LNV vs. Gebhardt: Intervenors Motion for Judicial Notice NWTS Depos

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF TENNESSEE

AT KNOXVILLE

LNV CORPORATION, )

)

Plaintiff, )

)

v. ) No.: 3:12-CV-468-TAV-HBG

)

CATHERINE GEBHARDT )

)

Defendant. )

INTERVENERS’ MOTION FOR JUDICIAL NOTICE OF THE

DEPOSITIONS OF NWTS EMPLOYEES AND COURT

OPINIONS

Comes Now the Interveners, representing themselves, pursuant to Rule 201 Judicial Notice of

Adjudicative Facts hereby requests this Court take Judicial Notice of the documents described

herein and in support states as follows:

1. THE INTERVENERS move this Court to take judicial notice of:

Janet Reiner vs. Northwest Trustee Services; September 14, 2012, In the Superior

Court of the State of Washington in and for the County of Thurston; Case No. 11-2-

02029-8) Deposition of Yvonne McElligott. (attached hereto as “Exhibit A”.) Yvonne

McElligott conjointly holds title as Foreclosure Team Manager, Vice President, Assistant

Vice President of Northwest Trustee Services, Inc.; Vice President, Assistant Vice

President of Bank of America; Vice President, Assistant Vice President of Wells Fargo;

Vice President, Assistant Vice President of MERS. She signs foreclosure documents

produced by the “LPS Desktop System” without the requisite knowledge of facts material

legally required to perform the duties of a trustee in a foreclosure. She also notarizes

foreclosure documents and signs as both “Vonnie” and Yvonne McElligot at different

times.

Janet Reiner vs. Northwest Trustee Services; September 14, 2012, In the Superior

Court of the State of Washington in and for the County of Thurston; Case No. 11-2-

02029-8) Deposition of Jeff Stenman. (attached hereto as “Exhibit B”.) Jeff Stenman

conjointly holds title as Director of Operations, Vice President, Assistant Vice President

and Secretary of Northwest Trustee Services, Inc. He signs foreclosure documents

produced by the “LPS Desktop System” without the requisite knowledge of facts material

legally required to perform the duties of a trustee in a foreclosure.

2. Under Federal Rule of Evidence 201 the court may judicially notice a fact that is not

subject to reasonable dispute because it: (1) is generally known within the trial court’s

territorial jurisdiction; or (2) can be accurately and readily determined from sources

whose accuracy cannot reasonably be questioned. The Court may take judicial notice of

records of any court of record of the United States.

3. THE INTERVENERS move this Court to take Judicial Notice of the judicially

discovered facts in this case as it shows that employees of LPS Service providers,

including Shapiro & Kirsch, LLP the foreclosure mill in the Gebhardt case; Northwest

Trustee Services, the foreclosure mill in the Subramaniam case; Dean Morris, LLP the

foreclosure mill in the Depew case; and Codilis & Stawiarski, P.C in the Breitlings case;

and in other Interveners’ foreclosure related cases, still prepare mortgage related

documents and file them in county recorders offices across the country through the exact

same manner and means identified by the United States in the criminal conviction of

Lorraine Brown. Lender Processing Services (“LPS”) was identified by the United States

as a business organization created by Brown and used by Brown in the commission of her

crimes. These LPS Service providers (foreclosure mills) all use the LPS system and

communicate daily with LSP employees.

4. The documents attached hereto as Exhibit “A” and Exhibit “B” may be accessed online

from PACER or through the Thurston County Superior Court of Washington electronic

filing system.

5. Timely written notice of this request is hereby given by email and postal mail service

upon Plaintiff’s counsel as required by law.

WHEREFORE, pursuant to Federal Rule of Evidence 201 THE INTERVENERS move

this Court to take Judicial Notice without hearing of judicially determined facts

pertaining to the business practices of D. Andrew Beal, his Beal Bank and his other

business entities, including LNV Corporation and MGC Mortgage Inc.; specific to their

propensity to misrepresent and falsify facts pertaining to mortgage related documents,

and for such other and further relief as this Court deems just and proper under the

circumstances.

RESPECTFULLY SUBMITTED on this _____ day of May, 2014

_________________________________

DENISE SUBRAMANIAM as Representative for THE INTERVENERS

27th

a4c804ec-8069-4ccb-8aac-90965a10c3e1Electronically signed by cheryl macdonald (101-001-136-7937)

Reiner v. Northwest Trustee 12/11/2012 Yvonne McElligott

2033 Sixth Ave., Ste. 826 Seattle, WA 98121Moburg, Seaton & Watkins 206-622-3110 Court Reporters

1 (Pages 1 to 4)

Page 1

IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON IN AND FOR THE COUNTY OF KING------------------------------------------------------ JANET REINER, a single ) woman, ) ) Plaintiff, ) ) -vs- ) No. 11-2-02029-8 )NORTHWEST TRUSTEE SERVICES, ) INC., a Washington ) corporation; ONE WEST BANK, ) FSB, a federal savings bank; ) MORTGAGE ELECTRONIC )REGISTRATION SYSTEMS, )INC., a Delaware corporation,) ) Defendants. ) )------------------------------------------------------ Deposition Upon Oral Examination

of

YVONNE McELLIGOTT------------------------------------------------------ 1:00 p.m. Tuesday, December 11, 2012 787 Maynard Avenue South Seattle, Washington

Cheryl Macdonald, RMR, CRR Court Reporter

MOBURG SEATON & WATKINS (206)622-3110

Page 2

A P P E A R A N C E S

FOR THE PLAINTIFF: HA THU DAO Attorney at Law GRAND CENTRAL LAW 787 Maynard Avenue South Seattle, Washington 98104 [email protected]

FOR NORTHWEST TRUSTEE SERVICES:

HEIDI BUCK MORRISON Attorney at Law ROUTH CRABTREE OLSEN 13555 SE 36th Street Suite 300 Bellevue, Washington 98006 [email protected]

FOR ONE WEST BANK:(via telephone) CHRISTOPHER J. KAYSER Attorney at Law LARKINS VACURA 621 SW Morrison Street Suite 1450 Portland, Oregon 97205 [email protected]

ALSO PRESENT: JANET REINER


Page 3

I N D E X

EXAMINATION PAGEBY MS. DAO: .......................... 5, 98BY MS. MORRISON: ...................... 97

EXHIBITS MARKED PAGENo. 1 Foreclosure Transmittal Package IndyMac............ 11

No. 2 Appointment of Successor Trustee 5/17/09............ 21 No. 3 Notice of Default.......... 24No. 4 Foreclosure Transmittal Package One West........... 26

No. 5 Screenshots re payment changes.................... 27No. 6 Supplemental Action by Written Consent............ 37

No. 7 Action by Written Consent.. 39

No. 8 Amended Response and Objections to Subpoena..... 46No. 9 Assignment of Deed of Trust 8/25/08.................... 49

No. 10 Notice of Trustee's Sale 10/26/07................... 51No. 11 Notice of Trustee's Sale 4/10/09.................... 54

No. 12 Appointment of Successor Trustee 11/11/08........... 57 MOBURG SEATON & WATKINS (206)622-3110

Page 4

I N D E X (Cont'd.)

EXHIBITS MARKED PAGENo. 13 Appointment of Successor Trustee 12/30/08........... 59

No. 14 Appointment of Successor Trustee 11/13/08.......... 59No. 15 Declaration of Vonnie McElligott................. 60

No. 16 Beneficiary Declaration.... 63

No. 17 Loss mitigation declaration 67

No. 18 Notice of Discontinuance of Trustee's sale 6/21/11.... 76 No. 19 Notice of Discontinuance of Trustee's sale 8/18/09..... 77

No. 20 Appointment of Successor Trustee 9/2/11............. 77No. 21 Assignment of Deed of Trust 9/13/10.................... 87

No. 22 Search Results Certificate. 96

No. 23 Interest Only Adjustable Note....................... 96No. 24 Deed of Trust 7/30/04...... 98No. 25 Statutory Warranty Deed.... 99No. 26 Quit Claim Deed............ 100No. 27 Yvonne M. McElligott signature 102 No. 28 Yvonne Marie McElligott signature 102No. 29 Yvonne McElligott signature 102No. 30 Vonnie McElligott signature 102





2 (Pages 5 to 8)

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1 MS. DAO: My name is Ha Dao and I'm the 2 attorney for Janet Reiner. I just want to go through 3 a few preliminary rules before a deposition. 4 YVONNE McELLIGOTT, witness herein, having been first

duly sworn by the Certified Court 5 Reporter, deposed and said as

follows:67 BY MS. DAO: 8 Q. So the rules are that I need you to answer 9 audibly and clearly. No nods, no uh-huhs.

10 A. Okay. 11 Q. And you are free to ask for a break. I 12 just ask that you finish your answer to a question 13 before you take a break. Or if you need to confer 14 with your attorney, with counsel, you can, but just 15 finish up your answer. I'm going to take a break in 16 about an hour because we've got a lot of stuff, but 17 it's going to be a quick break, so if you have parking 18 or any other problems, let me know and I'll do my best 19 to accommodate you. Okay. 20 State your full name and your address for 21 the record, please. 22 A. Yvonne McElligott, 15014 Southeast 22nd 23 Street, Bellevue, Washington 98007. 24 Q. So, is your proper name "Vonnie"? 25 A. My legal name is Yvonne.

Page 6

1 Q. And how do you spell that? 2 A. Y-V-O-N-N-E. 3 Q. And you're not signing under that name? 4 A. No, I am not. 5 Q. Why is that? 6 A. It's my -- the resolution is under 7 "Vonnie." 8 Q. Okay. I guess my question is, have you 9 ever signed your name as "Yvonne"?

10 A. In what capacity? 11 Q. In any capacity. 12 A. Yes. 13 Q. But you chose to sign as Vonnie because 14 there's a resolution? 15 A. My signing authority is under Vonnie. 16 Q. Your signing authority by who? 17 A. Northwest Trustee Services. 18 Q. So you're saying that there is a document 19 that allows you to sign as representative or corporate 20 officer of Northwest? 21 A. Correct. 22 Q. And under that resolution your name is 23 Vonnie McElligott? 24 A. Correct. 25 Q. And you produced that here?

Page 7

1 A. Correct. 2 Q. Okay. So I have a copy of that. Tell me 3 about your profession with Northwest. What capacity 4 are you employed by them? 5 A. I am a foreclosure team manager. 6 Q. And is that the only capacity or do you 7 work under any other title? 8 A. The only other title I have is my signing 9 authority as assistant vice-president.

10 Q. So are you or are you not a vice-president 11 for Northwest Trustee? 12 A. I am not. 13 Q. So the title is VP, vice-president? 14 A. Assistant vice-president. 15 Q. I'm sorry, assistant vice-president, but in 16 reality you don't own shares of the company? 17 A. No, I do not. 18 Q. You are not entitled to profits by the 19 company as a corporate officer? 20 A. No, I am not. Correct. 21 Q. And can you tell me the purpose of this 22 signing authority? 23 A. Sign documents on behalf of the company. 24 Q. And when did that resolution come into 25 being, if you remember?

Page 8

1 A. I don't recall. 2 Q. Can you give me like a number? Months, 3 years? 4 A. (No response.) 5 Q. Let me break it down. How long have you 6 been employed by Northwest? 7 A. Sixteen years. 8 Q. And when was -- what was your first 9 position with Northwest?

10 A. I don't recall the name of the position. 11 Q. Is it fair to say that you've gotten some 12 promotions over the years? 13 A. I don't really think I've gotten 14 promotions. It's pretty much been the same duty all 15 along. 16 Q. So let's talk about the title that you have 17 as a foreclosure team manager. 18 A. Yes. 19 Q. Can you tell me what that entails? 20 A. I oversee a group of 10 people that process 21 foreclosures for the state of Washington, Freddie Mac 22 portfolio only. 23 Q. On Freddie Mac portfolio only? 24 A. Uh-huh. 25 Q. And when did you become team manager?




3 (Pages 9 to 12)

Page 9

1 A. I've always been the team manager. 2 Q. So tell me about your duties. 3 A. I am responsible for communications with 4 clients, review of sales, the management of the team. 5 I oversee training. 6 Q. What kind of training did you receive? 7 A. I came -- just on-the-job training. 8 Q. Okay. And who is your supervisor? 9 A. Currently my immediate supervisor is Alan

10 Burton. 11 Q. What is his title with the company? 12 A. I believe "operations manager." 13 Q. Do you know who owns Northwest? 14 A. I don't. 15 Q. You've worked there for 16 years and you 16 don't know? 17 A. That is correct. 18 Q. You don't know who the president is? 19 A. I don't. 20 Q. Do you know who Jeff Stenman is? 21 A. Yes. 22 Q. What is he? 23 A. He is the operations something over 24 Northwest. 25 Q. Do you know who Steven Routh is?

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1 A. I know who Stephen Routh is. 2 Q. Stephen Routh, okay. And who is he? 3 A. He is one of the owners of Routh Crabtree 4 Olsen. 5 Q. Does he have ownership in Northwest? 6 A. It is my understanding, yes. 7 Q. Does he have any hands-on experience -- 8 hands-on activities with your foreclosure activities 9 in the company?

10 A. I don't know. 11 Q. Have you seen him around the office doing 12 anything with regards to the foreclosure transactions 13 that you and your team are involved in? 14 A. No. 15 Q. Mr. Stenman is not a lawyer, is he? 16 A. No. 17 Q. Mr. Routh is? 18 A. As far as I know. 19 Q. I am asking you to focus on the case at 20 hand, which involves Ms. Reiner's property. Are you 21 familiar with the case? 22 A. Yes, I guess. 23 Q. Did you have the opportunity to review your 24 files and records before you came today? 25 A. Yes, I did.

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1 Q. So tell me how you got -- how Northwest got 2 involved in the foreclosure of the Reiners' property. 3 A. The first foreclosure -- either one -- we 4 receive a referral from the servicer. 5 Q. Do you remember when that was? 6 A. There was one in '09 and one in 2010. 7 Q. Did you bring any of the '09 -- 8 A. Yes. 9 Q. It's in here, okay.

10 A. (Nodding head.) 11 Q. Do you mind going through it, and give me 12 the '09 referral. And you handed me multiple pages 13 and titled "Foreclosure Transmittal Package, IndyMac 14 Mortgage." Is that correct? 15 A. Yes. 16 MS. DAO: I'm going to have this marked and 17 then I'll copy it. 18 (Marked for identification Exhibit 1.)19 Q. I am looking at what has been marked as 20 Exhibit 1, and I see here that it's a foreclosure 21 transmittal package. Can you tell me what "FIS 22 desktop" is? 23 A. I don't know what the acronym stands for. 24 Q. But do you know what -- is that a company? 25 Is that a vendor? What is it?

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1 A. It is a vendor system. It's called -- we 2 refer to it as "desktop." 3 Q. And that's a computer system? It's a 4 computerized system? What is your understanding? 5 A. It's a system that gathers -- the lender 6 puts information into it and then we have access to it 7 to update it. 8 Q. And do you get to it via the -- 9 A. It's an Internet-based product.

10 Q. And do you know who -- so this is a 11 program. This is not an entity? 12 A. I do not know. 13 Q. You don't know. Do you see there that it's 14 addressed to the law firm of Routh Crabtree? 15 A. Yes. 16 Q. So the referral was made to Routh Crabtree? 17 A. The way the lender set it up is most of 18 them have it already set up under Routh Crabtree for 19 years and years and years. It's always been that way, 20 and then it automatically comes to the nonjudicial 21 portion of that, which is Northwest Trustee Services. 22 Q. So in the Reiners' case it also came by way 23 of the law firm? 24 A. It is addressed to the law firm. It never 25 went to the law firm.




4 (Pages 13 to 16)

Page 13

1 Q. So how did you get this package? 2 A. It's automatically downloaded into 3 Northwest Trustee Services' system. 4 Q. And how is Northwest notified? 5 A. We have a notification queue and we receive 6 a -- a number that says that there are this many 7 referrals in there. 8 Q. Is that by way of e-mail or messages? I'm 9 not clear.

10 A. It's automation. It's when a file gets 11 downloaded it goes -- we call it a "ticker," and it 12 drops into a ticker so we know that there's a referral 13 available under that loan. 14 Q. And who was responsible for downloading 15 this particular package? 16 A. I don't know. 17 Q. So Exhibit 1 has the addressee as Routh 18 Crabtree? 19 A. (Nodding head.) 20 Q. Would you agree? 21 A. Yes. 22 Q. And then as far as where it came from, it 23 says "FIS Foreclosure Solutions, Inc." Do you know 24 who that is? 25 A. I don't, but I guess we now know what FIS

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1 stands for. No, I don't know. 2 Q. You never had any idea what this outfit is 3 that you are getting or you were getting information 4 from? 5 A. No, I don't. 6 Q. So tell me the mechanics. Do you go to a 7 computer? You sign on? How did you get this package 8 for the referral? 9 A. We sign into "desktop" and type in the

10 referral and get the referral up. It's imaged 11 information. And then we would download the image. 12 Q. But how did you get notified that there was 13 one coming from Reiners? 14 A. In the information queue that we talked 15 about earlier. It notifies us. We have an 16 information thing that notifies us that there's a 17 referral waiting for us. 18 Q. But I guess physically speaking, there's a 19 computer that you go to and you sign on to the 20 website, and then you get the information? Or how 21 does it notify you, I suppose, is what I'm trying to 22 get at. How do you know that there is a referral 23 coming in? 24 A. Because it comes into a queue and says 25 there is a referral.

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1 Q. And we're talking about a computer screen? 2 A. Yes. 3 Q. An e-mail system? 4 A. It's our program that we have. Maybe I 5 don't understand the question. 6 Q. So you explain to me what the mechanics and 7 what program is involved because, first of all, you 8 said this was a third-party desktop? 9 A. Yes.

10 Q. And by way of access -- 11 A. Automation, it comes into our system with 12 Northwest Trustee Services as a referral. 13 Q. And you have no idea who created the 14 system? 15 A. No, I don't. 16 Q. And you don't know -- before today you did 17 not know who FIS Foreclosure Solutions, Inc., is? 18 A. I don't know who they are specifically, no. 19 Q. So you take this referral, and then what 20 happened? 21 A. We -- our file is open. We download the 22 necessary documents that you have there. 23 Q. So this all comes by way of automated 24 Internet transmission; correct? 25 A. Yes.

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1 Q. You do not talk to a human being? 2 A. No, I do not. 3 Q. You do not make any phone calls? 4 A. No, I do not. 5 Q. Now, Exhibit 1 is the material that you 6 relied upon to commence the foreclosure in the Reiners 7 case? 8 A. Yes. 9 Q. And so I'm going to ask you to specifically

10 go through the information here. So this is dated 11 April 5, 2009? 12 A. Yes. 13 Q. Would that be the date? 14 MR. KAYSER: Is this the package that Heidi 15 produced earlier? 16 MS. MORRISON: It is. 17 MR. KAYSER: If you wouldn't mind -- these 18 are Bates-stamped, aren't they? 19 MS. MORRISON: Yes. 20 MR. KAYSER: Would you mind just referring 21 to the Bates number so I can follow along here? 22 MS. DAO: Chris, can you announce yourself 23 so you can be part of this for the court reporter? 24 MR. KAYSER: Oh, you know, I don't think I 25 have made my appearance yet. Maybe during this brief




5 (Pages 17 to 20)

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1 break maybe we should -- I'm assuming I know who is 2 there, but not being there it would be helpful. This 3 is Chris Kayser. I'm an attorney attending the 4 deposition by phone. I'm the attorney for One West in 5 this matter. 6 MS. MORRISON: I'm Heidi Buck Morrison, and 7 I represent Northwest Trustee Services in this matter. 8 MS. DAO: Ha Dao on behalf of the plaintiff 9 here, Janet Reiner, who is with me.

10 MS. MORRISON: And Vonnie McElligott, who 11 is the deponent, an employee of Northwest Trustee 12 Services. 13 MS. DAO: So the Bates stamp is down here, 14 VMD 1. 15 MS. MORRISON: So it would be VMD 1. 16 MS. DAO: Through -- 17 THE WITNESS: But I took them out of order. 18 MS. DAO: Right. 19 MS. MORRISON: So 1 through 2 and 10 20 through 17. 21 MS. DAO: You got it, Chris? 22 MR. KAYSER: Yeah. Thank you. 23 Q. (By Ms. Dao) So let me go back to Exhibit 24 1. The information that you use from Exhibit 1, can 25 you tell me what it means by "mortgage currently held

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1 by" and "foreclosure should be in the name of"? 2 MS. MORRISON: Object to the extent that 3 you are asking her to make any sort of legal 4 conclusion. 5 MS. DAO: I'm not asking her to make any 6 legal conclusion. I'm just asking her her 7 understanding. She just said that she relied on this 8 information. 9 So answer if you can.

10 A. That we would do the foreclosure in the 11 name of IndyMac Federal Bank FSB. 12 Q. And "mortgage currently held by," what is 13 your understanding of that? 14 A. I would assume they are the holder of the 15 note. 16 Q. You assume? 17 A. (Nodding head.) 18 Q. You do not know for a fact? 19 A. I do not know for a fact. 20 Q. And then also, the directive here is that 21 you open the case or you open the foreclosure file? 22 "Please open an 'action in the name of' issue in FIS 23 Process Management." 24 A. Oh, that's asking you to open a request. 25 You open a name action in the name of. It's a request

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1 to be told who you're going to do the action in the 2 name of if you don't already have it up here. I mean, 3 who are you going to foreclose in the name of. 4 Q. And in this case you were directed to -- or 5 Northwest was directed to foreclose in the name of 6 IndyMac? 7 A. Yes. 8 Q. Federal Bank? 9 A. FSB.

10 Q. Do you have any idea at the time -- let me 11 back up and ask you this question: Were you involved 12 in opening the file at all? 13 A. I do not know. 14 Q. So by me asking you questions regarding 15 Exhibit 1, are you speaking from your personal 16 knowledge, or are you guessing or are you -- you are 17 familiar with Exhibit 1? 18 A. Yes. 19 Q. You've seen it before? 20 A. Yes. 21 Q. And is it your testimony that Northwest 22 actually relied on Exhibit 1 to start the foreclosure 23 process on the Reiners' property? 24 A. Yes. 25 Q. Do you have any knowledge whether IndyMac

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1 Federal Bank was in existence as of April 5, 2009? 2 A. I don't understand the question. 3 Q. Do you have any knowledge whether IndyMac 4 Federal Bank, as an entity, existed on the date of 5 this transmittal? 6 A. Yes. 7 Q. What is -- 8 A. Our foreclosure came and we are supposed to 9 foreclose in their name.

10 Q. So that's all you did? You don't know for 11 a fact whether the entity was in existence at the 12 time? 13 A. No. 14 Q. Okay. So you don't know. The answer is 15 you don't know? 16 A. Correct. 17 Q. And then after you get the transmittal -- 18 let me just ask you this: Is it your understanding 19 that the transmittal come from IndyMac Federal Bank? 20 A. Yes. 21 Q. That's your understanding? 22 A. That is my understanding. 23 Q. And the directives here are from IndyMac 24 Federal Bank? 25 A. Yes.




6 (Pages 21 to 24)

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1 Q. What capacity are they to Northwest? 2 A. They are a servicer that sends referrals to 3 our service. 4 Q. So is Northwest an agent of IndyMac Federal 5 Bank? 6 A. We issue the notice of default as an agent. 7 Q. And when did you become the trustee for the 8 foreclosure purposes? 9 MS. MORRISON: Chris, you might want to put

10 yourself on mute. 11 MR. KAYSER: Sorry about that. Were you 12 hearing the horns in the background? 13 MS. MORRISON: Yes. 14 A. The appointment was a record 5-19 of '09. 15 Q. And what document were you referring to 16 when you gave me that information? 17 A. Page 84. 18 (Marked for identification Exhibit 2.)19 Q. This is VMD 84. It's the appointment of 20 successor trustee dated May 7, 2009? 21 A. Yes. 22 MS. MORRISON: Can I just ask a question? 23 Did you refer to it based on the execution date or the 24 recording date? 25 MS. DAO: The execution date.

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1 THE WITNESS: I said the recording date is 2 right here (indicating). 3 MS. DAO: Oh, okay. 4 MS. MORRISON: It becomes effective as of 5 the recording date. That might make more sense to 6 refer to it based on the recording date. 7 Q. (By Ms. Dao) What was the date that you 8 referred to? 9 A. I referred to this date. The 5-19-09 is

10 the date it became of record. 11 Q. Prior to that date, what was Northwest 12 Trustee capacity? 13 A. We issued the notice of default as an 14 agent. 15 Q. And then as of the recorded -- as of the 16 recording of the appointment of successor trustee, 17 what changed, if anything? 18 A. We're of record as the trustee, the current 19 trustee. 20 Q. When you spoke of the agency relationship 21 with the servicer -- in this case it's IndyMac Federal 22 Bank -- is there a document that speaks of that 23 relationship? 24 A. No. 25 Q. So what authority did Northwest Trustee

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1 have to act as an agent for IndyMac Federal? 2 MS. MORRISON: Object to the extent that 3 you're asking her to form any sort of legal conclusion 4 or do legal analysis. She can answer to the extent 5 that she knows. 6 A. Our notice of defaults have always been 7 issued as an agent. 8 Q. But you don't know of any document that 9 evidences that relationship?

