0001
 1                      IN THE CIRCUIT COURT OF
 2                    MONTGOMERY COUNTY, ALABAMA
 3   
       WALTER A. NORRIS AND         )
 4     MATTHEW B. BISHOP, III       )
            Plaintiffs,             )
 5                                  )
       vs.                          )
 6                                  )
       SHERRIE ANN FLOYD,           )
 7          Defendant and           )
            Third-Party Plaintiff,  )
 8                                  ) CASE NO.:  CV-2008-584
       vs.                          )
 9                                  )
       THE BANK OF NEW YORK TRUST   )
10     COMPANY, SALOMON BROTHERS    )
       MORTGAGE SECURITIES VII,     )
11     INC., LITTON LOAN SERVICING, )
       LP, BRICE, VANDER LINDEN &   )
12     WERNICK, P.C., RACHEL PATEL, )
       LAKEISHA NELSON, ANDREW      )
13     SIEJA, DEVOL TOLBERT,        )
       CHARLES BEVERIDGE,           )
14          Third-Party Defendants. )
15     ********************************************************
16                 ORAL AND VIDEOTAPED DEPOSITION OF
                            JANICE LEDET,
17      as 30(b)(6) REPRESENTATIVE OF LITTON LOAN SERVICING, LP
                           OCTOBER 17, 2008
18   
       ********************************************************
19   
       THE ORAL AND VIDEOTAPED DEPOSITION OF JANICE LEDET, as
20     30(b)(6) REPRESENTATIVE OF LITTON LOAN SERVICING, LP,
       duly sworn, produced as a witness at the instance of the
21     DEFENDANT AND THIRD-PARTY PLAINTIFF, SHERRIE ANN FLOYD,
       was taken in the above styled and numbered cause on the
22     17th of October, 2008, from 9:21 a.m. to 11:56 a.m.,
       before Diana Ramos, CSR in and for the State of Texas,
23     reported by machine shorthand, at the Hilton Hobby
       Airport, 8181 Airport Boulevard, Houston, Texas,
24     pursuant to the Alabama Rules of Civil Procedure,
       Notice, and the provisions stated on the record or
25     attached hereto.
0002
 1                       A P P E A R A N C E S
 2   
 3     FOR THE DEFENDANT AND THIRD-PARTY PLAINTIFF, SHERRIE ANN
       FLOYD:
 4          Mr. Nick Wooten
            WOOTEN LAW FIRM, PC
 5          10 Second Avenue S.E.
            LaFayette, Alabama  36862
 6          Tel:  (334) 864-2132
            FAX:  (334) 864-2133
 7          n.wooten@mindspring.com
 8   
       FOR THE THIRD-PARTY DEFENDANT, BRICE, VANDER LINDEN &
 9     WERNICK, P.C.:
            Mr. Alvin L. "Peck" Fox, Jr.
10          MAYNARD COOPER & GALE, PC
            RSA Union Building
11          100 North Union Street, Suite 650
            Montgomery, Alabama  36104-3719
12          Tel:  (334) 262-2001
            FAX:  (334) 262-2043
13          pfox@mcg-mont.com
14   
       FOR THE THIRD-PARTY DEFENDANTS, LITTON LOAN SERVICING,
15     LP, AND THE BANK OF NEW YORK TRUST COMPANY:
            Mr. John Bender
16          McFADDEN, LYON & ROUSE, LLC
            718 Downtowner Boulevard
17          Mobile, Alabama  36609
            Tel:  (251) 342-9172
18          FAX:  (251) 342-9457
            jbender@mlrlawyers.com
19   
20     THE VIDEOGRAPHER:
            Mr. Andrey Espinosa
21          HOUSTON VIDEO SERVICE
22   
23   
24   
25   
0003
 1                               INDEX
 2                                                       PAGE
 3     Appearances.....................................     2
 4     Stipulations....................................     4
 5     JANICE LEDET, as 30(b)(6) REPRESENTATIVE OF
 6     LITTON LOAN SERVICING, LP
 7          Examination by Mr. Wooten.................      4
 8          Examination by Mr. Fox....................     75
 9          Examination by Mr. Bender.................     76
10          Examination by Mr. Wooten.................     80
11     Reporter's Certificate..........................    85
12   
13   
14   
15   
16   
17   
18   
19   
20   
21   
22   
23   
24   
25   
0004
 1                   THE REPORTER:  Pursuant to the Federal
 2     Rules?
 3                   MR. BENDER:  No.  It's State Court.
 4                   MR. WOOTEN:  It's in State Court in
 5     Alabama.
 6                   THE REPORTER:  State Court.  So State --
 7                   MR. WOOTEN:  Just the usual stipulations.
 8                   THE REPORTER:  Okay.  30 days or -- is 30
 9     days to read and sign sufficient?
10                   MR. BENDER:  We don't need to read and
11     sign.
12                   THE REPORTER:  Okay.
13                   MR. BENDER:  We agree to the usual
14     stipulations.
15                   MR. WOOTEN:  You can just type that down
16     and we'll know what it means.
17                   THE REPORTER:  Okay.
18                   THE VIDEOGRAPHER:  We are on the record.
19     It is 9:21 a.m., October 17th, 2008.
20                           JANICE LEDET,
21     having been first duly sworn, testified as follows:
22                      EXAMINATION (9:21 a.m.)
23     BY MR. WOOTEN:
24          Q.   Ma'am, my name is Nick Wooten and I represent
25     Sherrie Floyd in a lawsuit in the Circuit Court in
0005
 1     Montgomery, Alabama -- Montgomery County, Alabama.
 2     Please tell me, if you will, your full name.
 3          A.   Janice Ledet.
 4          Q.   Okay.  And, Ms. Ledet, how are you currently
 5     employed?
 6          A.   By Litton Loan Servicing.
 7          Q.   And what is your position with Litton Loan
 8     Servicing?
 9          A.   I'm a senior litigation processor.
10          Q.   Can you please tell me what that position
11     involves?
12          A.   When new lawsuits are filed, we manage them,
13     assign them out to counsel, work with counsel to resolve
14     the issue.
15          Q.   Is that basically the equivalent of a
16     paralegal position?
17          A.   I can't answer that because I'm not a
18     paralegal.
19          Q.   Okay.  So I'm going to make sure I understand.
20     You're a litigation support person.  Right?
21          A.   That would be right.
22          Q.   Okay.  So if I understand that position right
23     from my previous experiences, basically what happens is
24     somebody like me sues somebody like Litton.  Right?
25          A.   Correct.
0006
 1          Q.   And y'all open a file.  Right?
 2          A.   Correct.
 3          Q.   And it gets assigned to a person who occupies
 4     the position of litigation processor at Litton.  Right?
 5          A.   Correct.
 6          Q.   And you go out and gather the documents.
 7     Right?
 8          A.   Correct.
 9          Q.   And you coordinate with whoever the attorney
10     is that you hired to defend the lawsuit?
11          A.   Correct.
12          Q.   And you give them -- try to answer whatever
13     discovery there is, provide them whatever documents
14     there are.  Is that right?
15          A.   Correct.
16          Q.   Okay.  You, as we sit here, have zero
17     firsthand knowledge of anything that happened with
18     respect to Ms. Floyd's loan.  Right?
19          A.   Correct.
20          Q.   So all you're doing -- any testimony that you
21     give today would be strictly based upon the work you did
22     after all these things occurred?
23          A.   Correct.
24          Q.   And what is your training for this particular
25     position with Litton Loans?
0007
 1          A.   I have extensive background in mortgage loans,
 2     real estate, title work.  I'm been with the company now
 3     seven and a half years.
 4          Q.   Okay.  You say you've been with Litton seven
 5     and a half years.  Right?
 6          A.   Correct.
 7          Q.   Tell me what position you started with at
 8     Litton?
 9          A.   I was an REO closer.
10          Q.   And tell me what a -- an REO closer is.
11          A.   It's real estate owned.  Once the property is
12     foreclosed, we get it back.  The investor gets it back
13     at the sale, goes to a department to list it with an
14     agent.  Once it's under contract, it comes to our --
15     that's where I worked in, the closing department.  We
16     take it to the closing and complete the sale to the new
17     purchaser.
18          Q.   Okay.  How long did you work in that area?
19          A.   Four years.
20          Q.   And once you got through working in that
21     position, what -- what was the next job that you held
22     with Litton?
23          A.   My current one.
24          Q.   You mentioned earlier that you are not a
25     paralegal?
0008
 1          A.   That is correct.
 2          Q.   Other than your employment with Litton, have
 3     you had any training whatsoever with respect to
 4     litigation or legal matters?
 5          A.   No.
 6          Q.   Tell me about your education, please, ma'am.
 7     Where did you go to high school?
 8          A.   Marian Catholic High School in Houston.
 9          Q.   I'm sorry.  Did you say Mirrian or --
10          A.   Marian, M-A-R-I-A-N, Catholic High School, and
11     actually it's in Bellaire, Texas.
12          Q.   Okay.  And did you go to college?
13          A.   Took a few courses.
14          Q.   Okay.  Where did you take courses in college
15     at?
16          A.   Houston Community College.
17          Q.   Is that like a two-year college?
18          A.   I don't rightly know.
19          Q.   How many classes did you take in college?
20          A.   Three or four.
21          Q.   Okay.  A few.  Did you quit school to go to
22     work or did you quit school to get married or what did
23     you do?
24          A.   Quit school to get married.
25          Q.   Okay.  Do you remember -- do you remember what
0009
 1     courses that you took in college?
 2          A.   Psychology, English, business math.  That's
 3     all I remember.
 4          Q.   Okay.  Other than your employment with Litton
 5     Loans, have you had any employment where you worked with
 6     mortgages or legal proceedings?
 7          A.   I'm sorry.  Repeat that again.
 8          Q.   Other than your employment with Litton Loans,
 9     your current employment, have you ever worked for
10     anybody where the work involved working with mortgages
11     or working with legal proceedings?
12          A.   Yes, with mortgages.
13          Q.   Okay.  Tell me about that employment.
14          A.   Bank United.  I was a closer of new loans.
15          Q.   All right.  When did you hold that position?
16          A.   It was prior to Litton so '98 to 2001
17     possibly.
18          Q.   Okay.  Was that the job you held immediately
19     prior to going to work for Litton Loans?
20          A.   Yes.
21          Q.   All right.  What was -- what was the job that
22     you held immediately prior to that job?
23          A.   You're making me think back that far.  I
24     worked for Mellon Mortgage.
25          Q.   What did you do for Mellon?
0010
 1          A.   I worked for the post closing department.
 2          Q.   Is that the group that basically checks the
 3     documents to make sure everything's done?
 4          A.   We would check the critical documents coming
 5     in, the note, the mortgage, title policy.
 6          Q.   All right.  And did you interact with or
 7     participate in any mortgage loan closings during that
 8     period of time?
 9          A.   Not for that company.
10          Q.   How long were you with Mellon?
11          A.   Four years.
12          Q.   Do you remember where you worked prior to
13     Mellon?
14          A.   There was a few companies I worked for a
15     couple of years.  I can't say how long each company was.
