I' I I I I I I I I I I I I I I I I I I SUPERIOR COURT OF NEW JERSEY CHANCERY DIVISION INTHEMATTER OF RESIDENTIAL MORTGAGE FORECLOSURE PLEADING AND DOCUMENT IRREGULARITIES GENERALEQUITY PART MERCER COUNTY, DOCKET NO,:F-059553-IO CivilAction AFFIDAVIT OF CHRIS COLLINS ON BEHALF OF JPMORGAN CHASE BANK, N.A. D82/225790351 F I LED JUL2 8 2011 SUPERIOR COURT CLERK'S OFFICE I' I I I I I I I I I I I I I I I I I I STATE OF OHIO COUNTY OFFRANKLIN ) ) SS: ) AFFIDAVIT OF CHRIS COLLINS I,Chris Collins, being duly sworn, depose andstate thefollowing: I.I am aVice President of Foreclosure Operations at JPMorgan Chase Bank, National Association ("Chase").I am one of severalindividualsresponsible for certain foreclosureprocesses atChaseincluding thereview andremediation of sworn documents andthe development andimplementation of procedures concerning foreclosurelitigation. 2.I havereadthe affidavits of Michael Zarro dated January 5,2011 andApril?, 2011, and agree with the content of those affidavits. 3.1 make thisAffidavit infurther support of Chase's prima facie showing to theHonorable Ri chardJ.Williams, lA.D. (ret.).I addressbelow certain questions concerning Chase's processes forthe execution of foreclosuredocumentsin cases where Chase acts as servicer of theloan, andinparticular, the court cases listedin Chase's Servicer Portfolio (the "Chase Servicer Portfolio"). EMCMortgage Corporation 4.Chase's parent, JPMorgan Chase &Co., acquired TheBear Stearns Companies Inc.("Bear Stearns") effective May 30, 2008. 5.Included inthe acquisition was a servicing company ownedby Bear Stearns namedEMC Mortgage Corporation (HEMC"). D821 22579035I I' I I I I I I I I I I I I I I I I I I 6.From thetime of the acquisitionuntilApril1,2011, EMCoperated asaseparatelegal entity.However, foreclosuresof loansservicedbyEMC followedthe same generalprocesses, procedures, and document execution practices of Chase andits servicing subsidiary, Chase Home Finance LLC ("CHF"). 7.OnMarch31,20 II, EMC convertedfromaDelaware corporation toaDelawarelimitedliability company and changeditsname toEMCMortgageLLC ("EMCLLC").Copies of the Certificate of Formation of EMCMortgage LLC and Certificate of ConversionConverting EMC Mortgage Corporation (a Delaware corporation) toEMCMortgageLLC (a Delaware limitedIiabihty company) are annexed hereto andincorporatedherein asExhibits A andB,respectively. 8.OnApril1,2011 , EMC LLC solditsmortgage servicing rights to Chase.Asa result, servicing of the mortgageloanspreviouslyservicedbyEMC/EMC LLC was transferred to Chase onthat date.Copies of the Assignment and Assumption Agreement, and relateddocuments, are collectively attached hereto andincorporated hereinasExhibit C. 9.FromMarch 2008 untilApril1,2011, records forEMCIEMC LLC loans weremaintained by EMCunder Chase's control,management andsuperviSIon. Effective April1,2011, those records aremaintained byChase. 10.Further, notwithstanding theApril1,2011date,Chase's enhanced processes,procedures, and document execution practices outlinedinthe January 5,2011 andApril7,2011Zarro affidavitshaveappliedtotheEMCportfolio since theinception of theprocesses,procedures, and document execution practices. 2 D82/ 22579035I I I I I I I I I I I I I I I I I I I I II.Allforeclosurerelated affidavits and certifications executedby Chase willreflect that the loanisserviced byChase, and to the extent necessary,all procedures willbeupdated to reflect this change. 