10 A. No, I do not. 11 Q. Do you have any idea how Northwest Trustee 12 gets paid as the agent for IndyMac Federal in this 13 case? 14 A. Could you be more specific? 15 Q. Northwest Trustee gets compensated for -- 16 A. We would invoice them. 17 Q. And to the best of your knowledge, were 18 there invoices going to IndyMac Federal? 19 A. We invoice when the file is closed. So we 20 would have invoiced them when we were told to close 21 the file. 22 Q. And in this case when did you close the 23 file? 24 A. I don't have a specific date. At least 25 nothing in here that gives me that.

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1 Q. In the stuff that -- in the material that 2 you brought today were there any invoices? 3 A. No. 4 Q. And how -- what is the basis of the 5 invoice? 6 A. (No response.) 7 Q. Hourly rate? 8 A. It's a flat fee. 9 Q. What is that flat fee?

10 A. I don't recall what it was on this -- 11 actually, 508. 12 Q. Five hundred eight dollars? 13 A. Uh-huh. 14 Q. What were you reading off of? 15 A. The notice of default. 16 Q. Let the record reflect that the witness was 17 reading the notice of default dated April 7, 2009. 18 A. Correct. 19 Q. And the item that you referred to is listed 20 on the notice of default as? 21 A. Trustee fee. 22 Q. Trustee's fee. 23 (Marked for identification Exhibit 3.) 24 Q. I'm handing you what has been marked as 25 Exhibit 3. That's VMD 85 through 87. Can you review




7 (Pages 25 to 28)

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1 Exhibit 3 and tell me the identification of the 2 beneficiary, if there is one. 3 A. I don't see that specified. 4 Q. So did Exhibit 3 make it to Ms. Reiner, 5 meaning was it transmitted to her? 6 A. Certified regular and posted to the 7 property. 8 Q. So through several methods? 9 A. Correct.

10 Q. And is it your testimony that Exhibit 3 11 did, in fact, get transmitted to her? 12 A. Yes. 13 Q. And how do you know that? 14 A. I have an affidavit of mailing and an 15 affidavit of posting. 16 Q. Did you bring that with you? 17 A. No. 18 Q. And you also referred to another 19 transmittal package in 2010? 20 A. Yes. 21 Q. Could you locate that for me? 22 A. (Handing.) 23 Q. This is VMD 92, 93, and then 96 through 24 106. Let me ask you, were they -- these pages come 25 together in the transmittal package because I notice

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1 your Bates stamps are out of order. 2 A. This comes as a referral and then these 3 come as screen shots, or screen prints (indicating). 4 MS. MORRISON: Just let me say the order of 5 the documents was based on how I gathered them. 6 MS. DAO: Okay. All right. 7 Q. So, I'm sorry, the transmittal pages came 8 -- 9 A. These come as one image, and these come as

10 a separate image (indicating). 11 Q. Did they come at the same time? 12 A. To the best of my knowledge. 13 (Marked for identification Exhibit 4.)14 Q. Since they're not sequential I'm going to 15 break them up, and this is VMD 92 and 93. I'm going 16 to show you Exhibit 4. This transmittal -- this 17 foreclosure transmittal package, you indicated, came 18 in 2010? 19 A. Yes. 20 Q. And it has a heading of LPS? 21 A. Yes. 22 Q. What is that? 23 A. It's the same system that we used that is 24 named something there. I think they just did a name 25 change.

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1 Q. It's the same computer system? 2 A. It's the same vendor site, yes. 3 Q. And you don't know for a fact whether they 4 changed name. You're just guessing? 5 A. Correct. 6 Q. Have you ever talked to anybody at Lender 7 Processing Services or LPS? 8 A. Yes. 9 Q. Do you recall their names?

10 A. No. 11 Q. Are you still talking to them today? 12 A. Yes. 13 Q. So you're still using the system with LPS? 14 A. Yes. 15 Q. Now, in Exhibit 4, is it the same scenario 16 where you receive the information via computer and 17 automated information and not by way of mail or a 18 human being calling you and telling you? 19 A. Correct. 20 Q. And again, did you rely on Exhibit 4 to 21 process the foreclosure of the Reiners' property? 22 A. Along with the screen shots, yes. 23 MS. DAO: And so I'm going to have this 24 marked as 5. 25 (Marked for identification Exhibit 5.)

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1 Q. Showing you 5, which you referred to as 2 screen shots, can you explain to me what the screen 3 shots are? 4 A. This particular one tells us if there were 5 any payment changes. This one we use -- sorry, I 6 should be more specific. PCH 2 tells us about payment 7 changes. 8 Q. What's PCH 2 mean? 9 A. I don't know the acronym specifically. It

10 has to do with payment changes. 11 Q. Payment as in mortgage payments? 12 A. Correct. 13 Q. And changes from what? 14 A. If there was a change to the payment 15 amount. 16 Q. For what period of time? 17 A. They are reflecting 11-1-09 to the referral 18 date. 19 Q. And there's another portion of Exhibit 5. 20 So, I'm sorry, so PCH 2 refers to changes in the 21 payment? 22 A. Correct. 23 Q. If any? 24 A. Yes. 25 Q. And then what else do the screen shots show




8 (Pages 29 to 32)

Page 29

1 you? 2 A. We look at MSA 1 to verify the investor. 3 Q. MAH 1? 4 A. MAS 1. 5 Q. And you don't know the acronym either? 6 A. I do not. 7 Q. And it refers to the investor? 8 A. Correct. 9 Q. And who is that?

10 A. Federal Home Loan Mortgage Corp. 11 Q. And that's also known as Freddie Mac? 12 A. Correct. 13 Q. And let me just stop and ask you, what is 14 an investor? 15 MS. MORRISON: Objection to the extent that 16 you're asking her to make any sort of legal 17 determination. She can answer to the extent she 18 knows. 19 Q. What is your understanding of what an 20 investor is? 21 A. They are the owner of the note. 22 Q. And in this case it's Freddie Mac? 23 A. Correct. 24 Q. And what else do the screen shots reveal? 25 A. We use the pay 4 screen because it gives

Page 30

1 payoff information, and we use the DLQ 1 screen 2 because it gives us all of the default information. 3 And we use the pay 1 screen because it gives us 4 additional addresses other than the property. 5 Q. So you use the information as transmitted 6 by LPS in order to prepare your foreclosure? 7 A. Yes. 8 Q. On the first page, or one of the two pages 9 of the referral, it talks about -- I'm sorry. On this

10 page it shows that the addressee is also Routh 11 Crabtree? 12 A. Correct. 13 Q. As you sit here today, are these referrals 14 still being made to the law firm and not to Northwest 15 directly? 16 A. Some of them, yes. 17 Q. What would be the difference? 18 A. The way that the lender has set it up in 19 their system to refer down to our office. 20 Q. But in terms of -- in terms of Freddie Mac 21 portfolio, is it your testimony that it has always 22 been referred through the law firm and not directly to 23 Northwest? 24 A. It doesn't go through the law firm. It 25 comes directly to Northwest. The name on this

Page 31

1 (indicating) is Routh Crabtree Olsen, but the referral 2 always comes to Northwest. 3 Q. The access information, in order to get on 4 to the system, do you have to log on? 5 A. Yes. 6 Q. And the access information was provided by 7 who? 8 A. LPS. 9 Q. And so back in '09, who would provide that?

10 A. LP -- I'm assuming -- we've always -- I 11 don't know how long we've called it LPS. We always 12 refer to it as "desktop." 13 Q. And is it your understanding that either 14 desktop -- desktop and LPS is one and the same? 15 A. I don't know. 16 Q. You don't know, okay. And this time, on 17 this transmittal package, it has One West Bank? 18 A. Yes. 19 Q. FSB? 20 A. Correct. 21 Q. And what is your understanding in looking 22 at Exhibit 4 of the role of One West Bank? 23 A. That they are the servicer. 24 Q. Okay. And that's different than the note 25 owner?

Page 32

1 A. Correct. 2 Q. So One West would be the servicer and 3 Freddie would be the owner? 4 A. Correct. 5 Q. Is it your testimony the ownership that 6 you're referring to is the ownership of the note 7 specifically? 8 A. I don't know. 9 Q. So when you spoke of ownership, what are

10 you referring to? 11 A. Being the owner of the loan. 12 Q. What's the difference between the loan and 13 the note? 14 A. I don't know. 15 Q. Okay. So is it fair to say that when you 16 say "ownership" you really don't know? 17 A. I own my home. I don't know. I'm not -- 18 do you want to be more specific? 19 Q. Yes. I'd like to get at your testimony 20 that there are different references; right? 21 A. (Nodding head.) 22 Q. One of them is an investor, and you 23 testified that Freddie Mac would be the investor? 24 A. Correct. 25 Q. And your understanding of the investor, as




9 (Pages 33 to 36)

Page 33

1 that term referred to, is an equivalent of ownership? 2 A. Yes. That is my understanding. 3 Q. And so I'm asking you, in believing that, 4 what does it mean to you to have ownership by Freddie 5 Mac? 6 A. I don't have an answer for that. 7 Q. How did you form that belief, though? How 8 did you arrive at the conclusion that Freddie Mac is 9 the owner?

10 A. That is how I have been advised. 11 Q. By whom? 12 A. By my counsel. 13 Q. And who is that? 14 A. Routh Crabtree Olsen. 15 Q. And that advice pertains to this case or -- 16 MS. MORRISON: Object to the extent that 17 you're asking about attorney-client communications. 18 Those are privileged. I'm still going to put the 19 objection on the record. 20 MS. DAO: It's not privileged because 21 you're referring to a fact. 22 MS. MORRISON: So you don't have to reveal 23 any communication between what -- you and your 24 counsel. So to the extent she asks you to reveal 25 anything that you talked about with your counsel, you

Page 34

1 don't reveal that. 2 Q. Let me repeat the question. As far as your 3 understanding that Freddie Mac is the owner or that 4 Freddie Mac has ownership, that's what you've been 5 told? 6 A. Correct. 7 Q. You do not know for a fact? 8 A. I do not know for a fact. 9 Q. And then in terms of One West Bank being a

10 servicer, what is your understanding of the role of a 11 servicer? 12 A. They're collecting the funds on behalf of 13 Freddie Mac. 14 Q. And who, in this case, does Northwest work 15 for, meaning who is the principal? 16 MS. MORRISON: Objection. You're asking 17 her to make a legal conclusion. 18 Q. Who is your client? Who is Northwest's 19 client? 20 A. I don't have an answer for that. 21 Q. And why not? 22 A. We don't often refer to them as "client" 23 per se. 24 Q. All right. So I'm trying really hard to 25 understand the interrelationships of all these

Page 35

1 entities as you can see. So you help me out. Who 2 pays the invoices? 3 A. One West would have paid our invoice. 4 Q. And then in 2009 who would have been the 5 person or entity that paid the invoices submitted by 6 Northwest? 7 A. IndyMac would have paid our invoice. 8 Q. You're guessing? 9 A. I am.

10 Q. You don't have any invoices? You don't 11 have any payments? 12 A. Correct. 13 Q. Now, after you received the transmittal 14 package and the screen shots on Exhibit 4 and 5, do 15 you receive updates as far as payments being made in 16 the loan? 17 A. They would notify us if a payment was made 18 on the loan during the foreclosure process. 19 Q. And what would these payments be, for 20 example? 21 A. I don't know. 22 Q. But you would be informed? 23 A. Yes. 24 Q. In this case with the Reiners' property, 25 were you informed of any kind of a loan modification

Page 36

1 process? 2 A. I don't recall. 3 Q. Were you informed of any payments being 4 made? 5 A. Not that I'm aware of. 6 Q. And with regards to procedures, if Ms. 7 Reiner had the funds to reinstate, where would she go? 8 A. She would either contact our office or 9 connect the lender directly.

10 Q. And is that the -- and let's say that the 11 borrower contacts your -- Northwest. Where would you 12 get the information for them to reinstate? 13 A. We would request it through the LPS desktop 14 system and it would be provided to us. 15 Q. And how soon would that occur? 16 A. We tell people two to five days, but it 17 just depends on how quickly we get the information 18 back. 19 Q. I know I asked you this, but did you bring 20 the resolution that allows you authority to sign as 21 assistant VP for Northwest? 22 A. (Handing.) 23 MS. DAO: Is this in any chronological 24 order? 25 MS. MORRISON: Uh-huh.




10 (Pages 37 to 40)

Page 37

1 MS. DAO: So the most recent one is on top? 2 MS. MORRISON: Correct. 3 Q. All right. So it appears to me that the 4 stack of documents you have provided me here, VMD 167 5 -- I don't know how many pages are here -- are 6 shareholder actions and minutes of special actions by 7 the board of directors for the company. Or do you 8 even know what it is? 9 A. I only briefly looked at them.

10 (Marked for identification Exhibit 6.) 11 Q. Okay. All right. I'm going to show you 12 Exhibit 6, which is entitled "Supplemental Action By 13 Written Consent of the Board of Directors of Northwest 14 Trustee Services." And it has a specimen of your 15 signature. I just want you to make sure that you see 16 that and tell me if that's correct. 17 A. Yes. 18 Q. And for the date, can you tell me the date 19 on that? It should be on the -- 20 A. April 26, 2011. 21 Q. When you look at the specimen of your 22 signature on there, is it in fact your signature or a 23 copy of your signature? 24 A. It would have been my original signature. 25 Q. Original --

Page 38

1 A. This is a copy. 2 Q. But that is your signature? 3 A. Yes. 4 Q. And in that document you signed your name 5 as "Yvonne McElligott." Is that correct? 6 A. Yes, it is. 7 Q. And so is it safe to assume that for the 8 year of 2011 this is how you signed it under the 9 authority of Northwest Trustee?

10 A. No. 11 Q. Is there a reason for why you didn't sign 12 as your specimen? 13 A. There is no reason. 14 Q. Can I see your driver's license, please, so 15 I can see what your signature looks like? 16 MS. MORRISON: I'm just going to object. 17 If you want her to do a signature here -- 18 MS. DAO: No. 19 MS. MORRISON: -- she's happy to do that. 20 MS. DAO: I want to see her signature on an 21 official document. I mean, there's no secret or 22 protection as to that. 23 MS. MORRISON: To the extent -- I don't 24 think she wants her driver's license to be made an 25 exhibit.

Page 39

1 MS. DAO: I'm not making it as an exhibit. 2 I just asked for her to show it to me. 3 MS. MORRISON: Okay. 4 THE WITNESS: (Handing.) 5 MS. DAO: So let it be reflected that Ms. 6 McElligott signs her name on the driver license -- on 7 Washington driver license -- as "Yvonne McElligott." 8 Q. Have you ever been arrested or charged with 9 a crime?

10 A. No. 11 Q. Have you ever been sued? 12 A. Not that I'm aware of. 13 Q. Never been sued for anything? 14 A. Not that I recall, no. 15 Q. You've never been sued in your capacity as 16 an employee for Northwest Trustee? 17 A. Not that I'm aware of. 18 (Marked for identification Exhibit 7.) 19 Q. I'm going to show you what has been marked 20 as Exhibit 7, and it's "Action By Written Consent of 21 Shareholder and Directors of Northwest Trustee 22 Services" as of March 1st, 2012. 23 And I will represent that apparently there 24 is a signature specimen of yours as well on this 25 document. Can you verify that for me?

Page 40

1 A. Yes. 2 Q. And in Exhibit 6, how did you sign your 3 name? 4 A. You mean that one (indicating)? 5 Q. I'm sorry, this one, seven. I'm sorry, 6 seven. 7 A. "Vonnie McElligott." 8 Q. Is there a reason why? 9 A. That's my name.

10 Q. I'm sorry? 11 A. That's my name. 12 Q. No, no. I guess my question is, is there a 13 reason for you signing as "Yvonne McElligott" as 14 opposed to "Vonnie McElligott"? 15 A. No. 16 Q. So when you -- do you recall signing the -- 17 putting -- placing your signature on that document? 18 A. Specifically recall? I mean, it is my 19 signature. I did sign it. 20 Q. So the title of assistant VP is pertaining 21 to the authority to sign. You are not being 22 compensated as an assistant VP? 23 A. No. 24 Q. And do you function as an assistant VP for 25 Northwest Trustee?




11 (Pages 41 to 44)

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1 A. Function? 2 Q. Anything more than your day-to-day...3 A. No. 4 Q. Go to board meetings? 5 A. No. 6 Q. Vote on their shares and matters of 7 corporate importance? 8 A. No. 9 Q. You said that you supervise a team of 10

10 people? 11 A. Yes. 12 Q. How many assistant VP's in your team? 13 A. None. 14 Q. Were you ever acting as notary public? 15 A. Yes. 16 Q. For whom did you act as notary public? 17 A. For myself. 18 Q. Did you work for a company at the time that 19 you were notary public? 20 A. Yes. 21 Q. Who did you work for? 22 A. Northwest -- whatever they might have been 23 named. It was so long ago we could have had a 24 different name at that time. North Pacific. 25 Q. And did you use your notary seal to sign

Page 42

1 for the company? 2 A. I used my notary seal to notarize 3 signatures. 4 Q. Did you do that in conjunction or in 5 connection with your work for Northwest Trustee? 6 A. Yes. 7 Q. Do you remember the period of time that you 8 did that? 9 A. I don't. It was -- I think it ended in

10 '05, '04 -- or, actually, it might have been earlier 11 than that. It was before I got married, so '03, '02. 12 Q. You're not sure? 13 A. No, I'm not sure. 14 Q. Do you recall whose signatures you 15 notarized on behalf of Northwest Trustee? 16 A. Not specifically, no. 17 Q. Besides your job at Northwest Trustee, are 18 you employed by anyone else? 19 A. No. 20 Q. During this period of time of this case, 21 2009, 2010, 2011, and 2012, were you ever employed by 22 another entity? 23 A. No. 24 Q. Do you know who Mortgage Electronic 25 Registration System, Inc. is?

Page 43

1 A. Yes. 2 Q. Do you? 3 A. Yeah. 4 Q. Who are they? 5 A. They're a named entity. I don't have any 6 detail. 7 Q. Have you ever worked for them? 8 A. No. 9 Q. Have you ever acted as a corporate officer

10 for them? 11 A. I don't know what the third party -- I 12 don't know what it says. 13 Q. I'm sorry, what was your answer? 14 A. The third -- I don't know. 15 Q. My question is, did you ever work for MERS? 16 A. I did not work for MERS. 17 Q. Did you ever sign your name as a corporate 18 officer of MERS? 19 A. I don't know. 20 Q. What do you mean you don't know? You 21 either did or did not. 22 A. I don't know what the resolutions say. I 23 don't know. 24 Q. Are you referring to another set of 25 resolution?

Page 44

1 A. The MERS third-party agreements. 2 Q. What are those, if you can explain to me? 3 A. I really can't. 4 Q. So you don't know whether you signed on 5 behalf of MERS? 6 A. I don't know if I signed as a corporate 7 officer, I believe you asked me. 8 Q. Okay. But, so, let me ask you this: Did 9 you sign anything on behalf of MERS?

10 A. Yes. 11 Q. What would it be? 12 A. Assignments and appointments. No, not 13 appointments. Assignments. 14 Q. Assignments of deed of trust? 15 A. Correct. 16 Q. In foreclosure cases -- 17 A. Yes. 18 Q. -- that Northwest Trustee is involved in? 19 A. Yes. 20 Q. Under what circumstances were you signing 21 for MERS? 22 A. When we had a third-party agreement. 23 Q. Is there a third-party agreement for you to 24 sign on behalf of MERS? 25 A. No.




12 (Pages 45 to 48)

Page 45

1 Q. That you know of? 2 A. No, no longer. 3 Q. "No longer," as in it was in the past? 4 A. Correct. 5 Q. Do you know when? 6 A. I don't have specific dates for you, no. 7 Q. Why were there occasions for you to sign on 8 behalf of MERS when you did not work for them and 9 you're not their corporate officer?

10 A. I don't know what I was with my signing 11 authority specifically. It's been years. I don't 12 recall. 13 Q. So maybe I can get some of the documents 14 and show you later. I asked you whether there is a 15 written contract between Northwest Trustee and IndyMac 16 Federal Bank, and you said to the best of your 17 knowledge no? 18 A. I don't recall that question. 19 Q. So let me ask you again. To the best of 20 your knowledge, is there a written contract between 21 Northwest Trustee and IndyMac Federal Bank -- 22 A. I don't know. 23 Q. -- in relation to the Reiner case? 24 A. I don't know. 25 Q. Is there a contract between Northwest

Page 46

1 Trustee and MERS? 2 A. Not that I'm aware of. 3 Q. Is there a contract between Northwest 4 Trustee and American Mortgage Network, Inc., who is 5 the original lender in this case? 6 A. I have no idea. 7 Q. You don't -- 8 A. I don't know. 9 Q. You don't know. What about a contract

10 between Northwest Trustee and One West Bank? 11 A. I don't know. 12 Q. How about a contract with Federal Home 13 Loans Corporation or Freddie Mac? 14 A. I don't know. 15 (Marked for identification Exhibit 8.) 16 Q. I am going to show you what has been marked 17 as Exhibit 8. 18 MS. DAO: And Chris, this is the amended 19 response and objection to subpoena duces tecum and 20 subpoena for deposition. 21 MS. MORRISON: Which you do not have, 22 Chris. 23 Q. Ms. McElligott, did you have a chance to 24 review the exhibit that I just handed you? 25 A. Yes.

Page 47

1 Q. And are you -- so you reviewed it carefully 2 with your counsel -- not with your counsel -- with Ms. 3 Buck Morrison? 4 A. Yes. 5 Q. And who prepared the document? 6 A. I don't know. 7 MS. MORRISON: Object to the -- if you're 8 asking her to reveal anything that's protected by 9 attorney-client privilege.

10 MS. DAO: Are you her attorney? 11 MS. MORRISON: Yes. 12 MS. DAO: Okay. Well, I just need to know 13 that. So, I'm just asking about the documents. I'm 14 not going behind it. 15 MS. MORRISON: I'm still going to put my 16 objection on the record. 17 Q. My question is: Did you review the 18 contents of Exhibit 8 with your lawyer? 19 A. Yes. 20 Q. And are you standing by these 21 representations in Exhibit 8? 22 A. Yes. 23 Q. No change? This is the amended you're 24 standing by? 25 A. (Nodding head.)

Page 48

1 Q. You have to say -- 2 A. Yes. Sorry. 3 MS. DAO: Thank you. This is a real long 4 session, so I think I'm going to take 10-minutes 5 break. 6 (Off the record from 2:04 p.m. to 2:27 7 p.m.) 8 Q. Ms. McElligott, before the break I was 9 asking as to whether you have signed on behalf of MERS

10 before. And your answer was that you did it? 11 A. Yes. 12 Q. But no longer? 13 A. Correct. 14 Q. Can you tell me why? 15 A. We no longer have signing authority to sign 16 on behalf of MERS. 17 Q. Do you currently have authority to sign for 18 any other entity besides Northwest Trustee? 19 A. I have power of attorney to sign for two 20 other lenders. 21 Q. Who are they? 22 A. Bank of America and Wells Fargo. 23 Q. And I'm sorry, did you tell me the time 24 that you stopped signing for MERS? 25 A. I did not.




13 (Pages 49 to 52)

Page 49

1 Q. Do you know approximately the time? 2 A. I don't specifically know when. 3 Q. Do you recall how many of these assignments 4 of deed of trust you've signed on behalf of MERS? 5 A. No, I don't. 6 MS. DAO: Have this marked. 7 (Marked for identification Exhibit 9.)8 Q. I will show you the original certified -- 9 or the certified copy, I should say, not original.

10 And I will represent to you that the Exhibit 9 as 11 marked is a true and copy of that certified copy from 12 the court. 13 Can you take a look and tell me if that 14 looks familiar to you? 15 A. Yes. 16 Q. And so in Exhibit 9 you did sign as 17 vice-president for MERS? 18 A. Yes. 19 Q. Correct? Do you remember the circumstances 20 in which you signed as vice-president in this case for 21 MERS? 22 A. I don't understand the question. 23 Q. Do you recall the circumstances that led 24 you to sign as vice-president for MERS in that 25 particular document?

Page 50

1 A. (No response.) 2 Q. The reasons, the needs, who told you? 3 A. I assume that we would have signed on 4 behalf of MERS to assign out of MERS into Chase Home 5 Finance, LLC. 6 Q. To get -- to sign it out of MERS, what do 7 you mean by that? 8 A. To record an assignment publicly from MERS 9 to Chase Finance.

10 Q. To get the original deed out of MERS' name? 11 A. To assign the beneficial interest, yes. 12 Q. What is the beneficial interest? 13 MS. MORRISON: Object to the extent you're 14 asking her to form a legal conclusion. 15 Q. You just told me that you signed to assign 16 the beneficial interest. I just want to know what 17 that interest is. 18 A. The beneficiary on the deed of trust. 19 Q. And on Exhibit 9, do you believe that you 20 have the authority to do that? 21 A. I was advised I have the authority to do 22 that. 23 Q. Advised by whom? 24 A. By my third-party agreement to do so on 25 behalf of MERS and Chase.