16     Plus I tried my hand at selling real estate, which I
17     wasn't very good at.  And before that, I worked for
18     University Savings for about ten years.
19          Q.   What did you do for University?
20          A.   Started off as a teller, was promoted to a
21     branch manager.  After the birth of my second child, I
22     took a job at their home office working in the mortgage
23     loan servicing department.
24          Q.   Tell me what you did in the mortgage loan
25     servicing department, please.
0011
 1          A.   I worked with escrow analysis, for taxes, for
 2     insurance, for payments.  I was the person they would
 3     place when they needed somebody in a department.
 4          Q.   So you more or less moved between the various
 5     departments of that bank?
 6          A.   Correct.
 7          Q.   In their servicing outfit?
 8          A.   Correct.
 9          Q.   And what was the name of that bank again?
10          A.   That was University Savings & Loan.
11          Q.   And do you remember approximately when you
12     worked for them?
13          A.   '75 to sometime in the '80s.
14          Q.   Okay.  Other than the two positions that
15     you've held at Litton, have you held any -- that you've
16     talked about already, have you held any other positions
17     or had any other title within Litton Loans?
18          A.   No.
19          Q.   Are you the person at Litton Loans who is most
20     familiar with the servicing policies and procedures of
21     Litton Loan with respect to mortgage loans that they
22     service?
23          A.   I know of policies.
24          Q.   I'm sorry.  My question is, are you the person
25     who is most familiar with the policies and procedures
0012
 1     with respect to mortgage loan servicing at Litton Loans?
 2          A.   I wouldn't say I'm the most knowledgeable.
 3          Q.   Who would you say that person is?
 4          A.   I don't know I could answer that.
 5          Q.   Who's in charge of the facility that you work
 6     at?
 7          A.   In charge of Litton Loan Servicing?
 8          Q.   Yes, ma'am.  Who runs it on a day-to-day
 9     basis?
10          A.   It would be -- Larry Blake Litton, Jr., is the
11     CEO, president.
12          Q.   All right.  Is Mr. Litton involved in the
13     day-to-day activities of the business or does he
14     delegate that to someone?
15          A.   He's involved and has delegations also.
16          Q.   With respect to this particular case, Sherrie
17     Floyd, how much time did you spend preparing to come
18     today to give this deposition?
19          A.   Probably a couple of hours.
20          Q.   And -- and can you tell me the documents or
21     information that you reviewed to prepare to give
22     testimony here today?
23          A.   We were looking at loan comments, the dispo --
24     disposition summary.
25                   MR. BENDER:  The deposition?
0013
 1                   THE WITNESS:  Yeah.
 2          Q.   (BY MR. WOOTEN)  Loan comments are comments
 3     that are entered into the servicing software by Litton
 4     Loan employees as they interact with my client.  Is that
 5     correct?
 6          A.   Correct.
 7          Q.   Okay.  And you can print those loan comments
 8     off simply by going to a screen and mashing print.
 9     Right?
10          A.   Correct.
11          Q.   And those documents basically summarize all
12     the notes made by all the employees of Litton who
13     interacted with Sherrie Floyd.  Is that right?
14          A.   Correct.
15          Q.   Are you familiar with the software that was
16     used by Litton Loans to service the loans?
17          A.   Not particularly.
18          Q.   Do you know who the person is who's most
19     familiar with the software that's used to service loans
20     at Litton Loans?
21          A.   No.
22          Q.   Do you know what type of software you use at
23     Litton Loans to service loans?
24          A.   On a day-to-day basis?
25          Q.   Yes, ma'am.
0014
 1          A.   We use various software programs.
 2          Q.   Is there a software suite provided by a vendor
 3     such as Fidelity that is the core or the backbone of
 4     that software?
 5          A.   I don't know the answer to that.
 6          Q.   Do you know who the person at Fidelity is who
 7     might know the answer to that question?
 8          A.   No.
 9                   MR. FOX:  Nick --
10                   MR. WOOTEN:  Huh?
11                   MR. FOX:  You asked about Fidelity.
12                   MR. WOOTEN:  Well, I'm sorry.
13          Q.   (BY MR. WOOTEN)  Let me rephrase it.  The
14     person at Litton who is most familiar with the software
15     that Litton uses to service these loans.
16          A.   No.
17          Q.   Do you have a director of information
18     technology at Litton?
19          A.   I'm sorry.  Repeat that again.
20          Q.   Do you have a director of information
21     technology or an IT person who works at Litton?
22          A.   Yes.
23          Q.   Who is that?
24          A.   There's a whole department.
25          Q.   All right.  Who runs it?
0015
 1          A.   I don't know who runs it.
 2          Q.   Do you know whether or not the software that
 3     Litton uses to service mortgage loans is a proprietary
 4     software, in other words, something that Litton
 5     developed on its own or if it is a purchased or licensed
 6     software?
 7          A.   No.
 8          Q.   Do you know whether or not Litton assesses
 9     charges to clients' mortgage accounts based on what's
10     called an automatic or have you ever heard that term
11     before?
12          A.   No.
13          Q.   Okay.  Do you know if Litton Loans
14     automatically assesses charges to a person's account
15     based on the passage of time such as a late charge every
16     30 days or a property inspection every 45 days or a
17     broker price opinion every six months?  Do you know if
18     that takes place automatically or not?
19          A.   Late charges would automatically take place.
20          Q.   And that's programmed into the software.
21     Right?
22          A.   I would have to say I assume so.  I don't want
23     to say I assume so I don't know.
24                   MR. BENDER:  Don't assume anything.
25          A.   Yeah.  I don't know.
0016
 1          Q.   (BY MR. WOOTEN)  All right.  Are you familiar
 2     with the charges and fees that have been charged to
 3     Sherrie Floyd's account since its inception by Litton
 4     Loans?
 5          A.   No.
 6          Q.   Are you familiar with why those charges were
 7     assessed to that account?
 8          A.   No.
 9          Q.   Do you know how many dollars were -- and
10     charges were assessed to her account?
11          A.   No.
12          Q.   How long had Litton Loan serviced Sherrie
13     Floyd's account?
14          A.   I don't know.
15          Q.   In preparing for this deposition, you didn't
16     undertake to try to determine how long Litton Loans had
17     been the servicer on the account?
18          A.   I didn't pay attention to that.
19          Q.   Did you familiarize yourself with Ms. Floyd's
20     loan history and analyze the transactions that were
21     entered on her loan account?
22          A.   No.
23                   MR. BENDER:  By "familiarized," do you
24     mean did she review it?
25                   I mean, I think you reviewed some of these
0017
 1     documents.  I don't know if you're -- you know, what you
 2     mean by familiarize.  Look at?  Memorize?  I mean, tell
 3     him any documents you've looked at.  And if you didn't
 4     look at it, you didn't look at it.
 5          Q.   (BY MR. WOOTEN)  Well, in the industry, you're
 6     familiar with the term of life of loan transaction
 7     history, are you not?
 8          A.   No.
 9          Q.   You never heard the term "life of loan
10     transaction history"?
11          A.   No.
12          Q.   How long did you work in servicing?
13          A.   For a number of years.
14          Q.   Nobody -- you never were required to put
15     together a life of loan transaction history?
16          A.   No.
17          Q.   And your testimony is that you didn't review
18     the life of loan transaction history that Litton Loans
19     has for Ms. Floyd's account prior to coming today for
20     your deposition?
21          A.   No.
22          Q.   So you couldn't testify as you sit here as to
23     any of the charges that are on the account or as to why
24     they were placed.  Is that correct?
25          A.   That's correct.
0018
 1                   MR. BENDER:  I think she can testify
 2     generally as to the charges that might have been placed
 3     on an account.  But without the actual loan history in
 4     front of her, I don't think she can speak to any
 5     specifics about that account.
 6                   MR. WOOTEN:  John, we've had this
 7     conversation.  I -- I mean, I'll take responsibility for
 8     not having amended the deposition notice in you guys'
 9     hands.  It may have been sent.  It may not have been
10     sent, but for whatever reason you guys didn't get it.
11                   But, I mean, I'm sitting here looking at
12     my computer at 30(b)(6) that we sent out and that you've
13     got.  I mean, these are things that we asked for.  We
14     asked to talk to a witness that could talk about, you
15     know, a complete and full description and discussion of
16     loan history and entries regardless of whether same were
17     intended for collection or not.  We asked for a complete
18     and full discussion of any and all charges or fees since
19     defendant began servicing the loan, just the basic
20     things that we need to go over to establish what's in
21     dispute and that's -- she doesn't have any idea about.
22                   MR. BENDER:  And I guess our position
23     would be -- well, first of all, we objected to quite a
24     bit of the scope of the deposition notice.  But with
25     regard to the -- the fees and other issues that you're
0019
 1     talking about, I just assumed you had some grounds for
 2     taking issue with, say, application of fees or problems
 3     with loan history because you made mention of that as a
 4     claim in your complaint.
 5                   I mean, if you're telling me that you have
 6     nothing in your possession that you were relying on in
 7     support of your claims in your complaint, then, you
 8     know, I can't help you there.  I mean, if you're just
 9     here to go through the loan history and see what you
10     could find to support claims in your complaint, then
11     that does present a problem, but I assume since you made
12     those claims you had something already in your
13     possession to support those claims.
14                   MR. WOOTEN:  Well --
15                   MR. BENDER:  But she'd be happy to discuss
16     and go over any of that information --
17                   MR. WOOTEN:  Well, I do --
18                   MR. BENDER:  -- with you.
19                   MR. WOOTEN:  I do, John.  The issue is not
20     whether or not I have something in my possession or not.
21     The issue is whether or not I have the right to conduct
22     my own discovery in the case.  And the problem I have is
23     I'm -- I mean, we've all come out here and we've all
24     bent our schedules to try to meet these deadlines and,
25     you know, for whatever reason we don't have any
0020
 1     documents in the case other than the documents we had
 2     when we left Alabama.
 3                   I don't have discovery responses.  I don't
 4     have the things that I -- that I requested in my amended
 5     deposition notice, which, like I said, I'll take the
 6     blame for some of that.  But, you know, we've got a case
 7     with $7,000 worth of loan charges added to a $20,000
 8     loan and, you know, I do have issue with loan charges
 9     and when they were applied and how they were applied.
10                   The problem is is that your client is not
11     prepared to testify as to what they did and why they did
12     it.  I mean, you know, I can continue down this road all
13     day, but, I mean, what we're going to end up with at the
14     end of the day is a witness who doesn't know enough
15     about the case to testify.
16                   And I'm -- you know, quite frankly, that's
17     problematic for a number of reasons because regardless
18     of the documents that I have in the case, if she can't
19     discuss when and why they applied charges while my
20     client had a Chapter 13 bankruptcy, it's not going to do
21     a whole lot of good for me to try to spend hours talking
22     about that.  So, you know, that's -- that's the issue.
23     I mean, she's just not competent to testify about this
24     case.
25                   MR. BENDER:  Well, I think she is.  I
0021
 1     think she knows -- can answer a lot of questions in more
 2     general terms.  Certainly she knows about the loan
 3     modification, which seemed to be the meat of this case
 4     as I see it and, of course, we haven't even gotten to
 5     that yet, but --
 6                   MR. WOOTEN:  Sure, we haven't, but that's
 7     not the whole case.  And I -- and I have to assume that
 8     I'm going to deal with that issue so then I have to go
 9     on to the rest of the case, and that's what I'm saying.