12.Theloansformerl y servicedbyEMC areincludedinChase' s previously submitted ChaseServicer Portfolio. Chase Home FinanceLLC 13.Effecti ve May1, 201I , CHF mergedintoChase, andChaseisnow the servicer of the residentialmortgageloanspreviously servicedby CHF.Annexed hereto andincorporatedhereinasExhibitD isa copy of theCertificate of Merger of Chase HomeFinance LLC(aDelawareLimited liabilityCompany) WithandInto JPMorgan Chase Bank, NationalAssociation (a nationalbanking association organized under thelawsof the United States of America). 14.The merger hasmootedthesub-servicing agreement between CHF andChase described inParagraphs 9 and30 of theApril7,2011Zarro affidavit. IS.Allforeclosure relatedaffidavitsand certifications executedby Chase willreflect that theloanisserviced byChase, andtothe extent necessary,all procedures willbe updated toreflect this change. 16.The processes andprocedures detailedinthe January 5, 201I and April7,201 I Zarro affidavits are otherwise unaffectedbythemerger or CHF intoChase andanyrepresentationsMr.Zarromade concerning thepractices of CHFappl y to Chase. 17.TheloansformerlyservicedbyCHFareincludedinthe Chase Servicer Portfolio. 3 DB2/ 225790351 I I I I I I I I I I I I I I I I I I I Document Execution,Data Integrity and ThirdPartyVendors 18.Allsworndocuments executed byChase inconnection with residentialmortgage foreclosures for theChase Servicer Portfolio are executed "in house"byChase employees.Chase doesnot outsourceitssworndocument execution for theChase ServicerPortfolio,and does not usesub-servicers. 19.Although Chaseusessomeoutside vendorstoassist inthe management of defaultedloansandprocessing of foreclosures, thereisnoabil ityfor the manipulation of core loanrecords. 20.Regardless of (a)how Chase came tobe theservicer of an individualloan(i.e- Chase has been theservicer sincetheloan's origination, Chase acquiredthe servicing post-origination,Chase acquiredtheservicing fromEMC or CHF); or (b) who owns the beneficialinterest intheloan(Chase, a Government Sponsored Enterprise such asFreddie Mac or Fannie Mae, or a privateinvestor),for allloans identifiedinthe ChaseServicer Portfolio, Chaseisrelying on theMSP system described inthe Zarro affidavits to store, retrieve, and otherwise access criticalloandata. 21.Moreover, allloans identifiedintheChase Servicer Portfolio are handledthroughtheforeclosureprocesses anddocument executionprocedures set forth the January 5, 2011andApril 7,2011Zarro affidavits, and this affidavit .When documents such asCertifications of Proof of Amount Due areexecuted, the Chase employees review real-time,up-to-date,vIew-only datainthe MSPsystem. 22.The averagenumber of certifications/affidavits preparedbyeach Chase document execution employeeiscurrently approximately 5-6per day.More 4 DB2I 225790J5I I I I I I I I I I I I I I I I I I I I experienced employees are processing about10per day, and themost that havebeen executed by one personinone dayunder the enhancedprocedures describedinthe Zarro affidavits is13(this was done bya very experienced employee).There are times when a givendocument execution employee willhave zero completed certifications/affidavitsin a day. 23.Inaddition to theloansidentifiedinthe Chase Servicer Portfolio, Chase has approximately 331pending foreclosuremattersinNew Jersey based onhome equityloans.Home equity loan dataismaintained on a computer systemknownas VendorLive andChaseisdeveloping procedures tocomplete affidavits and Certifications of Proof of AmountDue based on a reviewof that system.While the systems andscreens accessed tocomplete foreclosuredocuments for home equityloans are different fromthoseused onfirst-lienloans,Chase willfollow thesame general processes and procedures previously described to ensure that the Chase employee executing the document haspersonallyreviewed the dataandhas therequisite personal knowledge toexecute the Certifications of Proof of Amount Due. Reliability of Chase' s Affidavitsinthe Event a Payment is Tendered 24.Payments may betendered after the commencement foreclosure action either (a)inthe context of a forbearanceagreement or other lossmitigationplan, or (b) outside of such context. 