Page 51

1 Q. And you're referring to a document that's 2 not present here today? 3 A. Correct. 4 Q. Okay. And if you could locate that you can 5 provide it to me. Is it your testimony that there's 6 such a document? 7 A. Yes. 8 Q. The third party? 9 A. Yes.

10 Q. Okay. Your team deals with Freddie Mac 11 portfolio loans only? 12 A. Yes. 13 (Marked for identification Exhibit 10.) 14 Q. I'll show you 10, which is a copy of the 15 certified copy. Can you take a look at 10 for me, 16 please, particularly on the last page where your 17 signature appears. Do you see that? 18 A. Yes, I see that. 19 Q. The exhibit is a notice of trustee sales in 20 another case unrelated. What is the effective date of 21 the notice of trustee sales as you signed it? 22 A. 7-22-07. 23 Q. Do you see the notary declaration down 24 below? 25 A. Yes.

Page 52

1 Q. What date is that? 2 A. 7-19-07. 3 Q. Why is that? Can you explain? 4 A. The effective date -- just a second. Let 5 me look. The effective date is 31 days after the 6 notice of default. So that would have been the date 7 that the document itself was effective. 8 Q. But your signature was notarized on what 9 day?

10 A. July 19, '07. 11 Q. Why does that not reflect your signing 12 date? 13 A. That is the date I signed this document. 14 Q. So you signed before a notary public with 15 effective date ahead of time? 16 A. We drafted this document, and the document 17 does not go out until after its effective date. And I 18 signed the document on July 19 of '07. And it 19 wouldn't go out of our office until after that 20 effective date. 21 Q. Like what date would that be? 22 A. The effective date? 23 Q. I'm sorry. So you're signing on the 19th, 24 but the document would not go out until the 22nd? 25 A. Until the 22nd or later.




14 (Pages 53 to 56)

Page 53

1 Q. Is that customarily done as far as the 2 documents being prepared ahead of time? 3 A. No longer. Back then, yes. 4 Q. Back when? 5 A. In '07. 6 Q. And when did that practice end? 7 A. When volume became too high to be able to 8 be that efficient. 9 Q. So what would it show now? Is that your

10 signature? The effective date is the same date that 11 you sign? 12 A. The effective date would be the date that 13 the document was drafted. My signature would be 14 either that day or afterwards. 15 Q. Now, when you sign, I presume that you sign 16 all this sitting in your office? 17 A. At my desk, yes. 18 Q. And the notary public is someone who also 19 works for Northwest Trustee? 20 A. Correct. 21 Q. Is she present in every document signing? 22 A. Yes. 23 Q. So tell me the mechanics of that. How do 24 you guys do that? 25 A. I will either have a notary at my desk or I

Page 54

1 will be at my notary's desk. 2 (Marked for identification Exhibit 11.) 3 Q. This is 11, and it's a copy of the 4 certified copy. And this is also a notice of trustee 5 sales that was prepared by you, apparently. Would you 6 agree? 7 A. Prepared by me? 8 Q. I don't know. Was it prepared by you? 9 A. I don't know.

10 Q. Was it signed by you? 11 A. Yes. 12 Q. What is the effective date on the document? 13 A. January 2 of '09. 14 Q. When was the notary declaration and -- 15 A. My signature and the notarization was the 16 next day, January 3rd of '09. 17 Q. So in this particular situation the 18 effective date was before you signed? 19 A. The effective date is usually the date of 20 the document itself or the date that it will be able 21 to go out of our office. So this document was drawn 22 on the 2nd, and I did not sign it until the next day. 23 Q. Is that one of the examples that you speak 24 of where you're no longer that efficient where you 25 have days ahead --

Page 55

1 A. Yes. 2 Q. -- in terms of preparing the documents? 3 A. Yes. 4 Q. Who in your team prepared these notices of 5 trustee sales? 6 A. I don't know. 7 Q. They just presented them to you to sign? 8 A. Back then I don't know who would have 9 prepared it.

10 Q. Who does it now? 11 A. I have three to five people who prepare 12 notices at this time. 13 Q. And then in signing it, what do you do? Do 14 you review the information on the notice of trustee 15 sales? 16 A. Briefly. 17 Q. How briefly? 18 A. Very briefly. 19 Q. Time-wise? 20 A. A cursory look over the document with some 21 cross-checking against the system. Maybe three 22 minutes. 23 Q. What do you look for when you do this 24 cursory check? 25 A. Basic information, recording numbers,

Page 56

1 assignment information, dates. 2 Q. Dates of? 3 A. Make sure there's -- the sale date is a 4 legitimate date. 5 Q. What does that mean? 6 A. The sale date? 7 Q. Yeah. Legitimate as in? 8 A. As in someone didn't -- made sure they 9 changed the date, that the sale date is an accurate

10 date. That it's in the future. That there's a sale 11 date in there at all. 12 Q. Okay. Thanks. I asked you the reason why 13 your signature varies, and you said none. Or is there 14 a reason for why you sign as "Yvonne" sometimes, 15 "Vonnie" sometimes? 16 A. I always sign as "Vonnie" with the 17 exception of what you had in that one where I signed 18 as "Yvonne." 19 Q. Do you sign differently when you sign in 20 your capacity as an employee for Northwest? 21 A. I always sign as "Vonnie" with that one 22 exception, that I'm aware of. 23 Q. And when I ask you about your notary 24 activities you said that it ceased -- the activity 25 ceased --




15 (Pages 57 to 60)

Page 57

1 A. '03, '04, '05 at the latest. 2 (Marked for identification Exhibit 12.) 3 Q. Showing you No. 12, which I will represent 4 to you, it's a copy of an appointment of successor 5 trustee. Here's a certified copy. I'd like for you 6 to look at the document. It shows that you notarized 7 the signature of someone by the name of Lance E. 8 Olsen? 9 A. Correct.

10 Q. Do you see that? 11 A. Yes. 12 Q. And it looks to me that this document was 13 relating to your employment with Northwest Trustee. 14 Is that true? 15 A. I am notarizing there. 16 Q. You're notarizing -- you were notarizing 17 the signature of someone who is not an employee of 18 Northwest Trustee? 19 A. I don't know. 20 Q. Do you know who this person -- 21 A. Lance Olsen, yes, I do. 22 Q. And who is that? 23 A. Lance Olsen is the managing partner of 24 Routh Crabtree Olsen. 25 Q. So he's the lawyer at the firm?

Page 58

1 A. Yes. 2 Q. And he signed as attorney in fact for 3 Countrywide Home Loans; is that correct? 4 A. Yes, he did. 5 Q. And the document was being returned to you 6 after it recorded? 7 A. Yes. 8 Q. And this was done in -- when? What time 9 frame?

10 A. In '09. So I'm mistaken about my notary. 11 MS. MORRISON: Can we go off the record for 12 one second? 13 MS. DAO: Sure. 14 (Discussion off the record.) 15 Q. So now that you have Exhibit 12 to jog your 16 memory, you were, in fact, signing as a notary public 17 in 2008? 18 A. You are correct. 19 Q. And your appointment as notary public was 20 not expired -- was not expiring or was still in effect 21 until 2009? 22 A. Correct. 23 Q. Do you recall notarizing for anyone other 24 than Mr. Olsen? 25 A. I don't recall. I'm sure I have.

Page 59

1 (Marked for identification Exhibit 13.) 2 Q. Showing you 13, which again is a copy of 3 the certified copy. And 13 is an appointment of 4 successor trustee again, Ms. McElligott. And you 5 notarized this document, did you not? 6 A. Yes. 7 Q. And whose signature did you notarize? 8 A. Lance Olsen. 9 Q. And do you recall specifically the

10 circumstances that led you to notarize for Mr. Olsen 11 on this document? 12 A. No. 13 Q. And then in this document Mr. Olsen was 14 acting as attorney in fact for yet another servicer? 15 A. Correct. 16 Q. And who is that servicer? 17 A. CitiMortgage. 18 Q. And you notarized and signed your name 19 fully as "Yvonne McElligott"? 20 A. Yes. 21 Q. So it's not true that you were always 22 signing as "Vonnie McElligott"? 23 A. Correct. 24 (Marked for identification Exhibit 14.) 25 Q. This is 14. And again, 14 is a copy of the

Page 60

1 certified copy. And in 14 you also notarized for 2 Mr. Olsen? 3 A. Yes, I did. 4 Q. What's the date of your notary public? 5 A. My notary public? 6 Q. I'm sorry, the day that you notarized for 7 him. 8 A. 11-13-08. 9 Q. And what capacity did Mr. Olsen act in this

10 particular -- 11 A. Attorney in fact. 12 Q. For who? 13 A. Countrywide Home Loans, Inc. 14 (Marked for identification Exhibit 15.) 15 Q. This is 15. Take a moment to review 15, in 16 which I will represent that it's your own declaration 17 in support of defendant Northwest Trustee's motion for 18 summary judgment in this particular case. 19 Are you familiar with the document? 20 A. Not offhand, no. 21 Q. Can you review it? 22 A. I am. Okay. 23 Q. All right. I'm going to ask you literally 24 paragraph by paragraph of what you're declaring here 25 under penalty of perjury.




16 (Pages 61 to 64)

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1 It says that you are, as of August 27, 2 2012, the foreclosure team manager and assistant 3 vice-president for Northwest Trustee. That's correct? 4 A. Yes. 5 Q. And that you made a declaration based on 6 your own personal knowledge; is that correct? 7 A. Yes. 8 Q. In paragraph 2, where you declare that you 9 have personal knowledge of the procedures governing

10 the creation and maintenance of Northwest Trustee's 11 nonjudicial foreclosure records, what does Northwest 12 Trustee create for nonjudicial foreclosures? 13 A. Notices of default, notices of trustee 14 sale. Sometimes we will generate the appointment for 15 the lender to execute. It's client-specific. We 16 could generate their -- there's a couple of 17 declarations we could generate for them. 18 Q. Such as? 19 A. Loss mit declaration, beneficiary's 20 declaration. We may be asked to draft an assignment. 21 Q. Assignment of deed of trust? 22 A. Correct. 23 Q. What is a declaration of loss mit? 24 A. It is a declaration that they have complied 25 with the due diligence in regards to the Foreclosure

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1 Fairness Act. 2 Q. Is there such a declaration in this case? 3 A. No. 4 Q. Under what circumstances would Northwest 5 Trustee prepare that declaration of loss mit? 6 A. If it was after the date the statute took 7 effect, and then the client asked us to. 8 Q. When you said "client," is that -- 9 A. Servicer.

10 Q. So is it fair to say that the clients for 11 Northwest Trustee are the servicers? 12 A. (Nodding head). As I stated earlier, we 13 don't usually like to use the word "client," but 14 obviously, it is interchangeable because I used it. 15 Q. So in the Reiners' case is Freddie Mac a 16 client? 17 A. I don't know by definition. 18 Q. Do you consider them to be your client? 19 A. I don't know. 20 Q. You mentioned that Northwest Trustee also 21 prepares the beneficiary declaration? 22 A. (Nodding head.) 23 Q. Yes? 24 A. Yes. Sorry.25 Q. Under what -- under what circumstances

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1 would Northwest Trustee prepare a beneficiary 2 declaration? 3 A. If the lender requested us to. 4 Q. And again, lender is servicer? 5 A. Yes. 6 Q. In this case did they -- in the Reiners' 7 case, was there a request made by the servicer? 8 A. I don't know. 9 (Marked for identification Exhibit 16.)

10 MS. MORRISON: Do you need to clarify? 11 THE WITNESS: Yeah. There was a loss mit 12 declaration. That's my clarification. 13 Q. Can you pull that out?14 A. (Complying.) 15 Q. Let me just show you 16 first. What is 16? 16 A. That's the beneficiary declaration. 17 Q. Did Northwest Trustee prepare it? 18 A. It does look like our template, yes. 19 Q. Who would prepare the beneficiary 20 declaration? And I mean by the team member, a person 21 that you can identify either by title, by name. 22 A. One of my assistants would have done it. 23 Q. And who are your assistants? 24 A. Specifically I don't know which one would 25 have done this.

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1 Q. How many assistants do you have? 2 A. I have six. 3 Q. Where, if you know, where do your 4 assistants get their information to prepare the 5 beneficiary declaration? 6 A. It depends on -- some of them are -- we are 7 previously instructed to upload or we are asked to do 8 so at a later time, to prepare it and upload it to 9 them for signature.

10 Q. In the Reiners' case can you tell which 11 one? 12 A. I can't, no. 13 Q. So, let's go with the first scenario. You 14 get the information from the program again? 15 A. Yes. 16 Q. And that would be the LPS desktop? 17 A. Right. 18 Q. What does it show with regards to the 19 beneficiary designation? What would you receive? 20 A. Nothing. 21 Q. So from that system how do you cull out the 22 information to designate the beneficiary? 23 A. I don't understand your question. 24 Q. I'm confusing you. When you testified 25 earlier about the methods by which you gather the




17 (Pages 65 to 68)

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1 information to designate beneficiary, there are two 2 scenarios? 3 A. Correct. 4 Q. The first one is -- and explain to me, 5 please. 6 A. Actually, there might be three. The first 7 one is if we are asked by them to know that we have to 8 upload the document, we would draft the document and 9 upload it to them for signature. The other scenario

10 would be they need us to draft it, and they would tell 11 us at a later date, and there's a third scenario where 12 they would just provide it already drafted themselves. 13 Q. And in the Reiners' case you believed that 14 it was -- that the template looks like it's a document 15 that Northwest prepared? 16 A. Correct. 17 Q. And who is designated as the beneficiary? 18 A. The beneficiary declaration is signed by 19 One West Bank FSB. 20 Q. What date is that? 21 A. September 2nd of 2010, it looks like. 22 Q. And who signed it? 23 A. Chamagne Williams. 24 Q. Do you know who she is? 25 A. No, I do not.

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1 Q. Do you know how she came to sign the 2 document? 3 A. I do not. 4 Q. Do you know the logistics on how you get it 5 back signed like that? 6 A. No. 7 Q. So, again, if Northwest Trustee prepared 8 the form, where does it go from there? 9 A. We upload it as an image, backup to LPS,

10 and then we wait for them to return it to us. 11 Q. And in which format do they return? 12 A. Specifically for them I don't know on this 13 particular document. 14 Q. Typically how do they get returned to you? 15 A. It will either be imaged back into the 16 system and sent back to us, or a hard copy will be 17 received. 18 Q. But in looking at the exhibit you don't 19 know which way this went? 20 A. No, I do not. Correct. 21 Q. You testified that there were two -- that 22 the first foreclosure, or the first referral, I should 23 say, came from IndyMac Federal Bank? 24 A. Correct. 25 Q. In 2009?

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1 A. Yes. 2 Q. Was there a beneficiary designation or 3 beneficiary declaration at that time? 4 A. I don't believe so, no. Not that I'm aware 5 of. 6 Q. So this would be the only beneficiary 7 declaration that exists for this case? 8 A. Correct. 9 (Marked for identification Exhibit 17.)

10 Q. This is Exhibit 17. 11 MS. MORRISON: I didn't get a copy of 12 Exhibit 16. 13 MS. DAO: I'm sorry. 14 Q. 17 is -- I think you referred earlier as 15 the loss mit declaration? 16 A. Correct. 17 Q. Can you take a look at 17 and tell me 18 whether it was created by Northwest Trustee? 19 A. No, it was not. 20 Q. How can you tell? 21 A. I can tell because it doesn't have any file 22 information on it, and this is not a part of our 23 document (indicating). 24 Q. The second page, you mean? 25 A. Correct.

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1 Q. What about the first page? 2 A. The first page is standard based on the 3 statutory requirements. 4 Q. And is that just one page, the loss mit 5 declaration that you referred to? 6 A. I don't know if, necessarily, it doesn't 7 flow into two pages because of the signature page. 8 Q. There is a signature page, you're saying? 9 A. Yes.

10 Q. But you don't believe that this is a part 11 of that? 12 A. No. I don't believe this is my templated 13 form. 14 Q. So if it's not your template where could it 15 have come from? 16 A. One West or IndyMac. This is a One West 17 file (indicating). 18 Q. And how did it come into Northwest 19 possession? 20 A. Specifically I do not know. It would have 21 either been uploaded to LPS as an image or we would 22 have received it through the mail. 23 Q. So the declaration as to the beneficiary or 24 the beneficiary's agent exercising due diligence to 25 contact the borrower, as specified here on Exhibit 17,




18 (Pages 69 to 72)

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1 is not anything that your company does? 2 A. No. 3 Q. And what does that pertain to, if you know? 4 A. The Foreclosure Fairness requirements for 5 due diligence. The details I do not know. It's a 6 servicer requirement. 7 Q. And it's a requirement of the beneficiary? 8 A. (No response.) 9 Q. Or, is it your understanding, of the

10 servicer? 11 A. One West should have been complying with 12 the due diligence. 13 Q. Okay. I'm sorry. I asked, but I don't 14 know if I got the answer. How did this document, 15 Exhibit 17, come back to Northwest? 16 A. I don't know specifically on that document. 17 It would have been either through the LPS imaging or 18 through the mail. 19 Q. And is there anywhere on -- in your file or 20 record system maintained by Northwest that you can 21 verify that? 22 A. I might be able to look at how it came into 23 imaging to see for verification. It's possible. 24 Q. Is it -- with regard to Exhibit 17, when 25 you get that loss mit declaration, do you or any of

Page 70

1 your team members take any action to verify the 2 information as to whether it's true and correct? 3 A. No. 4 Q. And let's go back to Exhibit 16 with 5 regards to the beneficiary declaration. Upon receipt 6 of the -- I'm sorry. Are there any steps that you or 7 your team members or anyone in Northwest Trustee that 8 takes action to verify the accuracy of the 9 information?

10 A. No. 11 Q. So the first part of my question on 12 paragraph 2 is that -- I'm sorry. My first part -- 13 the first part of my question relating to paragraph 2 14 was for you to describe the creation, and you did 15 that. What about the maintenance of these documents? 16 Can you tell me how your company goes about 17 maintaining these documents and records? 18 A. We keep them in boxes, and then we send 19 them to storage. 20 Q. These are hard copies you're talking about? 21 A. Yes. Any hard copy that comes in our 22 office. 23 Q. Are they all maintained in hard copies, or 24 are they also maintained in electronic form? 25 A. They're all maintained in electronic form,

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1 but if a hard copy comes in it's maintained in boxes 2 and stored. 3 Q. I'm moving on to paragraph 3. And here you 4 declined -- you've declared that you have reviewed the 5 records that pertain to the Reiner nonjudicial 6 foreclosure. And you refer to business records of 7 Northwest Trustee which were made or maintained. In 8 this paragraph were you referring to the documents 9 that we were discussing, notice of default, notice of

10 trustee sales? 11 A. I would have reviewed the file at the time 12 that I signed this, yes. 13 Q. And then I want to go to the sentence that 14 starts with, "Any such document was prepared in the 15 ordinary course of business of Northwest by a person 16 who had personal knowledge of the event being 17 recorded, and had or has a business duty to record 18 accurately such event." 19 A. Where are you at? 20 Q. Second sentence of paragraph 3. 21 A. Okay. 22 Q. "Any such document was prepared." 23 A. I'm still not -- I don't even know where 24 you are still. It's all a run-on sentence. Oh, there 25 we go. Is there a question?

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1 Q. Yeah. I asked you to look at that 2 sentence. Do you see it now? 3 A. Yes, I do see it now. 4 Q. Who is this person that you're referring 5 to? 6 A. Any such person. 7 Q. Can you name any one of them for the 8 particular case here? 9 A. I would have to review our system to see --

10 if you're talking about who drafted any notice, I 11 would have to look at our system. 12 Q. So that statement was made in a generalized 13 sense? 14 A. In the fact that I could tell who generated 15 a document if I looked. 16 Q. Did you look before you made this 17 declaration? I thought you said you didn't. 18 A. No. I did not look to see who generated 19 documents. 20 Q. So that statement is basically -- you made 21 it without identifying who the person or persons -- 22 A. I did not identify persons. 23 Q. And as you sit here, you don't know who 24 that person or persons are? 25 A. Specifically at this moment, no.




19 (Pages 73 to 76)

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1 Q. And then I want you to go to the next 2 sentence that said "As to Northwest Trustee business 3 records that consist of documents created by third 4 parties." Do you see that? 5 A. Yes. 6 Q. You declared that "Northwest Trustee relies 7 on the accuracy of such records in conducting its 8 business of nonjudicial foreclosures." Do you see 9 that?

10 A. I do. 11 Q. That is your statement? 12 A. Yes. 13 Q. How do you rely on the accuracy of records 14 being made by third parties? 15 A. Our posting company would provide us with 16 an affidavit assuring us that they had posted the 17 property. 18 Q. Who is the posting company? 19 A. FEI. 20 Q. FEI? 21 A. FEI. 22 Q. What does that stand for? 23 A. Foreclosure Expediters, Inc. 24 Q. And what does it verify? 25 A. They go to the property, they post the

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1 notice on the property, and they take pictures to the 2 effect of the notice being on the property, and 3 provide us with an affidavit. 4 Q. You're referring only to documents about 5 the properties, the physical property? 6 A. As opposed to? 7 Q. Documents generated by One West, documents 8 generated by IndyMac Federal. 9 A. These are documents created.

10 Q. Right. 11 A. By a third party. 12 Q. Right. 13 A. We rely on our referral as well. 14 Q. How do you assure the accuracy of your 15 referral is what I'm trying to get at? 16 A. We rely on the information received -- 17 Q. At face value? 18 A. -- to be accurate, yes. 19 Q. And that's it? You don't do any 20 independent verification? 21 A. No, we do not. 22 Q. From time to time, if the borrower or his 23 or her attorney contacts Northwest Trustee and asks 24 for a postponement of the sales, what do you do? What 25 does Northwest Trustee do in response to a request?

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1 A. It would -- we would ask for backup 2 documentation, the reason. I mean, there's hundreds 3 of different scenarios. And then we would evaluate 4 it. Perhaps seek our own counsel's advice. 5 Q. Give me some examples. Someone calls and 6 says that they need to have the sales postponed. What 7 would you require? 8 A. Depends on what the reason they're asking 9 for the postponement to be done for.

10 Q. And do you -- does Northwest Trustee make 11 an independent evaluation of whether the sales could 12 be postponed or not? 13 A. We review the information. 14 Q. And then make your own decision or -- 15 A. I don't make the decision. 16 Q. Who does? 17 A. Sometimes it might be the operations 18 manager. Sometimes it might be by advice of counsel. 19 Q. Who is the operation manager? 20 A. Either Jeff Stenman or Alan Burton. 21 Q. There has been or there were several 22 postponements in this case; are you aware? 23 A. Off the top of my head I don't recollect, 24 but I know there was a bankruptcy involved. 25 Q. Can you go through the records at all to

Page 76

1 ascertain for yourself the reasons why the sales were 2 postponed? 3 A. We brought documents up and into that 4 induced me to prepare the notice of trustee sale. 5 (Marked for identification Exhibit 18.) 6 Q. 18 is a notice of discontinuance of trustee 7 sales. What's the day of that, Ms. McElligott? 8 A. June 21st of 2011. 9 Q. By looking at that document does it jog

10 your memory as to why the sales were discontinued? 11 A. I believe it had to do with the pending 12 action. We were asked to discontinue. 13 Q. You were asked by whom? 14 A. I do not know at this time. According to 15 paragraph 14, received instructions from One West Bank 16 to terminate the nonjudicial proceeding. 17 Q. Was that document prepared by you? 18 A. I don't know. 19 Q. Is your signature on that document? 20 A. Yes. 21 Q. So what do you mean you don't know? 22 A. I don't know if I pushed the button to 23 generate the document. 24 Q. If it was not you who would have done it? 25 A. One of my assistants.




20 (Pages 77 to 80)

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1 Q. Pertaining to the statement that you just 2 read off to me, is that your personal knowledge that 3 you stated there as far as One West requesting the 4 discontinuance? Is that your personal knowledge when 5 you read the paragraph? 6 A. I signed -- yes. I signed an affidavit. 7 Q. I'm sorry, that particular -- 8 A. We were instructed to discontinue the sale. 9 Q. When you said you were, were you personally

10 the person that received the directive? 11 A. I don't know. 12 Q. So you're simply going by what the document 13 says. You don't have any independent recollection? 14 A. I don't have any independent recollection. 15 (Marked for identification Exhibit 19 and 16 20.) 17 Q. 19 is another notice of discontinuance of 18 sale in this case. What is the date of that notice? 19 A. The document is dated August 14 of '09. 20 Q. You're aware of the circumstances that led 21 to that discontinuance? 22 A. We received close and bill instructions 23 from IndyMac. 24 Q. And did you -- as you look at that 25 document, do you know if you have brought the

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1 instruction with you to the deposition from -- 2 A. To close and bill the file? 3 Q. Yes. 4 A. No, we did not. 5 Q. Does that statement pertain to a physical 6 document? 7 A. It would probably be a message that we 8 received. 9 Q. Via the LPS system?

10 A. Correct. 11 Q. And so is it fair to say that during both 12 -- as to the two discontinuances of sales, you got 13 directive from the servicer? 14 A. Correct. 15 Q. And you followed those directives? 16 A. Yes. 17 Q. Do you recall in your time with Northwest 18 that you -- that there is an occasion where you would 19 not follow the directive of the servicer? 20 A. If it were in contradiction to instructions 21 we received from the investor. 22 Q. Okay. So let's go to that particular 23 scenario. What would be the example that the servicer 24 tells you to discontinue but the investor doesn't want 25 you to discontinue?