10                   I mean, if we -- if you said we're coming
11     out here to depose her about the loan modification,
12     then, you know, that's fine, but that's not what the
13     notice was and that's not what any discussion that we
14     had was so, I mean --
15                   MR. BENDER:  I guess, again, I'm sorry.  I
16     thought if you wanted to take issue with the application
17     of payments and so on and so forth there must have been
18     some initial grounds that you had based on the evidence
19     that you had in your possession that led you to believe
20     there were problems.
21                   I mean, if you're just out here to go on a
22     fishing expedition, I don't -- I can't help you.
23     Either -- either you got something to support these
24     claims or you don't.  That's why I thought the loan
25     modification was kind of the main issue.  You had a
0022
 1     document.
 2                   We discussed it before at your client's
 3     deposition.  That seemed to be the thing that was what
 4     she had a problem with.  She felt like Litton was in
 5     default of that loan modification agreement.
 6                   MR. WOOTEN:  Well, the problem is, again,
 7     what we go back to is is you noticed the deposition for
 8     specific subjects and then you bring a witness that's
 9     not prepared to talk about those subjects.
10                   I mean -- again, I mean, we're arguing
11     semantics.  The question is whether she's capable and
12     prepared to testify or whether she's not.  And, I mean,
13     the answer to the question is that she's not so -- but,
14     I mean, I'll be glad to do what I can do, but, I mean,
15     I'm just -- this is obviously going to be a wasted trip
16     with respect to this.
17                   MR. BENDER:  I think she can answer
18     questions generally.
19                   MR. WOOTEN:  Well, the problem is
20     generally ain't worth a damn.  I mean, what we have to
21     have is answers that y'all are going to live by.
22                   And I go through this in every servicing
23     case where I get a paralegal the first go-around because
24     that's who the industry wants to put up who doesn't know
25     what they're talking about and is not prepared to
0023
 1     testify while I waste a thousand dollars making a trip
 2     out here to take a deposition and then I've got to come
 3     back in three weeks to take a person who actually knows
 4     what's going on and can actually bind the company
 5     because what's going to happen here is she's going to
 6     say things that damages Litton Loans and their position
 7     and then they're going to come back and say, "Well, she
 8     really doesn't know what she's talking about.  We need
 9     to talk to a vice-president or an officer."
10                   I mean, that's the purpose of asking for
11     the person most knowledgeable about those areas, and
12     she's obviously not that person.  So, I mean, I guess
13     the decision we've got to make is do we want to go on
14     and complete what we can complete today or do we just
15     want to adjourn this and come back and try to reschedule
16     this with an officer who can actually bind the company
17     who, you know, you guys are going to rely on for the
18     deposition testimony because if -- I mean, we're going
19     down this road where if what -- you don't like what she
20     says when you look back at it, somebody's going to pop
21     up and say, "Well, she really can't bind us.  She's just
22     a paralegal."
23                   I mean, is that really what we're going to
24     do because, I mean, we can -- all have better things to
25     do with our time than get in a position where we have to
0024
 1     do this over again?
 2                   MR. BENDER:  She's the person that the
 3     company has put up as the 30(b)(6) representative.  I
 4     don't know if they have to be the most knowledgeable
 5     person.  They just have to be a person who has
 6     knowledge -- reasonable knowledge of the topics that you
 7     requested.
 8                   Of course, we've objected to 75 percent of
 9     the areas that you -- you wanted to take testimony on
10     and, of course, that's never been resolved by the Court.
11                   MR. WOOTEN:  So we're under the general
12     rules, which is I ask the questions and she answers the
13     best that she can.  You object to it later.  I mean, you
14     know --
15                   MR. BENDER:  Right.
16                   MR. WOOTEN:  -- that's the problem.  I
17     mean, we don't -- we have no guidance on that so we're
18     stuck.  And, I mean, what I'm trying to resolve is is do
19     we want to spend the next four hours asking questions
20     that the answer is "I don't know" and "I'm not sure" and
21     "I'm not the person that I -- that y'all ask that of"?
22                   MR. BENDER:  Well, if you're going to go
23     into, you know, all this stuff that we've objected to
24     about -- you know, for example, protocols and software
25     and so on, so forth, you're not going to get much
0025
 1     information out of her.
 2                   If you want to go into the loan
 3     modification agreement, I think she'll be able to answer
 4     questions about that.  If you want to go into the
 5     relationship with Brice-Vander Linden, I think she'll be
 6     able to answer questions about that.
 7                   MR. WOOTEN:  Well, let's talk about that.
 8     We're here.  She doesn't have any documents.  The
 9     deposition notice specifically references -- and this is
10     not in the amended -- any agreements between
11     Brice-Vander Linden and Litton Loans to provide
12     services.
13                   MR. BENDER:  We've objected to that.
14                   MR. WOOTEN:  Well, the problem with that
15     is is that -- part of the problem with -- part of the
16     complaint, part of the issue is is that you're getting
17     attorneys' fees assessed by servicers in an amount that
18     makes profit for the servicers when they have a flat fee
19     contract with the loan -- with the attorneys to provide
20     services for a set fee.
21                   So that's the purpose of seeking the
22     agreement and that's the purpose of discovering the
23     agreement.  And, you know, here we sit again and I have
24     no means to verify what I know in this case because of
25     an objection that's unruled upon so...
0026
 1                   MR. BENDER:  Well, and I don't want to
 2     tell you how to run your case.  I mean, if you ask her
 3     questions about Brice-Vander Linden and see what the
 4     relationship is, you know, it may or may not -- the
 5     contract may or may not even be relevant.
 6                   MR. FOX:  Can I look at this?
 7                   MR. BENDER:  Yes.
 8          Q.   (BY MR. WOOTEN)  Ma'am, tell me where you
 9     currently reside.
10          A.   At 2510 Summer Haven Lane, Richmond, Texas.
11          Q.   And how long have you lived at that address?
12          A.   It will be four years in December.
13          Q.   Did you review any invoices for any charges to
14     the account of Sherrie Floyd before coming to the
15     deposition today?
16          A.   No.
17          Q.   Are you familiar with the vendors who have
18     provided services or made charges to the account of
19     Sherrie Floyd?
20          A.   Yes.
21          Q.   Okay.  Can you tell me every vendor who has
22     provided services or made charges to the account of
23     Sherrie Floyd in this case?
24          A.   No.
25          Q.   Which ones can you tell me about?
0027
 1          A.   There was foreclosure counsel and bankruptcy
 2     counsel.
 3          Q.   Okay.  Who provides broker price opinion
 4     services for Litton Loans?
 5          A.   There's various conditions that do that.
 6          Q.   Tell me the name of every company you know
 7     that provides those services.
 8          A.   I don't know that.
 9          Q.   Okay.  Do you know if any of those companies
10     are affiliated with or owned by Litton Loans?
11          A.   No.
12          Q.   You don't know or they're not?
13          A.   They're not.
14          Q.   Who provides property inspection services for
15     Litton Loans?
16          A.   Safeguard.
17          Q.   Are they affiliated or owned by Litton Loans?
18          A.   No.
19          Q.   Are they affiliated with or owned by C-BASS?
20          A.   No.
21          Q.   C-BASS is the parent company of Litton Loans.
22     Is that correct?
23          A.   No.
24          Q.   Okay.  What's the relationship between Litton
25     Loans and C-BASS?
0028
 1          A.   There is none now.
 2          Q.   There is none now?
 3          A.   Correct.
 4          Q.   When did that relationship end?
 5          A.   Last year.
 6          Q.   What was the relationship on or about
 7     September 22nd of 2007 between C-BASS and Litton Loans?
 8          A.   The parent company.
 9          Q.   Did C-BASS also have a parent company?
10          A.   I don't know the answer to that.
11          Q.   Who provides appraisal services for Litton
12     Loans?
13          A.   We don't do appraisal services.
14          Q.   Does Litton Loans have any relationship with a
15     company called Fidelity National Information Services?
16          A.   It could be a vendor.
17          Q.   Are you familiar with whether or not that
18     relationship exists?
19          A.   No.
20          Q.   Do you know if Litton uses a third party to
21     designate its attorneys for bankruptcy and foreclosure
22     services?
23          A.   Yes.
24          Q.   Okay.  And who is that third party?
25          A.   I know there's a Fidelity and a First
0029
 1     American.
 2          Q.   Have you done any mortgage servicing work in
 3     any shape, form or fashion since you have worked at
 4     Litton Loans?
 5          A.   No.
 6          Q.   Have you ever sat down in a servicing terminal
 7     or a computer where an employee of Litton Loans does
 8     servicing?
 9          A.   No.
10          Q.   Have you ever looked at or worked with the
11     servicing software used by the employees of Litton
12     Loans?
13          A.   I don't understand your question.
14          Q.   You're a litigation processor.  Right?
15          A.   Correct.
16          Q.   And you guys kind of have I would assume your
17     own place in the office or your own department.  Right?
18          A.   Correct.
19          Q.   And you're not out on the floor with all the
20     people at the call centers and things like that that are
21     talking to clients, are you?
22          A.   No.
23          Q.   And so my question is, out there where those
24     people interact with the borrowers who are making their
25     payments, have you ever sat down at one of their
0030
 1     computers and looked at their software and what they use
 2     and --
 3          A.   No.
 4          Q.   And is it safe to say that you don't use the
 5     same software and programs with respect to servicing
 6     that they use for their servicing work?
 7          A.   We do.
 8          Q.   All right.  You do.  You have access to it?
 9          A.   Correct.
10          Q.   Tell me about the fields that are available to
11     you in that software.  You talked about a notes field.
12     You mentioned that earlier.  What other fields are
13     available?
14          A.   Basically that's all we can do is add comments
15     and review what's there.
16          Q.   Are the comments broken into categories?
17          A.   Somewhat.
18          Q.   Do you have a category for REO's?
19          A.   Yes.
20          Q.   Do you have a category for foreclosures?
21          A.   Correct.
22          Q.   Do you have a category for collections?
23          A.   Correct.
24          Q.   And you have a category for bankruptcy?
25          A.   Correct.
0031
 1          Q.   You have a general category?
 2          A.   I've never seen that.
 3          Q.   And each of those fields are note fields that
 4     are accessed by different departments within the
 5     servicer.  Is that correct?
 6          A.   Correct.
 7          Q.   So there's a -- is there a summary where all
 8     those notes are compiled in one place or are they
 9     maintained by division?
10          A.   It's all together on the loan.
11          Q.   Are the people who do -- people who do the
12     servicing, are they divided into these groups by
13     bankruptcy servicing, default servicing, normal
14     servicing, non-default servicing?
15          A.   Yes.
16          Q.   Okay.  And Litton services loans that are
17     performing and non-performing.  Right?
18          A.   Correct.
19          Q.   And you service loans for various securitized
20     trusts and various other investment banks and entities
21     that are handling mortgages.  Right?
22          A.   Correct.
23          Q.   And you do that through various pooling and
24     servicing agreements?
