D NE[\X X\AB^N\ILK\^# IBN"

    hknihk wfax xfk bkvx ~xkz i~ geibg xe lk" Abh im ye{ xaok xfax1

    hewb abh ye{ ceeo ax &l)# Ye{| Febe|# xfkb xe exfk|wi~k zk|me|`) abh &a)&8)# wkcc# hek~b'x xfax xfk>

    kvnkzxieb xfax ~waccew~ xfk |{ck5 Lkna{~k im ye{ ceeo ax xfk8

    z|e}i~ieb~ {bhk| &a)&>)# ix i~ |kaccy xfk z|e}i~ieb~ em wfax a;

    x|{~xkk i~ ~{zze~kh xe lk heibg" Abh xe xfk kvxkbx bex=

    exfk|wi~k e|hk|kh ly ne{|x e|hk|# xe ib}k~xigaxk anx~# nebh{nx#7

    cialicixik~# mibabniac nebhixieb~# I `kab# xfax'~ la~inaccy6

    wfax xfk hklxe| wfax xfk Ne``ixxkk i~ heibg# Ye{| Febe|"9

    ^e xfk|k wa~ ~e`k nebnk|b xfax ahhibg xfax z|e}i~ieb1:

    ib# ye{ obew# b{ccimik~# ib manx# xfk ci`ixkh ~nezk ib wfinf wk11

    xfe{gfx xfk kva`ibk| wa~ lkibg azzeibxkh" Abh# Ye{| Febe|#1

    Wk x|ikh bex xe gkx ibxe acc em xfax ib xfi~ nebxkvx8

    em xfk e|hk|" Abh wk wk|k fezibg wk ne{ch hkac wixf ~e`k em;

    xfe~k i~~{k~ caxk|" L{x im xfk|k'~ geibg xe lk |kne``kbhaxieb~=

    ale{x xfk zexkbxiac `k|ix~ em na{~k~ em anxieb# I we{ch ~{ggk~x7

    xfax xfax |kne|h# ax cka~x ibixiaccy# lk mickh {bhk| ~kac"6

    Lkna{~k wk we{ch bex wabx# zexkbxiaccy# aby zexkbxiac xfi|h9

    za|xik~ xe obew wfax xfk ~x|kbgxf~ abh wkaobk~~k~ em xfk1:

    hklxe|~' na~k i~ lkme|k xfk cixigaxieb i~ ne``kbnkh" E| k}kb11

    {bxic xfk cixigaxieb i~ nebnc{hkh"1

    ahh|k~~ i~ ~e|x em xfk we|o zcab" Agaib# wk x|ikh xe he xfi~18

    ib a ~e|x em neb~x|{nxi}k# z|anxinac azz|eanf" Im ye{ ceeo ax1;

    xfk way xfk ["^" X|{~xkk hih ix# xfky wabx xe z{x xfk eb{~ eb1=

    xfk hklxe| abh xfk N|khixe|~ Ne``ixxkk xe neezk|axk wixf xfk17

    kva`ibk|" Abh ib k~~kbnk# ib e|hk| xe he xfax 16

    XFK NE[\X4 Wkcc# ckx `k z{x ix xfi~ way" We{chb'x19

    ye{ xfibo xfax'~ wfax'~ kvzknxkh5

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    157/293

    1>>

    D-D NE[\X X\AB^N\ILK\^# IBN"

    nfabgkh ix ib e{| |k}i~kh e|hk|" Wfax wk wabx xe he i~ wk wabx1

    xe fa}k ~e`k neezk|axi}k kmme|x ~e xfax fk {bhk|~xabh~ wfax

    nebnk|bkh ale{x ne~x" Abh im xfk Ne{|x ceeokh ax e{| e|igibac18

    e|hk|# wk fah ~{ggk~xkh a l{hgkx" Wfax wk ne{ch gkx away1;

    m|e` xfk l{hgkx i~~{k# Ye{| Febe|# i~ wk hkac wixf xfk we|o1=

    zcab" Im wk {bhk|~xabh wfk|k xfky'|k geibg# ykaf# ib l|eah17

    l|{~f# wk xkcc xfk` wfax e{| nebnk|b~ a|k" Xe xfk ~kb~k xfky16

    nfee~k bex xe ci~xkb xe {~# xfky he ~e wixf xfki| ewb zk|ic abh19

    wk |k~k|}k e{| |igfx~ xe eldknx xe ax a caxk| haxk"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    159/293

    1>;

    D-D NE[\X X\AB^N\ILK\^# IBN"

    nebnk|b~ a|k abh wfax xfk i~~{k~ xfax xfk Ne``ixxkk fa~ a|k"1

    ^e xfax'~ wfax xfk we|o zcab wa~ abh wk xfe{gfx# ib xfk |k}i~kh=

    D-D NE[\X X\AB^N\ILK\^# IBN"

    wk|k ax xfk fka|ibg ca~x wkko" Xfk|k a|k i~~{k~ |kga|hibg1

    xfk }a|ie{~ ge}k|b`kbxac agkbnik~# }a|ie{~ hen{`kbx~# }a|ie{~6

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Abh I lkcik}k xfk z|e}i~ieb~ wixf |k~zknx xe xfk z|i}ickgk1

    ~{ldknx xe xfk nebmihkbxiacixy xe xfk Ne``ixxkk" I xfibo

    q{k~xieb# wk'|k a lix nebnk|bkh ale{x wfax z|e}ihibg a nezy em18

    xfk |kze|x xe exfk| za|xik~ibibxk|k~x we{ch fa}k ib~ema| a~1;

    wk'|k nebnk|bkh ale{x xfk z|kmicibg I g{k~~ a }kxxibg em1=

    xfk |kze|x" I lkcik}k wfax wk nab xfax wfax we{ch lk17

    azz|ez|iaxk i~ xe xfk kvxkbx xfax xfk|k wk|k nk|xaib i~~{k~16

    ci`ixkh xe wfkxfk| e| bex ze|xieb~ em xfk |kze|x ~fe{ch lk19

    mickh {bhk| ~kac ne{ch lk ahh|k~~kh lkme|k xfk kva`ibk| wk|k xe

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    164/293

    18:

    D-D NE[\X X\AB^N\ILK\^# IBN"

    z|eze~kh me|` em e|hk|" Xfky heb'x a~o me| `e|k" Xfky d{~x1

    ~i`zcy a~o me| xfk |igfx xe a|g{k xfax xfk |kze|x ~fe{ch lk

    ~kac" Abh wk anobewckhgk xfax xfky nab |k~k|}k xfk |igfx~ xe8

    he xfax";

    Eb xfk we|o zcab i~~{k# Ye{| Febe|# a ne{zck zeibx~=

    fk|k" Mi|~x# wk el}ie{~cy abxinizaxk xfax xfk kva`ibk|'~ geibg7

    xe lk xacoibg xe xfk hklxe|~ abh xfk Ne``ixxkk" M|abocy# I6

    heb'x obew few xfk kva`ibk| gkx~ m|e` zeibx A xe zeibx L9

    wixfe{x heibg ~e" Abh ix d{~x ~kk`~ ciok xfi~ kbxi|k i~~{k em1:

    a we|o zcab i~ hk~igbkh xe i~ me|`acitkh ib a way xfax gi}k~11

    exfk| za|xik~ibibxk|k~x ck}k|agk e}k| xfk kva`ibk| ib wfax wk1

    ale{x zexkbxiac na{~k~ em anxieb# ix bkkh~ xe lk mickh {bhk|18

    ~kac e| ax cka~x xfk|k bkkh~ xe lk ab ag|kk`kbx xfax xfk |kze|x1;

    wicc lk ~fa|kh wixf xfk Ne``ixxkk z|ie| xe ix~ micibg ~e wk1=

    fa}k ab alicixy xe ~zkao xe xfk kva`ibk| ale{x xfe~k i~~{k~"17

    Abh xfk mibac zeibx# Ye{| Febe|# i~ I lkcik}k xfk16

    |kne|h wa~ ncka| eb xfk hklxe|~' ze~ixieb wixf |k~zknx xe19

    Oehiao" Ebk em xfk i~~{k~ xfax wk fah# abh wk wkbx xe N1 abh

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    170/293

    18=

    D-D NE[\X X\AB^N\ILK\^# IBN"

    wixf |k~zknx xe xfk hklxe|~' ~xiz{caxieb# ~zkao~ xe ix~kcm abh1

    I heb'x lkcik}k xfax bkkh~ xe lk ib xfk e|hk|" Xfabo ye{"

    lkkb hicigkbx# ibhkkh# ac`e~x }inie{~ ib okkzibg amxk| xfk18

    hklxe|~ ib xfi~ na~k" Wk heb'x bkkh ab kva`ibk| xe fkcz {~ he1;

    e{| del"1=

    I {bhk|~xabh xfk Ne{|x'~ geibg xe e|hk| ix agaib" I17

    k`zfa~itk# `y ncikbx wabx~ xe k`zfa~itk xfax xfk kva`ibk|#16

    xf|e{gf xfk Ne{|x'~ e|hk|# lk okzx m|e` gkxxibg e{x em nebx|ec"19

    Xfabo ye{# Ye{| Febe|" Wk we{ch a~o# a~ a n|khixe|# xfk Ne{|x

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    172/293

    186

    D-D NE[\X X\AB^N\ILK\^# IBN"

    ^y~xk`" Wk mickh a ~xaxk`kbx ib ~{zze|x em xfk [bixkh ^xaxk~1

    X|{~xkk'~ z|eze~kh me|` em e|hk| abh wk'|k fk|k xe ~xaxk xfax) ib~xkah em &a)&8)" Wk hih `kab xe |kmk|1) wicc l|eahkb1>

    xfk ~nezk"18

    XFK NE[\X4 Ix we{ch I ag|kk wixf ye{" Eoay"1;

    Ckx'~ `e}k eb"1=

    @\" @K\NFABX4 Geeh amxk|beeb# Ye{| Febe|" @iok17

    @k|nfabx em \infa|h~# Cayxeb - Mibgk| eb lkfacm em xfk hklxe|~"16

    Ye{| Febe|# Be" 8 eb xfk agkbha i~ xfk hklxe|~'19

    azzcinaxieb xe |kxaib Ne`zkb~axieb Hk~igb G|e{z" Xfk|k wa~ ab

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    175/293

    1;1

    D-D NE[\X X\AB^N\ILK\^# IBN"

    xfax azzcinaxieb" Abh I he fa}k a |k}i~kh me|` em e|hk| abh a1

    lcanocibk# im I `ay azz|eanf"

    @\" @K\NFABX4 Ye{| Febe|# ax xfk |kq{k~x em xfk8

    [bixkh ^xaxk~ X|{~xkk# wk'}k nfabgkh ix m|e` a >>:"1>

    Ye{| Febe|# xfk|k'~ ~e`k ahhixiebac z|e}i~ieb~ ib xfk18

    e|hk| xfax I we{ch ac~e ciok xe fabh e{x" Wk'}k ahhkh xfk1;

    Zcabkx Feccyweeh ibhk`biminaxieb cabg{agk ax xfk |kq{k~x em xfk1=

    Emmink em xfk [bixkh ^xaxk~ X|{~xkk" Wk'}k ac~e `ahk ncka|17

    xfax NHG wicc bex lk z|e}ihibg aby ahhixiebac ~k|}ink~ ib xfk16

    na~k" Abh xfax wa~ ahhkh ax xfk |kq{k~x em xfk N|khixe|~19

    Ne``ixxkk" Ca~xcy a|k

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    176/293

    1;

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Ye{| Febe|# xfk|k wk|k a b{`lk| em eldknxieb~ mickh1

    wixf |k~zknx xe xfax `exieb# acc em wfinf ~kk` xe lk n{|k

    eldknxieb# Ye{| Febe|# xfax eldknxieb |kcaxkh xe xf|kk ~kza|axk18

    cka~k~" Wixf |k~zknx xe cka~k IH NA:;=# wfinf i~ xfk ^ab Hikge1;

    cka~k# xfky a~~k|xkh a n{|k a`e{bx em (

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    178/293

    1;8

    D-D NE[\X X\AB^N\ILK\^# IBN"