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1 A. I've never had that situation come about. 2 Q. But you just described one. 3 A. You asked me in generalities. In general, 4 I have received instructions from a servicer that are 5 in conflict with the investor, but not in this 6 scenario. 7 Q. Right. Okay. That's fair enough. And the 8 conflict would be that one of them wants to 9 discontinue and the other doesn't?

10 A. No. That has never been an experience that 11 I have had. 12 Q. So you're just saying that hypothetically? 13 A. I'm saying that, in a general statement, I 14 have received instructions from a servicer that 15 conflicts with the investor, but not about 16 discontinuing a sale. 17 Q. So what do you do in light of conflict 18 between these servicers and investors? 19 A. I try to work with them to figure out what 20 -- what's in the best interests of both of them. 21 Q. So let me go on to paragraph 4 of your 22 declaration. Can you read that out loud for me? 23 A. (Reading) In February of 2007 plaintiff 24 executed a promissory note in the amount of $260,000 25 in a favor of American Mortgage, Inc., lender. Lender

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1 endorsed the note to IndyMac FSB, which in turn 2 endorsed the note in blank. Copy of the note is 3 attached hereto as Exhibit 1. 4 Q. Were you around when Ms. Reiner executed a 5 promissory note? 6 A. Around? 7 Q. To see her doing that physically. 8 A. No. 9 Q. Were you working for the lender, American

10 Mortgage Network, Inc., at the time in 2007? 11 A. No. 12 Q. Did you physically witness the fact or the 13 act of the lender endorsing the note? 14 A. No. 15 Q. And were you working for IndyMac Bank, who, 16 as you declare here, received the note or was made the 17 beneficiary of the endorsement? 18 A. I'm sorry, repeat the question. 19 Q. Were you employed by IndyMac Bank in 20 February of 2007? 21 A. No. 22 Q. Were you aware of the circumstances in 23 which the lender, or American Mortgage Network, Inc., 24 endorsed the note to IndyMac Bank? 25 A. Was I? What's the first part of that




21 (Pages 81 to 84)

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1 again? 2 Q. The first part was that you were not 3 employed by -- 4 A. Right. 5 Q. -- IndyMac Bank -- 6 A. Correct. 7 Q. -- in 2007. You have no personal knowledge 8 that the lender, American Mortgage Network, Inc., in 9 fact, endorsed the note to IndyMac Bank?

10 A. Isn't there a copy? 11 Q. I'm just asking you for your personal 12 knowledge. 13 A. Define "personal knowledge." 14 Q. Seeing, hearing, being in the same room, 15 knowing that that event occurred for a fact. 16 A. No. 17 Q. Going on to paragraph No. 5 where you said, 18 "To secure repayment of the note, plaintiff on or 19 about February 2, 2007, constituted a deed of trust, 20 which created a lien against the subject real 21 property." Do you see that? 22 A. Yes, I do. 23 Q. And it refers to her home located at 4015 24 Cooper Point Road Northwest, Olympia. You were not 25 there when she signed this deed of trust?

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1 A. No. 2 Q. You do not know whether the deed of trust, 3 in fact, created a lien against her home? 4 A. It's a public record. 5 Q. Public record of what? Of the deed of 6 trust? 7 A. Yes. 8 Q. But you did not see her sign it? 9 A. Correct.

10 Q. You do not know whether the deed of trust 11 -- whether it has a legal force of a lien against her 12 home? 13 A. It is a lien recorded against her home by 14 public record. 15 Q. And you're relying -- you're saying that 16 based on the fact that the document appears on public 17 records? 18 A. Correct. 19 Q. You do not know if it's contested whether 20 that lien is valid or not? 21 A. I do not know. 22 Q. And then on paragraph 6 you indicate that, 23 "According to information received from One West Bank, 24 FSB, plaintiff defaulted by failing to make the 25 payment due November 1st, 2009, and every payment

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1 thereafter due." Do you see that? 2 A. I do. 3 Q. Where did you -- where did you get the 4 information to say that in paragraph 6? 5 A. We relied on the information received in 6 the referral. 7 Q. Which exactly? Which information are we 8 talking about? 9 A. The default date, the payment due date. In

10 the referral -- 11 Q. I'm sorry, go ahead. 12 A. In the referral, in the exhibits, we can go 13 back and find the -- 14 Q. Yes, please. 15 A. Exhibit 5. 16 Q. Let me see that. So your source of that 17 statement is the data or the information provided by 18 the LPS system? 19 A. Yes. 20 Q. You are not aware of whether she was in a 21 loan modification when -- after November 1st, 2009? 22 A. No, I am not aware. 23 Q. You're not aware of whether or not she was 24 making any kind of a trial payments to One West? 25 A. If she were making payments One West would

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1 notify us. 2 Q. But you don't have that information? 3 A. No, I do not. 4 Q. Going on to paragraph No. 7, you indicated 5 that "Following plaintiff's default One West directed 6 Northwest Trustee to proceed with a nonjudicial 7 foreclosure on the property." 8 A. Yes. 9 Q. In what capacity -- in what capacity did

10 One West direct you to proceed with a nonjudicial 11 foreclosure on the property? 12 A. I'm not sure I understand the question. 13 MS. DAO: What was the question? 14 (Record read as requested.) 15 Q. What were they, in directing you to proceed 16 with a nonjudicial foreclosure? 17 A. I'm not sure I understand your question. 18 Q. Were they the beneficiary? 19 A. As of that referral? I believe they were. 20 Q. Paragraph No. 8. Moving on to 8 where you 21 said, "As agent for One West Bank, Northwest Trustee 22 caused to be mailed and posted at the property a 23 notice of default on August 25, 2010." 24 According to paragraph 8, the act of 25 recording -- I'm sorry -- the act of mailing and




22 (Pages 85 to 88)

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1 posting the notice of default was done as an agent for 2 One West? 3 A. That is what that statement says, yes. 4 Q. Is there anything different than acting as 5 the trustee? 6 A. I don't know. 7 Q. In paragraph No. 9, you indicated that "On 8 or about September 2nd, 2010 One West Bank executed, 9 and thereafter delivered, to Northwest Trustee a

10 signed declaration, the beneficiary declaration, 11 averring that One West Bank was the holder of the 12 underlying note." Is that what you say? 13 A. Yes. 14 Q. What do you mean by that? 15 A. Our office received a beneficiary 16 declaration stating that One West Bank was the holder 17 of the underlying note. 18 Q. And by that do you mean Exhibit 16, the 19 beneficiary declaration? 20 A. Yes. 21 Q. Is that correct? 22 A. Yes. 23 Q. And so that I can be clear, you're going 24 strictly by that piece of paper provided to you by One 25 West?

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1 A. Yes. 2 Q. And did you do anything else? Did 3 Northwest Trustee do anything else to verify that 4 information? 5 A. No. 6 Q. I want you to take a look at the remainder 7 of your declaration and make sure that there isn't 8 anything in there that you will dispute later, that 9 they're all true and accurate.

10 A. I would say in paragraph 10 we were 11 actually appointed the trustee back in 2009. 12 Q. Okay. By who? 13 A. IndyMac. 14 Q. What date? 15 A. That's what I was looking for. There's so 16 many other documents here now. 17 Q. Take your time. I'll let you have this in 18 just a second. 19 MS. MORRISON: It was Exhibit 2. 20 MS. DAO: Here (indicating). 21 A. There we go. 5-7-09. 22 Q. 5-7? 23 A. Recorded on 5-19-09. 24 Q. So, is paragraph No. 10 still true? 25 A. Well, there was an additional appointment

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1 recorded at a later date. 2 Q. Can you explain the circumstances in which 3 there were two recorded appointments of successor 4 trustee? 5 A. I can't. I know we did a new assignment, 6 and then they recorded another appointment afterwards 7 which was unnecessary. 8 Q. Okay. So let's clarify that. You said 9 there was a new recorded assignment?

10 A. In the second foreclosure. 11 Q. So this is Exhibit 20, and you pulled it 12 out and showed it to me. What is that? 13 A. This is the second appointment done after 14 the assignment. 15 (Marked for identification Exhibit 21.) 16 Q. So I'm showing you what has been marked as 17 Exhibit 21, and you were referring to it as the second 18 assignment? 19 A. No. There was a second appointment. 20 Q. Second appointment. 21 A. This is the first assignment. 22 Q. Oh, okay. And which one did you say was 23 unnecessary? 24 A. That appointment (indicating). We were 25 already trustee.

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1 Q. Now, can I have -- this is 21. 21 has a 2 legend "After recording return to Vonnie McElligott." 3 Do you see that? 4 A. No. 5 Q. No? I'm sorry. This one. I'm sorry, it's 6 actually 20. 7 A. Yes. 8 Q. Does that mean that you or somebody from 9 your team prepared that document?

10 A. Yes. 11 Q. And this is the one where you said it was 12 not necessary? 13 A. Correct. 14 Q. Do you recall the circumstances in which it 15 was prepared if it was unnecessary? 16 A. I don't. I looked today earlier to see if 17 we had been instructed to do it because it's possible 18 that they instructed us to do it, but we don't have 19 access to that record any more. 20 Q. What records are we talking about? 21 A. In LPS. I don't have access to the LPS 22 records any more to see if we were instructed to draft 23 a second appointment or if we just did so 24 automatically. 25 Q. Okay. And why don't you have access to LPS




23 (Pages 89 to 92)

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1 any more? 2 A. I don't know. It's just we don't -- we 3 can't access the account, I'm assuming, because 4 there's a pending action. 5 Q. Such as? 6 A. This. 7 Q. Oh, you mean because of this litigation 8 you're not allowed to have access to LPS? 9 A. That's the only thing I can think of. It's

10 we don't have access to documents any more. 11 Q. Beginning when? 12 A. I don't know. 13 Q. So today, before you came, you looked? 14 A. I looked to see if we had been instructed 15 to draft the appointment. 16 Q. So let me understand you correctly. Before 17 you came for deposition today you checked? 18 A. Right. 19 Q. And you could not gain access to LPS? 20 A. To the document images. 21 Q. In this case or in all cases? 22 A. In this case. 23 Q. And was there any message for you to know 24 why you don't have access? 25 A. No.

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1 Q. You're guessing? 2 A. I am. 3 Q. So you have no idea whether access can be 4 gained again or if you would be without it for good? 5 You don't know? 6 A. On this loan? 7 Q. Yes. 8 A. I don't know. 9 Q. In this case?

10 A. I don't know. 11 Q. And if you were to go back to LPS and have 12 you have access, what would you have been able to 13 obtain? 14 A. I was trying to determine whether or not 15 they instructed us to do a new appointment or if we 16 just did it automatically. 17 Q. What would be the circumstances where you 18 would do one automatically? 19 A. I don't -- we were already trustee. There 20 was no reason to do one. 21 Q. So you can't verify for me whether there 22 was a directive for you to record a second one? 23 A. Not at this time, no. 24 Q. But your assessment is that this one 25 (indicating) was not necessary because you were

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1 already trustee? 2 A. Correct. 3 Q. Were you aware that LPS themselves was in 4 litigation? 5 A. No. 6 MS. DAO: I'm going to take another short 7 break. 8 (Off the record from 3:41 p.m. to 3:58 9 p.m.)

10 MS. DAO: We're back. 11 Q. Ms. McElligott, I just want to ask you a 12 few questions about your activities as notary public. 13 And the last time you did that was in 2008 and the 14 seal was still in effect until 2009? 15 A. Yes. 16 Q. Do you know where you kept your -- where 17 you last kept your notary seal? Do you know where it 18 is now? 19 A. I do not know where it is now. It used to 20 be in my desk drawer next to me in a locked cabinet. 21 Q. At Northwest Trustee? 22 A. Correct. 23 Q. Did you maintain a log for your activities 24 as notary public? 25 A. No.

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1 Q. Were you aware that there was a requirement 2 for you to do that? 3 A. No. 4 Q. Did you have a bond covering your 5 activities as notary public? 6 A. I don't know. 7 Q. Throughout all the documents that we have 8 talked about, I do not see a notice of default for 9 2009 foreclosure. Do you recall?

10 A. I don't have the packet of stuff any more. 11 Q. Here's the rest of it (indicating). 12 A. We looked through this. It was there. Out 13 of order. Do you have it as an exhibit? I thought it 14 was there. 15 MS. MORRISON: I thought it was there. 16 MS. DAO: Do you have a list of the 17 documents you brought today? 18 MS. MORRISON: I don't. 19 Q. The only thing I have is the corporate 20 resolution. And you separate that out; right? 21 A. Right. I thought it was in a weird spot in 22 there, but I -- 23 Q. I'm sorry, I didn't see one. 24 A. There's no reason why it shouldn't be here. 25 MS. MORRISON: If it's not in there we can




24 (Pages 93 to 96)

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1 just -- it just didn't make it in. I could have sworn 2 it was. 3 A. (Handing). We looked at it. 4 Q. So that's Exhibit 3. Thank you. What was 5 the reason for the foreclosure activity to cease in 6 2009 and resume in 2010? 7 A. We were told to close the 2009 file and 8 then we received a new referral in 2010. 9 Q. And you don't recall what the reasons were

10 to close out the 2009 file? 11 A. I don't know that we received a reason. 12 The presumption was that the account was reinstated 13 because the next referral has a different default 14 date. 15 Q. When you talk about the history of payment 16 that you receive alongside with the foreclosure 17 referral, did you ever get any loan payment histories 18 from Freddie Mac? 19 A. No. 20 Q. Do you know if there were any mortgage 21 payments being made by -- to Freddie Mac? 22 A. No. 23 Q. By the borrower? 24 A. No. 25 Q. And then as far as your testimony that you

Page 94

1 thought the second appointment of trustee was 2 superfluous because you were already trustee -- is 3 that correct? 4 A. Yes. 5 Q. And does that mean once a trustee always a 6 trustee or -- 7 A. Until another trustee is appointed. 8 Q. Do you recall Ms. Reiner's contacting you 9 by telephone and asking you to postpone sales date?

10 A. I do remember something to the effect about 11 the bankruptcy filing and a call to that effect when I 12 looked over the notes. I didn't look over the detail. 13 Q. But you don't recall personally whether 14 you've talked to her on the phone? 15 A. I don't recall personally. I do remember 16 seeing a notation in the note system about her 17 calling, but I don't recall -- 18 Q. Talking to her? 19 A. -- a personal conversation with her. 20 Q. If she had -- if she had called you to 21 postpone the sales date, what kind of information 22 would you have needed from her? 23 A. I would need -- what is the reason for the 24 postponement? 25 Q. I don't know.

Page 95

1 A. Then I don't know what I would need from 2 her without knowing what the reason for the 3 postponement was. 4 Q. What are some of the common reasons coming 5 from the borrower that you would postpone the sales? 6 A. That they were going to have funds. 7 Usually they -- I mean, most of the time they don't 8 give us a reason why they're calling. They just want 9 it postponed.

10 Q. And you would not comply with that? 11 A. I would need a reason to bring to somebody 12 other than just the fact that they wanted a sale 13 postponement for no reason. 14 Q. Do you recall at all, in recent days or 15 months, that you actually agreed to postpone a sales 16 date on account of a borrower's calling you? 17 A. I don't recall anything recently. I mean, 18 a specific example to provide you, no, I don't have a 19 specific example. 20 Q. Is it fair to say that if there is a 21 request to postpone not coming from either the 22 servicer or the investor, you would have to consult 23 with them? 24 A. Consult with? 25 Q. The servicer or the investor.

Page 96

1 A. I would want to do so, yes. 2 Q. You would want to do so in every case? 3 A. Yes. 4 (Marked for identification Exhibit 22.) 5 Q. This is Exhibit 22, VMD 158. Can you tell 6 me what it is? 7 A. This is a copy of the search results that 8 we do to check to see if a borrower is deceased. 9 Q. And what do you use to check?

10 A. Usually the Social Security number. 11 Q. And in doing that check, you obtain her 12 Social Security number from her loan file? 13 A. From the screen shots. 14 Q. That was provided to you via the LPS -- 15 A. Yes. 16 Q. -- desktop system. 17 (Marked for identification Exhibit 23.) 18 Q. This is Exhibit 23, which is a copy of the 19 note. And you were referring to the note in your 20 declaration, do you recall that, declaration in 21 support of summary judgment? 22 A. This one (indicating)? 23 Q. Yes. 24 A. Yes. 25 Q. I want you to go to the last page where




25 (Pages 97 to 100)

Page 97

1 there are two endorsements. Do you see that? 2 A. Yes. 3 Q. You don't have any personal knowledge on 4 how these endorsements were placed on the note? 5 A. No, I do not. 6 Q. Do you know any of the individuals whose 7 name appears there? 8 A. No, I do not. 9 MS. DAO: That's all I have.

10 MS. MORRISON: Just a few quick questions. 1112 EXAMINATION13 BY MS. MORRISON: 14 Q. Vonnie, have you ever been named in a 15 lawsuit as "Vonnie McElligott" based on your 16 employment with Northwest Trustee Services? 17 A. Yes. 18 Q. Have you ever signed a notice of trustee 19 sale for Northwest Trustee Services as "Yvonne 20 McElligott"? 21 A. No. 22 Q. You always sign as "Vonnie," correct? 23 A. Correct. 24 Q. When you had your notary and you would sign 25 documents as a notary public, were you signing those

Page 98

1 documents in your capacity as an employee of Northwest 2 Trustee Services under your understanding, or were you 3 signing them as an individual? 4 A. My notary is an individual notary under 5 Yvonne, my legal name. 6 Q. And your legal name is? 7 A. Yvonne McElligott. 8 MS. MORRISON: I have no other questions. 9 MS. DAO: That brings up a subject matter.

10 Do me a favor, Ms. McElligott. I need you to sign 11 your name several times, once as Vonnie McElligott and 12 the other as Yvonne McElligott. 13 THE WITNESS: (Complying.) 14 (Marked for identification Exhibit 24.) 15 MS. DAO: Thank you very much for doing 16 that. 1718 EXAMINATION19 BY MS. DAO:20 Q. I'm going to hand you what has been marked 21 as Exhibit 24, which I will represent to you, that is 22 a copy of the certified copy of your deed of trust on 23 your own home. 24 A. Yes. 25 Q. And I need you to take a look at your

Page 99

1 signature on that document. 2 A. (Complying.) 3 Q. Do you see that signature? 4 A. Uh-huh. 5 Q. What did you sign as? 6 A. "Yvonne Marie McElligott." 7 Q. So for that I'm going to need you to sign 8 as such on this sheet of paper several times for me. 9 A. (Complying.)

10 (Marked for identification Exhibit 25.) 11 Q. This is 25, and I will represent to you 12 that that is a true and correct copy of the certified 13 copy of the statutory warranty deed relating to your 14 own property. Would you agree? 15 A. Yes. 16 Q. And what did you sign as in -- 17 A. Actually, no, I would not. I disagree. 18 Q. Tell me what it is. 19 A. This is not my property. 20 Q. Oh, I'm sorry. So whose property is it? 21 A. This was my husband's property. 22 Q. So the previous exhibit and this one do not 23 pertain to your property. It's your husband's 24 property? 25 A. Well, the previous exhibit --

Page 100

1 Q. Lot 28, Tanglewood Village? 2 A. Yeah. It's not my property any more. 3 Q. But that is your signature? 4 A. Yes. 5 Q. And what did you sign as? 6 A. I'm not sure I understand the question. 7 Q. I'm sorry, look at 25. What did you sign 8 as? 9 A. You mean what is my name?

10 Q. Yes. 11 A. Yvonne M. McElligott. 12 Q. So that is a variation from what we talked 13 about in terms of how you sign. So I'm going to need 14 you to sign as Yvonne M. McElligott. 15 A. (Complying.)16 (Marked for identification Exhibit 26.) 17 Q. Let me show you what has been marked as 26, 18 and I will represent to you that is a quit claim deed, 19 true copy of a certified copy. And this quit claim 20 deed was signed by you; correct? 21 A. Yes. 22 Q. On what date? 23 A. According to the document, January 13th, 24 2010. 25 Q. And it pertains to yet another property?




26 (Pages 101 to 104)

Page 101

1 A. Yes. 2 Q. And that is your signature? 3 A. Yes. 4 Q. And you signed as "Yvonne M. McElligott"? 5 A. Yes, I did. 6 Q. Just so I'm clear, your maiden name is 7 what? 8 A. Nave. 9 Q. N-A-V-E?

10 A. Correct. 11 Q. As far as you can recall, did you ever sign 12 under your maiden name as an employee for Northwest 13 Trustee? 14 A. I'm sure I did. 15 Q. It would have been before you got married? 16 A. Yes. 17 Q. Approximately when did you get married? 18 A. Well, May of 2004, 2005. 19 Q. Your name was changed due to the marriage? 20 A. Yes. 21 Q. You did not go in to court and sought to 22 change your name? 23 A. (Shaking head.) 24 Q. Yes or no? 25 A. I did not go to court to change my name.

Page 102

1 MS. DAO: Thank you. That's all I have.2 (Marked for identification Exhibits 27 - 3 30.)4 (Deposition concluded at 4:14 p.m.)56789

10111213141516171819202122232425

Page 103

1 D E C L A R A T I O N2345 I declare under penalty of perjury that I 6 have read my within deposition, and the same is true 7 and accurate, save and except for changes and/or 8 corrections, if any, as indicated by me on the 9 correction sheet hereof.

1011 12 __________________13 YVONNE McELLIGOTT141516171819 Dated this ________day of ___________, 20 2012.2122232425 CHERYL MACDONALD, Court Reporter

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1 C E R T I F I C A T E23 STATE OF WASHINGTON )4 ) ss.5 COUNTY OF KING )67 I, the undersigned Washington Certified Court 8 Reporter, pursuant to RCW 5.28.010, authorized to 9 administer oaths and affirmations in and for the State

10 of Washington, do hereby certify:11 That the annexed and foregoing deposition 12 consisting of Page 1 through 100 was taken 13 stenographically before me and reduced to a typed 14 format under my direction;15 I further certify that according to CR 30(e) the 16 witness was given the opportunity to examine, read and 17 sign after the same was transcribed, unless indicated 18 in the record that the review was waived; 19 I further certify that all objections made at the 20 time of said examination to my qualifications or the 21 manner of taking the deposition, or to the conduct of 22 any party, have been noted by me upon said deposition;23 I further certify that I am not a relative or 24 employee of any such attorney or counsel, and that I 25 am not financially interested in said action or the




27 (Pages 105 to 108)

Page 105

1 outcome thereof;2 I further certify that the witness before 3 examination was by me duly sworn to testify to the 4 truth, the whole truth and nothing but the truth;5 I further certify that the deposition, as 6 transcribed, is a full, true and correct transcript of 7 the testimony, including questions and answers, and 8 all objections, motions, and exceptions of counsel 9 made and taken at the time of foregoing examination

10 and was prepared pursuant to Washington Administrative 11 Code 308-14-135, the transcript preparation format 12 guideline;13 I further certify that I am sealing the 14 deposition in an envelope with the title of the above 15 cause and the name of the witness visible, and I am 16 delivering the same to the appropriate authority;17

18 IN WITNESS WHEREOF, I have hereunto set my hand,19 and affixed my official seal this 31st day of20 December 2012.21 ________________________________ 22 Certified Court Reporter No. 2498 23 in and for the State of 24 Washington, residing at Shoreline, 25 Washington.

Page 106

MOBURG SEATON & WATKINSCOURT REPORTERS2033 SIXTH AVENUE, SUITE 826SEATTLE, WA 98121206-622-3110______________________________________________________PLEASE MAKE ALL CHANGES OR CORRECTIONS ON THIS SHEET, SHOWING PAGE, LINE, AND REASON, IF ANY. SIGN THIS SHEET, SIGN THE ACCOMPANYING SIGNATURE SHEET AND RETURN AS PER INSTRUCTIONS IN COVER LETTER.___________________________________________________PAGE LINE CORRECTION AND REASON

_____________________ (SIGNATURE)

REPORTER: CHERYL MACDONALD

Page 107

JANET REINER, ) Plaintiff, ) NO. 11-2-02029-8 ) vs. ) NOTICE OF READINESS ) OF DEPOSITION FOR NORTHWEST TRUSTEE SERVICE) READING AND SIGNING ) Defendant. ) )TO: Yvonne McElligott ) c/o Heidi Buck Morrison 13555 SE 36th St. #300 Bellevue, WA 98006

NOTICE IS HEREBY GIVEN that the transcript of your

deposition given in the above entitled cause is ready

for your reading and signing at MOBURG SEATON &

WATKINS, 2033 Sixth Avenue, Suite 826, Seattle,

Washington 98121. You must, within thirty (30) days

from the date of this notice, read and sign the

deposition or state in writing your reason for refusal

to sign, or state in writing the fact that you waive

your right to sign; failing to do so, signature shall

be deemed for all purposes waived, and your deposition

will be sent to the ordering party for retention until

time of trial.