25          A.   Correct.
0032
 1          Q.   Are you familiar with the pooling and service
 2     agreement that is applicable to Sherrie Floyd's loan?
 3          A.   I've seen the name.
 4          Q.   You've seen the name Sherrie Floyd or you've
 5     seen the pooling and servicing agreement related to it?
 6          A.   The pooling and servicing agreement.
 7          Q.   Do you know what year the pooling and
 8     servicing agreement was dated for Ms. Floyd?
 9          A.   No.
10          Q.   Do you know -- have you reviewed the pooling
11     and servicing agreement --
12          A.   No.
13          Q.   -- with respect to -- sorry.
14          A.   I thought you were finished.
15          Q.   That's okay.  It happens.
16                   Have you reviewed the pooling and
17     servicing agreement with respect to when it went into
18     effect?
19          A.   No.
20          Q.   Are you familiar with how a mortgage loan was
21     transferred into that particular securitized trust?
22          A.   No.
23          Q.   Have you undertaken to ascertain whether or
24     not this securitized -- or this mortgage was transferred
25     into the securitized trust by reviewing the assignments
0033
 1     of the mortgage and the transfers and endorsements of
 2     the promissory note?
 3          A.   No.
 4          Q.   Is that information available to you in your
 5     mortgage servicing file?
 6          A.   Possibly.
 7          Q.   Are you familiar with who the custodian of the
 8     documents is for this securitized trust?
 9          A.   No.
10          Q.   The software that your company uses maintains
11     an imaging service also.  Is that correct?
12          A.   Correct.
13          Q.   So there is a section within the software
14     where we could see a front and back copy of every check
15     that was issued to make any payments for any service on
16     this account?
17          A.   Correct.
18          Q.   And there's a part of this software where we
19     could see every invoice that was charged to this
20     account?
21          A.   Correct.
22          Q.   And pretty much all you got to do is go to
23     that screen and mash print and it will print those
24     documents off.  Right?
25          A.   Yes.
0034
 1          Q.   And it doesn't require any special skill or
 2     training or knowledge to do that, does it?
 3          A.   You have to know how to work it.
 4          Q.   You just have to be able to navigate to that
 5     point in the software.  Correct?
 6          A.   Correct.
 7          Q.   Nothing proprietary about the access of those
 8     particular documents; it's just part of the software
 9     that you guys use.  Correct?
10          A.   Correct.
11          Q.   Is it fair to say that this software also
12     allows you to interact with third-party outsource
13     providers like attorneys and default document preparers?
14          A.   Some departments have that capability.
15          Q.   And when a loan is in foreclosure, is it fair
16     to say that sometimes documents with respect to and in
17     support of that foreclosure are not prepared by Litton?
18          A.   Correct.
19          Q.   They're prepared by a third-party outsource
20     provider?
21          A.   It would be by the counsel engaged.
22          Q.   Some of them are prepared by maybe
23     Brice-Vander Linden, is that right, in some
24     circumstances?
25          A.   I'm not in that department so I couldn't say.
0035
 1          Q.   Some of them might be prepared by Fidelity's
 2     outsource document division?
 3          A.   The foreclosure department uses them.  I
 4     don't, so I cannot say.
 5          Q.   Did you review all the correspondence with
 6     Ms. Floyd from Litton Loan Servicing prior to coming to
 7     the deposition today?
 8          A.   No.
 9                   MR. BENDER:  You would have reviewed what
10     was attached to the motion for summary judgment --
11                   THE WITNESS:  Correct.
12                   MR. BENDER:  -- which I don't know if
13     that's all of it or not, but that's all you're worried
14     about.
15          Q.   (BY MR. WOOTEN)  You could print off every
16     letter that was ever sent to Ms. Sherrie Floyd off that
17     software, couldn't you?
18          A.   Should be able to.
19          Q.   And that's part of the mortgage file, isn't
20     it?
21          A.   Correct.
22          Q.   And it wouldn't be difficult for you to
23     retrieve that if you were sitting at your desk, would
24     it?
25          A.   Correct.
0036
 1          Q.   So are the people who work on lost mitigation
 2     located in the same building with the people who work on
 3     foreclosure at Litton Loans?
 4          A.   Yes.
 5          Q.   How is that separated out?  Do they have their
 6     own departments?
 7          A.   Correct.
 8          Q.   Do they interact with each other at all?
 9          A.   Yes.
10          Q.   Describe that office building setup.  Is
11     that -- are you-all on one floor of one building, just
12     in different departments, or are you multiple floors or
13     multiple buildings?  How does that work?
14          A.   In Houston, there's one building, ten floors.
15          Q.   And is each department on a different floor?
16          A.   Some floors have multiple departments.
17          Q.   How many -- how many people does Litton
18     employ?
19          A.   In Houston?
20          Q.   Yeah.
21          A.   It's around 1200.
22          Q.   And do you know how many people work in the
23     foreclosure department?
24          A.   No.
25          Q.   Do you know how many people work in lost
0037
 1     mitigation?
 2          A.   No.
 3          Q.   Do you -- you said you had reviewed your
 4     attorney's pleadings and the motion for summary
 5     judgment.  Is that right?
 6          A.   Correct.
 7          Q.   Did you review any correspondence in your
 8     preparation for this deposition where Litton Loans ever
 9     told Sherrie Floyd that she needed to do a formal
10     assumption of the mortgage in this case?
11          A.   No.
12                   MR. BENDER:  Object to form.  Litton Loan
13     or Brice-Vander Linden?
14                   MR. WOOTEN:  Litton Loan.
15                   MR. BENDER:  Okay.
16          Q.   (BY MR. WOOTEN)  Do you know how long
17     Ms. Floyd's made payments on this mortgage?
18          A.   No.
19          Q.   Did you attempt to ascertain that in preparing
20     for this deposition?
21          A.   No.
22          Q.   Did you -- were you able to ascertain that by
23     reviewing your attorney's pleadings in the case?
24          A.   I don't remember seeing that in there.
25                   MR. BENDER:  Can we take a -- just a
0038
 1     real -- let me get this call real quick.
 2                   MR. WOOTEN:  Sure.  We'll take a break.
 3                   THE VIDEOGRAPHER:  10:05, we're going off
 4     the record.  Off the record.
 5                   (Recess from 10:05 a.m. to 10:15 a.m.)
 6                   THE VIDEOGRAPHER:  We're back on the
 7     record.  It is 10:15.
 8          Q.   (BY MR. WOOTEN)  Ma'am, when we were -- we
 9     took a break so -- to handle a couple of things.  We
10     were starting to talk a little bit about Ms. Floyd and
11     her modification agreement.
12                   Before I launch too deep in the particular
13     modification agreement in this case, let me ask you some
14     general questions.  You indicated already that you don't
15     know how long Ms. Floyd had been paying this loan.
16     Right?
17                   MR. BENDER:  You've got to answer.  I
18     mean, you've got to say "Yes" or "No."
19                   THE WITNESS:  Right.  I was thinking.
20          A.   How long we've been servicing or how long
21     she's been -- she has had the loan?
22          Q.   (BY MR. WOOTEN)  Right.
23          A.   No, I can't remember exactly.
24          Q.   Okay.  And you -- did you -- do you know how
25     long Litton's been servicing the loan?
0039
 1          A.   I got to thinking about it.  Since maybe 2001.
 2          Q.   Okay.  So seven years?
 3          A.   Correct.
 4          Q.   During that period of time, Litton's had
 5     access to all the documents with respect to Ms. Floyd's
 6     loan file.  Right?
 7          A.   Correct.
 8          Q.   And Litton's never raised an issue with
 9     respect to asking Ms. Floyd to assume the mortgage or
10     the note in the case.  Right?
11          A.   I didn't see evidence of that.
12          Q.   Yeah.  And during the period of time that
13     Litton serviced the loan, you will agree that Ms. Floyd
14     is the only person other than the bankruptcy trustee
15     that's made any payments on the loan.  Right?
16          A.   Correct.
17          Q.   And Litton filed a claim in the bankruptcy
18     court for an arrearage in Ms. Floyd's bankruptcy.
19     Right?
20          A.   I believe so.
21          Q.   Okay.  And in that -- in that claim, Litton
22     said that Ms. Floyd owed Litton money for her mortgage.
23     Right?
24          A.   Correct.
25          Q.   And I think there actually were two bankruptcy
0040
 1     filings, if I'm correct, where a proof of claim was
 2     entered in both of those.  Is that right?
 3          A.   I believe so.
 4          Q.   And you'll agree that a bankruptcy claim is a
 5     document that is filed under oath with the Bankruptcy
 6     Court.  Right?
 7          A.   Correct.
 8          Q.   And -- and in those claims, Litton stated to
 9     the Court that Ms. Floyd was obligated to Litton to pay
10     Litton for her mortgage.  Right?
11          A.   Correct.
12          Q.   And then Litton was paid through the
13     bankruptcy court by the trustee for those arrearages.
14     Right?
15          A.   Correct.
16          Q.   And Litton went to bankruptcy court and filed
17     motions for relief from stay.  Right?
18          A.   Correct.
19          Q.   And in all those documents, Litton claimed
20     that Ms. Floyd was responsible for the mortgage.  Right?
21          A.   Correct.
22                   MR. BENDER:  Object to the form.
23          Q.   (BY MR. WOOTEN)  Let me reask that.  In -- in
24     all the documents that were filed and all the bankruptcy
25     filings, Litton took the position that Ms. Floyd owed
0041
 1     Litton money.  Right?
 2          A.   Yes.
 3          Q.   And this September 22nd, 2007, modification
 4     letter that was sent to Ms. Floyd by Litton does not
 5     mention anywhere in it that Ms. Floyd needed to assume
 6     the mortgage in the case, does it?
 7          A.   I do not see it in there.
 8          Q.   And just so we're clear, Litton could modify
 9     Ms. Floyd's loan without her consent, couldn't it?
10                   MR. BENDER:  Object to the form.  That
11     calls for a legal conclusion.  Don't answer that.
12          Q.   (BY MR. WOOTEN)  Let me ask you in more
13     general terms.  You -- you as the servicer work for the
14     investors in these securitized trusts.  Right?
15          A.   Correct.
16          Q.   And these securitized trusts have lost
17     mitigation standards, do they not?
18          A.   Yes.
19          Q.   And those lost mitigation standards I like to
20     sum up in a simple phrase, do anything to avoid
21     foreclosure.  Right?
22          A.   They try, yes.
23          Q.   And -- and do anything to make a loan perform.
24     Right?
25          A.   Correct.
0042
 1          Q.   And they give you parameters by which you
 2     could modify any loan in one of these securitized
 3     trusts.  Right?
 4                   MR. BENDER:  Object to the form.  If you
 5     know, you can answer.
 6          A.   That's my understanding.
 7          Q.   (BY MR. WOOTEN)  Because ultimately, I mean,
 8     what we're living through in today's economy is the fact
 9     that these securitized trusts have not been paid
10     appropriately and these bonds have started to default
11     and everything's gone haywire.  Right?
12                   MR. BENDER:  Object to the form.
13          A.   That's what's been said.
14          Q.   (BY MR. WOOTEN)  Sure.  And when a loan
15     doesn't perform, Litton has the obligation to make those
16     advances on those loans for a non-performing loan.