    IH IC::1 wfinf i~ xfk Nfa`zagbk# Iccibei~ cka~k" Xfky'}k1

    a~~k|xkh a n{|k a`e{bx em (11#:;:"78# abh xfk hklxe|~ fa}k

    xfk a`kbhkh Kvfilix A"8

    Xfky'}k ac~e |kq{k~xkh xfax xfk hklxe|~ }k|imy xfax;

    xfk|k wicc lk |k`e}ac abh ~kn{|ixy ~e`k ~kn{|ixy em aby=

    ixk`~ ne}k|kh ly zk|~ebac z|ezk|xy cka~k~ abh I'cc `aok xfax7

    ~xaxk`kbx eb xfk |kne|h xfax# yk~# wk wicc ne`zcy wixf xfax#6

    Ye{| Febe|"9

    @e}ibg xe xfk bkvx eldknxieb i~ xfk \D^ Z|ezk|xik~1:

    eldknxieb" Xfax |kcaxk~ xe xfk cka~k ihkbximikh ly cka~k IH11

    BL:9" Xfky'}k a~~k|xkh a n{|k a`e{bx em (;#8=:# Ye{| Febe|"1

    ib xfk |k}i~kh Kvfilix A xe xfk e|hk|"18

    Xfk Mihkcixy Baxiebac Ibme|`axieb ^k|}ink~ eldknxieb#1;

    Ye{| Febe|# xfax'~ ci~xkh eb xfk agkbha wa~ anx{accy ab1=

    eldknxieb xe xfk bexink |kcaxibg xe xfk Na||ibgxeb ~ack" Ix'~17

    bex ab eldknxieb xe xfi~ `exieb"16

    Abh ca~xcy# Ye{| Febe|# xfk EON @a{i Ewbk| CCN cka~k19

    eldknxieb" Xfax eldknxieb anx{accy |kcaxk~ xe xfk ~a`k Fawaii

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    179/293

    1;;

    D-D NE[\X X\AB^N\ILK\^# IBN"

    bexk i~ wixf |k~zknx xe ~k}k|ac em xfk~k n{|k a`e{bx~ wfk|k xfk1

    hklxe|~ fa}k bexkh tk|e abh bew wk'}k ag|kkh xe a g|kaxk|

    cka~k zay`kbx~ geibg xf|e{gf" Abh I {bhk|~xabh xfax ~k}k|ac em8

    xfk zay`kbx~ xfax we{ch lk ibnc{hkh wixfib xfk~k |k}i~kh;

    a`e{bx~ a|k anx{accy xfk nfkno~ a|k anx{accy ib xfk `aic"=

    ^e a~ xfky a|k zaih ib xfk e|hiba|y ne{|~k# xfky we{ch |kh{nk7

    xfk a`e{bx~ ewkh"6

    XFK NE[\X4 Acc |igfx" Hek~ abyebk kc~k na|k xe lk9

    fka|h ib nebbknxieb wixf xfi~ `exieb5 I fka| be |k~zeb~k"1:

    @\" @K\NFABX4 @ay I azz|eanf# Ye{| Febe|511

    XFK NE[\X4 Ye{ `ay" Xfabo ye{"1

    XFK NE[\X4 Xfax e|hk| fa~ lkkb ~igbkh"18

    @\" @K\NFABX4 Xfabo ye{# Ye{| Febe|" I'` geibg xe1;

    nkhk xfk zehi{` xe @|" Cegab me| xfk ca~x `axxk| eb xfk agkbha"1=

    XFK NE[\X4 Acc |igfx"17

    @\" CEGAB4 Hewb xe xfk mkw abh maixfm{c# Ye{| Febe|"16

    Ye{| Febe|# xfk ca~x `exieb i~ a `exieb xe k~xalci~f ~e`k19

    z|enkh{|k~ me| g|abxibg |kcikm m|e` xfk a{xe`axin ~xay xe xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    180/293

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    181/293

    1;7

    D-D NE[\X X\AB^N\ILK\^# IBN"

    lkna{~k wk we{ch lk ~a}ibg a ~{l~xabxiac a`e{bx me| xfk `e}ibg1

    za|xik~# xfk q{ih z|e q{e m|e` xfk k~xaxk'~ zk|~zknxi}k wa~ xe: hay~ we{ch lk `e|k11

    azz|ez|iaxk" Wk ag|kk" Wk fa}k n|amxkh a |k}i~kh me|` em1

    z|enk~~" Zkezck a|k m|kk xe ge ~kko |kcikm m|e` xfk ~xay im18

    xfky a|k ~e ibncibkh xe he ~e" Abh ~knebhcy# ~fe|xibg xfk xi`k1;

    zk|ieh xe >: hay~"1=

    A b{`lk| em xfk exfk| eldknxe|~ fah a nebnk|b xfax17

    ~e`k em xfk ibme|`axieb wk |kq{k~xkh# wfinf wk'}k n|illkh m|e`16

    ~e`k e|hk|~ ib exfk| na~k~# we{ch }iecaxk ~e`k neb~{`k| z|i}any19

    ~xax{xk~" Abh wk'}k agaib nfabgkh xfk me|` em xfk e|hk| xe xfk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    182/293

    1;6

    D-D NE[\X X\AB^N\ILK\^# IBN"

    m|kk xe he ~e" Ibhkkh# xfk|k a|k a b{`lk| em |kcikm m|e` ~xay1

    `axxk|~ xfax a|k ~kx me| @ay >:xf abh xfkb agaib me| xfk bkvx

    lkkb annkck|axkh ly xfk n|khixe| abh me|knce~{|k fa~ lkg{b"8

    Xfk ebcy |igfx a d{bie| cikb fechk| fa~ i~ xe zay xfk mi|~x;