DATED at Seattle, Washington this December 31, 2012.CC: Ha Dao By: CHERYL MACDONALD, CCR Moburg Seaton & Watkins 2033 Sixth Avenue, Suite 826 Seattle, Washington 98101 206-622-3110 FAX 206-343-2272 MOBURG SEATON & WATKINS (206)622-3110

Page 108

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2512d6ee-935d-4da2-bad4-a089119b5913Electronically signed by cheryl macdonald (101-001-136-7937)

Reiner v. Northwest Trustee 12/12/2012 Jeff Stenman


1 (Pages 1 to 4)

Page 1

IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON IN AND FOR THE COUNTY OF KING------------------------------------------------------ JANET REINER, a single ) woman, ) ) Plaintiff, ) ) -vs- ) No. 11-2-02029-8 )NORTHWEST TRUSTEE SERVICES, ) INC., a Washington ) corporation; ONE WEST BANK, ) FSB, a federal savings bank; ) MORTGAGE ELECTRONIC )REGISTRATION SYSTEMS, )INC., a Delaware corporation,) ) Defendants. ) )------------------------------------------------------ Deposition Upon Oral Examination

of

JEFF STENMAN------------------------------------------------------ 9:00 a.m. Wednesday, December 12, 2012 787 Maynard Avenue South Seattle, Washington

Cheryl Macdonald, RMR, CRR Court Reporter


Page 2

A P P E A R A N C E S

FOR THE PLAINTIFF: HA THU DAO Attorney at Law GRAND CENTRAL LAW 787 Maynard Avenue South Seattle, Washington 98104 [email protected]

FOR NORTHWEST TRUSTEE SERVICES:

HEIDI BUCK MORRISON Attorney at Law ROUTH CRABTREE OLSEN 13555 SE 36th Street Suite 300 Bellevue, Washington 98006 [email protected]

FOR ONE WEST BANK:(via telephone) CHRISTOPHER J. KAYSER Attorney at Law LARKINS VACURA 621 SW Morrison Street Suite 1450 Portland, Oregon 97205 [email protected]

ALSO PRESENT: JANET REINER


Page 3

I N D E X

EXAMINATION PAGEBY MS. DAO: ........................... 4, 106 BY MS. MORRISON: ....................... 105

EXHIBITS MARKED PAGENo. 1 Assignment of Deed of Trust 5/7/09..................... 33

No. 2 Notice of Trustee's Sale 8/28/09.................... 40No. 3 Notice of Discontinuance 8/14/09.................... 42

No. 4 Northwest Trustee's response to plaintiff's first discovery.................. 54

No. 5 Recording instructions..... 68

No. 6 Publication instructions... 70

No. 7 Appointment of Successor Trustee 12/26/07........... 79No. 8 Appointment of Successor Trustee 12/31/07........... 85

No. 9 Appointment of Successor Trustee 4/8/08............. 87No. 10 Assignment of Deed of Trust 6/1/09..................... 88

No. 11 Notice of Discontinuance 4/29/10.................... 91No. 12 Stenman signature........... 92 MOBURG SEATON & WATKINS (206)622-3110

Page 4

1 JEFF STENMAN, witness herein, having been first 2 duly sworn by the Certified Court 3 Reporter, deposed and said as 4 follows:5 MS. DAO: For the record, Ha Dao. I'm the 6 attorney for Ms. Janet Reiner, and present at the 7 deposition of Mr. Stenman here is Heidi Buck Morrison 8 and Mr. Stenman himself. And Chris, if you can 9 announce your presence for the deposition.

10 MR. KAYSER: This is Chris Kayser. I'm 11 appearing on behalf of One West Bank in this matter. 1213 EXAMINATION14 BY MS. DAO:15 Q. Mr. Stenman, could you please state your 16 full name and your address for the record. 17 A. Jeff Stenman, 17324 140th Court Southeast, 18 Kent, Washington 98042. 19 Q. Can I have a spelling of your last name? 20 A. S, as in Sam, T-E-N-M-A-N. 21 Q. Are you employed by Northwest Trustee, one 22 of the defendants? 23 A. Yes. 24 Q. And can you tell me the capacity that 25 you're employed by the company?




2 (Pages 5 to 8)

Page 5

1 A. I'm the secretary, the assistant 2 vice-president, and the vice-president. 3 Q. Can you describe the organizational 4 structure of the company, the type of incorporation? 5 A. It's an Inc., I-N-C. 6 Q. And so it's a -- is it a privately held 7 company? 8 A. Yes. 9 Q. And can you name the directors or officers?

10 A. I believe Stephen Routh is the CEO. 11 R-O-U-T-H. 12 Q. Anyone else you can think of? 13 A. No. 14 Q. Mr. Routh is a licensed attorney? 15 A. I don't know if he's a licensed attorney. 16 I don't know the status of his bar license. 17 Q. How many employees does the company have? 18 A. Approximately 230. 19 Q. And can you describe your own duties under 20 the titles that you just mentioned? 21 A. Well, my official title is the director of 22 operations. I'm responsible for operations, 23 supervising the operations of our Bellevue office, our 24 Santa Ana office, and then some oversight over Alaska 25 trustee in our Alaska office.

Page 6

1 Q. Okay. 2 A. I have employees in our Portland office as 3 well. 4 Q. Is Northwest trustee a Washington 5 corporation? 6 A. Yes. 7 Q. Who do you take orders from? Who is your 8 direct superior? 9 A. I report to Jeff Aiken.

10 Q. Spell that for me. 11 A. A-I-K-E-N. And he's the COO of RIM, Realty 12 In Motion. 13 Q. What's the name of that company? 14 A. Realty In Motion. 15 Q. What is he with relations to Northwest 16 Trustee? 17 A. Well, to the best of my knowledge, I just 18 report to him, and he's responsible for all of the 19 different entities that report up to RIM. 20 Q. Where is he located, Mr. Aiken? 21 A. He works out of Dallas, Texas. 22 Q. Dallas, you say? 23 A. Yeah. 24 Q. To the best of your knowledge, does he have 25 any ownership interest in Northwest?

Page 7

1 A. No. 2 Q. What is your understanding of the 3 affiliation between Northwest and Routh Crabtree Olsen 4 as the law firm? 5 A. We're separate but we're affiliated. We 6 have common ownership. 7 Q. Common ownership you said? 8 A. Yes. 9 Q. In your position with Northwest Trustee, do

10 you own any shares or any part of the company, 11 Northwest Trustee, that is? 12 A. I do participate in 401(k) profit sharing 13 like every other employee. 14 Q. But no shares? 15 A. No. 16 Q. Other than the ownership share with RCO, 17 does any other company or business own Northwest 18 Trustee, that you know of? 19 A. No. 20 Q. How long has the company been in business? 21 A. I don't know. I don't have the exact date. 22 Q. How long have you been employed by the 23 company? 24 A. My initial employment was with a law firm, 25 and then the trustee company was formed. So I was

Page 8

1 originally hired in as an employee of a law firm. 2 Q. Which law firm is that? 3 A. Routh Crabtree and Fennell. 4 Q. And how long were you with them? 5 A. I've been with them since 1996. 6 Q. And then they later became? 7 A. Later became the trustee company Northwest 8 Trustee. 9 Q. Do you know what the volume of business

10 that Northwest is doing this year for 2012? 11 A. I'd be guessing. I don't have the exact 12 numbers. 13 Q. Sure. But what is your estimate? Let me 14 help you. Do you know, roughly, the number of 15 foreclosures that the company handled in 2012? And 16 we're getting to the end of the year. 17 A. Roughly probably somewhere in the 18 neighborhood of 20,000 maybe. 19 Q. I'm sorry, 20,000? Are we limited -- are 20 we limiting that to Washington state? 21 A. Yes. Well, Washington, Idaho and Montana. 22 Q. Western states, 20,000? 23 A. About, yes. 24 Q. You don't happen to know what the breakdown 25 for Washington state is?




3 (Pages 9 to 12)

Page 9

1 A. Washington has the majority of that count. 2 So, at least, I would say it's greater than 50 3 percent. 4 Q. Do you know in dollar amounts, based on 5 invoice bill and collected, what that number is for 6 gross? 7 A. No, I don't. 8 Q. Do you have any idea what the volume was 9 for 2011?

10 A. It fluctuates, so I don't have the exact 11 number. Probably somewhere similar to that number. 12 Depends. There was a law change. When there's a law 13 change, when there's a change in the law, sometimes it 14 takes the servicers time to get up to speed on their 15 part of the change in the law, and it affects the 16 referral volume. 17 Q. So if we're talking about the changes in 18 Washington law specifically in 2011 and 2012, 19 specifically the Foreclosure Fairness Act -- 20 A. Yes. 21 Q. -- do you believe that those changes have 22 an effect, or have had an effect, on the servicer's 23 volume to your company? 24 A. To us, yes, because they had to come into 25 compliance with that law.

Page 10

1 Q. Do you have any forecasts for Northwest 2 volume for 2013? 3 A. No. 4 Q. Do you know who Quality Loan Service 5 Corporation of Washington is? 6 A. Yes. I know who they are, yes. 7 Q. Do you know -- are you aware that they're 8 also performing similar trustee services that 9 Northwest does?

10 A. Yes. 11 Q. Do you have any idea why certain 12 foreclosure referrals go to them as opposed to going 13 to your company? 14 A. No. 15 Q. Who pays Northwest Trustee fees for trustee 16 services? 17 A. Whoever is referring it to us. The 18 servicer of the loan would be paying the invoice. 19 Q. Is there an express written agreement for 20 Northwest Trustee to act as trustee in each of the 21 foreclosure referral? 22 A. As trustee? 23 Q. Yes. 24 A. There would be an appointment that would be 25 a written agreement.

Page 11

1 Q. The appointment which is recorded in public 2 records? 3 A. Yes. 4 Q. What about a written agreement, separate 5 and apart from that, that details duties, 6 expectations, compensation? 7 A. Some of our clients have direct agreements 8 with Northwest Trustee, yes. 9 Q. Can you recall who they are?

10 A. I'd be guessing. I don't know who exactly 11 they are. 12 Q. Are you familiar with the facts of this 13 case, that Ms. Reiner is the borrower and the 14 plaintiff in the case? 15 A. Yes. 16 Q. Do you know whether you have an express 17 agreement with IndyMac Federal Bank, who was referring 18 in 2009? 19 A. I'm not aware if we have a specific written 20 agreement. 21 Q. You're not sure. It could exist but you 22 just don't know? 23 A. I'd have to -- like any client, I'd have to 24 go into our client folder and look to see what we 25 have. I didn't review the client folder to see if we

Page 12

1 had an express written agreement with IndyMac Federal 2 Bank. IndyMac Federal Bank no longer exists. 3 Q. I understand, but that was back -- the 4 referral was made back in 2009. Would you agree? 5 A. Yeah. 6 MS. DAO: This has already been marked as 7 Exhibit 1. This is a copy, and I don't know why it's 8 not marked. Here. Have you look at that. 9 Q. I'd like for you, Mr. Stenman, to look at

10 Exhibit 1 which, I will represent to you, that has 11 been produced to us yesterday in connection with 12 Ms. McElligott's deposition, and if you'll take a 13 moment to look it over. 14 MS. MORRISON: Ha, just so you know, these 15 are documents -- it's many of the same that were 16 produced yesterday, but there are some differences. 17 So...18 MS. DAO: And is Mr. Stenman going to be 19 able to speak to the differences? 20 MS. MORRISON: If you want to question him 21 about differences. 22 MS. DAO: Are you saying that there's more 23 documents than yesterday? 24 MS. MORRISON: Yeah. There are additional 25 documents.




4 (Pages 13 to 16)

Page 13

1 MS. DAO: Thank you. 2 A. Okay. 3 Q. All right. Now, do you recognize Exhibit 1 4 to be a foreclosure transmittal package? 5 A. Yes. 6 Q. And can you tell me where Exhibit 1 came 7 from? 8 A. At the time I think they called it New 9 Track, but it's LPS desktop, or a third-party website

10 that the lender uses to transmit foreclosure referrals 11 and to communicate back and forth with the office. 12 Q. Okay. What is the date of this referral 13 package? 14 A. It says 4-5-2009. 15 Q. And who is designated as the referral 16 source, if you can tell? 17 A. Referral source? It says it's from FIS 18 Foreclosure Solutions. 19 Q. So that's the same as LPS? 20 A. Yes. I think so, yes. 21 Q. And I'd like for you to clarify as far as 22 that system where you indicated that it's a third- 23 party vendor. What exactly do they do and what is the 24 reliance by Northwest? 25 A. They help facilitate a referral and

Page 14

1 information between the servicer and the attorney 2 trustee. 3 Q. The attorney trustee? 4 A. Rather than allowing me to go directly into 5 their service seed system to pull information, they 6 download that information into a third-party system 7 and then provide access to that system so that we can 8 pull that information out of the system and put it 9 into our database.

10 Q. And that is the LPS system? 11 A. Yes. That's one name of it, yes. 12 Q. What are the other names? 13 A. LPS desktop is the most current name of it. 14 Q. On Exhibit 1 there's FIS desktop. Is that 15 the same system? 16 A. I think so, yes. 17 Q. Do you know anything about that system 18 specifically, the platform, how it came about, where 19 the data came from? 20 A. Its origins, I wouldn't have any knowledge 21 of its origins. I just know that it's a tool that we 22 use to communicate back and forth. 23 Q. Is that tool being used for all lenders? 24 A. No. 25 Q. I'm sorry, let me ask you again. Is the

Page 15

1 desktop system -- and I'm just going to refer to it as 2 the desktop system that you're speaking of. Is it 3 being used for all servicers? 4 A. No. 5 Q. Do you know who or for whom the system is 6 used for? 7 A. I know of several servicers that use it. I 8 don't know every servicer that uses it. 9 Q. Can you name a few that you can recall?

10 A. J. P. Morgan Chase, Wells Fargo, Bank of 11 America, Ceterras. 12 Q. In Ms. Reiner's case, it was being used 13 obviously? 14 A. Uh-huh. 15 Q. I need you to say yes or no. 16 A. Yes. 17 Q. Now, also referring to Exhibit 1, there's a 18 reference that the mortgage currently held by and 19 foreclosure should be in the name of. Do you see 20 that? 21 A. Yes. 22 Q. And who is that entity? 23 A. IndyMac Federal Bank. 24 Q. What is your understanding by that 25 reference?

Page 16

1 A. That that is the name we should reference 2 as the name we are foreclosing in the name of. 3 Q. Is it fair to say that when this particular 4 referral package came in you rely on the information 5 there at face value? 6 A. In 2009, yes. 7 Q. You don't go behind what is being 8 represented in Exhibit 1 to determine the veracity or 9 the truth of the representation?

10 A. I'm not sure what you mean by that. 11 Q. You testify that you receive information 12 from the website? 13 A. Correct. 14 Q. And you accepted that information in order 15 to process your work as trustee? 16 A. Yes. 17 Q. Are there any activities that you take to 18 verify that the data you receive from the system is 19 accurate? 20 A. Accurate, no. 21 Q. I'm alerting you to the reference of the 22 identification of the investor in this case. 23 A. Uh-huh. 24 Q. Who is that, Mr. Stenman? 25 A. Federal Home Loan Mortgage Corporation.




5 (Pages 17 to 20)

Page 17

1 Q. Do you have any understanding or knowledge 2 of the difference between the reference of mortgage 3 currently held by IndyMac Federal and investor by 4 Freddie Mac? 5 MS. MORRISON: Objection. I think you're 6 asking him to make any sort of legal conclusion. He 7 can answer if he knows. 8 A. Can you repeat your question, please. 9 Q. In looking at Exhibit 1, when you see the

10 two references of two separate entities, what is your 11 understanding of the difference between those two 12 entities as to the capacity regarding the foreclosure? 13 A. Well, I know that Federal Home Loan 14 Mortgage Corporation is the investor, and I know that 15 IndyMac Federal Bank is the servicer, and I know that 16 Federal Home Loan Mortgage Corporation requires that 17 IndyMac Federal Bank foreclose in their name, not in 18 Federal Home Loan Mortgage Corporation's name. 19 Q. Is there a guideline or written document 20 that you're referring to when you talk about your own 21 knowledge? 22 A. Yes. It's the guidelines that are 23 published by Federal Home Loan Mortgage Corporation. 24 Q. And we can find that on their Internet 25 website?

Page 18

1 A. I don't know if you have access or not. 2 Q. Have you ever read the guidelines that 3 you're referring to? 4 A. I'm familiar with them, yes. 5 Q. In this referral, who paid the invoices 6 that your company billed? 7 A. I don't have direct knowledge of who paid 8 it. 9 Q. But --

10 A. In other words, I've never seen the check. 11 Q. Are you familiar with the existence of any 12 invoices -- 13 A. Yes. 14 Q. -- relating to this particular referral in 15 2009? 16 A. Yes. 17 Q. And you don't recall who the invoices were 18 being billed to? 19 A. IndyMac Federal Bank. 20 Q. And do you recall if you got -- I'm sorry, 21 let me rephrase. Are you aware of any agreement 22 between Northwest Trustee and Federal Home Loan 23 Mortgage Company, which I will refer to from now on as 24 "Freddie Mac"? 25 A. No.

Page 19

1 Q. No separate agreement between your company 2 and Freddie Mac? 3 A. Northwest Trustee Services, no. 4 Q. Can you describe to me the process by which 5 the referral came in, in this case? And I'm still 6 referring to the Exhibit 1. 7 A. How the referral came in? 8 Q. Yeah. 9 A. Through an electronic download from that

10 third-party system. 11 Q. And your employees or Northwest Trustee 12 employees would sign on with an access code? 13 A. Yes. 14 Q. And the information that you receive would 15 be via electronic images and data? 16 A. Yes. 17 Q. Is there any paper copies or a transmission 18 of the package itself that you know of? 19 A. It's electronic transmit, electronically 20 transmitted. We're a paperless office, so we would 21 not have a paper file where we would print any of the 22 referral or documents out and put them into a physical 23 file. 24 Q. I'd like for you to go to the pages beyond 25 the first two pages there.

Page 20

1 A. Okay. 2 Q. What are these figures and ledger here? 3 They look like ledgers to me. 4 A. Which page are you looking at? 5 Q. You go to the third page, which is VMD 10. 6 A. VMD 10? 7 Q. Yeah, through 17. 8 A. It would give us information regarding the 9 current interest rate, the unpaid principal balance.

10 It would give us the interest calculation, the escrow 11 advance balance, the accumulated late charges. These 12 are financials from the lender's system or the 13 servicer's system. 14 Q. And to the best of your knowledge, those 15 information would have come from IndyMac Federal Bank? 16 A. Yes. 17 Q. What is your understanding of Freddie Mac 18 as an investor? 19 MS. MORRISON: Objection if you're asking 20 him to make a legal conclusion. He can answer if he 21 knows. 22 A. My understanding of Federal Home Loan 23 Mortgage Corporation is the principal in interest 24 that's collected is passed through to them as they are 25 an investor in that loan.




6 (Pages 21 to 24)

Page 21

1 Q. Do you have any knowledge of the nature of 2 Ms. Reiner's loan as in whether it was sold to Freddie 3 Mac, whether it was securitized? Do you have any 4 idea? 5 A. No, I don't. 6 Q. Insofar as the third-party LPS system, are 7 you aware of any maintenance activities or design 8 activities of the program itself? 9 A. I'm not involved in that part of the

10 process. I know they update the system and it changes 11 occasionally, and they issue updates to the changes 12 they make that affect us. 13 Q. Right. But that also -- electronic 14 transmissions you're talking about? 15 A. I think I'm referring more to the structure 16 of the system and where to find the information and 17 how to communicate back and forth through that system. 18 Q. But you have no idea how it's maintained -- 19 A. No. 20 Q. -- or worked on? 21 A. I don't. 22 Q. In looking at Exhibit 1 again, Mr. Stenman, 23 do you recall whether there's an agreement with 24 IndyMac Federal Bank for Northwest Trustee to act as 25 trustee?

Page 22

1 A. As trustee the agreement would be the 2 appointment of successor trustee. 3 Q. And I'm referring to a particular agreement 4 about expectations, terms, compensation? 5 A. I don't know if there's a specific 6 agreement with -- between us and them. I'd have to 7 research that. 8 Q. Okay. What is your understanding of how 9 Northwest Trustee is compensated? What's the basis

10 for compensation? 11 A. The fee is derived by loan type, and 12 typically they will provide a -- they'll make a 13 statement that we're to bill to whatever loan type or 14 GSE or government entity. Most government entities, 15 like Freddie Mac and Fannie Mae and HFA and VA, 16 provide fee schedules, allowable fees. And then 17 usually the servicer will indicate what amount of fee 18 can be charged at each particular milestone during a 19 foreclosure. 20 Q. So along the line of that disclosure, is it 21 fair to say that Northwest gets involved before the 22 notice -- before it even is appointed as successor 23 trustee? 24 A. Yes. 25 Q. So the stage of that involvement would be

Page 23

1 when, or the point of involvement? 2 A. At the initial referral and issuance of the 3 notice of default. 4 Q. Okay. Now, when you talk about the 5 schedule of fees, as we've just talked about -- and 6 I'm narrowing it to the GSE type loan here. And you 7 agree that this is a GSE type loan? 8 A. Yeah. Federal Home Loan Mortgage 9 Corporation I would consider a GSE, yes.

10 Q. Does that schedule of fees apply at the 11 initial referral and throughout, or is it broken down 12 to prior to appointment and after appointment? 13 A. I believe Freddie Mac's fee is just stated 14 as an overall allowable amount. I don't believe that 15 it breaks it down at each stage. 16 Q. All right. So when you -- when your 17 company got involved in this case in 2009, that 18 particular fee schedule would apply as a set amount? 19 A. We would be held to not to charge more than 20 the allowable fee in 2009, whatever the published fee 21 was in 2009. 22 Q. Does that remain true for all the work that 23 you do, it's a flat fee? 24 A. It's a flat fee, yes. 25 MS. DAO: Hey, Chris, you want to mute your

Page 24

1 end? 2 MR. KAYSER: I'm sorry about that. 3 MS. DAO: Thanks. 4 Q. Mr. Stenman, if I could ask you to pay 5 attention to what I've handed you, which is Exhibit 3 6 from the previous day of deposition. If you could 7 take a look and familiarize yourself with the 8 document. 9 A. Okay.

10 Q. This is the notice of default that 11 Northwest Trustee sent out on behalf of IndyMac 12 Federal Bank; is that correct? 13 A. Yes. 14 Q. And the date of the document is what, Mr. 15 Stenman? 16 A. April 7, 2009. 17 Q. So the information -- I'm sorry. Who 18 prepared the notice of default, to the best of your 19 knowledge? 20 A. Northwest Trustee Services. 21 Q. And you reviewed the information that is 22 contained in Exhibit 3. Can you tell me where the 23 information came from, and specifically the items 24 account for the arrears? 25 A. Just the arrears?




7 (Pages 25 to 28)

Page 25

1 Q. Yes. 2 A. The arrears information came from the 3 screen prints that were provided at the referral, at 4 the point of referral. 5 Q. And could it be the information that we 6 were just talking about on the previous exhibit, the 7 pages that were attached to the referral package? 8 A. It could be, yes. 9 Q. Where else would you get the information

10 about the arrears? 11 A. A very small portion of the information 12 comes in through the download, through our electronic 13 download. 14 Q. Through the same third-party system you 15 were -- 16 A. Yes, but a very small part. We verify all 17 the financial information through the screen prints 18 that they provide. 19 Q. I'm going to call your attention to on the 20 item listed as trustee's fees. Do you see that? 21 A. Yes. 22 Q. And that is how much? 23 A. $508. 24 Q. Would that represent the amount of fees 25 allowed for in this GSE loan?

Page 26

1 A. It's the amount we charged at that stage, 2 and it would be under the allowable amount for that 3 stage -- well, for that GSE. 4 Q. Okay. Let me clarify. When you said "that 5 stage," you're not talking about just pre-appointment 6 stage? 7 A. At the point that we issue the notice of 8 default it's the amount, the prorated amount, of the 9 total fee that we charge.

10 Q. I see. So there would be more fees earned 11 as you continued on the trustee's work? 12 A. Correct. 13 Q. In Exhibit 3, if you look it's -- it has 14 Ms. Vonnie McElligott's name on the last page. Is 15 that an indication of anything? Did she prepare the 16 exhibit? 17 A. It's an indication of who the assigned 18 processor is to the file. 19 Q. And that would be Vonnie McElligott for 20 this particular file? 21 A. Yes. 22 Q. So let me clarify. On the same last page, 23 do you see the reference that Northwest Trustee 24 Services, Inc., is the duly authorized agent for 25 IndyMac Federal Bank?

Page 27

1 A. Yes. 2 Q. Is that a statement of fact? 3 MS. MORRISON: Objection to the extent 4 you're asking him to make any sort of legal 5 determination. He can answer if he knows. 6 A. It's our representation of ourselves in the 7 document. 8 Q. Is that true? 9 A. Did we issue it as an agent, yes.

10 Q. And the authority to act as an agent came 11 from where? 12 A. From the referral. 13 Q. From the referral? Are we talking about 14 the previous exhibit, or is it some other document 15 that I'm not seeing? 16 A. When it was delivered to us through the 17 LPS desktop system, that's when we picked up the 18 referral, and it was deposited into our database. And 19 we issued it as an agent because we had not been 20 appointed. So we couldn't issue it as a trustee. 21 Q. And again the -- your -- the representation 22 as appeared here is based on that referral? 23 A. Correct. 24 Q. Through the third-party system? 25 A. That's correct.