17     Right?
18          A.   Advances as far as taxes and insurance?
19          Q.   Servicer advances.
20          A.   Yes.
21          Q.   And so it's in the servicer's interest and in
22     the trust's interest and in the investor's interest that
23     a loan perform.  Right?
24          A.   Yes.
25          Q.   So in these documents, they all typically have
0043
 1     a standard set of criteria which will allow you, the
 2     servicer, to modify the loan to make it perform.  Right?
 3                   MR. BENDER:  Object to the form.  What
 4     documents are you referencing?
 5                   MR. WOOTEN:  I'm referencing the pooling
 6     and servicing agreements that govern loans that are
 7     owned by Salomon Smith Barney and Series 2,000 -- or
 8     Series 7 on the securitization for this loan.
 9                   MR. BENDER:  Well, I'm -- I'm going to ask
10     her not to answer that question because she states she
11     hasn't read the document and it also calls for a legal
12     conclusion.
13          Q.   (BY MR. WOOTEN)  Are you familiar with the
14     pooling and servicing agreement in this case?
15          A.   I've not read it.
16          Q.   You know it's a matter of public record?
17          A.   I've been told that.
18          Q.   It's on the SEC's website?
19          A.   Okay.
20          Q.   Who hired Brice-Vander Linden in this case?
21          A.   I'm not sure.
22          Q.   Would it have been one of the third-party
23     service providers, Fidelity or First American?
24          A.   Again, I'm not in that department.  I can't
25     say.
0044
 1          Q.   But they would have been working technically
 2     in theory for Litton.  Right?
 3          A.   That's correct.
 4          Q.   So it would not have been Brice-Vander
 5     Linden's decision to modify this mortgage, would it?
 6          A.   No.
 7          Q.   That's a Litton decision.  Right?
 8          A.   Correct.
 9          Q.   And I'm assuming that you have read
10     extensively, since this is what we've already talked
11     about in this case, that you've looked at the mortgage
12     modification letter of September 22nd, 2007?
13          A.   Yes.
14          Q.   Litton does not contend that it did not
15     receive this letter back from Ms. Floyd signed, does it?
16          A.   I don't believe so.
17          Q.   And Litton does not contend that Ms. Floyd did
18     not make her November and December payments under this
19     modification agreement, does it?
20          A.   That I don't remember.
21                   MR. BENDER:  I don't believe that's an
22     issue.
23          Q.   (BY MR. WOOTEN)  And when Litton tenders a
24     loan modification offer to an individual, it is in the
25     form of this letter of September 22nd, 2007, is it not?
0045
 1          A.   Yes.
 2          Q.   And Litton expects the client only to accept
 3     or reject this offer as written.  Is that correct?
 4          A.   That's my understanding.
 5          Q.   Did you review the loan transaction history to
 6     determine why Ms. Floyd's payments were returned to her
 7     in December of 2007?
 8          A.   No.
 9          Q.   Were you aware that they were returned to her
10     in November of 2007?
11          A.   No.
12          Q.   Were you aware that she had made two payments
13     in furtherance of this modification agreement in
14     November and December of 2007?
15          A.   No.
16          Q.   So if Ms. Floyd had executed this modification
17     agreement and made her payments in accordance with the
18     modification agreement, would Litton have considered the
19     loan to have been modified?
20          A.   Well, this letter states it's a commitment to
21     modify.  It's not the modification agreement.  It's a
22     separate document.
23          Q.   All right.  So while this was pending, you
24     would have expected her to have made her payments in
25     accordance with this agreement.  Right?
0046
 1          A.   Could we take a break for a minute?
 2          Q.   I don't want to take a break right now.  I
 3     want to finish these questions.
 4                   If she made the payments according to this
 5     agreement --
 6          A.   I don't know.
 7                   MR. BENDER:  Let him finish his question.
 8          Q.   (BY MR. WOOTEN)  Let me re -- let me ask it
 9     again.  She did make the November and December payments,
10     according to this agreement.  Okay?  Is that what you
11     would have expected her to do while the modification
12     documents were being prepared?
13          A.   I'm sorry.  Say again.
14          Q.   You said this was an offer to modify this
15     mortgage.  Correct?
16          A.   It says it constitutes a commitment to modify.
17          Q.   And in the first paragraph, it says it's a
18     commitment to modify note mortgage subject to the terms
19     and conditions stated below and it says, "This letter
20     contains an offer and it permits you to accept this
21     offer."
22          A.   That's correct.
23          Q.   "When signed by you, this letter will
24     constitute your agreement to have terms and conditions"?
25          A.   Correct.
0047
 1          Q.   So does that indicate that if it's signed and
 2     returned by her it's an acceptance of your offer?
 3     Right?
 4                   MR. BENDER:  Object to the form.  It calls
 5     for a legal conclusion.
 6          Q.   (BY MR. WOOTEN)  That's all you ask a borrower
 7     to do is sign an acceptance, isn't it?
 8          A.   That's what the letter says.
 9          Q.   And you testified that this is the form in
10     which your modification offers go out.  Correct?
11          A.   That's correct.
12          Q.   And so all you ask the borrower to do is to
13     sign this saying they accept your offer to modify.
14     Right?
15          A.   Correct.
16          Q.   And then you prepare the documents for the
17     modification.  Correct?
18          A.   That's correct.
19          Q.   And they sign those once they receive them.
20     Right?
21          A.   That's correct.
22          Q.   And you treat this document as a contract for
23     the modification between yourself and the borrower.
24     Right?
25          A.   An agreement, correct.
0048
 1          Q.   And you, in fact, in this case made the
 2     changes to the principal balance and capitalized these
 3     charges after she accepted this agreement, didn't you?
 4          A.   I didn't --
 5                   MR. BENDER:  Object to the form.
 6          Q.   (BY MR. WOOTEN)  You can answer.
 7          A.   I don't remember seeing that.
 8          Q.   Well, when you sold the house, you sold it for
 9     $22,000.  Right?
10          A.   I can't remember the sale amount.
11          Q.   So if the sale amount was for all these other
12     charges plus the principal balance, then is it safe to
13     say that you had added all these other charges back to
14     the loan?
15          A.   Could have been.
16          Q.   And in this modification document, when it
17     talks about the general term "servicer advances," that's
18     fees and charges that Litton has charged to the account,
19     is it not?
20          A.   Yes.
21          Q.   And escrow advances would have been monies
22     paid typically to -- it could have been to insurance or
23     taxes typically?
24          A.   That's correct.
25          Q.   And it could have also been force placed
0049
 1     insurance, couldn't it?
 2          A.   That's correct.
 3          Q.   And this document actually indicates that you
 4     had $3,095 on the first page in outstanding servicer
 5     advances?
 6          A.   Uh-huh.  Sorry.
 7          Q.   But on the second page, it also adds $500 to
 8     be paid to the servicer as part of the modification and
 9     $2,595.32 for servicer advances capitalized and added to
10     the new principal balance.
11          A.   Correct.
12          Q.   Is there any document that you can point me to
13     in the Litton Loan file that says that Ms. Floyd was not
14     responsible for this mortgage?
15                   MR. BENDER:  Object to the form.
16          Q.   (BY MR. WOOTEN)  You -- you can still answer.
17          A.   She's -- has to pay on the note.  I mean, she
18     has to pay on the loan she has with us.
19          Q.   Right.  And for y'all's purposes, she was the
20     borrower.  Right?
21                   MR. BENDER:  Object to the form.
22          A.   Correct.
23                   MR. BENDER:  What do you mean for her
24     purposes?
25                   MR. WOOTEN:  I'm just asking her a
0050
 1     question.  I mean, it's her question to answer.
 2          Q.   (BY MR. WOOTEN)  Have you read the motion for
 3     summary judgment in this case?
 4          A.   I did.
 5          Q.   And are you aware of the contention made in
 6     the case that Ms. Floyd was allegedly not responsible to
 7     pay this mortgage?
 8          A.   I did.
 9          Q.   Is there -- at anytime is there any document
10     in your file or any note that you're aware of that
11     indicates that anyone at Litton Loans ever adopted that
12     position prior to the filing of that paper in court?
13                   MR. BENDER:  Object to the form.
14          A.   I don't remember seeing that anywhere.
15          Q.   (BY MR. WOOTEN)  And, in fact, throughout the
16     whole time Litton Loans serviced this loan, they have
17     treated Ms. Floyd as the mortgage borrower, have they
18     not?
19          A.   Correct.
20          Q.   And every time there was a payment due or
21     someone was owed -- or there was a delinquency or a
22     bankruptcy, Litton Loans dealt with Ms. Floyd as the
23     borrower on this mortgage, did they not?
24          A.   Correct.
25          Q.   So prior to the filing of this document in
0051
 1     court, Litton Loans never took the position in its
 2     dealings with Ms. Floyd that she was not responsible to
 3     pay this mortgage, did it?
 4                   MR. BENDER:  Object to the form.
 5          A.   No.
 6          Q.   (BY MR. WOOTEN)  Did Litton Loans ever provide
 7     to Ms. Floyd the modification documents for her to sign?
 8          A.   I didn't see any.
 9          Q.   Were you able to ascertain -- ascertain why
10     that did not occur>.
11          A.   The contingencies weren't satisfied.
12          Q.   What contingencies were not satisfied?
13          A.   They're in the letter.
14          Q.   Are you talking about under Section C of the
15     modification?
16          A.   Yes, that's correct.
17          Q.   Okay.
18          A.   And I believe that an assumption agreement was
19     requested.
20          Q.   Okay.  Did anybody offer to prepare an
21     assumption agreement for Ms. Floyd?
22          A.   I didn't see that in the notes.
23          Q.   And up until -- and you're talking about the
24     document written by Brice-Vander Linden in January of
25     2007?
0052
 1                   MR. FOX:  Object to the form.  It's
 2     January '08.
 3          Q.   (BY MR. WOOTEN)  Or January '08.  I'm sorry.
 4          A.   The letter dated January 22nd?
 5          Q.   Of 2008.
 6          A.   Correct.
 7          Q.   I just want to make sure I understand that
 8     this letter in September of 2007, the modification that
 9     my client signed and returned to you and made two
10     payments on, and then those payments were returned in
11     December of '07 prior to the letter of January of '08.
12     Right?
13          A.   Yes.
14          Q.   Do you have communication between yourself and
15     Brice-Vander Linden indicating that you needed a
16     mortgage assumption?
17          A.   I don't.
18          Q.   Is it in the mortgage file at Brice-Vander
19     Linden or Litton?
20          A.   There could have been.
21          Q.   Did you see that in preparing for your
22     deposition today?
23          A.   I don't recall.
24          Q.   If it was requested by you, is it fair to say
25     that it would be contained in the mortgage file that
0053
 1     Litton possesses?
 2          A.   It should be.
 3          Q.   Are you aware -- the date of this letter is
 4     January 22nd, 2008, requesting the modification.  Do you
 5     know what the first foreclosure sale date was in this
 6     case?
 7          A.   No.
 8          Q.   Would you be surprised to know it was
 9     January 3rd of 2008?
10          A.   I don't remember reading that.
11          Q.   Do you know what the date of the sale was that
12     ultimately took place?