    `e|xgagk emm ib m{cc" ^e I he{lx xfax xfk hklxe| i~ ibxkbhibg=

    xe he xfax ib aby em xfk~k na~k~"7

    I ac~e mkkc xfax xfk ebcy n|ixinac i~~{k xfax xfk6

    n|khixe| ~fe{ch fa}k xe k~xalci~f i~ xfax ix~ cikb i~ ~kbie|9

    abh xfax xfk `e|xgage|# xfk z|ezk|xy ewbk|# i~ bex zayibg xfk1:

    `e|xgagk" Xfax xfk `e|xgagk i~ ib hkma{cx abh ix~ z|ezk|cy ib11

    me|knce~{|k ne{|x"1

    a `exieb me| |kcikm |kac ma~x" Ye{ nab'x waix >: hay~ xe ~kk18

    wfax'~ geibg xe fazzkb" Xfk ckbhk|~ ~kbh ye{ wkkocy e| `ebxfcy1;

    |kze|x~ xkccibg ye{ xfax ye{'|k ib hkma{cx em ye{| elcigaxieb~1=

    abh micibg xfibg~# im ye{ heb'x mick xfibg~ |igfx away" ^e xfk17

    Ne{|x'~ ~xicc geibg xe gkx xfk `exieb~ me| |kcikm k}kb im16

    za|xin{ca| ckbhk|~ hknihk xe x|y xe a}aic xfk`~kc}k~ em xfk19

    z|enkh{|k# ix we{ch lk h{zcinaxi}k kmme|x# bex kixfk|%e|: hay~ xe gkx (1#::: e{x em aby em xfk~k `e|xgagk

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    185/293

    1=1

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Xfax'~ xfk way xfk l{|ka{n|anik~ ~kk` xe we|o" Bkw Nkbx{|y wa~1

    xfax way wfkb I hih we|o me| Bkw Nkbx{|y mi}k yka|~ age" Ix'~wfax |kib~xaxk`kbx i~# Ye{|1:

    Febe|" Xfk|k ne{ch lk ;: himmk|kbx }k|~ieb~ em |kib~xaxk`kbx11

    {bhk| ~xaxk caw abh xfe~k ~fe{ch lk we|okh e{x"1

    xfk xk|` ,k}ihkbnk, wa~ {~kh" Bex ~{|k wfax xfax `kab~18

    kixfk|" Agaib# a }ag{k xk|`" Xfk~k acc ne{ch lk we|okh e{x#1;

    l{x xfk|k ~fe{ch lk a z|enkh{|k xfax hkac~ wixf xfk~k xwe1=

    i~~{k~ ib ahhixieb xe xfk mkk i~~{k wfinf# agaib# xfi~ ~fe{ch17

    bex lk {~kh a~ a |k}kb{k kbfabnk`kbx }kfinck" Xfi~ ~fe{ch lk16

    {~kh a~ a way xe ka~k xfk ah`ibi~x|axieb em xfi~ k~xaxk"19

    ^e xfe~k a|k e{| i~~{k~# Ye{| Febe|" Wk we{ch z|kmk|

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    188/293

    1=8

    D-D NE[\X X\AB^N\ILK\^# IBN"

    Hi~x|inx em Zkbb~yc}abia# acc xfe~k |kcikm m|e` ~xay `exieb~"1

    @\" OA^^KBK\4 I heb'x k}kb wabx xe xfibo ale{x wfax

    `e|xgagk ly `e|xgagk e| im wk l|ibg ebk bexink me| >::8

    me|knce~{|k~" El}ie{~cy xfax wa~b'x ncka| ib xfk ibixiac;

    e|hk|" Im wk ne{ch gkx away wixf zayibg (1#::: abh gkxxibg >::=

    em xfk` fka|h {bhk| ebk bexink# e| im wk fa}k xe zay (>::#:::"7

    Xfabo ye{# Ye{| Febe|"6

    XFK NE[\X4 Xfabo ye{"9

    @\" ZFICCIZ^4 Geeh amxk|beeb# Ye{| Febe|" @a|n1:

    Zficciz~ me| Wa~fibgxeb @{x{ac" Ax xfk |i~o em lkibg11

    |kzkxixi}k# wk# xee# eldknx xe xfk (1#::: zay`kbx" Abh I knfe1

    Im xfk `e}abx ne`k~ me|wa|h wixf a geeh maixf8

    k~xi`axk em xfk }ac{k em xfk z|ezk|xy abh xfk }ac{k em xfk;

    cikb~# xfax wicc ~{~xaib ix'~ l{|hkb ib xfk mi|~x ib~xabnk"=

    Abh im xfk hklxe|~ nebxk~x xfax# wk nab gkx emm ibxe7

    k}ihkbxia|y i~~{k~ im wk nab'x |kanf |k~ec{xieb" L{x wk a|k6

    ne`me|xalck wixf ~x|ioibg xfk z|e}i~ieb xfax wk a|k ~kkoibg9

    xfax xfky fa}k xe ne`k {z wixf ab azz|ai~ac# a me|`ac1:

    azz|ai~ac# a geeh maixf k~xi`axk a~ ~kx me|xf ib xfk cenac11

    |{ck~ ib Hkcawa|k we{ch ~{mmink"1

    D-D NE[\X X\AB^N\ILK\^# IBN"

    wixf xfk me|knce~{|k" Abh wfkxfk| xfax `kab~ |kib~xaxk`kbx im1

    wk gex a Nacime|bia `e|xgagk# wfkxfk| xfax `kab~ zayibg emm xfk

    a~ xfk >:xf im ye{ xfibo xfax xfax'~ ~{mminikbx xi`k xe fa}k18

    hi~n{~~ieb~" Im bex# I'h z{x ix xe a haxk ib D{bk"1;

    @\" CEGAB4 @ay >:xf 1=

    XFK NE[\X4 Yk~# @ay >:xf ax :" ^xax ix xe xfk17

    e`bil{~ fka|ibg haxk" Eoay" Abyxfibg m{|xfk| me| xehay516

    @^" [FCABH4 Bexfibg xehay# Ye{| Febe|# xfabo ye{"19

    XFK NE[\X4 Acc |igfx" Xfabo ye{ acc" Xfax

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    203/293

    179

    D-D NE[\X X\AB^N\ILK\^# IBN"