25.If a paymentistenderedinthecontext of a forbearanceagreement or other loss mitigationplan,thepayment isrecordedinMSP.If the forbearance agreement or lossmitigationplanisultimatelyunsuccessful, any forbearancepayments 5 DB21225790l 5I I I I I I I I I I I I I I I I I I I I applied to theaccount willbe reflectedin the amounts due set forthinthe Certification of Proof of AmountsDue (" CPAD"). 26.BecauseChase intends toexecute new CPADs for pre-judgment filesIn the ChaseServicer Portfolio, anyforbearancepayments thatmay havebeen applied during themoratorium on accounts whereforbearancewasunsuccessfulwillbe captured on the new CPAD.Further, Chase will develop additionalprocedures tohelp ensure that counselisadvised ifforbearance payments are appliedbetween the time the CPADiscompleted and judgment isrendered. 27.Inaddition,borrowers sometimes tender payment outside the context of a forbearanceagreement or loss mitigationplan.If thepayment bringsthe borrower's loan account either current or withina certaininvestor-defined delinquency (i.e., within 60 days of current status), theforeclosure actionwillbe terminated.If the paymentisless than thatamount,Chase willreturn the fundstotheborrower. Attorney Communication. Compliance with the New Jersey Supreme Court Order. andOversight 28.Chase communicates withits foreclosureandbankruptcy attorneys through a variety of mediums, including telephone, e-mail, and LPSDesktop. 29.There are numerous mechanismsforeclosurecounsel can use to communicate andescalateissues as needed to Chase,including dedicated Chase liaisons and the use of generalmailboxes. 30.Chase has developed the followingplan to complywith the Supreme Court Order (the "Order")and court rulerevisionsissuedonJune 9, 2011. 6 D821 225790351 I I I I I I I I I I I I I I I I I I I 31.For eachpre-judgment fileintheChase Servicer Portfolio, Chase intends to execute anew CPADbasedonChase's enhanced processes andprocedures, reflecting the amount due asof the time theCPADisexecuted. 32.For these pre-judgmentfiles, a representative of Chase willreview thecomplaint, Chase's systems,the noteandthe mortgage (andrecordedassignments,if any) toconfirm theaccuracy of the core factsallegedinthe complaint.The reviewer will record theresults of thereview on a written statement.This statement of review will contain thename, title and contact informationforthereviewer. 33.The written statement of review willbeimagedintoLPSDesktop for counsel's review,and a messageconfirming the transmission of theimage willbe sent tocounsel throughLPSDesktop's "intercom" function,anelectronic messaging system that provides fordirect, two-way, personalcommunicationbetween foreclosure counsel andthereviewer.Foreclosure counsel willbeable toraise anyfollow-up questions, comments or concerns with the reviewer through "intercom" or the contact information set forthonthestatement of review.The communications with counselwill beprivileged.However, Chase willmaintaina copy of thestatement of review for purposes ofmamtaming anaudll trail. 