Page 28

1 Q. And then the fees of $508 that we were 2 talking about, in the previous page of the same 3 Exhibit 3, would be paid or would have been paid by 4 IndyMac Federal Bank? 5 A. Yes. We would invoice them and they would 6 pay us, yes. 7 Q. In the event that the servicer changed -- 8 the servicers change in the middle of the foreclosure 9 process, does your company record a new appointment of

10 successor trustee? 11 A. We don't have to. Once we're appointed 12 trustee we're the trustee until another trustee is 13 appointed, or the previous trustee resigns. 14 Q. Okay. Are you aware that in this case 15 there was a second appointment of successor trustee? 16 A. Yes. 17 Q. And what is your understanding of why that 18 happened? 19 A. I don't believe it was required. My belief 20 is that we didn't take up the fact that there was a 21 previous appointment and we recorded another one. 22 Q. I asked you to describe the process, and I 23 didn't pick up on it where we left off. After you got 24 the referral electronically, what happened? 25 A. We would have ordered a trustee sale




8 (Pages 29 to 32)

Page 29

1 guarantee, which is a title report. 2 Q. From where? 3 A. Depends on who we're using as a vendor. 4 I'd have to look at the TSG, the trustee. We 5 typically will default in our system who we record our 6 title from, and I'd have to look to see who we ordered 7 it from. 8 Q. What was the purpose for the title report? 9 A. It tells us who the current owner is, who

10 the current vested owner of the property is. It tells 11 us the current lien holders on the property. It 12 should indicate who our -- which deed of trust we're 13 foreclosing on. It would give us -- what would come 14 along with it would be supporting documents that we 15 could review, like the recording deed of trust. Any 16 vesting deeds that may have been recorded prior to the 17 deed of trust, and after the deed of trust in case the 18 vested party transferred their interest to another 19 vested party. 20 Q. And then what do you do after the title 21 order is -- the title report is ordered? 22 A. Well, our -- the title company will send us 23 a confirmation of the order, and with the confirmation 24 they'll send us the recorded deed of trust on the 25 vesting deeds that I alluded to, tax information so we

Page 30

1 can see whether there's an additional mailing address 2 for the homeowner, the borrower. And then we would 3 take that information and the additional information 4 that came from the referral and issue the notice of 5 default. 6 Q. And how do you go about issuing the notice 7 of default? 8 A. It gets mailed via first class and 9 certified mail/return receipt requested, and it gets

10 posted on the property. 11 Q. And who does the mailing? 12 A. We have a mailroom, full-service mailroom, 13 that would handle the mailing. 14 Q. Inside your company? 15 A. Yes. 16 Q. What about the posting? 17 A. An outside agent. We would contact an 18 outside agent and send a copy of the notice of default 19 and ask that they post it, and we would tell them that 20 it had to be posted as soon as possible, hopefully 21 same day. 22 Q. When I deposed Ms. McElligott yesterday, I 23 asked her about the documents relating to the 24 foreclosure process that your company creates, and she 25 gave me a list. Can you tell me what documents your

Page 31

1 company creates? 2 A. For just this part of the stage or the 3 whole foreclosure? 4 Q. For the foreclosure process. And I'm 5 referring to this particular loan with Ms. Reiner. 6 A. Are we talking about both foreclosures or 7 just the first one? 8 Q. Let's talk about the first one first 9 because I realize that there were changes.

10 A. I think, I believe, we only got through the 11 notice of the default on the first one. I'd have to 12 check, have to look at what we got through. And can 13 I? Can I look? 14 Q. Yes, go ahead. 15 A. Because I'm not sure how far we got in 16 here. I get them mixed up. There's two of them. 17 Q. Sure. If we could confine to the 2009. 18 A. 2009? 19 Q. Yes, please. 20 A. So we issued a notice of default. We 21 procured an assignment of deed of trust. 22 Q. Okay. Let's stop right there. You said 23 you procure. What happened? 24 A. We drafted it. 25 Q. And this is the assignment, you said?

Page 32

1 A. Yes. 2 Q. The assignment of deed of trust? 3 A. Correct. 4 Q. And are you looking at a particular 5 document there? 6 A. Yes. 7 Q. Could you -- 8 A. Yes. JSD 88. 9 Q. Could you pull it out for me?

10 A. (Handing). Trying to find the appointment. 11 Q. Take your time. 12 MS. MORRISON: The appointment was marked 13 as an exhibit yesterday. 14 MS. DAO: Could be. 15 MS. MORRISON: Exhibit 2 and Exhibit 20. 16 Both of them. 17 MS. DAO: 2 and 20? 18 MS. MORRISON: Yes. 19 A. Are you going to find it for me? 20 Q. We have it here (indicating). 21 A. The appointment of successor trustee, 22 that's correct. The notice of trustee sale, which was 23 dated effective 5-26-2009. 24 Q. Will you hand me that? 25 A. Sure. This is another separate notice.




9 (Pages 33 to 36)

Page 33

1 It's called a "Notice of Foreclosure." And a notice 2 of discontinuance. It looks like those were the only 3 documents for this foreclosure that we had issued. 4 (Marked for identification Exhibit 1.)5 Q. Thank you. I'm going to hand you what has 6 been marked as Stenman Exhibit 1. Can you tell us 7 what that is? 8 A. It's the assignment of deed of trust. 9 Q. And you testified that your company

10 prepared that? 11 A. Yes. 12 Q. And where did you get the information to 13 prepare it from? 14 A. From the referral and from the recorded 15 deed of trust. 16 Q. How do you decide who the signatory would 17 be? 18 A. Well, we would use our standard template, 19 MERS template, and then it would be delivered to 20 IndyMac Bank, and then they would review it and make a 21 determination on whether or not they want any edits to 22 the document. So they may require revision, and then 23 we would have to upload a new one for revision. This 24 particular one, I wouldn't know whether or not there 25 was a revision done, but we would draft the first

Page 34

1 version and send it up to them. And then they would 2 determine if they would execute it and return it. 3 Q. On Exhibit 1, the signatory is 4 Erica A. Johnson-Seck. Do you see that? 5 A. Yes. 6 Q. And what's her title there? 7 A. It says vice-president of MERS. 8 Q. Have you ever met her? 9 A. No.

10 Q. Do you know who she is? 11 A. No. 12 Q. Do you know in fact -- do you know for a 13 fact that she was the assistant VP for MERS? 14 A. No. 15 Q. But so how did you -- I'm sorry, how did 16 Northwest decide to put her name there as signatory? 17 A. We didn't put her name on here. 18 Q. Who would have? 19 A. They would. Somebody at IndyMac Federal 20 Bank would complete the signature line and the title 21 and the notary section. 22 Q. And how can you tell? 23 A. Because it's not part of the draft 24 document. It's got a different font size. 25 Q. So the template that you were referring to,

Page 35

1 is that a word processing template? 2 A. It's a template in our document system, 3 yes. 4 Q. Is it part of the third _arty vendor system 5 or is it separate? 6 A. It's part of ours. It's our proprietary 7 system. 8 Q. And how can you tell between -- you 9 mentioned that the fonts look different, font type.

10 A. Well, I also know that we don't populate 11 that information unless it's requested that we 12 populate some of the information, but typically we 13 wouldn't -- we would not populate the title of the 14 person signing the document because we wouldn't know 15 who is going to sign it. 16 Q. So in drafting the assignment of deed of 17 trust, you leave it blank as far as the person who is 18 going to sign? 19 A. We leave the signature section and the 20 notary section blank. 21 Q. And is it your belief that that was done in 22 this case? 23 A. Yes. 24 Q. And then how did you get it back signed? 25 A. They would have sent it to us in the mail.

Page 36

1 Q. "They" who? 2 A. IndyMac Bank would have sent it to -- 3 IndyMac Federal Bank would have sent it to us in the 4 mail. 5 Q. And are you talking about customs or do you 6 know for a fact that it happened in this case? 7 A. Well, they would either -- they would have 8 to deliver it to us in the mail because we have to 9 have an original signed document for us to send for

10 recording. 11 Q. So explain to me why this document was 12 supposed to be executed by MERS, but it would come 13 from IndyMac Federal. 14 A. The beneficiary on the deed of trust was 15 MERS. 16 Q. Correct. 17 A. So that's who would have to assign the 18 interest. 19 Q. Right. But my question is, why was it not 20 sent to MERS? 21 A. Well, if IndyMac Bank wanted to send it to 22 MERS for execution they could have, but we deliver the 23 assignments for the party we represent, which is 24 IndyMac Federal Bank. If they need to send it to MERS 25 for signature that's up to them.




10 (Pages 37 to 40)

Page 37

1 Q. So even though you prepared the document 2 for someone on behalf of MERS to sign, you never sent 3 it directly to MERS? 4 A. I'm not sure how you're characterizing 5 that. 6 Q. The assigner in this case is MERS; is that 7 correct? 8 A. Correct. 9 Q. But you send the draft that you -- that

10 your company drafted to IndyMac Federal? 11 A. Correct. 12 Q. Do you do that in all cases where it goes 13 back to the servicer? 14 A. Yes. 15 Q. Is there any exception at all where you 16 send it directly to MERS? 17 A. No. 18 Q. So you've never -- have you had any 19 dealings with MERS in this particular case? 20 A. No. 21 Q. Do you recall if there was ever any 22 correspondence from MERS to you? 23 A. In this case, no. 24 Q. Let me ask you to refer back to Exhibit 1 25 of Stenman. And the date of the assignment, when you

Page 38

1 receive it, was when? 2 A. I don't have that information in front of 3 me. 4 Q. How about the day of execution? 5 A. It says it right on the assignment that it 6 was executed on May 7. 7 Q. Of 2000 -- 8 A. Nine. 9 Q. You referred to the fact that IndyMac

10 Federal Bank is no longer in existence? 11 A. Correct. 12 Q. Do you recall that? 13 A. Yes. 14 Q. Do you know the date that the bank ceased 15 to exist as an entity? 16 A. No. 17 Q. Do you know the year that it ceased 18 operating as an entity? 19 A. No. I'd be guessing. I'd have to look 20 back to see when that happened. 21 Q. So if I were to tell you that Exhibit 1 was 22 executed after the date that the bank had ceased 23 operating, would you have any knowledge or information 24 to dispute that? 25 A. Are we talking about the assignment?

Page 39

1 Q. Yes. 2 A. I don't see how the assignment would have 3 any -- how that would affect the assignment, the deed 4 of trust, since MERS is executing it, not IndyMac. 5 Q. And so that's your understanding is that it 6 doesn't matter? 7 A. It's my understanding that MERS is 8 executing the assignment, not IndyMac Bank. 9 Q. Okay. And when you said MERS executed it,

10 are we referring back to your testimony that it was 11 sent to IndyMac Federal? 12 A. Yes. 13 Q. And so as far as your actual knowledge 14 whether MERS actually executed the document, you don't 15 know? 16 A. I can only go by the document itself. 17 Q. And is it fair to say that when you 18 received Exhibit 1, you took no action -- Northwest 19 Trustee took no action to verify the accuracy? 20 A. Correct. 21 Q. Or the identity of the signer? 22 A. Correct. 23 Q. Or the fact -- or whether or not she had 24 authority to sign? 25 A. Correct.

Page 40

1 (Marked for identification Exhibit 2.)2 Q. I'm going to show you Exhibit 2 as your own 3 deposition exhibit here, and it's appointment of 4 successor trustee. Take a look at that document, Mr. 5 Stenman. 6 A. Okay. 7 Q. Your testimony is that Exhibit 2 was also 8 created by Northwest? 9 A. Yes.

10 Q. And for what purpose? 11 A. To appoint Northwest Trustee as trustee in 12 the foreclosure -- in the deed of trust. 13 Q. And what facts let you -- led Northwest to 14 do that? 15 A. We would have looked at the title, and the 16 title would have reflected that there wasn't a 17 successor, an appointment of Northwest Trustee already 18 of record. 19 Q. And so that was a determination made by 20 Northwest Trustee? 21 A. Yes. 22 Q. And so you created the appointment. And 23 then what did you do after that? 24 A. We would have delivered it to IndyMac 25 Federal Bank for execution and return.




11 (Pages 41 to 44)

Page 41

1 Q. Again, on Exhibit 2, when you drafted the 2 document, did you decide who was going to be the 3 signatory? 4 A. No. 5 Q. And again -- 6 A. Well, let me restate that. We expected 7 that IndyMac Federal Bank would be the signatory. 8 Q. But did you pick a name? 9 A. No.

10 Q. So what -- so you used the template that 11 you referred earlier to draft? 12 A. Yes. It's a template in our system. 13 Q. And then you sent it to IndyMac Federal? 14 A. Yes. 15 Q. And they executed it and returned it? 16 A. Correct. 17 Q. And again, the day of execution is May 7, 18 2009. Do you agree? 19 A. It doesn't have a date of execution. It 20 only has a notary date. 21 Q. What is that date? 22 A. April -- or May 7, 2009. 23 Q. And who is the signatory? 24 A. Roger Stotts. 25 Q. And what did he execute the document as?

Page 42

1 A. Vice-president of IndyMac Federal Bank 2 FSB. 3 Q. Do you know Mr. Roger Stotts personally? 4 A. No. 5 Q. Never met him? 6 A. No. 7 Q. Would not have any idea whether he 8 actually, in fact, executed this document? 9 A. No.

10 Q. I asked you earlier whether you have any 11 knowledge of when IndyMac Federal ceased to exist. 12 A. Correct. 13 Q. And as to the date of this document, when 14 Mr. Stotts's signature was notarized, May 7, 2009, you 15 don't have any idea whether the bank was still in 16 existence at that time? 17 A. I don't know when that occurred, no. 18 Q. And when you received this Exhibit 2, you 19 relied on it for face value? 20 A. Correct. 21 Q. And you used it to process the foreclosure? 22 A. Correct. 23 (Marked for identification Exhibit 3.)24 Q. Showing you what has been marked as Exhibit 25 3 to your deposition.

Page 43

1 A. Okay. 2 Q. What is that document? 3 A. It's a "Notice of Discontinuance of 4 Trustee's Sale." 5 Q. And who signed it? 6 A. I did. 7 Q. What date? 8 A. August 14. 9 Q. Of?

10 A. 2009. 11 Q. Do you recall the circumstances that led 12 you to sign that document? 13 A. We were advised to cancel the foreclosure 14 and to close our file. 15 Q. Are you going by recollection from your 16 memory? 17 A. I saw a communication that was archived in 18 our image archive system indicating that we were 19 requested to cancel our foreclosure, to stop our 20 foreclosure. 21 Q. When did you look at this message? 22 A. Within the last few days. 23 Q. And what system are we talking about? 24 A. LPS desktop. 25 Q. And you indicated that it was archived?

Page 44

1 A. Yes. 2 Q. So how did you do that, sign on to the 3 system using -- 4 A. How did I do that? 5 Q. Yes. 6 A. I looked at our image archive to determine 7 when the file was closed and why it was closed. 8 Q. And now you're talking about Northwest's 9 system?

10 A. Correct. 11 Q. And is that a computer system or hard copy 12 system that we're talking about? 13 A. Computer system. 14 Q. And the -- and what did you see? A 15 comment, a message? 16 A. Yes. It was a message through LPS desktop 17 that we imaged into our archive. 18 Q. So the message came from LPS? 19 A. Yes. 20 Q. And do you recall what the message said? 21 A. "Stop foreclosure" is the only part that I 22 remember. 23 Q. So it came from the desktop system. Did it 24 have a reference to a person? 25 A. Yes, it did.




12 (Pages 45 to 48)

Page 45

1 Q. Do you recall who it was? 2 A. I don't know the name, but it does have the 3 person that issued the stop foreclosure direction. 4 Q. In looking at that image or document that 5 was archived, do you have any idea who that person is 6 or where this person was working? 7 A. No. 8 Q. For whom this person was working? 9 A. No. If I looked at it I might be able to

10 tell if it was -- who it was, if it was IndyMac, if it 11 was an IndyMac person. 12 Q. But you don't know? 13 A. I can't remember. 14 Q. And so you surmised that when, at the time, 15 when Northwest got that message, Northwest cancelled 16 the sale? 17 A. Yes. 18 Q. Discontinued? 19 A. Yes. 20 Q. Can I see that exhibit for a second? 21 A. (Handing.)22 Q. It is a bad copy. 23 A. It is. You can't read the signature or the 24 notary. 25 Q. It looks blank.

Page 46

1 A. I know the image from accounting would 2 probably show all that information because they would 3 reject it for recording if you couldn't see it. 4 Q. I would imagine so. Let me ask you about 5 continuances versus discontinuances. Do you 6 understand what I'm saying? 7 A. Postponements versus discontinuances? 8 Q. Sure, let's go with that, because I've seen 9 notices referring to everything. When does a

10 continuance of the sales take place? 11 A. If a sale was scheduled for a specific date 12 it would take place on that date. So if the sale was 13 scheduled for Friday, the continuance would be on 14 Friday. That's when we would announce it publicly at 15 the place where the sale is scheduled to be read. 16 Q. And that's customary for Northwest? 17 A. Yes. 18 Q. How does the borrower know that a sale is 19 continued? 20 A. They're sent a written notice of the 21 postponement. 22 Q. So now, there are notices of postponements? 23 A. Yes. 24 Q. But the announcement of the continuance or 25 postponement happens at the sales?

Page 47

1 A. There's a public proclamation and it's 2 followed up with a written notice. 3 Q. To the best of your knowledge, were there 4 notices of postponement sent to Ms. Reiner due to -- 5 strike that. 6 Going back to the notice of postponement, 7 what's the time frame that it gets transmitted or 8 mailed to the borrower? 9 A. Within three days of the actual -- the

10 original sale date, or the date that it's being 11 postponed from. 12 Q. So if it's -- if the sale is scheduled for 13 Friday it would go out when? 14 A. No later than Monday. 15 Q. And how does it go by? 16 A. First class and certified mail/return 17 receipt requested. 18 Q. And what else does Northwest do with 19 regards to the postponement? Do you change it on your 20 website? I'm sorry. Do you have a website that 21 informs borrowers of the status of the sale? 22 A. Northwest Trustee does not have a website. 23 Do we publish it in a website, yes. The website is 24 USAforeclosure.com. 25 Q. And is that a third-party website?

Page 48

1 A. Yes. 2 Q. And what does that company do for your 3 company? 4 A. They just publish the notice within the -- 5 they publish the status of the sale to the public. 6 Q. They don't work for Northwest Trustee? 7 A. They're a vendor, I believe. 8 Q. They are, okay. So they get the 9 information directly from Northwest Trustee?

10 A. Correct.11 MS. MORRISON: Can we take a break? I need 12 to use the restroom. 13 MS. DAO: Let's just do 10 minutes. 14 (Off the record from 10:00 a.m. to 10:20 15 a.m.) 16 (Record read.) 17 Q. Mr. Stenman, I asked you whether 18 USforeclosure.com got the information from Northwest 19 Trustee. You said yes? 20 A. Yes. 21 Q. And you also testified to another third 22 party that goes out and posts notice of default? 23 A. Yes. 24 Q. And does Northwest Trustee have any 25 ownership interest in either one of these companies




13 (Pages 49 to 52)

Page 49

1 that you mentioned? 2 A. Northwest Trustee does not have an 3 ownership interest in either. 4 Q. We were talking about documents created and 5 maintained -- or created by Northwest Trustee in this 6 case. And you testified to three of them so far for 7 the first foreclosure in 2009; correct? 8 A. Correct. 9 Q. And you also testified to the fact that you

10 had looked at a message that had been archived that 11 directed Northwest Trustee to discontinue the sales? 12 A. I believe it said "stop foreclosure." 13 Q. Do you recall the reasons? 14 A. No. 15 Q. Was there a time when the foreclosure 16 resumed, that you can recall in this case? 17 A. From the 2009 referral, no. 18 Q. Do you recall what happened next? 19 A. There was another referral. Is that what 20 you're referring to? 21 Q. Yes. 22 A. Yes. There was another referral. 23 MS. MORRISON: Chris, do you want to mute? 24 MR. KAYSER: Sorry. 25 Q. Okay. I'm handing you what has been marked

Page 50

1 as Exhibit 4 in the former deposition. Can you take a 2 look at that and tell me what it is. 3 A. It's the referral from July 17 of 2010. 4 Q. And where did you get that referral from? 5 A. From LPS desktop. 6 Q. The referral shows that it was sent to the 7 law firm of Routh Crabtree and Olsen. Do you see 8 that? 9 A. Yes.

10 Q. Why is that the case? 11 A. That's how they have the vendor set up in 12 desktop. 13 Q. But the referral actually went to 14 Northwest, did it? 15 A. Yes. We have a data integration, it 16 downloads. If it's a nonjudicial foreclosure it 17 downloads to Northwest Trustee automatically. 18 Q. Okay. The integration system or the 19 integration feature is also the LPS system? 20 A. I'm not sure if this was our direct data 21 integration with LPS or if it was through a 22 third-party vendor that provides a portal. I believe 23 2010, I'm guessing that we were doing direct data 24 integration in 2010. 25 Q. You were guessing?

Page 51

1 A. Yes. I can't remember when we went from 2 the third party to direct. 3 Q. Okay. So based on Exhibit 4, it's a new 4 referral, from a new source? 5 A. Yes. It's from One West Bank FSB. 6 Q. And what is -- the method that you got this 7 referral was similar to the one that you got from 8 2009? 9 A. Correct.

10 Q. Who in your office receives the referral, 11 this particular referral? 12 A. You mean in Northwest Trustee Services' 13 office? 14 Q. Yes. 15 A. It gets assigned to a team and assigned to 16 Vonnie McElligott's team. 17 Q. And you can tell that from the referral? 18 A. Yes, because it's a Freddie Mac loan type, 19 and it's Washington referral. And I know all Freddie 20 Mac Washington referrals go to Vonnie McElligott. 21 Q. Okay. So with regards to Northwest -- to 22 One West being the referral source now, what is your 23 understanding? Was there a transfer of some sort from 24 IndyMac Federal Bank to One West? 25 A. My understanding is that the FDIC took over

Page 52

1 IndyMac Federal, and that the assets from that 2 takeover were sold to or transferred to One West Bank. 3 Q. Okay. And is that a general understanding 4 or -- 5 A. That's a general understanding. I don't 6 know how specifically that type of a transfer works. 7 Q. Sure. And do you know for a fact that the 8 Reiners' loan or servicing rights were transferred 9 with this particular event?

10 A. I wouldn't have direct knowledge of that. 11 Q. So, again, in getting the referral package, 12 you were relying at face value of the information that 13 was provided to you? 14 A. Correct. 15 Q. And also, when I said "you," I just meant 16 Northwest Trustee. You were not personally 17 downloading this information about the Reiners' loan? 18 A. Correct. 19 Q. Beside the desktop/UPS system, does 20 Northwest Trustee use any other system to work with 21 other servicers? 22 A. Yes. 23 Q. What are they? 24 A. There's many, but VendorScape. 25 Q. What else?




14 (Pages 53 to 56)

Page 53

1 A. Lincs, L-I-N-C-S. Clarifier, 2 C-L-A-R-I-F-I-E-R. Lenstar, L-E-N-S-T-A-R. Those are 3 the ones I can think of off the top of my head. 4 Q. But they may not be all that there are? 5 A. Those are the only ones I can think of. 6 I'm not sure if there's another one out there. There 7 may be another one out there, but I'm not remembering 8 it right now. 9 Q. How do your employees get trained to use

10 these programs? 11 A. By experienced staff. If it's a brand-new 12 program then they'll have Webinars that we can attend 13 that are conducted usually by the actual vendor, 14 VendorScape, Lenstar, Clarifier. 15 Q. Is it fair to say that you do not 16 understand the intricacies of these programs? You're 17 just a user? 18 A. Correct. 19 Q. Northwest Trustee is just a user? 20 A. Correct. 21 Q. I asked you about the referral for 2010. 22 And again, on Exhibit 4, the information you were 23 given there also includes loan amounts, amounts of 24 arrearages, would you say? 25 A. It doesn't have arrearages on this specific

Page 54

1 statement. It shows principal balance, interest rate, 2 and the due date. 3 Q. And as far as Freddie Mac being the 4 investor, has that changed at all? 5 A. No. 6 Q. So Freddie Mac remains the investor for the 7 loan in 2010? 8 A. Yes. 9 (Marked for identification Exhibit 4.)

10 Q. I'm showing you what has been marked as 11 your own Exhibit 4. And I will represent to you that 12 this is defense attorney Routh Crabtree's responses to 13 our first discovery. I want you to take a moment to 14 look at the document and verify the signature on the 15 last page of the responses, page 11. 16 A. Okay. 17 Q. Is that your signature, Mr. Stenman? 18 A. Yes. 19 Q. So I want you to look through the answers, 20 as well as the contents, to make sure that you're 21 familiar with the documents so I can start asking you 22 questions. 23 MS. MORRISON: Can we go off the record for 24 a second here? 25 (Discussion off the record.)

Page 55

1 A. Do you want me to look at the -- 2 Q. Yes, please, the attachments, to make sure 3 that you're familiar with those attachments because 4 they were given to us as your production. 5 A. Okay. 6 Q. You're familiar with all the attachments? 7 A. Yes. 8 Q. And are you certifying that those are the 9 documents that you provided to counsel to give to us?