    N K \ X I M I N A X I E B1

    I# ^{~ab Fecne`l# ne{|x azz|e}kh x|ab~n|ilk|# nk|ximy8

    xfax xfk me|kgeibg i~ a ne||knx x|ab~n|izx m|e` xfk emminiac;

    kcknx|ebin ~e{bh |kne|hibg em xfk z|enkkhibg~ ib xfk ale}k=

    kbxixckh `axxk|"7

    6

    %~% {~ab Fecne`l Haxk4 @ay

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    204/293

    [BIXKH ^XAXK^ LABO\[ZXNY NE[\XHI^X\INX EM HKCAWA\K

    IB \K4 " Nfazxk| 11"

    BKW NKBX[\Y X\^ FECHIBG^# IBN"#" Na~k Be" :71:81=&ODN)a Hkcawa|k ne|ze|axieb# kx ac"#" &Deibxcy Ah`ibi~xk|kh)

    "Hklxe|~" " @ay >:#

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    205/293

    @\" @K\NFABX4 Geeh amxk|beeb# Ye{| Febe|" @iok8

    @k|nfabx em \infa|h~# Cayxeb - Mibgk| eb lkfacm em xfk;

    hklxe|~" Ye{| Febe|# I lkcik}k xfk mi|~x 18 `axxk|~ eb xfk=

    agkbha a|k acc nebxib{kh xe xfk e`bil{~ fka|ibg haxk7

    ~nfkh{ckh me| D{bk 1;xf" @axxk| b{`lk| 1; eb xfk agkbha i~ a6

    ~xay |kcikm `exieb mickh wixf |k~zknx xe nk|xaib Mce|iha9

    z|ezk|xik~# abh Icc nkhk xfk zehi{` xe xfk `e}abx xe z|k~kbx1:

    xfax `exieb"11

    XFK NE[\X4 Acc |igfx"1

    z|e}ihkh ~{mminikbx ibme|`axieb xe `aok a hkxk|`ibaxieb"1

    @\" @K\NFABX4 Ye{| Febe|# im I `ay ibxk||{zx":#::: ib

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    208/293

    ;

    xfk |kx{|b em k~n|ew n{~xe`k| fechlano~ ~facc bex kvnkkh1

    (=:#::: ib xfk agg|kgaxk# abh wk}k ac~e ag|kkh xfax aby abh

    m|e` a`e{bx~ lkibg fkch ly xfk hklxe|~ ib k~n|ew e| m|e`8

    m{bh~ xfax wk|k lkibg fkch ib k~n|ew abh fa}k ~ibnk lkkb;

    |kcka~kh xe xfk hklxe|~ ly xfki| |k~zknxi}k k~n|ew agkbx abh=

    ~facc bex lk ~axi~mikh m|e` z|ezk|xy em xfk k~xaxk" Abh7

    ca~xcy# Ye{| Febe|# wk ag|kkh xfax aby n{~xe`k| z|eg|a`6

    zay`kbx~ `ahk eb anne{bx em |km{bh~ em {baccewalck mkk~9

    nfa|gkh ly xfk hklxe|~ xe le||ewk|~ ~facc bex kvnkkh (6:#:::1:

    ib xfk agg|kgaxk"11

    XFK NE[\X4 ^e# few `{nf kvx|a m|e` a`e{bx~1

    @\" @K\NFABX4 Wkcc# Ye{| Febe|# I lkcik}k ebcy xfk18

    n{~xe`k| |k~xix{xieb zcab zay`kbx~ ne}k| zay`kbx~ xfax wk|k1;

    ac~e azz|e}kh z{|~{abx xe xfk mi|~x hay e|hk|" ^e em xfk1=

    a`e{bx~ I d{~x hi~n{~~kh# xfk|k~ a (1>:#::: naz wixf |k~zknx17

    xe xfe~k zay`kbx~# 9:#::: em wfinf fa~ ac|kahy lkkb azz|e}kh16

    abh gebk e{x xfk hee|" ^e# ix~ 8:#::: ib ahhixiebac19

    zay`kbx~" Acc em xfk exfk| naz~ a|k bkw a`e{bx~ xfax a|k

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    209/293

    =

    XFK NE[\X4 Yk~"1

    @\" @K\NFABX4 Ye{| Febe|# I d{~x |kacitkh xfax

    ~{l`ix a |k}i~kh me|` {bhk| nk|ximinaxieb em ne{b~kc# im8

    xfax~ annkzxalck";

    XFK NE[\X4 ]k|y wkcc"=

    @\" @K\NFABX4 Ye{| Febe|# me| xfk bkvx `axxk| eb7

    xfk agkbha I` geibg xe x{|b xfk zehi{` e}k| xe Lkb Cegab"6

    @\" CEGAB4 Xfabo ye{# Ye{| Febe|" Xfi~ i~ xfk9

    `exieb xe azz|e}k a na~f neccaxk|ac ~xiz{caxieb wixf1:

    Nixig|e{z \kac K~xaxk" I hebx fa}k xfk m{cc ba`k ib m|ebx11

    em `k# l{x xfk Nixig|e{z \kac K~xaxk g|e{z wfinf z|e}ihkh xfk1: hay~ kq{ac~ ab a{xe`axin16

    cimxibg em xfk ~xay# abh im xfk hklxe|~ hknihk xe z{|~{k xfk19

    |kib~xaxk`kbx abh xfkb hkma{cx {bhk| xfk bexk e| exfk|

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    214/293

    11

    xfk za|xik~" Wk|k anx{accy x|yibg xe ci`ix hi~nce~{|k wfk|k1

    xfk hi~nce~{|k we{ch |{b ame{c em aby z|i}any caw~" ^e# xe

    ibme|`axieb xfax# ye{ obew# `igfx |{b ame{c em aby azzcinalck8

    mkhk|ac e| ~xaxk z|i}any caw# wk|k ci`ixibg xfax" Xfk|k i~;