34.For eachpost-judgment fileintheChase Servicer Portfolio, a representative of Chase willconduct a review of the complaint inthe manner described above aswellasa similar review of theCPAD submittedinsupport of the judgment. Chase willcommunicate the resultsof thereviewinthesamemanner describedabovefor pre-judgment files . 7 D821 225790351 I I I I I I I I I I I I I I I I I I I 35.Finally, on ago-forwardbasis fornew cases, a representative of Chase willreview each complaint andeach CPAD, together with Chase' s records,the noteand the mortgage (andassignments,if any) to confirm thefactualaccuracy of the complaint andCPAD.Again, theresultsof the review will be communicated througha written statement transmittedthrough theLPSDesktop " intercom"function,and Chase willprovide contact information for the reviewer so that counsel canaddress anyfollow-upquestions. 36.Inaddition to the direct,real-time,personal communication described above,foreclosurecounsel andChase areinregular communication with each other throughphone calls, e-mail and theoversightprogram describedbelow.Thus, to the extent any questions arise that cannot beresolved with a reviewer,there are multiple additionalpaths of communication and escalation points available. 37.From a relationship andoversight standpoint, Chase has greatly enhanceditspractices.Previously, relationships were managed almost exclusively by a non-lawyer Attorney Management teamwhichreportedupthroughforeclosureand bankruptcymanagement.That teamwasalso responsible forauditing the performance of each lawfirmthrough on-site visits.Inorder toexercise greater supervision of our foreclosureand bankruptcy attorneys,many changes havebeenmade(and continue tobe made). 38.Under the current structure, thenon-lawyer Attorney Management teamisresponsible for managing the overall relationship with foreclosure counsel.This group isinconstant contact with foreclosure counsel, and questions fromcounsel can be escalated through this group. 8 D82/ 22579035I I' I I I I I I I I I I I I I I I I I I 39,Second, Chase has established anindependent team toconduct on-site audit review of foreclosurefirms,This group doesnot report up throughforeclosure andbankruptcy management 40,Third, Chasehascreated a new attorneymanagement groupwithin Chase's LegalDepartment, known as the Attorney Oversight Group ("AOG").The AOG conducts its ownon-site visits (separate fromthe audit team), reviews policies and procedures, and provides support and advice toChase'sbusinesspeopleincharge of foreclosuremanagement 41.The AOGisa teamof lawyers whose soleresponsibilityisthe oversight andsupervision of foreclosure,bankruptcy andeviction counsel.The teamis currently comprised of eight (8) attorneys,plus a supervising attorney andmanaging attorney,Inaddition to these ten(10)attorneys, Chase iscurrentlyinterviewing and plans toaddanother two (2) tofour (4) attorneysintheimmediate future. 42.Over thepast severalmonths, the AOGhas developed a robust and proprietary process forthesupervision and oversight of localcounsel, whichincludes regular on-site visitsseveral daysat a time. 43.No practices that Chase willagree to withany regulators willbe substantially different than what has been set forthinthe affidavits filedby Chasein connection with thismatter. FURTHER AFFIANT SA YETH NAUGHT. 