13          A.   It was in February.
14          Q.   So on January 22nd, the letter was mailed from
15     Houston to Sherrie Floyd saying that Litton requires
16     proof that you've assumed the mortgage as well.  You
17     never asked for that proof prior to January 22nd of 2008
18     through anybody.  Right?
19                   MR. BENDER:  Object to the form.
20          A.   There might have been verbal communication.  I
21     know there was written communication.
22          Q.   (BY MR. WOOTEN)  Well, if you made verbal
23     communication, you would have documented that in your
24     notes, would you not?
25          A.   It should be.
0054
 1          Q.   Sure.  And we don't have those notes here
 2     today, but you could print those off.  That's like
 3     printing off the invoices and the checks.  That's just
 4     mashing a button.  Right?
 5          A.   Right.
 6          Q.   Does Litton control the foreclosure activities
 7     of its third-party attorneys or is that controlled by an
 8     outsource provider?
 9          A.   I don't know what you mean by control.
10          Q.   Well, let's talk about an instance of
11     Fidelity.  Do they control the timelines for their
12     foreclosure lawyers to take certain activities or is
13     that directed by Litton?
14                   MR. BENDER:  Object to the form.
15          Q.   (BY MR. WOOTEN)  You can answer.
16          A.   I'm trying to -- they have a timeline to
17     perform in, Fidelity does.
18          Q.   And that's -- just so the Court can
19     understand, Litton has a contract with Fidelity to
20     provide foreclosure services for some investors.  Right?
21          A.   Yes.
22          Q.   Okay.  Litton does not have a contract with
23     the actual foreclosure lawyer.  That is through
24     Fidelity.  Right?
25          A.   I know a contract exists, but, they're, yes,
0055
 1     outsourced.
 2          Q.   Yeah.  So that runs through Fidelity?
 3          A.   On some files.
 4          Q.   Right.  On this file, it ran through Fidelity.
 5     Right?
 6          A.   Yes.
 7          Q.   Okay.  And so when a file runs through
 8     Fidelity, Fidelity controls the timelines for the
 9     activities by its foreclosure attorneys.  Right?
10          A.   Yes.
11          Q.   So if Litton was communicating with Ms. Floyd
12     about her modification, it does not necessarily mean
13     that Fidelity was going to stop its attorneys from
14     trying to foreclose, does it?
15          A.   I can't answer that.
16          Q.   When you send a loan file to Fidelity for
17     foreclosure services, how does Litton stop Fidelity from
18     foreclosing?
19          A.   They can direct them to by putting the file on
20     hold.
21          Q.   And that did not take place in this case, did
22     it?
23          A.   I -- it could have been.
24          Q.   You didn't review that prior --
25          A.   I didn't review that, no.
0056
 1          Q.   -- to coming here today?
 2                   And where would that be documented in
 3     Litton Loans' file?
 4          A.   It should be on the notes.
 5          Q.   Okay.  So does Litton request that Fidelity
 6     extend the foreclosure period so that lost mitigation
 7     can be worked on?
 8          A.   Yes.
 9          Q.   And, again, that request is made to Fidelity.
10     Right?
11          A.   Correct.
12          Q.   And then they tell their lawyers what to do?
13          A.   Correct.
14          Q.   And in this particular case, the foreclosure
15     records and letters continue to arrive at Ms. Floyd's
16     home and sale dates continue to be set even after the
17     September 22nd, 2007, letter was returned to Litton.  Is
18     that right?
19          A.   Yes.
20          Q.   Does Litton have policies and procedures with
21     respect to completing a modification agreement prior to
22     attempting another foreclosure?
23          A.   I don't know what they are.
24          Q.   Do they have those?
25          A.   I'm not sure.
0057
 1          Q.   Do you know if they would be written?
 2          A.   I'm not sure.
 3          Q.   Do Litton's employees have access to web-based
 4     training with respect to mortgage servicing and
 5     foreclosure through their relationship with Fidelity?
 6          A.   I don't know what you're referring to.
 7          Q.   Is there a training database that's
 8     computer-based that Litton uses for its employees to
 9     train them?
10          A.   No.
11          Q.   How do you train your employees with respect
12     to managing, servicing and foreclosure issues with
13     clients?
14          A.   I'm not in that department.  I can't really
15     say.  We have training procedures at work.
16          Q.   And so do your new hires go through classes?
17          A.   Yes.
18          Q.   And then once they go through their classes,
19     how long is it before they are actually put out on the
20     floor and start working?
21          A.   I don't know.
22          Q.   You don't know.  Would the mortgage loan file
23     in this case indicate the receipt of this modification
24     acceptance from my client, Ms. Floyd?
25          A.   The actual file?
0058
 1          Q.   The notes field.  When I say "mortgage file,"
 2     I'm encompassing also the computerized records that you
 3     have.
 4          A.   It should reflect it.
 5          Q.   Okay.  And would the modification agreement or
 6     acceptance of the offer, would that also be scanned into
 7     the system?
 8          A.   Yes.
 9          Q.   And typically when you receive an acceptance
10     like this, what typically happens next at Litton?
11          A.   From my understanding of the lost mit
12     department, if all the contingencies are adhered to, if
13     monies are received that they request, it continues on
14     to a modification document.
15          Q.   I want to make sure that I understand you
16     correctly.  You are saying that the reason that the
17     modification did not go through is because of the
18     contingency numbered B in Section C of the modification
19     offer.
20                   THE WITNESS:  16?
21                   MR. BENDER:  Yeah, I think so.
22                   THE WITNESS:  Oh, here it is.
23                   MR. BENDER:  Go ahead and --
24                   THE WITNESS:  Yeah.
25                   MR. BENDER:  -- read A and B before you
0059
 1     answer his question so you know what he's asking you.
 2          A.   "Section C, Contingencies.  This art" --
 3                   MR. BENDER:  Read it to yourself.
 4                   THE WITNESS:  Oh, sorry.
 5                   MR. BENDER:  That's all right.
 6                   THE VIDEOGRAPHER:  I have two minutes left
 7     on this tape.
 8                   MR. WOOTEN:  Let's take a break for you to
 9     change it.
10                   THE VIDEOGRAPHER:  All right.  Going off
11     the record at 10:46.  Off the record.
12                   (Off the record from 10:46 a.m. to
13                   10:49 a.m.)
14                   THE VIDEOGRAPHER:  We are back on the
15     record.  It is 10:49, beginning of Tape No. 2.
16          Q.   (BY MR. WOOTEN)  We were talking about when we
17     went off the record to change the tape the terms of this
18     modification.  Basically Page 3 has a section entitled
19     Contingencies.  And what I asked you was -- you said --
20     you said earlier that the reason the modification was
21     not completed was because the contingencies were not
22     met.  Right?
23          A.   Correct.
24          Q.   And I said you are basing that on
25     Subparagraph B of Section C titled Contingencies.
0060
 1     Correct?
 2          A.   It could have been on Paragraph A.
 3          Q.   Okay.  Well, let me ask you this.  This --
 4     this mortgage loan had been in place since the '70s.
 5     Right?
 6          A.   The original one?
 7          Q.   Right.
 8          A.   Yes.
 9          Q.   Okay.  And it was first lien on the property.
10     Right?
11          A.   Correct.
12          Q.   And it didn't make a flying who who whose name
13     was on that mortgage, it was still first lien.  Right?
14          A.   Correct.
15          Q.   So making the modification was not going to
16     change its place in priority, was it?
17          A.   Not to my under --
18          Q.   Okay.  So a title insurance policy endorsement
19     insuring that the modified mortgage is first lien may be
20     required.  All that is is you want title insurance
21     saying that you've got the first mortgage.  Right?
22          A.   That's what they're looking for.
23          Q.   Right.  And you don't really care whose name
24     it's in as long as you're first mortgage and it's being
25     paid.  Right?
0061
 1          A.   I'm not in the department, but that would have
 2     been what I would expect.
 3          Q.   Because the issue is first place.  Right?
 4          A.   First lien, yes.
 5          Q.   So let's talk about Paragraph B for a minute.
 6     It says specifically, "If any other issues arise between
 7     the date of this commitment and the date on which the
 8     documents for the modified mortgage are to be signed,
 9     including but not limited to deterioration in the
10     condition of the property, lawsuits, liens, additional
11     expenses and defaulted amounts, we may refuse to permit
12     the mortgage to be modified and will pursue all
13     collection action, including foreclosure."  Right?
14          A.   That's what it says.
15          Q.   It does not say that you need to sign a formal
16     modification -- or assumption of the mortgage, does it?
17          A.   It says, "including but not limited to."
18          Q.   Right.  And you'll agree that those issues in
19     context deal with the amount owed and the condition of
20     the property.  Right?
21          A.   That's what it says.
22          Q.   Okay.  It does not deal with who the name is
23     on the mortgage, does it?
24          A.   Not specifically.
25          Q.   Okay.  And, in fact, in all of your dealings
0062
 1     with Ms. Floyd, Litton Loans had acted as if and treated
 2     Ms. Floyd as if she were the borrower on the mortgage.
 3     Right?
 4                   MR. BENDER:  Object to the form.
 5          A.   Appears so.
 6          Q.   (BY MR. WOOTEN)  And -- and Ms. Floyd never
 7     challenged that in any court documents and she fatefully
 8     or as best she could made her payments on the loan and
 9     never denied that she was liable for it, did she?
10          A.   Not to my knowledge.
11          Q.   And there's nothing in your mortgage file that
12     indicates that she ever called up and says, "Hey, this
13     ain't really my mortgage.  I'm just paying it," or
14     anything like that, did she?
15          A.   Not to my knowledge.
16          Q.   And this document that she signed right down
17     below these contingencies where it says "Acceptance of
18     offer for modified mortgage" -- well, the first sentence
19     says, "I am the mortgage owner on the referenced
20     mortgage," is that right, right below the name Lakeisha
21     Nelson?
22          A.   Oh.
23                   MR. BENDER:  Right there.
24                   THE WITNESS:  Oh, sorry.
25          A.   That's what it says.
0063
 1          Q.   (BY MR. WOOTEN)  Yeah.  So if she were going
 2     to dispute that she was responsible to pay this, it
 3     doesn't make a lot of sense for her to sign this
 4     modification letter, does it?
 5                   MR. BENDER:  Object to the form.
 6          A.   I'm not sure.
 7          Q.   (BY MR. WOOTEN)  Do you have any proof that
 8     anyone other than Ms. Floyd has ever made a payment --
 9     other than Ms. Floyd or the bankruptcy trustee has ever
10     made a payment on this mortgage in the last 20 years?
11          A.   I didn't see anything.
12          Q.   And you would have -- you would have -- I'm
13     assuming there would have been records transferred to
14     Litton when Litton assumed the servicing from the prior
15     servicers with respect to payments.  Right?
16          A.   Yes.
17          Q.   And it would have indicated if there had been
18     a transfer of the person responsible for making the
19     payments, wouldn't it?
20          A.   It should have.
21          Q.   And it would also probably have indicated if
22     anybody else had made any payments, wouldn't it?
23          A.   Possibly.
24          Q.   It would have indicated if there was a dispute
25     about who was responsible for the mortgage, wouldn't it?