    a ~cigfx ibxk|cibkaxieb# ye{cc ac~e bexk# ax za|ag|azf &9)=

    xfax xfk Ne``ixxkk ~{ggk~xkh d{~x ~e xfax ix~ ci`ixkh xe xfk7

    kvxkbx xfax xfk ibme|`axieb we{ch anx{accy i`zcinaxk xfe~k6

    z|i}any |igfx~ xfax wk|k xacoibg ale{x" Xfkb# mibaccy# ax9

    za|ag|azf &1:)# abh xfi~ i~ xfk al~ec{xk ca~x nfabgk#1:

    la~inaccy xfi~ hkac~ wixf xfk nk|xaibxy a~zknx xfax11

    k~~kbxiaccy im a za|xy mick~ a nk|ximinaxieb em ne{b~kc e| ab1

    obew# ~xaxibg xfax xfk ~xay fa~ lkkb cimxkh# xfk hklxe|~ wicc18

    fa}k xf|kk hay~ xe |k~zebh xe xfax# abh im xfky he bex wixfib1;

    xfax xi`k# xfk e|hk| `ay lk g|abxkh ly xfk Ne{|x# abh I xfibo1=

    xfax ahh|k~~k~ xfk nebnk|b~ ale{x nk|xaibxy abh z|eem amxk|17

    xfk manx xfax xfk ~xay fa~ anx{accy lkkb cimxkh" ^e# xe xfk16

    kvxkbx xfax Ye{| Febe| fa~ aby q{k~xieb~# Icc ab~wk| xfk`#19

    l{x xe xfk kvxkbx xfax ye{ he bex# I we{ch a~o xfax ye{ kbxk|

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    215/293

    1

    Febe|# amxk| xfk ca~x fka|ibg# I |kanfkh e{x xe hklxe|~8

    ne{b~kc xe x|y abh |k~ec}k F^LN~ i~~{k~" La~kh eb xfe~k;

    hi~n{~~ieb~ abh xfk nfabgk~ annkzxkh xehay# F^LN ebcy fa~ a=

    mkw |k`aibibg eldknxieb~" Mi|~x# Ye{| Febe|# F^LN nebxib{k~7

    xe `aibxaib xfax xfk hklxe|~ bex kbxixckh xe aby mkk wfkxfk|6

    me| |k}kb{k z{|ze~k~ e| exfk|wi~k" I` bex awa|k em aby9

    ne{|x ib xfi~ ne{bx|y xfax fa~ azz|e}kh ~{nf a mkk# abh I1:

    hebx lkcik}k xfax xfi~ Ne{|x ~fe{ch ~kx xfk z|knkhkbx"11

    ^knebh# Ye{| Febe|# xfk hklxe| fa~ |kq{k~xkh xfax F^LN1

    k}kb xfe{gf xfk hklxe| ac|kahy fa~ xfe~k zazk|~" Agaib# F^LN18

    lkcik}k~ xfax ~{nf a |kq{k~x i~ l{|hkb~e`k abh xfax xfax1;

    ~fe{ch lk ~x|inokb ac~e" Xfabo ye{"1=

    XFK NE[\X4 Eoay" Aby em xfk exfk| eldknxe|~ na|k17

    xe lk fka|h516

    @\" NFIZ@AB4 Ye{| Febe|# me| xfk |kne|h# Wiccia`19

    Nfiz`ab# Khwa|h~# Abgkc# Zac`k| - Hehgk eb lkfacm em

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    217/293

    18

    ne{b~kc me| xfk hklxe|~ eb exfk| ~xay |kcikm i~~{k~ xfax1

    a|kbx i`zanxkh ly xfi~ e|hk|"

    wixfh|awb e| |k~ec}kh"8

    @\" NFIZ@AB4 Ix~ |k~ec}kh";

    XFK NE[\X4 Acc |igfx# xfabo ye{"=

    @\" NFIZ@AB4 Xfabo ye{"7

    XFK NE[\X4 Aby exfk| eldknxe| na|k xe lk fka|h5 I6

    wicc a~~{`k xfkb xfe~k wfe fa}k bex ~xkzzkh me|wa|h# xfki|9

    eldknxieb~ fa}k lkkb |k~ec}kh e| alabhebkh" Ckx `k a~o xfk1:

    hklxe| xe |k~zebh l|ikmcy xe F^LN~ |k`aibibg ne``kbx~"11

    @\" ^A@I^4 Ye{| Febe|# I xfibo xfk `aib |k~zeb~k1) em xfax e|hk|# xfk1)"1>

    XFK NE[\X4 Hek~ abyebk kc~k na|k xe lk fka|h ib18

    nebbknxieb wixf xfi~ azzcinaxieb5 I fka| be |k~zeb~k" Xfax1;

    e|hk| fa~ lkkb ~igbkh"1=

    @\" NA\INOFEMM4 Xfabo ye{# Ye{| Febe|" Xfk bkvx17

    ixk` eb xfk agkbha i~ xfk Ne``ixxkk~ azzcinaxieb xe |kxaib16

    MXI Neb~{cxibg# abh xfi~ i~ abexfk| ~ix{axieb wfk|k wk fa}k19

    lkkb we|oibg wixf xfk Emmink em xfk [bixkh ^xaxk~ X|{~xkk xe

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    223/293

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    224/293

    ne{b~kc~ ne``kbx~" [bhk| xfk z|eze~kh me|` em e|hk| xfax~18

    lkkb z|e}ihkh xe {~ abh xfax wk}k ag|kkh xe# wk fa}k xfk1;

    |igfx xe |k}ikw lexf xfk `ebxfcy mkk~ abh xfk ne`zckxieb mkk1=

    {bhk| xfk |ka~ebalckbk~~ ~xabha|h" I xfibo xfax ne{b~kc ib17

    fi~ z|k~kbxaxieb ebcy |kmk|kbnkh xfk `ebxfcy mkk~ xfk`~kc}k~"16

    XFK NE[\X4 Acc |igfx# xfabo ye{"19

    @\" @n@AFEB4 Xfabo ye{"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    225/293

    e}k| nab ge me|wa|h eb D{bk 1;xf" Wk}k ag|kkh xfax wk wicc18

    bex nfacckbgk xfk ~xabhibg em fi~ caw mi|` xe z{|~{k xfk1;