9 092/ 22579035I I' 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I declare under penalty of perjury under thelaws of the UnitedStates of America .,1-that theforegoing Affidavtt is true and correct.Executed on the.27day of July,2011, inFranklin County, Ohio. STATE OF OHIO COUNTY OFFRANKLIN ) ) SS: ) Chris Collins Vice P_ldent I HEREBY CERTIFY that on this day personally appearedbefore me,an officer duly authorized to oaths andtake acknowledments intheCounty aforesaid, Chris Collins,0isersonally knowtome or produced ____ -=====----,---__ -,-----,-_ asidentification, and who executed the foregoing Affidavit, andacknowledgedbefore me that he hadthe authority to do so on behalf of JPMorgan Chase Bank, National AssociatIOn. I havehereunto set myhandandaffixed myofficial sealthis of July, 2011. Mycommission expires:VV\ruiLl,lOI:> 0821 225790351 MEUSSA HAMMOCK NoIaIy Pub!'1C. Stale 01 Ohio My Comm. Expires May 4, 2015 10 Melissa Hammock Notary Public I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 'lJe [awa re PAGE2 %e State I,JEFFREYW.BULLOCK,SECRETARYOFSTATEOFTHESTATEOF DELAWAREDOHEREBYCERTIFYTHATTHEATTACHEDISATRUEAND CORRECTCOPYOFCERTIFICATEOFFORMATIONOF"EMCMORTGAGELLC" FILEDINTHISOFFICEONTHETWENTY-EIGHTHDAYOFMARCH,A.D. 2011,AT8:47O'CLOCKA.M. ANDIDOHEREBYFURTHERCERTIFYTHATTHEEFFECTIVEDATEOF THEAFORESAIDCERTIFICATEOFFORMATIONISTHETHIRTY-FIRSTDAY OFMARCH,A.D.2011. 22423398100V 110344567 rOUm4yverjfyth1SceIt1f1C4Cd4tcorp. del" .....u.1Igov/,,"uthver. ".lJt:ml AUTHE"",,""'A'I' DATE03-28-11 I I I I I I I I I I I I I I I I I I I CERTIfiCATE OF FORMATION OF EMC MORTGAGE LLC StateoxLl9.1swa.re SecretaryoXState Divisionof Corporations Delivered08: SlAM03/28/20ll FILED08: 47llH03/28/2011 SRV11.0344567- 2242339FILE ThisCertificate of FormationisbeingfiledpursuanttoSection18-214(b)of the DelawareLimitedLiabilityCompanyAct.6Del.C.18-101el inconnectionwiththe conversionofEMC Mongage Corpomtion.a Delawnre corporation,toa Delaware limitedliability company. Theundersigned,beingdul}authorizedtoext:CuteandfilethisCertificateof FOml:ltion, doeshereby certify as follows: I. (the "Comp:lnY-). NruneThenameorthe limited nubilitycompanyisEMC Mortgage LLC 2.Registered Office andRegistered Agent.The Company's registered office IntheStateof Delawareislocatednt1209OrangeStreeLCItyof Wilmington,County of New Castle, State of Delaware,1980 I.1l.cagent of theCompanyfor service of process at such addressi, The Corp()ration Trust Company. 3.EffectiveTime.ThisCertificate of Fommtionshallbeeffective 0[1 March 31,2011 INWITNESSWHEREOF,theundersignedhasdulyexecutedthisCertificatellf FormationiU,of March 24,20[1. Name: Lauren V.H:Ul1S A.nAuthorized Person I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 'lJe [awa re PAGE1 %e :First State I,JEFFREYW.BULLOCK,SECRETARYOFSTATEOFTHESTATEOF DELAWAREDOHEREBYCERTIFYTHATTHEATTACHEDISATRUEAND CORRECTCOPYOFTHECERTIFICATEOFCONVERSIONOFADELAWARE CORPORATIONONDERTHENAMEOF"EMCMORTGAGECORPORATION"TOA DELAWARELIMITEDLIABILITYCOMPANY,CHANGINGITSNAMEFROM"EMC MORTGAGECORPORATION"TO"EMCMORTGAGELLC",FILEDINTHIS OFFICEONTHETWENTY-EIGHTHDAYOFMARCH,A.D.2011,AT8:47 O'CLOCKA.M. ANDIDOHEREBYFURTHERCERTIFYTHATTHEEFFECTIVEDATEOF THEAFORESAIDCERTIFICATEOFCONVERSIONISTHETHIRTY-FIRSTDAY OFMARCH,A.D.2011. jeffreyWBullock.Seuctaf'/of Sf at e 22423398100VAUTHENTION 8653511 110344567 DATE :03-28-11 I I I I I I I I I I I I I I I I I I I CERTIFICATE OF CONVERSION CONVERTING EMC MORTGAGE CORPORATION (a Delaware corporation) TO EMC MORTGAGELLC (a Delaware limited liability company) StateorDelaware Secretaryof Sta te Divi.sionof Cozporati01l.5 DE>live.red08:'1AM03/28/2011 YIL1lD08: 47AK03/28/2011 SRV110344!l67- 2242339FILl! lbis Certificateof Conversionisbeingfiledforthepurposeof convertingEMC Mortgage Corporation,a Delawarecorporation(the"Converting Entity"),toa Delawarelimited liability companytobe named "EMC Mortgage LLC" (the"Company") pursuant toSection18-214of the Delaware Limited Liability Company Act,6 Del.C.18-101el seq.