0064
 1          A.   Yes.
 2          Q.   As far as the changes that were actually made
 3     to -- or that were actually offered to be made to the
 4     mortgage, Litton Loans had the ability to make these
 5     changes even without Ms. Floyd's consent, did they not?
 6                   MR. BENDER:  Object to the form.  Calls --
 7     I object to the form.
 8          Q.   (BY MR. WOOTEN)  You can answer.
 9                   MR. FOX:  Nick, could you just repeat that
10     question for me?  I was turning up the air-conditioning
11     and I missed the question.
12          Q.   (BY MR. WOOTEN)  Okay.  What -- what my
13     question was, if you look back at the letter on Page 2
14     where it talks about the terms of the modification --
15                   MR. BENDER:  Where specifically are you
16     referencing?
17          Q.   (BY MR. WOOTEN)  Let me ask this a different
18     way.  A borrower can -- can want a mortgage modified all
19     they want to, but ultimately the decision to modify a
20     mortgage belongs to Litton and the investor.  Right?
21                   MR. BENDER:  Object to the form.  I mean,
22     if you're asking her for a legal conclusion, does it
23     take two parties to enter an agreement --
24                   MR. WOOTEN:  Not my question.
25                   MR. BENDER:  -- that's --
0065
 1          Q.   (BY MR. WOOTEN)  My question is this.  It's
 2     really simple.  It's not complicated.  You have the
 3     right as the servicer on behalf of the investor to
 4     modify a mortgage as far as the terms of the mortgage,
 5     as far as what the interest rate is and the payment.
 6     You can do that, that's your decision, it's not the
 7     borrower's decision.  Right?
 8                   MR. BENDER:  Object to the form.  I don't
 9     know if you can answer that question.  I don't
10     understand -- are you asking her can they modify a
11     mortgage without the consent of the party who's
12     obligated under the loan in the mortgage?  And are you
13     asking can they unilaterally modify the terms of the
14     note and mortgage?
15                   I believe that would be -- if you are, I
16     think that's a legal conclusion.  I wouldn't want her to
17     answer that.
18          Q.   (BY MR. WOOTEN)  Ma'am, let me ask you this
19     question.  What type of lost mitigation activities is
20     Litton expected to engage in by its investors?
21          A.   Repeat that question again.
22          Q.   When a loan is non-performing, what types of
23     lost mitigation or -- let me ask it a different way.
24     What are the -- what's the industry standard for lost
25     mitigation?  What types of lost mitigation -- lost
0066
 1     mitigation are available?
 2          A.   To review the file and at times the borrower's
 3     income to see what they can qualify for.
 4          Q.   Okay.  And what are the various types of lost
 5     mitigation?
 6          A.   There's forbearance.  There's loan
 7     modifications.  That's the two I know of.
 8          Q.   Do you occasionally waive charges?
 9          A.   Occasionally.
10          Q.   Is that a tool that's available to you in --
11     if you need it?
12          A.   I've seen it done.
13          Q.   Do investors sometimes pay charges to
14     servicers so that the borrower can have a forbearance on
15     those charges?
16          A.   I don't know the answer to that question.
17          Q.   When a mortgage servicing pool is assigned to
18     Litton Loans or when you assume the obligations to
19     service a pool such as this one, does Litton also enter
20     in that pool the lost mitigation requirements by its
21     investors for that pool of mortgages?
22          A.   I do not know the answer to that question.
23          Q.   When a loan modification is offered, that's
24     not something that the servicer does unilaterally, is
25     it?
0067
 1          A.   Meaning?
 2          Q.   Don't they typically seek the approval of the
 3     investor prior to making a loan -- loan modification
 4     offer?
 5          A.   It's my understanding they have guidelines to
 6     follow.
 7          Q.   That would typically be contained in the
 8     pooling and servicing agreement that sets out the
 9     servicer's responsibilities?
10          A.   I'm not sure where the guidelines are.
11          Q.   Who manages the servicing department for
12     Litton?
13          A.   Total service is under Bob Tompkins.
14          Q.   What's his title?
15          A.   He's probably a senior VP.
16          Q.   Bob would be the person most likely to be
17     knowledgeable about what the criteria are for
18     modifications on any given loan?
19          A.   No.  Each department then is broken down to
20     specific departments.
21          Q.   Okay.  And are they divided by the mortgage
22     loan pools?
23          A.   No.
24          Q.   Okay.  How are they divided?
25          A.   Under the servicing -- they wouldn't be lost
0068
 1     mit.  Lost mit would be in the default section.
 2          Q.   Well, how is servicing divided?  Are there
 3     subgroups in servicing?
 4          A.   Sure.  You have your payments.  You have
 5     taxes.  You have insurance.  You have property
 6     preservation.  You have the BPO department.  There's
 7     many different departments.
 8          Q.   When you say "payments," you're talking about
 9     cashiering.  Right?
10          A.   Correct.
11          Q.   Is there a collections department or just --
12          A.   That's --
13          Q.   Prior to -- prior to a loan being considered
14     non-performing, I mean, is there -- is there a group
15     that just calls people when they're 16 days late?
16          A.   There is a collection department.
17          Q.   Is that -- is there servicing collections or
18     is there a separate group for collections?
19          A.   It could be both.
20          Q.   If a loan modification was offered to
21     Ms. Floyd in this case, is it your testimony that it
22     would have been the product of collaboration between the
23     servicing department and its investor or it would have
24     been the act of the servicing department based on
25     guidelines set by the investor?
0069
 1          A.   No.  It would have been done by the lost
 2     mitigation department.
 3          Q.   And would that have been done based on
 4     guidelines provided by the investor or would it have
 5     been done in concert with the investor?
 6          A.   Within guidelines.
 7          Q.   Are there any records that you have seen
 8     between September 22nd, 2007, and January of 2008 which
 9     indicate that Ms. Floyd needed to do anything else to
10     have a modification of her loan?
11                   MR. BENDER:  Object to the form.  Other
12     than --
13                   THE WITNESS:  Excuse me.
14                   MR. BENDER:  I mean, other than provide
15     the assumption agreement or other than what?
16                   MR. WOOTEN:  John, listen.  I'm just going
17     to go ahead and put this objection on the record.
18     You've been making speaking objections the whole
19     deposition.
20                   If you have an objection to the form of
21     the question, please make it and leave it.  I mean,
22     you're coaching her on how to testify and what to look
23     for.  Just make an objection and be done with it.  Okay?
24                   MR. BENDER:  Well, I don't think that's --
25                   MR. WOOTEN:  If my question is poor, you
0070
 1     can take it apart.  That's fine.  If she doesn't
 2     understand it, she can say she doesn't understand, but
 3     don't coach the witness.
 4                   MR. BENDER:  If you don't understand, say
 5     you don't understand.
 6                   MR. WOOTEN:  And we'll address that.
 7                   MR. BENDER:  Because she paused for so
 8     long I assumed she didn't understand.
 9                   MR. WOOTEN:  Okay.  Well, let's not
10     assume.
11          A.   To answer your question, I don't have the
12     dates set in my mind so I can't answer that question.
13          Q.   (BY MR. WOOTEN)  Well, and that's what I was
14     sitting here pecking around trying to find in my stack
15     of documents.  The letter from Brice-Vander Linden is
16     dated January 22nd, 2008, and it says, "In order to
17     finalize the proposed loan modification, Litton requires
18     proof that you've assumed the mortgage as well."
19                   My question is, between that date,
20     January 22nd of 2008, and September 22nd of 2007, is
21     there any document that you have seen that tells my
22     client that she needs to execute an assumption
23     agreement?
24          A.   Not that I recall.
25          Q.   The foreclosure that ultimately took place on
0071
 1     February 4th, that was not the first time that Litton
 2     had tried to foreclose on Ms. Floyd, was it?
 3          A.   I do not recall.
 4          Q.   You have testified that you've looked briefly
 5     at this file.  Did you see any documents or notes to
 6     indicate why modification documents were not presented
 7     to Ms. Floyd prior to January 22nd of 2008?
 8                   MR. BENDER:  Object to the form.
 9          A.   I don't recall specific prior to January the
10     8th.
11          Q.   (BY MR. WOOTEN)  January 22nd --
12          A.   22nd.
13          Q.   -- 2008.
14          A.   Excuse me.
15          Q.   Did you see any notes regarding the
16     modification documents?
17          A.   Yes.
18          Q.   Do you know when they were?
19          A.   There was various times.
20          Q.   Between September of '07 and January 22nd of
21     '08?
22          A.   Yes.
23          Q.   If there were any communications with respect
24     to those issues, Litton would have those in its document
25     imaging system.  Right?
0072
 1          A.   They should.
 2          Q.   After this letter was signed on September 22nd
 3     of 2007, what documents exactly would Ms. Floyd have
 4     been required to sign to complete the modification?
 5          A.   There's an actual modification agreement
 6     that's prepared and signed by the borrower and also a
 7     representative of Litton.
 8          Q.   Okay.  And that's usually the only documents?
 9          A.   From what I've seen.
10          Q.   Would any communication between Litton and
11     Fidelity in this case also be contained in the -- either
12     the notes field or the imaging fields of the software
13     used by Litton?
14          A.   They should be.
15          Q.   What about e-mails?
16          A.   No.
17          Q.   Are they typically retained in a separate
18     system or are they referenced in the note fields with
19     the Fidelity software?
20          A.   Within that person's computer who sent or
21     received that e-mail.
22          Q.   Is it fair to say that typically Litton would
23     have relied on the Fidelity system to communicate with
24     Fidelity with respect to this loan?
25          A.   Fidelity system?
0073
 1          Q.   Well, I know you testified earlier that you're
 2     not familiar with the software that Litton's using to
 3     service loans.  Right?
 4          A.   Well, there's a system we use.  It's called
 5     Radar.
 6          Q.   And Radar, is that the proprietary name that
 7     Litton uses or does Radar stand for something?
 8          A.   I think it stands for something, but I don't
 9     know what it is.
10          Q.   Within that system, you're able to message to
11     Fidelity directly.  Right?
12          A.   There could be another system that we don't
13     use in legal that they would use between the vendor and
14     foreclosure department, but, again, we don't use it in
15     legal.
16          Q.   Okay.  And, again, that's my question.  Out on
17     the floor -- not where you live but out on the floor,
18     they have the ability to communicate directly to
19     Fidelity through a messaging system?
20          A.   They could --
21          Q.   Is that your understanding?
22          A.   -- yes.
23          Q.   And is that typically how the communications
24     are handled so that they're documented in the software
25     so that there's a complete record?
0074
 1          A.   Yeah.  I'm not in that department.  I can't
 2     say for sure.
 3          Q.   Who handles the foreclosure department for you
 4     guys?
 5          A.   At what level?
 6          Q.   Is there like a floor supervisor?
 7          A.   Most likely that would be Debra Lyman.
 8          Q.   How do you spell her last name?
 9          A.   L-Y-M-A-N.
10          Q.   All right.  And is there a senior
11     vice-president in charge of that?
12          A.   I'm trying to remember.  I'm not going to say
13     their correct name.  That's generally who we go to would
14     be Debra.