    `exieb# abh wk webx eldknx xe xfk me|` em xfk `exieb"1=

    @\" Hi^ZIGBA &XKCKZFEBIN)4 Xfax i~ ne||knx# Ye{|17

    Febe|" M|khk|ino Hi^zigba"16

    @\" @K\NFABX4 I lkcik}k xfax~ xfk ~nezk em e{|19

    ag|kk`kbx"

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    226/293

    z|kmk|# me| |ka~eb~ wfinf a|k el}ie{~# xfax za|xik~ lk ba`kh1

    ib `exieb~ |axfk| xfab caw mi|`~ lkibg xfk `e}abx# abh Icc

    @\" @K\NFABX4 ]k|y wkcc# Ye{| Febe|"8

    @\" Hi^ZIGBA &XKCKZFEBIN)4 Xfabo ye{# Ye{| Febe|";

    @\" @K\NFABX4 @axxk| b{`lk|

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    227/293

    l|kanfk~ ly xfk hklxe| em ix~ ~k|}inibg elcigaxieb~ {bhk| xfk8

    zeecibg abh ~k|}inibg ag|kk`kbx~" Hk{x~nfk wa~ ib xfk;

    z|enk~~ em fa}ibg ab anne{bxabx ge xf|e{gf abh a{hix xfe~k=

    |kne|h~ abh ~k|}inibg xe hkxk|`ibk wfax xfk kvxkbx em xfax7

    ncai` i~# l{x xfk eldknxieb ibhinaxkh xfk ncai` ne{ch lk a~6

    figf a~ (

    e|hk| xfax Ye{| Febe| kbxk|kh eb xfk mi|~x hay z|e}ihk~ me|18

    xfk hklxe| la~inaccy xe ne`zcy wixf xfe~k ibhk`biminaxieb1;

    elcigaxieb~ {bhk| xfk Z^A~" ^e# xfky k~~kbxiaccy fa}k xwe1=

    xyzk~ em ncai`~" Xfi~ ~xiz{caxieb la~inaccy ~kx~ me|xf a17

    |k~k|}k em a nk|xaib a`e{bx em m{bh~ m|e` xfk Na||ibgxeb ~ack16

    xe z|exknx Hk{x~nfk abh xfk x|{~x ib xfk k}kbx xfe~k ncai`~19

    a|k anx{accy accewkh {cxi`axkcy abh xe ~kx {z a z|exenec e|

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    228/293

    xfk x|ab~anxieb" Wixf |k~zknx xe xfk (1: `iccieb# wfax~18

    kb}i~iebkh i~# Hk{x~nfk wicc fa}k# I xfibo# xicc D{cy >1# I1;

    lkcik}k# Ye{| Febe|# za|ag|azf &6)# xe mibi~f xfk a{hixibg1=

    abh anne{bxibg abh z|eh{nk la~inaccy a w|ixxkb ~{``a|y em17

    wfax ix lkcik}k~ ix~ ~kn{|kh ncai` ha`agk~ a|k" Xfkb xfk16

    hklxe| abh xfk Ne``ixxkk wicc fa}k 7; hay~ amxk| I` ~e||y#19

    xicc Enxelk| ;xf xe la~inaccy abacytk xfax abh ne`k {z wixf

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    229/293

    `iccieb# abh ix naz~ xfk n{|k ncai` a~ xe xfk zexkbxiac8

    ~k|}inibg l|kanfk~ ax xfk (1: `iccieb" Bew I ~fe{ch `kbxieb#;

    im Ye{| Febe| |knacc~ ca~x wkko# a cex em xfk nebx|anxibg=

    za|xik~ fah mickh n{|k eldknxieb~ a~ em xfk haxk em xfk7

    eldknxieb hkahcibk# abh wk fah xfax gaz zk|ieh# wfax wk nacc6

    ix" Xfax gaz zk|ieh ~xicc kvi~x~ wixf Hk{x~nfk lkna{~k9

    Hk{x~nfk hek~bx obew# ye{ obew# wfax~ geibg xe fazzkb1:

    lkxwkkb bew abh nce~ibg" ^e xfk ~xiz{caxieb |k~k|}k~11

    Hk{x~nfk~ alicixy xe l|ibg xfe~k ncai`~# im ix hi~ne}k|~1:

    a`e{bx xfax wa~ a}aicalck# xfk |ai~k# im ye{ wicc# me|1

    }a|ie{~ x|{~x m{bh ncai`abx~" Xfax xfkb ckh xe wkcc# ix1

    ;88" Xfk hklxe|~ fa}k ~k}kb `ade| \KZE za|xinizabx~"1

    Xf|kk em xfk` hih bex eldknx xe xfi~ `exieb# abh xfax~

    za|xik~ xe xfk hk}kcez`kbx em xfk e|hk| abh xfk `exieb abh8

    ~{zze|x ix" Xfe~k ibnc{hk N|khix ^{i~~k Mi|~x Le~xeb# Labo;

    em A`k|ina# abh Hk{x~nfk Labo" Ibhkkh# wk fah a ~xiz{caxieb=

    wixf Hk{x~nfk Labo xfax wa~ azz|e}kh ly xfk Ne{|x ax xfk ca~x7

    fka|ibg xe hkac wixf ~e`k abnicca|y i~~{k~ ib}ec}ibg Hk{x~nfk6

    Labo ib wfinf xfky ag|kkh xe ~{zze|x xfi~ `exieb" Ix wa~ ib9

    I g{k~~ ix fah lkkb mickh ax xfax xi`k abh xfk we|o wa~ ib1:

    z|enk~~" Wk ac~e fa}k |kanfkh ab ag|kk`kbx ib z|ibnizac wixf11

    @e|gab ^xabcky# wfinf hih mick ab eldknxieb abh a ne{bxk|1>

    abh z|emk~~iebac mkk~ abh ac~e a ~{zk|ah`ibi~x|axi}k1

    z|ie|ixy d{bie| xe xfk ~{zk|ah`ibi~x|axi}k z|ie|ixy g|abxkh8

    h|ezhkah haxk" Ix~ lkkb a zaibm{c z|enk~~ xe gkx xfax we|o1

    hebk# abh I wabx xe kvzcaib wfy xfax i~ ib a mkw `ib{xk~# l{x;