10 THE WITNESS: Can I do that? Did I provide 11 them? 12 Q. That's what it says on the document. 13 A. On this you mean (indicating)? 14 Q. Yes. 15 A. Yes. 16 MS. MORRISON: You don't have to reveal 17 anything that happens between you and your counsel, 18 any communication between your counsel. 19 So, object to the extent that you're 20 requesting him to reveal attorney-client material 21 protected by attorney-client privilege. 22 Q. The question is, after reviewing the 23 attachments, are you certifying that these -- those 24 were documents you provided to counsel to provide to 25 us as part of discovery?

Page 56

1 A. Yes. 2 Q. Nothing looks out of place? It's not 3 foreign to you? 4 A. No. 5 Q. Okay. That's all I need for you to do on 6 that exhibit. Thank you. We're still on the referral 7 for 2010, and now I'm handing you Exhibit 5 of the 8 previous deposition. Could you take a look at that 9 and familiarize yourself?

10 A. Okay. 11 Q. And I'm going to ask you to look at Exhibit 12 5 and 4 together because I believe that they are 13 together. 14 A. Okay. 15 Q. We're talking about back in 2010, when you 16 get the -- when Northwest Trustee got the second 17 referral from One West, is Exhibit 5 the information 18 that you received from LPS in terms of loan 19 information, arrearages, numbers that you needed to 20 plug into your foreclosure? 21 A. Yes. 22 Q. And where did Exhibit 5 come from? 23 A. From the servicer's servicing system. 24 Q. LPS? 25 A. It came from -- it was delivered through




15 (Pages 57 to 60)

Page 57

1 LPS, yes. 2 Q. And did Northwest, in fact, rely on Exhibit 3 5 to prepare documents relating to the second 4 foreclosure? 5 A. Yes. 6 Q. Do you recall off memory what documents 7 were created by Northwest Trustee for the second 8 foreclosure? 9 A. I'd like to look at them. I know we did --

10 I know there was an appointment. I know there was a 11 notice of default. I know there was a notice of sale 12 and a notice of foreclosure. 13 Q. And these are documents that were created 14 by Northwest Trustee? 15 A. Yes. 16 Q. Showing you Exhibit 21 from the previous 17 deposition of Ms. McElligott, does that help you in 18 terms of identifying whether Exhibit 21 is a document 19 created by Northwest Trustee? 20 A. Yes. 21 Q. And how can you tell? 22 A. It's our document format. 23 Q. Okay. 24 A. It has our file number and the borrower 25 name listed in it. That means it was produced off of

Page 58

1 our system. 2 Q. And what is Exhibit 21? 3 A. An assignment of deed of trust. 4 Q. From whom to whom? 5 A. Federal Deposit Insurance Corporation, as 6 receiver for IndyMac Federal Bank, to One West Bank, 7 FSB. 8 Q. Do you know if that designation was made by 9 Northwest Trustee as to the signatory?

10 A. We would have -- I think we provided -- I 11 think we were advised to put Federal Deposit Insurance 12 Corporation as receiver for IndyMac Federal Bank FSB. 13 Q. Do you recall who advised you? 14 A. No, not specifically. 15 Q. But where would be the likely source that 16 that came from? 17 A. Either from LPS desktop through a 18 communication, or a field within that program, or 19 through a revision request from One West Bank. I 20 can't imagine that it would come from any other place. 21 Q. The prior -- when you testified that you 22 looked at an archive message from LPS to stop the 23 foreclosure in 2009 -- 24 Yes or no? 25 A. Yes.

Page 59

1 Q. -- I have not received a copy of that. Is 2 there a way to retrieve that particular -- 3 A. Yes. 4 Q. Okay. And similarly, with regard to your 5 testimony now relating to Exhibit 21, when you said 6 that Northwest was advised to designate FDIC as the 7 signatory, if it came from LPS, is there any way we 8 can retrieve that from the system that you're 9 mentioning?

10 A. I don't know because if -- sometimes, when 11 they close the system, sometimes when they put a close 12 date in their system you can't retrieve images from 13 their system. You're blocked from retrieving. 14 Q. But you were referring to one that you were 15 able to retrieve a few days ago with regard to the 16 2009's directive? 17 A. We had imaged that when it was communicated 18 to us into our archive. 19 Q. I see, okay. 20 A. So if it's not in our archive then I may or 21 may not be able to retrieve it from LPS desktop. 22 Q. I see what you're saying. So unless 23 Northwest Trustee saved the image and maintains it in 24 its system, there are possibilities that you cannot 25 retrieve it from --

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1 A. Correct. 2 Q. -- the LPS system? 3 A. Yes. 4 Q. With regard to Exhibit 21, you cannot say 5 whether the designation came from LPS or another 6 method?7 A. Correct. 8 Q. From One West? 9 A. Yes. I can't.

10 Q. Would you agree that Exhibit 21 was also 11 signed by Erica Johnson-Seck? 12 A. Yes. 13 Q. And again, you don't know who she is? 14 A. No. 15 Q. You don't know whether she signed it or 16 not? 17 A. No. 18 Q. You don't know whether she signed it in 19 front of a notary as it represents there? 20 A. No. 21 Q. Do you recall how you got Exhibit 21 back 22 after she signed it or after it was signed? 23 A. It would have to have been delivered to us 24 through the mail. 25 Q. If that was the case, does Northwest have




16 (Pages 61 to 64)

Page 61

1 the original? 2 A. Well, we're paperless. We don't have paper 3 files, so I don't think we have the original. 4 Q. So what would you do with the original 5 after you imaged it? 6 A. Well, the original most likely would have 7 been returned to One West Bank since it says return to 8 One West Bank after recording. 9 Q. Okay.

10 A. So it's unlikely we would have received the 11 original since the return address isn't to us. 12 Q. So you can't say whether or not you have -- 13 strike that. I'm going to show you Exhibit 17. 14 Exhibit 17, Mr. Stenman, was referred to by Ms. 15 McElligott as the "loss mit declaration." Would you 16 agree? 17 A. Yes. 18 Q. And do you know whether Exhibit 17 was 19 created by Northwest Trustee? 20 A. I don't believe it was. 21 Q. And how could you tell? 22 A. The second page has a section that isn't 23 included in our template, in our in-house template. 24 Q. Where could this exhibit have come from? 25 A. One West Bank.

Page 62

1 Q. And again, how did Northwest Trustee 2 receive the exhibit? 3 A. I don't know how we received this exhibit. 4 Q. And do you know who signed the document? 5 A. It says Champagne Williams or Chamagne 6 Williams. 7 Q. You don't know who that is? 8 A. No. 9 Q. You don't know who she worked for?

10 A. I can only rely on the document. 11 Q. And that's all you rely on is the document? 12 A. Correct. 13 Q. I'll show you Exhibit 16. And this is also 14 from the deposition of the previous day. Would you 15 agree that that is the declaration of the beneficiary? 16 A. Yes. 17 Q. And is that a document that Northwest 18 Trustee prepared? 19 A. This does look like our in-house template, 20 yes. 21 Q. And the exhibit has, again, a signatory. 22 Who is that? 23 A. Chamagne Williams, assistant 24 vice-president. 25 Q. Of?

Page 63

1 A. One West Bank. 2 Q. How did Northwest Trustee come to the 3 conclusion that she should be the one who signs the 4 beneficiary declaration? 5 A. We don't come to a conclusion that she 6 should be the one that signs it. 7 Q. So what did you do after creating the 8 document? 9 A. We -- most likely we uploaded it to them

10 for signature and return. 11 Q. Without designating who would be the 12 signatory? 13 A. Correct. 14 Q. That's not your decision at all? 15 A. Correct. 16 Q. And again, did you in fact rely on Exhibit 17 16 in order to conduct the foreclosure sales in this 18 case? 19 A. We relied on this particular exhibit to 20 issue the notice of trustee sale. 21 Q. You don't know who Chamagne Williams is? 22 A. No. 23 Q. Showing you Exhibit 18 from the previous 24 day, can you tell me what that is? 25 A. A notice of discontinuance of trustee sale.

Page 64

1 Q. And do you -- do you know the circumstance 2 of that discontinuance? 3 A. We were advised to cancel the foreclosure 4 and close our file. 5 Q. Advised by whom? 6 A. One West Bank. 7 Q. And are you going by memory? 8 A. Yeah. I'm going -- I believe there was a 9 communication imaged into our archive indicating to

10 close the file. 11 Q. And so this is a second imaged message that 12 we're talking about? 13 A. In the new foreclosure, yes. 14 Q. And is it your testimony that Northwest 15 Trustee has possession of that imaged document? 16 A. Yes. 17 Q. Which I don't have, but you can retrieve? 18 A. Yes. 19 Q. Other than getting the message, do you 20 recall the specific circumstances of why the sales 21 were discontinued in 2011? 22 A. I recognized that it was being closed and 23 transferred to another firm for foreclosure. I don't 24 remember the specific wording, but that's why it was 25 closed. It was being transferred to another firm.




17 (Pages 65 to 68)

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1 Q. Are you familiar with Ms. McElligott's 2 signature? 3 A. Yes. 4 Q. How is she located in the office in 5 relation to your office? 6 A. She's about 30 feet away from my office. 7 Q. So you see her on a daily basis? 8 A. Yes. 9 Q. You're familiar with her duties as the

10 foreclosure team manager? 11 A. Yes. 12 Q. And you have seen her sign documents? 13 A. Yes. 14 Q. With the team that she has, how many 15 documents would you say that she signs a day? 16 A. Maybe on average 25. 17 Q. And what are these documents? 18 A. I'm guessing. 19 Q. You're guessing? 20 A. Usually a notice of trustee sale would be 21 what she would sign. 22 Q. Okay. And that would be 25 of them a day? 23 A. Depends on how many that she's reviewing 24 for signature. 25 Q. Do you know the review process that she

Page 66

1 engages in in issuing or signing the notice of trustee 2 sales? 3 A. I'm familiar with it, yes. 4 Q. Could you tell me? 5 A. When the notice of sale is drafted by one 6 of her processors they have to deliver it to her to 7 review it against the system to make sure that it's 8 accurate before she executes it. 9 Q. You don't have any -- you don't have any

10 knowledge that someone else in the office would be 11 signing her name? 12 A. That would be against our policy. 13 Q. What is the policy? 14 A. Well, anybody who signs a document has to 15 -- has to be the person that's signing it. 16 Q. With regards to a document that needs to be 17 notarized, is it the policy of Northwest Trustee that 18 the notary be in the presence of the person signing? 19 A. Yes. 20 Q. Showing you again Exhibit 18, which is what 21 we were just looking at, that is a document that is 22 signed by Ms. McElligott, you would say? 23 A. Yes. 24 Q. And does that signature look like hers, to 25 the best of your knowledge?

Page 67

1 A. Yeah. 2 Q. And the notary public there, are you 3 familiar with who she is? 4 A. Yes. 5 Q. Is that a she? 6 A. Yes. 7 Q. Ms. Ree? 8 A. Rhea. 9 Q. What is her position with Northwest

10 Trustee? 11 A. She's a foreclosure lead now. That's her 12 official title. 13 Q. And so what does she do as foreclosure 14 lead? 15 A. She'll draft notices of trustee sale. 16 She'll review other people's work. She's -- she does 17 some training. She notarizes documents. Vonnie's a 18 manager, Rhea is a lead, and then there's another 19 level of foreclosure processors. So she's like a 20 senior processor. 21 Q. You said that now she's doing that. What 22 was she doing before? 23 A. Rhea? 24 Q. Yes. 25 A. She's been a lead for quite some time.

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1 Many years. 2 Q. Does she sign any foreclosure documents 3 that you know of? 4 A. No. I don't think she does. She does not. 5 Q. So her act as notary public is a regular 6 occurrence? 7 A. Yes. 8 Q. In the company? 9 A. Yes.

10 Q. And she notarizes not just Ms. McElligott's 11 signature but other signatures as well? 12 A. She could, yes. 13 Q. And in looking at Exhibit 18, do you 14 recognize Ms. Rhea's signature to be one that you see 15 as hers? 16 A. I don't see a lot of her stuff, but it does 17 look like Rhea's signature. 18 (Marked for identification Exhibit 5.) 19 Q. I'm going to ask you to keep that exhibit, 20 and ask you to put it side by side with this new 21 exhibit which has been marked Exhibit 5 to your 22 deposition. 23 A. Okay. 24 Q. What is Exhibit 5? 25 A. It's instructions to the title company to




18 (Pages 69 to 72)

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1 record the notice of trustee sale. 2 Q. And it pertains to this case; correct? 3 A. Correct. 4 Q. And the document has Ms. McElligott's 5 signature on it; is that correct? 6 A. No. 7 Q. What is that? 8 A. It looks like her initials. 9 Q. Do you know for a fact that she was

10 actually initialing there? 11 A. No. 12 Q. So you don't know in fact who did that? 13 A. No. 14 Q. But you're guessing that that's her 15 initials? 16 A. I doubt that they're her initials. It's 17 not a recordable document. They would put her 18 initials on there because they are sending it over to 19 the title company. Could be somebody who prepared the 20 package. 21 Q. Okay. So according -- 22 A. Doesn't matter whose initials they are. 23 It's not a document that requires signature. 24 Q. I see. 25 A. It's just a transmittal letter.

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1 Q. So the import is when there is a document 2 that is recordable? 3 A. Yes. 4 Q. And if it's not then someone else can 5 initial or sign for her? 6 A. Correct. 7 Q. And so in looking at Exhibit 5, you don't 8 know who did that for her? 9 A. No.

10 Q. You don't know if she did that herself? 11 A. She could have. I don't know if it was her 12 or not. 13 (Marked for identification Exhibit 6.) 14 Q. This is your 6, and I'd ask you to put it 15 side by side with 5 where Ms. Rhea signed her name? 16 A. Uh-huh, yes. 17 Q. And what is your Exhibit 6? 18 A. It's the publication instructions for the 19 notice of trustee sale. 20 Q. Now, are you looking at the signature there 21 for Ms. Pre, Rhea Pre? 22 A. Yes. 23 Q. Her last name is Pre? 24 A. Yes. 25 Q. Does that look like her signature when

Page 71

1 compared to Exhibit 5? 2 A. They look like initials, not a signature. 3 Q. But you don't know who did that? 4 A. No. 5 Q. You don't know whether it was her initials 6 -- 7 A. No. 8 Q. -- that she placed there herself? 9 A. No.

10 Q. Or that someone else did that? 11 A. No. 12 Q. And again, the import of that is because 13 this is a nonrecordable document? 14 A. Doesn't require attestation. It doesn't 15 require an original signature. 16 Q. So is it your testimony that if it's not a 17 recordable document that anyone can either place 18 initials of other people or sign for other people in 19 your company? 20 A. For the documents that we produce, yes. 21 Q. And that's not against the company's policy 22 at all? 23 A. No. These are just transmittal letters. 24 If it was a document that required a signature and a 25 notary, it would have to be an original signature.

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1 Q. Are you familiar with occasions where Ms. 2 McElligott signed on behalf of MERS? 3 A. Yes. 4 Q. And how many times would you say that she 5 has done that? 6 A. Many times. 7 Q. And what was the reason for that? 8 A. It depends on the MERS authority that was 9 granted. It would have been a tri-party agreement

10 that would have allowed her to execute certain 11 documents. So it would be whatever documents are 12 identified within that agreement. 13 Q. And you're talking about a written 14 agreement? 15 A. Correct. 16 Q. What would the agreement be entitled? 17 A. Pardon? 18 Q. What is the document called? 19 A. I think -- I'm not positive. I think it's 20 called a tri-party agreement. 21 Q. And whenever she signs on behalf of MERS, 22 is it your testimony that she has to sign pursuant to 23 that tri-party agreement? 24 A. Yes. 25 Q. Would it be against company's policy for




19 (Pages 73 to 76)

Page 73

1 her to sign without one? 2 A. Yes. 3 Q. I'm going to show you what has been marked 4 -- 5 A. Are we done with these? 6 Q. Yes. 7 -- 6 from the previous day. You can take a 8 look at Exhibit 6 so I can ask you some questions. 9 A. Okay.

10 Q. What is Exhibit 6? 11 A. It's a written consent of the board of 12 directors for Northwest Trustee Services. It elects 13 vice-presidents, assistant vice-presidents. 14 Q. A number of them? 15 A. Correct. 16 Q. Can I refer you to paragraph D? 17 A. Yes. 18 Q. And paragraph D, what does it say, Mr. 19 Stenman? 20 A. "The AVP of the company may also be 21 authorized by Mortgage Electronic Registration 22 Systems, Inc., to execute certain documents on behalf 23 of MERS. The company hereby authorizes the AVP to 24 execute documents on behalf of MERS when and to the 25 extent specifically authorized to do so by MERS."

Page 74

1 Q. Okay. So by this document, Exhibit 6, 2 certain people in your company are allowed to sign for 3 MERS? 4 A. According to paragraph D, yes. 5 Q. But it would still be pursuant to a 6 separate agreement, the tri-party agreement you 7 referred to? 8 A. Yes. 9 Q. Now, I'm referring you to Exhibit -- to

10 page 2 of the exhibit. 11 A. Okay. 12 Q. And do you see Ms. Vonnie McElligott's 13 signature there? 14 A. Yes. 15 Q. VP, or assistant VP, I should say. How did 16 she sign there? 17 A. It looks like -- I can't tell exactly, but 18 it looks like "Yvonne McElligott." 19 Q. Do these people, as assistant VP's, get 20 paid extra for the title? 21 A. No. 22 Q. Do they get paid extra for the act of 23 signing -- 24 A. No. 25 Q. -- as AVP?

Page 75

1 A. No, they don't. 2 Q. What was the purpose of appointing AVPs? 3 A. To allow them to execute the notice of 4 foreclosure as an officer of Northwest Trustee 5 Services, and other documents. 6 Q. And they are, in fact, not corporate 7 officers of Northwest Trustee? 8 A. Yes, they are. They're assistant 9 vice-presidents.

10 Q. I see. No salary pertaining to that title 11 that you know of? 12 A. They're salaried employees. 13 Q. They're salaried employees, but they're not 14 getting paid extra for being appointed AVP? 15 A. It's within their job description. 16 Q. I'm sorry. It is within their job 17 description to do what? 18 A. To execute those documents as part of the 19 job. 20 Q. Are we talking about a written job 21 description that specifies that? 22 A. I don't know if it's within -- I don't know 23 if it's in the written job description, but it's 24 inferred as a condition of the position that they 25 execute their notice of trustee sales.

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1 Q. Okay. But this appoints them to be 2 AVPs in order to do that? 3 A. Correct. 4 Q. And you testified that Exhibit 6 is the 5 action by the board of directors of Northwest Trustee? 6 A. Yes. 7 Q. Do you know how many people on the board of 8 directors for the company? 9 A. No. Actually, I don't. I believe it's --

10 there's only one on the board of directors. That's my 11 understanding. 12 Q. Have you ever been to a board meeting -- 13 A. No. 14 Q. -- of the company? No? 15 A. No, I have not been to a board meeting. 16 Q. With regards to you as a signer, I don't 17 see your name on the AVP list. 18 A. It isn't on this one, no. 19 Q. Is it your testimony that you might be on 20 some other one? 21 A. Yes. 22 Q. Let's see if I can find that. 23 A. Do you want this one back? 24 Q. Yes, please. Let me show you what has been 25 marked as Exhibit 7 from the day before. Can you tell




20 (Pages 77 to 80)

Page 77

1 me what 7 is? 2 A. It's action by written consent of the 3 shareholders and directors of Northwest Trustee, and 4 it's -- 5 Q. What's the effective date? 6 A. March 1st, 2005. 7 Q. And on Exhibit 7, on the third page -- 8 A. Okay. 9 Q. -- you signed as being appointed AVP?

10 A. Correct. 11 Q. Is that your signature there? 12 A. Yes. 13 Q. And do you also see Ms. McElligott's 14 signature above you? 15 A. Yes. 16 Q. And this time what did she sign as? 17 A. Vonnie McElligott. 18 Q. Are you contending that there are other 19 documents allowing you to sign as AVP or is this the 20 one? 21 A. There may be. I'm not sure if they're -- I 22 don't know. 23 Q. Okay. Does this Exhibit 7 allow you to 24 sign on behalf of MERS? 25 A. This in as itself? As of itself, no.

Page 78

1 Q. Do you recall a particular document that 2 allows you to sign on behalf of MERS? 3 A. I know that there's a tri-party agreement 4 that allows that. 5 Q. Is it a same global agreement or is it -- 6 are there separate agreements for you to sign as MERS? 7 A. Separate agreements. 8 Q. And how many of them are there? 9 A. Five or six.

10 Q. And are they pertaining to certain periods 11 of time? 12 A. I'd have to look at the document itself to 13 see if there was a time limit to the document. I 14 don't think there's a time limit to the document. 15 They'd be for individual servicers. 16 Q. And to the best of your knowledge, the 17 tri-party agreement allowing you to sign on behalf of 18 MERS, these are separate documents that have not been 19 produced to me; correct? 20 THE WITNESS: I don't know if we have -- 21 A. No. 22 Q. But you can retrieve them? 23 A. Yes. 24 Q. And do you recall who signed those 25 tri-party agreements? Who are the parties?

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1 A. There would be somebody who represents the 2 -- I'd have to look at the agreements. 3 Q. You don't know? 4 A. I don't know. I would be -- I think I 5 would be a signature. I don't know. I have to look 6 at the agreements. 7 Q. I don't want you to guess. 8 (Marked for identification Exhibit 7.) 9 Q. I'm going to show you what has been marked

10 as your Exhibit 7. And I will represent to you that 11 it is a copy of the certified copy we have obtained 12 from the court. 13 A. Okay. 14 Q. What is Exhibit 7? 15 A. It's an appointment of successor trustee. 16 Q. In a separate matter; correct? 17 A. Correct. 18 Q. Where you signed as a vice-president for 19 MERS? 20 A. Correct. 21 Q. Have you ever worked for MERS? 22 A. Worked for them, no. 23 Q. Have you ever got any money from them for 24 compensation of any kind? 25 A. No.

Page 80

1 Q. Have you ever been to their office? 2 A. No. 3 Q. Do you know who owns MERS? 4 A. No. 5 Q. Do you have any idea how many employees 6 they have? 7 A. No. 8 Q. Do you know anything about their corporate 9 governance, meaning their officers, directors?

10 A. No. 11 Q. So how did you come to sign as 12 vice-president for MERS? 13 A. Through an agreement, a tri-party 14 agreement. 15 Q. And you're not a party to that agreement, 16 are you? 17 A. I think I'd have to be. 18 Q. So I asked you who the parties are and you 19 said you -- 20 A. I'd have to look at the agreement to see 21 who the parties are. 22 Q. And your belief is that you're one of the 23 three parties? 24 A. I believe that I'm one of the people 25 identified in the third-party agreement that can




21 (Pages 81 to 84)

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1 execute for MERS. 2 Q. And do you, in fact, know that the 3 tri-party agreements allowing you authority to sign 4 were executed by someone who has authority for MERS? 5 A. I'm relying on the document. 6 Q. And where did these documents come from? 7 A. They would be from the servicer, from MERS, 8 and from our company. 9 Q. So in referring to the Exhibit 7 of your

10 own there, this one, can you tell who the servicer is 11 on this particular foreclosure? 12 A. America Servicing Company. 13 Q. You don't work for them, do you? 14 A. No. 15 Q. I want you to go through the contents of 16 Exhibit 7. 17 A. Okay. 18 Q. The second paragraph said that "The present 19 beneficiary under said deed of trust appoints 20 Northwest Trustees Services, Inc." Do you see that? 21 A. Yes. 22 Q. The present beneficiary would be MERS? 23 A. Under this, yes. 24 Q. And this language, was it drafted for you 25 or did you design this language?

Page 82

1 A. It was drafted for me. 2 Q. Do you know who drafted it? 3 A. An attorney would have approved the 4 drafting of this, in-house attorney. 5 Q. I'm sorry? 6 A. An attorney from our company -- 7 Q. And that would be? 8 A. -- or from our affiliate, Routh Crabtree 9 Olsen.

10 Q. The next paragraph down said that "The 11 undersigned present beneficiary warrants and 12 represents that, as of the date this appointment of 13 successor trustee has been executed and acknowledged, 14 it is the owner and holder of the obligation secured 15 by the subject deed of trust and is not holding the 16 same as security for different obligation." Do you 17 see that? 18 A. Yes. 19 Q. As signatory of this document, is that your 20 statement, that paragraph right there? 21 A. I would -- if I signed that, then that 22 would be a statement that I'm relying upon, yes. 23 Q. But it's not your language? 24 A. No. 25 Q. You don't have any knowledge whether MERS

Page 83

1 actually had beneficiary interest? 2 A. I'm relying on this document. I would have 3 been relying on title to tell me who had the current 4 beneficial interest. 5 Q. And the language was not drafted by you but 6 by an attorney? 7 A. Correct. 8 Q. And do you recognize Heather Casey, the 9 notary public there?