15          Q.   Okay.  So that's the person you would
16     typically contact.  Right?
17          A.   Correct.
18                   MR. WOOTEN:  Let's go off the record for
19     just a minute.
20                   THE VIDEOGRAPHER:  11:17, going off the
21     record.  Off the record.
22                   (Recess from 11:17 a.m. to 11:45 a.m.)
23                   THE VIDEOGRAPHER:  We are back on the
24     record.  It is 11:45.
25                   MR. WOOTEN:  I'm going to put this on the
0075
 1     record.  I don't -- I can't ask any more questions
 2     because I don't have any documents, and we've talked
 3     about this.  I mean, there are things that need to be
 4     addressed, but without the mortgage loan file stuff
 5     there's just no way to get into them.
 6                   So I'm going to stop right now with
 7     what -- my line of questioning and turn it over to Peck.
 8                   MR. BENDER:  Okay.
 9                   MR. FOX:  Do you want to go?  Do you want
10     me to go?
11                   MR. BENDER:  I don't care.  You go ahead.
12     I've got some questions, but you just go ahead.
13                     EXAMINATION (11:45 a.m.)
14     BY MR. FOX:
15          Q.   Hi.  My name as Peck Fox.  I represent Brice,
16     Vander Linden & Wernick, and I just have a couple of
17     very brief questions.  At least I hope they're just a
18     couple and very brief.
19                   Are you aware of the role that Brice,
20     Vander Linden & Wernick played in connection with
21     Ms. Floyd's loan?
22          A.   Yes.
23          Q.   Okay.  What was that role?
24          A.   Bankruptcy attorneys for Litton.
25          Q.   Did Brice, Vander Linden & Wernick have any
0076
 1     role in the foreclosure of the property that took place
 2     in leading up to and concluding on February 4th of 2008?
 3          A.   No.
 4          Q.   When Mr. Wooten earlier asked you if documents
 5     were sometimes -- and I think I'm paraphrasing his --
 6     his question correctly.  When he asked that if documents
 7     were sometimes prepared for Litton by outside vendors
 8     like Brice and you answered yes, would those documents
 9     still be subject to approval by Litton and prepared on
10     behalf of Litton?
11          A.   Yes.
12          Q.   Regarding charges on Ms. Floyd's account, the
13     figures that Mr. Wooten was showing you on the
14     September -- September 22nd modification letter and
15     those figures on there, the servicer amounts -- I'm not
16     asking about the specific amounts, but were those
17     amounts placed on her account by Litton and not by
18     Brice?
19          A.   By Litton.
20                   MR. FOX:  That's all I have.
21                     EXAMINATION (11:47 a.m.)
22     BY MR. BENDER:
23          Q.   Couple of questions.  All right.  Did Litton
24     determine at some point that the plaintiff -- or
25     third-party plaintiff, Ms. Floyd, was not obligated
0077
 1     under the note and mortgage in this case?
 2          A.   Yes.
 3          Q.   All right.  Do you know when they made that
 4     determination?
 5          A.   It was sometime in January, if I can remember
 6     correctly, and that's what prompted the letter that was
 7     sent.
 8          Q.   And that would be the letter that we've
 9     discussed, the January 22nd letter from the Brice law
10     firm?
11          A.   Yes.
12          Q.   All right.  Prior to receiving the commitment
13     letter from Ms. Floyd, do you know if Litton had made
14     any -- or taken any action to investigate the particular
15     issue of whether or not Ms. Floyd was obligated under
16     the note and mortgage at issue in this case?
17          A.   It doesn't appear so.
18          Q.   Is there any reason why they would have --
19          A.   No.
20          Q.   -- that you're aware of?
21                   All right.  Once that determination was
22     made and -- are you -- do you believe it was made --
23     well, you told me when you thought it was made.
24                   Once that determination was made, that is,
25     that there -- that she was not obligated under the note
0078
 1     and mortgage, why did Litton want her to sign an
 2     assumption agreement?
 3          A.   Because the grantors were the previous
 4     holders, which I believe was her in-laws.
 5          Q.   And what problems, if you know, would that
 6     cause?
 7          A.   It's usually not the note holder.  They were
 8     the note holder.  They were liable under payment of that
 9     note.
10          Q.   And she was not?
11          A.   Yes.  That's my understanding.
12          Q.   Had there been -- and I think Mr. Wooten asked
13     you.  Were you aware that the foreclosure had originally
14     been set in January of 2008?
15          A.   Now I remember there was one set.
16          Q.   In January of 2008?
17          A.   Correct.
18          Q.   All right.  And the foreclosure sale
19     eventually took place on February 4th of 2008?
20          A.   Correct.
21          Q.   Do you have any personal knowledge as to why
22     it was postponed from January to February?
23          A.   It was put -- the foreclosure actually was put
24     back on hold to work out the lost mit situation, the
25     loan mod -- the loan modification.
0079
 1          Q.   Now, you had stated earlier there -- there was
 2     a difference between the commitment letter and the
 3     actual modification agreement.  Is that correct?
 4          A.   That is correct.
 5          Q.   I've never seen the modification agreement
 6     myself.  Is there a modification agreement out there
 7     somewhere?
 8          A.   I probably can find it with the help of lost
 9     mitigation.
10          Q.   All right.  Will you get that for us?
11          A.   Yes.
12          Q.   Do you know if the modification agreement
13     which would have followed the commitment letter was ever
14     sent to Ms. Floyd?
15          A.   According to our notes, it was sent.
16          Q.   But do you know when?
17          A.   In November.
18          Q.   Did you ever get it back?
19          A.   According to our notes, no.
20          Q.   Do you know if that fact impacted the decision
21     to go forward with the foreclosure or not?
22          A.   It appears so, yes.
23          Q.   And why do you say it appears so?
24          A.   Because they wouldn't have put it back to
25     foreclosure action if they had gotten the modification
0080
 1     in.
 2          Q.   Mr. Wooden asked you earlier about some checks
 3     in November and December being sent back.  Do you know
 4     why they were sent back?
 5          A.   What I'm recalling now is that she didn't send
 6     them to Litton.  She sent them to their third party.
 7          Q.   Did they eventually come to Litton or do you
 8     know who sent them back?
 9          A.   No.
10          Q.   So you don't know whether Litton sent them
11     back or some third party sent them back?
12          A.   That's correct.
13          Q.   But that's something you can find out the
14     answer to?
15          A.   Yes.
16                   MR. BENDER:  Okay.  I guess that's all I
17     have.
18                   MR. WOOTEN:  Just a quick second.
19                     EXAMINATION (11:52 a.m.)
20     BY MR. WOOTEN:
21          Q.     You said that there was a modification
22     agreement prepared in November.  Right?
23          A.   Yes.
24          Q.   And that document would have been saved on
25     your software system under imaging.  Right?
0081
 1          A.   Ordinarily it is.
 2          Q.   But it's not in this case?
 3          A.   I'm not sure.
 4          Q.   Well, if it is, you don't need anybody's help
 5     to find it.  Right?  You can go to your terminal and
 6     pull it up if it's saved on your --
 7          A.   Should be able to, yes.
 8          Q.   And your notes would indicate that it was
 9     mailed.  Right?
10          A.   Yes.
11          Q.   But the fact of the matter is that there's
12     nothing retained by you that proves that it was ever
13     mailed.  Right?
14          A.   I would have to check on that.
15          Q.   Because the system is not set up to maintain a
16     proof of mailing, is it?
17          A.   Well, if they sent it out by certified mail,
18     they would have had that proof.
19          Q.   Right.  But that's the only way?
20          A.   Yes.
21          Q.   As far as your normal mailing system, you have
22     no proof of mailing for any of your --
23          A.   On first class mail.
24          Q.   Right.  So obviously when we're sitting here,
25     three lawyers in this case and all these documents,
0082
 1     if -- if the modification agreement had escaped Houston,
 2     don't you think it's likely that somebody involved in
 3     the case would have a copy of it?
 4                   MR. BENDER:  Object to form.  Calls for
 5     speculation.
 6          A.   I don't know how to answer that.
 7          Q.   (BY MR. WOOTEN)  Well, if Ms. Floyd testifies
 8     that she never received a modification agreement, you'd
 9     have no reason to doubt her, would you?
10                   MR. BENDER:  Object to the form.
11          A.   I'm not sure they would have handled that.
12          Q.   (BY MR. WOOTEN)  Sure.  Because the fact of
13     the matter is that you can prepare a modification
14     agreement in that system and put any date on it you want
15     to.  Right?
16          A.   I'm not sure what -- how they go about doing
17     the modification.
18          Q.   So who would have done that modification?
19          A.   It would have been lost mit department and
20     they may have hired an outside vendor to prepare it.
21          Q.   Okay.  Fidelity?
22          A.   I don't know who would do it.
23          Q.   So it's possible -- never mind.  I'm not going
24     to ask that question.
25                   But if it were done in the ordinary course
0083
 1     of business, you would normally have it in the Fidelity
 2     imaging system.  Right?
 3          A.   It would have been on our system that Litton
 4     could get into.
 5          Q.   Right.  It would have been imaged in your
 6     software?
 7          A.   Correct.
 8          Q.   So it would be some of those documents that if
 9     the loan file were here today and it were in the loan
10     file it would be -- there would be a copy of it there.
11     Right?
12          A.   It should be.
13          Q.   Okay.  And somewhere on that document it would
14     indicate who the person was that prepared it.  Right?
15          A.   It should have that.
16          Q.   And it would also indicate the day that the
17     document was prepared in the system.  Right?
18          A.   It should.
19          Q.   But without a certified mail return receipt,
20     we wouldn't know if or when it was mailed.  Right?
21                   MR. BENDER:  Object to the form.
22          A.   Yes.
23                   MR. WOOTEN:  All right.  I don't have
24     anything else.
25                   MR. FOX:  Nothing further.
0084
 1                   MR. BENDER:  Nothing.
 2                   THE VIDEOGRAPHER:  Going off the record at
 3     11:56.  Off the record.
 4                   (Deposition concluded at 11:56 a.m.)
 5                   (Signature waived.)
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0085
 1     STATE OF TEXAS     )
                          )
 2     COUNTY OF HARRIS   )
 3   
 4                   I, Diana Ramos, a court reporter in and
 5     for the State of Texas, do hereby certify that the
 6     matters set forth in the caption to the foregoing
 7     deposition are true and correct; that the witness
 8     appeared before me at the time and place set forth; that
 9     said witness was first duly sworn to tell the truth, and
10     thereupon proceeded to testify in said cause; that the
11     questions of counsel and the answers of the said witness
12     were taken down in shorthand by me and thereafter
13     reduced to typewriting under my direction; and that the
14     foregoing pages comprise a true, correct, and complete
15     transcript of the testimony given, and the proceedings
16     had during the taking of said deposition.
17                   I further certify that I am not counsel,
18     attorney, or relative of either party, or otherwise
19     interested in the events of this suit.
20                   GIVEN UNDER MY HAND AND SEAL OF OFFICE on
21     this the 27th day of October, 2008.
22   
23                        _____________________________
       Commission         Diana Ramos, Notary Public in
24     Expires 5-18-09    and for the State of Texas
25