(the"Delaware LLC Act''), and Section 266 of the GeneralCorporationLaw of theState of Delaware,8 DelC. 101el seq.(the "DGCL"). Theundersigned,asanauthorizedpersonoftheConvertingEntityandthe Company, does hereby certify asfollows: 1.Nameof ConvertingEntity.Thenameof theConvertingEntitywhen incorporatedwas"SouthwestEquityMortgageCorporation"Thenameof theConverting Entityimmediatelypriortothefilingof thisCertificateof Conversionwas"EMCMortgage Corporation." 2.DateandJurisdictionof Incorporationof ConvertingEntity.The dateon which, andthe jurisdiction where,the Converting Entity was incorporated, which jurisdiction has not changed, are as follows: Jurisdiction September 26.1990Delaware 3NameofContinuingLimitedLiabilityCompany.Thenameofthe DelawareliIllltedliabilitycompanytowluchtheConvertmgEntityisbeingconvertt:dandthe nwnesetforthintheCertificateof Formationof theCompanyfiledinaccordancewithSection 18-214(b) of the Delaware LLCAct is "EMC Mortgage LLC." 4.Approvalof Conversion.TheconversIOnof theConvertingEntitytothe Companyhasbeen approved inaccordanceWIththe proVisionsof Section 266 of theOGCL and SectIOn18-214 of theDelaware LLC Act 5.EffectiveTIDIeThiSofshallbeeffectiveon March 31, 2011. I I. I I I I I I I I I I I I I I I I I INWITNESS WHEREOF, the undersigned has duly executed this Certificate of Conversion as of March 24, 2011. BMCMORTGAGE COlU'ORATION 2852825 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Assignment andAssumptionAgreement FORV ALUERECEIVED.EMCMortgageLLC("Seller')hereby",lis.Jssigns. delegatesandtransfelsto.IPMorgdllClIa,cBank.N./\.('Buyer")allof Sellersnghts andJutit-s Sr..:f\'lu:rand/ormasterscrvicerLInderthos.eccrtamPoolingandScrnclIlg AgreementsorotherservIcingagreements(each.a"ServIclngAgreement")rclattngto those transactionstowhich Seller isaparty.plovided.however.thatSdkr ,hallrctaInanyandallduties.l)bhgatiunsdndliabIlities(I)relatingtoanyservicing actiVity"ecurnng pnor tothe EffectiveDateIii)relatingtoanyIIabIllt}Withrespecttoa hrcachof anymortgageloanrcprcscntatlOnor orItSrolt:asor useller or themortgageloans10therelated,,,cunt,,ationtransactionand(iii)retainedby01 excludedlromtheM,sehsold toBuyelrromSdk,pu",uanttoor111accordance\\ lIh that (cl1amPurchase andSale AgreementbetweenBuyer and'ieller datedasoftheElfective Date Buyerhere b)agree,to""umctheduties.obligation,andIrabllItle\orSelicI' !:tole-I)inib CapaCIl)dSsc..;I\'lleIulH..h.:rthl.!PSI\:-.uh.lcc:tlOtheplcccding!-.cnh.'IH.:C tothei.>'\1enln:quin:dto(:(fCCltl'(ln .... fl'f ofScllcr"s... ervlcmg obligatIonsunder suchP';A I",WITNE'iSthepartie,ha\ec'\eeutedtim!\,slgnlllelli,lIlel A,Slllnpl!OnAglecmentas01,\pld!.II(the' Llkcl!\'cDate') EMCMortgageLLC > By:I> Name:-;-', Title:I. 1,,\ JPMorgtm ChaseBank.N.A. ,':/ 8 )':/I' ,j!,.....;. f; ..---....,...-....------,--_.--------.. Nalne:'DlaneBent,. Title:Senior VicePresident I I I I I I I I I I I I I I I I I I I OFFICER'S CERTIFICATE l.Diane[Jentz. a duly aUlhom.ccl"nicer of JPMorgdllChaseBank.N A.C- Cha5e"). tothose cCl1ainpooling andservicing agrccmcnls andservlcmg agreements (the "Servicing Agreements") relating tothetransactionstowhichEMC \-Iortgage l.LCISservlcer or master sen'leer (thehereby certIfies thefollowlllgIn connectIOn\\lth lIlIdIn ,atls'dctllln of ItsrcqullcmenttoplOvi,k all"l1lt lngthatKeqwrt:'dPanyc.-o nsen!(Consent') to the tran