    xfky a|k le{gfx lano# zay ibxk|k~x# xyzinaccy hkbe`ibaxkh xfk1

    z|ink himmk|kbxiac" Xfk ag|kk`kbx~ }a|ikh ~{l~xabxiaccy a~

    ceab~ h{|ibg xfk xi`k xfax xfk |kz{|nfa~k ag|kk`kbx wa~ ~xicc8

    kvxabx" ^e`k em xfk` fah lcenokh anne{bx~ ~kx {z# `aby hih;

    bex" Xfe~k xfax fah lcenokh anne{bx~ xyzinaccy hih bex lceno=

    xfk` {bxic `ih@a|nf" Abh ac`e~x {bime|`cy xfk \KZE7

    za|xinizabx~ {bhk|~xeeh xfax |kg{ca|cy ~nfkh{ckh neccknxieb~6

    em `ebxfcy z|ibnizck abh ibxk|k~x m|e` xfk le||ewk|~ wkbx9

    ibxe a gkbk|ac neccknxieb anne{bx# abh `ebik~ wk|k ~kxxckh {z1:

    `ebxfcy amxk| xfk manx" Abh a~ a |k~{cx# wk fa}k a11

    fehgkzehgk em ckgac ncai`~ ly xfk |kz{|nfa~k za|xinizabx~1

    abh xfk lcenoagk em ab anne{bx a|k xfki| `ebik~ e| xfki|18

    neccaxk|ac# abh wk ac~e fa}k i~~{k~ a~ xe wfkxfk| e| bex1;

    `ebik~ xfax wk|k neccknxieb z|ie| xe xfe~k kvk|ni~k~ em1=

    |k}kb{k~ a|k xfki| z|ezk|xy e| xfki| neccaxk|ac" Ceab17

    z{|nfa~k|~ xyzinaccy we{ch l{y ceab~ m|e` Bkw Nkbx{|y abh ax16

    xfk xi`k xfky z{|nfa~kh xfk`# ib~x|{nxieb~ wk|k gi}kb xe19

    x|ab~mk| xfk ~k|}inibg m|e` Bkw Nkbx{|y @e|xgagk Ne|ze|axieb

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    239/293

    >=

    xfky emxkb xfibo i~ d{bo `aic" Ib aby k}kbx# ~e`k q{abxixy1

    em `ebky na`k ibxe xfk hklxe|~ z|kzkxixieb xfax wa~ agaib

    z{|nfa~k|~ a~~k|x xfax i~ x|{~x z|ezk|xy fkch me| xfki|8

    lkbkmix" I fa}k a ~xez" Lexf xfk |kz{|nfa~k ag|kk`kbx~ abh;

    xfk~k ag|kk`kbx~ me| xfk ~ack ceab~ fa}k x|{~x cabg{agk"=

    Xfky fa}k cabg{agk xfax xfk hklxe|~ wicc fech `ebik~ ib7

    x|{~x" Xfk x|{xf em xfk `axxk| i~# xfe{gf# xfax xfk z|anxink6

    a~ {bhk|~xeeh wa~ xfax `ebik~ wk|k bex fkch ib x|{~x" Xfky9

    wk|k z{x ibxe a gkbk|ac neccknxieb anne{bx# wfinf gkx~ `k xe1:

    xfk mi|~x ~igbiminabx ckgac i~~{k abh ix~ ebk em x|anibg"11

    Wk fah (8=#::: abh nfabgk ib xfi~ neccknxieb anne{bx eb16

    i~ a leba mihk x|{k x|{~x a||abgk`kbx# wfinf i~ }k|y xe{gf xe1

    k~xalci~f wfkb m{bh~ a|k ne``ibgckh" I webx lexfk| xfk=

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    243/293

  • 8/2/2019 3 Transcripts of New Century Mortgage Bankruptcy Hearings from May 2007

    244/293

    81

    xfax |kz{|nfa~k ag|kk`kbx~ me| fyl|ih~# a~ xfk Xfi|h Ni|n{ix1

    ~aih# xfky}k gex `aby em xfk nfa|anxk|i~xin~# ib manx# `e~x

    xfk Ne{|x ceeokh ax a }a|ikxy em manxe|~ ibnc{hibg wfkxfk| e|8

    bex xfk |kz{|nfa~k za|xinizabx fah xe fech xfk z|ezk|xy xfax;

    wa~ q{exk# ~ech xe ix# ~ech ib q{exk~# e| wa~ m|kk xe=

    hi~ze~k em ix" La~inaccy# xfi~ na`k {z eb xfk nebxkvx em7

    kixfk| ge}k|b`kbx ~kn{|ixik~ e| Gibbik @ak~" I hebx |k`k`lk|6

    wfinf# l{x ~ibnk xfe~k a|k k~~kbxiaccy m{bgilck# xfk9

    |kz{|nfa~k l{yk| ne{ch x|ahk e{x xfe~k ge}k|b`kbx ~kn{|ixik~1:

    a~ cebg a~ ix |kzcankh ix wixf ciok oibh# abh xfk Ne{|x ~aih11

    xfax xfax wa~ ebk em xfk ~igbiminabx manxe|~ xfax we{ch a|g{k1

    Wk|k bex a~oibg xfk Ne{|x xe hkxk|`ibk xfax ix i~ m{ccy18

    ahkq{axk# l{x wk|k x|yibg xe k~xalci~f a mai| abh |axiebac1;

    z|enkh{|k ~e xfax za|xik~ a|k bex ah}abxagkh ly lkibg `e|k1=

    cixigie{~ xfab exfk|~" Xfax~ acc I fa}k xe ~ay# Ye{|17

    Febe|"16

    XFK NE[\X4 Xfabo ye{"19

    @\" ZEWK\4 Geeh amxk|beeb# Ye{| Febe|" @a|o Zewk|

  • 8/2/2019