10 A. Yes. 11 Q. She's an employee of Northwest Trustee; is 12 that correct? 13 A. Yes. 14 Q. Is it your belief that you signed this 15 document in front of her on the date that is specified 16 there? 17 A. Yes. 18 Q. Is there ever a time where you would sign 19 not in front of a notary public for these recordable 20 documents? 21 A. I mean, I'd have signed in front of a 22 notary, but I would have sworn in front of the notary 23 that I signed it. 24 Q. How does that work? Explain to me. 25 A. Well, currently we do it in front of a

Page 84

1 notary. In 2008 we weren't doing the signature itself 2 in front of a notary. I would sign them and then walk 3 them to a notary and then swear under an oath that I 4 had executed the documents. 5 Q. And so in 2008 it was done outside of the 6 presence of a notary public? 7 A. The signature itself was. 8 Q. And what changed? I mean, after 2008 why 9 did it change to the process now where you sign in

10 front of a notary public? 11 A. Under the advice of our attorneys they 12 wanted us to execute them in front of the notary. 13 Q. And that occurred after 2008? 14 A. Yes. 15 Q. Was there an incident that precipitated 16 that advice that you recall? 17 A. Was there an incident? 18 Q. Yes. 19 A. No. Best practice. 20 Q. So Northwest Trustee has been in business 21 for a long time, but in 2008 this practice was 22 revisited and changed? 23 A. Yes. I don't know whether it was in 2008, 24 but it was revised and changed, yes. 25 MS. DAO: You can put that away.




22 (Pages 85 to 88)

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1 (Marked for identification Exhibit 8.) 2 Q. You've been handed Exhibit 8. Mr. Stenman, 3 can you tell me what 8 is? 4 A. It's an appointment of successor trustee. 5 Q. And I would represent to you that's a true 6 and correct copy of the certified copy that we got 7 from the court. 8 A. Okay. 9 Q. And you are the signatory of Exhibit 8;

10 correct? 11 A. Correct. 12 Q. And here what did you sign as? 13 A. Power of attorney. Attorney in fact. 14 Q. For who? 15 A. Wells Fargo Bank NA. 16 Q. You never -- have you ever worked for Wells 17 Fargo? 18 A. No. 19 Q. And you did not get paid for your signing 20 on behalf of Wells Fargo? 21 A. No. 22 Q. And according to Exhibit 8, there is a 23 power of attorney that goes along with your signature? 24 A. Correct. 25 Q. Allowing you to sign?

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1 A. Yes. 2 Q. As the attorney in fact? 3 A. Yes. 4 Q. I want you to look at the contents of the 5 appointment of the successor trustee, which is a 6 document. And do you see the language there, Mr. 7 Stenman? 8 A. Yes. 9 Q. And then again, did you author these

10 paragraphs? 11 A. No. 12 Q. So it was drafted by someone else? 13 A. Correct. 14 Q. And possibly an attorney? 15 A. Correct. 16 Q. Possibly from Routh Crabtree? 17 A. Yes. 18 Q. And I want you to look at 7 and 8 together. 19 And 8 is also notarized by Heather E. Casey, another 20 -- she's the same employee that we've talked about 21 earlier? 22 A. Yes. 23 Q. Do you see the differences in your 24 signature at all or do they look the same to you? 25 A. They look the same to me.

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1 Q. Do you recall on this occasion whether you 2 were signing in front of her or not? 3 A. I don't recall. Sometimes I could have. 4 Sometimes I couldn't. Sometimes they're bringing them 5 to me and sometimes I'm signing it in their presence. 6 I would say most of the time that that's how it 7 occurs. 8 Q. Is Heather Casey still employed? 9 A. Yes.

10 Q. And what is her job duties or title? 11 A. She's a foreclosure lead on Vonnie 12 McElligott's team. 13 (Marked for identification Exhibit 9.) 14 Q. I'm handing you Exhibit 9, and I will 15 represent to you that's another appointment of 16 successor trustee signed by you, and it's a true and 17 correct copy of the certified copy we obtained from 18 court. 19 A. Yes. 20 Q. You signed Exhibit 9; correct? 21 A. Yes. 22 Q. As what? 23 A. Attorney in fact. 24 Q. For who? 25 A. Bank of America NA.

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1 Q. You're not an employee of Bank of America? 2 A. No. 3 Q. And you signed this according to a limited 4 power of attorney? 5 A. Yes. 6 Q. And again, the language that is displayed 7 here on the document, that's not your language? 8 A. No. It's a template. 9 Q. And someone else might have drafted that

10 language for you? 11 A. Correct. 12 Q. Do you have any idea how many different 13 companies you've signed for? 14 A. Currently? 15 Q. Yeah. 16 A. Probably two or three. 17 Q. Do you know who they are? 18 A. Bank of America and Wells Fargo. 19 (Marked for identification Exhibit 10.) 20 Q. This is 10. It's an assignment of deed of 21 trust in an unrelated case. I will represent to you 22 that that is a copy of the certified copy we obtained 23 from the court. 24 A. Okay. 25 Q. What is 10?




23 (Pages 89 to 92)

Page 89

1 A. 10 is an assignment of deed of trust. 2 Q. That you signed? 3 A. Correct. 4 Q. On behalf of MERS? 5 A. Yes. 6 Q. Are you looking at your signature now? 7 A. Yes. 8 Q. Does it look like your signature? 9 A. It does.

10 Q. It does? 11 A. Yeah. You should see some of my 12 signatures. Yes. 13 Q. So I know it's not the original, but your 14 testimony is that looks like your signature? 15 A. I know it's my signature. 16 Q. And how do you know? 17 A. Because I sign like that. I'm pretty 18 erratic when it comes to my signature. 19 Q. So is there a wide variation of your 20 signatures on the documents that you've signed over -- 21 A. Over the years, probably, yes. 22 Q. This is a 2009 execution date. Do you 23 agree? 24 A. Yes. 25 Q. And the document, it looks like it's been

Page 90

1 notarized, and we don't know by whom. 2 A. Looks like you're missing a page. 3 Q. Well -- 4 A. Or it's just stamped over it. I can't read 5 it either. 6 Q. Okay. The verbiage, the language in the 7 assignment of deed of trust there, I want you to look 8 at it and familiarize yourself. Is that the language 9 that you came up with, or is it a template that

10 somebody prepared for you? 11 A. Are you talking about the "transfers to" 12 language where it goes into Bank of New York Mellon? 13 Q. Yes. It begins with the first paragraph 14 all the way through. 15 A. Other than that part of the language, most 16 of that is our standard templated language. 17 Q. Okay. So let me bring your attention to 18 the paragraph right above the date of your signature. 19 Said "Together with note or notes therein described or 20 referred to, the money due" and -- 21 A. Yes. 22 Q. That's not your language, is it? 23 A. No. 24 Q. You don't know note or notes or the money 25 due in this particular case, the specifics of the

Page 91

1 notes or how the money is due someone? 2 A. No. 3 MS. DAO: You can put that away. 4 (Marked for identification Exhibit 11.)5 Q. Exhibit 11, Mr. Stenman, I will represent 6 to you that is a notice of discontinuance of trustee 7 sales in an unrelated case. It's a true and correct 8 copy of -- 9 MS. MORRISON: We're going to need to take

10 a break here because I'm going to need to make a -- 11 MS. DAO: Let me finish this. 12 Q. -- a certified copy from the court. 13 A. Uh-huh, yes. 14 Q. And does 11 have a signature of yours? 15 A. Yes. 16 Q. And the date of execution is April 29, 17 2010? 18 A. Yes. 19 Q. And Natalya Galuzo is the notary public? 20 A. Yes. 21 Q. Does she work for your company still? 22 A. Yes. 23 Q. And on this occasion, do you recall whether 24 you were signing in front of her or not? 25 A. Yes, because she's outside my office. She

Page 92

1 would bring them in to me to have me sign them. 2 Q. But you're guessing that that's what 3 happened? 4 A. I'm guessing. 5 MS. DAO: Okay. All right. We can take a 6 break now. 7 (Off the record from 11:22 a.m. to 11:47 8 a.m.) 9 Q. Mr. Stenman, we were talking about the

10 variations of your signature over time, and I would 11 like for you to sign your name several times, if you 12 don't mind. And with this particular exhibit, if you 13 could refer to Exhibit 10 where your signature is very 14 different there. 15 A. Yes. 16 Q. Can you make an attempt and sign something 17 close to that? 18 A. I guess so. Must have been in a hurry. 19 Q. Can you date the bottom for me? 20 A. (Complying.)21 (Marked for identification Exhibit 12.) 22 Q. How many notary publics in the office right 23 now? 24 A. I don't have the exact number. We keep 25 track of it. We have a -- I don't have the exact




24 (Pages 93 to 96)

Page 93

1 number. Probably 20, 25. 2 Q. Okay. And these notary publics, they're 3 bonded, I take it? 4 A. I think it's required by the state. 5 Q. Does the company pay for the bonding? 6 A. We pay for the application, which includes 7 the bonding. 8 Q. And to the best of your knowledge, do these 9 notary publics, who work for Northwest Trustee, keep a

10 log of what they notarized? 11 A. Yes. 12 Q. And where are these logs kept? 13 A. At their desks. 14 Q. And to the best of your knowledge, do they 15 notarize signatures of anyone other than employees of 16 Northwest Trustee? 17 A. No. 18 Q. To the best of your knowledge, are they 19 allowed to -- are they allowed to notarize signatures 20 of those other than employees of Northwest Trustee? 21 A. I don't believe that they're prevented from 22 doing notary outside of work. 23 Q. I asked you about whether Northwest Trustee 24 has ownership in any of the third-party vendors that 25 we've spoken today. Do you happen to know whether Mr.

Page 94

1 Routh himself has any ownership interest in any other 2 companies? 3 A. Yes. 4 Q. Do you know who -- which companies? 5 A. I believe he's got an ownership interest in 6 Routh Crabtree Olsen, in FEI. 7 Q. What's FEI? 8 A. The posting and publishing company. 9 Q. And any other company?

10 A. Next Title. 11 Q. What is that? 12 A. It's a title company. 13 Q. Located here in Seattle? 14 A. (Nodding head.) 15 Q. What about Mr. Lance Olsen, do you know if 16 he has ownership interest in any other companies that 17 do business with Northwest Trustee? 18 A. No. 19 Q. And I don't know anything about Mr. 20 Crabtree. Is he present? 21 A. Mr. Crabtree works out of Anchorage. He 22 works in our Anchorage office, Routh Crabtree, APC. 23 Q. And do you know if he has any ownership 24 interest in any third-party vendors that do business 25 with Northwest Trustee?

Page 95

1 A. I don't know. 2 Q. I know I asked you whether you're a 3 salaried employee, whether you got profit sharings, 4 and you testified you got 401(k)? 5 A. Yes. 6 Q. And that is the only form of profit 7 sharing? 8 A. Correct. 9 Q. Do you receive bonuses?

10 A. Yes. 11 Q. And what is the basis of bonuses at work? 12 A. Performance. 13 Q. I'm sorry? 14 A. Performance. 15 Q. Such as? What are the criteria for 16 measuring your performance? 17 A. Whether I meet or exceed expectations. 18 Q. Is it linked to volume, production? 19 A. No. 20 Q. Anybody in the company that gets paid by 21 production that you know of? 22 A. No. 23 Q. I want to shift focus a bit and ask you 24 about the occasion that a borrower contacts Northwest 25 Trustee directly. Okay?

Page 96

1 A. Okay. 2 Q. If they call -- if a borrower calls your 3 company and claims that the amounts as stated in the 4 notice of trustee sale are incorrect, is that a basis 5 for Northwest Trustee to stop and investigate? 6 A. It depends on when they make that 7 statement. If it's during the period that the NOD was 8 issued, within the 30-day period that it was issued -- 9 well, let me back up. Any time -- then the

10 foreclosure would go on. If it was after the NOD 11 expired and after the notice of trustee sale was 12 issued, we would investigate. We wouldn't necessarily 13 place it on hold. 14 Q. So what do you do -- 15 A. And it depends on the allegation. 16 Q. Okay. So what do you do by way of 17 investigation? 18 A. We would refer it to Routh Crabtree Olsen. 19 There's a debt dispute group within that company that 20 is led by an attorney, and they would contact the 21 servicer and investigate the allegation, and we would 22 provide a written response to the borrower. 23 Q. And this would occur -- I'm sorry, I'll ask 24 you to clarify for me. So the notice of default 25 period is when they get served with it?




25 (Pages 97 to 100)

Page 97

1 A. It's mailed and it's posted. 2 Q. Okay. And then they -- the borrower makes 3 a call into Northwest Trustee? 4 A. Yes. 5 Q. Within how many days of the notice of 6 default? 7 A. If it's -- if the notice -- the notice of 8 default is a 30-day notice. If they dispute the debt 9 within that 30 days, then we would place the file on

10 hold and investigate the dispute. 11 Q. Beyond the notice of default, there's a 12 sales date pending. You already recorded the notice 13 of trustee sale? 14 A. Yes. 15 Q. If the borrower calls in and tells you that 16 that he or she disputes the amounts as stated in the 17 notice of trustee sales, do you investigate? 18 A. Yes. 19 Q. And do you postpone the sales to 20 investigate? 21 A. On the advice of the attorney that's 22 reviewing the debt dispute, we would make a 23 determination on whether the sales should be 24 postponed. 25 Q. Okay. And you don't happen to know what

Page 98

1 the attorney and the debt dispute group do in these 2 circumstances when the amounts are disputed? You 3 don't know what they actually do, or do you? 4 A. I have a general sense of what they do. 5 Q. Okay. Go ahead. 6 A. They would obtain payment information in 7 the form of paystub, payment histories, and review 8 them, and then if there were additional allegations 9 they would ask the servicer to respond to them, and

10 then they would provide a response back in writing to 11 the borrower. 12 Q. Do you know what the turn around is? Let's 13 say I have a sales date in a couple of weeks. Would 14 the turn around be sufficient to postpone the sales 15 date? 16 A. It depends on the situation. 17 Q. So it would be evaluated on a case by case 18 basis? 19 A. Correct. 20 Q. Suppose that the borrower disputes the 21 identification of the beneficiary as stated in the 22 notice of default. Does Northwest Trustee stop the 23 sales to investigate? 24 A. We would investigate it. 25 Q. And how do you go about investigating it?

Page 99

1 A. It would go to the same group. 2 Q. The debt dispute group? 3 A. Exactly. 4 Q. Which consists of lawyers? 5 A. At least one attorney and some support 6 staff. 7 Q. Is that procedure the product of something 8 recent, or has it always been handled in that fashion? 9 A. It's been a number of years that we've had

10 that in place. 11 Q. If the borrower claims that there are 12 irregularities in the assignment of deed of trust, for 13 example, does Northwest Trustee stop the sale to 14 investigate? 15 A. We would review it before we went to sale, 16 and we would provide a response before we went to 17 sale. 18 Q. If the borrower calls Northwest Trustee and 19 advises that his or her loan modification is being 20 approved, and there's a sales date pending, does that 21 suffice for Northwest Trustee to stop the sales to 22 investigate? 23 A. We would go back to the servicer and ask if 24 there was a pending loan modification review. 25 Q. And do you know for a fact that these

Page 100

1 procedures were actually carried out in that fashion, 2 that someone challenges certain aspect of the sales? 3 MR. KAYSER: Are you talking specifically 4 with respect to Ms. Reiner because, if you are, I 5 don't think we've ever seen any evidence that there 6 was a loan modification request or ratification. 7 MS. DAO: You don't know as counsel or 8 you're saying that this witness doesn't know? 9 MR. KAYSER: What I'm saying is you've

10 never produced anything to indicate that Ms. Reiner 11 applied for a loan modification, and if she did, we 12 would like to get a copy of those documents. 13 MS. DAO: I don't know that. I'm just 14 asking the witness for his knowledge. I'm not 15 proposing to submit anything to you. 16 MS. MORRISON: Why are we talking about 17 loan modification with no loan modification 18 application even happened in this case? 19 MS. DAO: That's not what I'm saying at 20 all. 21 MR. KAYSER: How is it possibly relevant if 22 there's no loan modification in this case? How is any 23 of this -- 24 MS. DAO: We contend that there was a 25 request for loan modification.




26 (Pages 101 to 104)

Page 101

1 MR. KAYSER: Do you have the application? 2 I mean, why haven't we gotten those documents then? 3 MS. DAO: The problem is that the servicer 4 has all the documents. And we produced everything we 5 have, but Ms. Reiner already testified in her 6 deposition that she doesn't have everything. 7 MR. KAYSER: Ms. Reiner doesn't have a 8 single document reflecting the loan modification that 9 you're now alleging occurred? No correspondence, no

10 nothing? No application? 11 MS. DAO: Nothing that she has in her 12 possession. It doesn't mean that it didn't happen. 13 I'm just asking for the witness's knowledge, if he has 14 any. If he doesn't, he doesn't. 15 MR. KAYSER: Okay. But anyway he doesn't. 16 MS. DAO: I'm sorry? 17 Q. So I'm sorry. Let me rephrase the question 18 to you. To the best of your knowledge, is there any 19 information about a loan modification in this case 20 with Ms. Reiner's property? 21 A. No. 22 Q. If there were how would you get it? 23 A. Well, if it was delivered by her to us, 24 then we would investigate it with the servicer. 25 Q. If it was by her to the servicer, how would

Page 102

1 you know or how would you go about it? 2 A. I don't know that I would know unless she 3 said it was and we would investigate. 4 Q. Got you. Okay. Are you aware of the Bain 5 vs. Metropolitan decision issued by the supreme court 6 earlier this year? 7 MS. MORRISON: Objection. He's not a 8 lawyer. To the extent you are asking him for any 9 legal --

10 MS. DAO: I'm not. I'm just asking him if 11 he's aware. 12 MS. MORRISON: He can answer if he knows. 13 A. Yes. 14 Q. What is your understanding of the impact of 15 that decision on your work with Northwest Trustee? 16 MS. MORRISON: Objection to the extent 17 you're asking him to make any legal conclusion. He 18 can answer if he knows. 19 A. None. 20 Q. No impact whatsoever? 21 A. No. 22 Q. So the practice of allowing employees of 23 Northwest Trustee to sign on behalf of MERS is still 24 going on? 25 A. No.

Page 103

1 Q. And what's the reason for that practice not 2 going on? 3 A. At the request of the servicers. 4 Q. Are we talking about specific servicers? 5 A. All of them. 6 Q. All of them. When did this request come 7 about? 8 A. I don't have the dates, but it's been more 9 than a year.

10 Q. So it's not -- it wasn't made in 2012? 11 A. It was before May of 2012. 12 Q. It was before May of 2012 you said? 13 MS. MORRISON: I think he misheard you. 14 A. The Bain decision had no impact on whether 15 we were executing as MERS. We stopped executing as 16 MERS years ago. 17 Q. And when is that? 18 A. I don't have a date. I don't have the 19 date. I don't know. 20 Q. How many years would you say? 21 A. I don't know. 22 Q. And then I asked you the reason for that 23 practice to be stopped. 24 A. At the request of the servicers. 25 Q. And are these written requests?

Page 104

1 A. I don't know what form of communication it 2 may have been in. 3 Q. And you don't know approximately when the 4 requests were made? 5 A. No. 6 Q. Now, have you yourself stopped signing on 7 behalf of MERS? 8 A. Yes. 9 Q. Does the law firm of Routh Crabtree Olsen

10 act as counsel for the company in all aspects of the 11 company's work as trustee? 12 A. No. 13 Q. Does Routh Crabtree Olsen act as counsel 14 for Northwest Trustee on active litigation? 15 A. Yes. 16 Q. If any of the employees is being sued 17 individually, does Routh Crabtree Olsen represent 18 them? 19 A. Yes. 20 Q. Are you being represented by the law firm 21 today? 22 MS. MORRISON: He's not an individual named 23 in this lawsuit. 24 MS. DAO: I'm just asking for purposes of 25 the deposition.




27 (Pages 105 to 108)

Page 105

1 Q. Are you being represented by Ms. Buck 2 Morrison? 3 MR. KAYSER: I'm going to object to that, 4 too, because I think it's a little confusing and vague 5 in that you're not actually asking in what capacity 6 he's being represented. I mean, he's here today as a 7 representative. 8 MS. MORRISON: He's a corporate 9 representative. RCO represents Northwest Trustee. In

10 his capacity as a corporate representative -- 11 MS. DAO: That's all I want to know. 12 MS. MORRISON: -- I represent him. 13 MS. DAO: All right. Maybe you didn't know 14 that before but now you do. I don't think I have 15 anything further and thank you very much. 16 THE WITNESS: Thanks. 17 MS. MORRISON: I just have one quick 18 question. 1920 EXAMINATION21 BY MS. MORRISON: 22 Q. You just previously testified that you no 23 longer sign on behalf of MERS. Is there any employee, 24 that you're aware of, at Northwest Trustee Services 25 that currently signs documents on behalf of MERS?

Page 106

1 A. No. 23 EXAMINATION4 BY MS. DAO: 5 Q. That reminds me, are you aware of any 6 investigation by any governmental agency of your 7 company? 8 A. No. 9 Q. Has there ever been one initiated against

10 your company for the practices, any of the practices? 11 A. No. 12 Q. That you know of? 13 A. No. 14 MS. DAO: That's it. 15 (Deposition concluded at 12:04 p.m.)16171819202122232425

Page 107

1 D E C L A R A T I O N2345 I declare under penalty of perjury that I 6 have read my within deposition, and the same is true 7 and accurate, save and except for changes and/or 8 corrections, if any, as indicated by me on the 9 correction sheet hereof.

1011 12 __________________13 JEFF STENMAN141516171819 Dated this ________day of ___________, 20 2012.2122232425 CHERYL MACDONALD, Court Reporter

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1 C E R T I F I C A T E23 STATE OF WASHINGTON )4 ) ss.5 COUNTY OF KING )67 I, the undersigned Washington Certified Court 8 Reporter, pursuant to RCW 5.28.010, authorized to 9 administer oaths and affirmations in and for the State

10 of Washington, do hereby certify:11 That the annexed and foregoing deposition 12 consisting of Page 1 through 106 was taken 13 stenographically before me and reduced to a typed 14 format under my direction;15 I further certify that according to CR 30(e) the 16 witness was given the opportunity to examine, read and 17 sign after the same was transcribed, unless indicated 18 in the record that the review was waived; 19 I further certify that all objections made at the 20 time of said examination to my qualifications or the 21 manner of taking the deposition, or to the conduct of 22 any party, have been noted by me upon said deposition;23 I further certify that I am not a relative or 24 employee of any such attorney or counsel, and that I 25 am not financially interested in said action or the




28 (Pages 109 to 112)

Page 109

1 outcome thereof;2 I further certify that the witness before 3 examination was by me duly sworn to testify to the 4 truth, the whole truth and nothing but the truth;5 I further certify that the deposition, as 6 transcribed, is a full, true and correct transcript of 7 the testimony, including questions and answers, and 8 all objections, motions, and exceptions of counsel 9 made and taken at the time of foregoing examination

10 and was prepared pursuant to Washington Administrative 11 Code 308-14-135, the transcript preparation format 12 guideline;13 I further certify that I am sealing the 14 deposition in an envelope with the title of the above 15 cause and the name of the witness visible, and I am 16 delivering the same to the appropriate authority;17

18 IN WITNESS WHEREOF, I have hereunto set my hand,19 and affixed my official seal this 31st day of20 December 2012.21 ________________________________ 22 Certified Court Reporter No. 2498 23 in and for the State of 24 Washington, residing at Shoreline, 25 Washington.

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MOBURG SEATON & WATKINSCOURT REPORTERS2033 SIXTH AVENUE, SUITE 826SEATTLE, WA 98121206-622-3110______________________________________________________PLEASE MAKE ALL CHANGES OR CORRECTIONS ON THIS SHEET, SHOWING PAGE, LINE, AND REASON, IF ANY. SIGN THIS SHEET, SIGN THE ACCOMPANYING SIGNATURE SHEET AND RETURN AS PER INSTRUCTIONS IN COVER LETTER.___________________________________________________PAGE LINE CORRECTION AND REASON

_____________________ (SIGNATURE)

REPORTER: CHERYL MACDONALD

Page 111

JANET REINER, ) Plaintiff, ) NO. 11-2-02029-8 ) vs. ) NOTICE OF READINESS ) OF DEPOSITION FOR NORTHWEST TRUSTEE SERVICE) READING AND SIGNING ) Defendant. ) )TO: Jeff Stenman ) c/o Heidi Buck Morrison 13555 SE 36th St. #300 Bellevue, WA 98006

NOTICE IS HEREBY GIVEN that the transcript of your

deposition given in the above entitled cause is ready

for your reading and signing at MOBURG SEATON &

WATKINS, 2033 Sixth Avenue, Suite 826, Seattle,

Washington 98121. You must, within thirty (30) days

from the date of this notice, read and sign the

deposition or state in writing your reason for refusal

to sign, or state in writing the fact that you waive

your right to sign; failing to do so, signature shall

be deemed for all purposes waived, and your deposition

will be sent to the ordering party for retention until

time of trial.

DATED at Seattle, Washington this December 31, 2012.CC: Ha Dao By: CHERYL MACDONALD, CCR Moburg Seaton & Watkins 2033 Sixth Avenue, Suite 826 Seattle, Washington 98101 206-622-3110 FAX 206-343-2272 MOBURG SEATON & WATKINS (206)622-3110

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