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J:\Docs\95451.076\Stip for Leave to File Complaint180528.doc 1 CASE C08-4606 JW - STIPULATION FOR ORDER

FOR LEAVE TO FILE CROSS COMPLAINT

Frederick J. Hickman (#124406) 

 fhickman@afrct.com 

Robert A. Bailey (#214688) 

 rbailey@afrct.com 

ANGLIN, FLEWELLING, RASMUSSEN 

CAMPBELL & TRYTTEN LLP 

199 S. Los Robles Avenue, Suite 600 

Pasadena, California 91101-2459 

Tel: (626) 535-1900; Fax: (626) 577-7764 

Attorneys for Defendants 

WORLD SAVINGS BANK, FSB 

renamed and now known as 

WACHOVIA MORTGAGE, FSB 

Annette D. Kirkham, Esq. 

 annettek@fairhousing.org 

Kim Pederson, Esq. 

 kimp@fairhousing.org 

James Zarhadka, Esq. 

 jamesz@fairhousing.org 

FAIR HOUSING LAW PROJECT

LAW FOUNDATION OF SILICON VALLEY

152 N. 3rd St., 3rd Floor 

San Jose, CA 95112 

Tel: (408) 293-4790; Fax: (408) 293-0106 

Attorneys for Plaintiff 

BERNARDO REYES 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA -- SAN JOSE DIVISION 

BERNARDO REYES, 

 Plaintiff, 

 v. 

PREMIER HOME FUNDING, INC., a 

California corporation; WORLD SAVINGS 

BANK, FSB; WACHOVIA BANK, N.A.; and 

JOEL MADERA CANDELARIO, 

 Defendants. 

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Case No. C08 04606 JW 

[Hon. James Ware, District Judge] 

STIPULATION FOR ORDER FOR LEAVE 

TO FILE CROSS-COMPLAINT BY WORLD 

SAVINGS BANK, FSB renamed and now 

known as WACHOVIA MORTGAGE, FSB 

AGAINST THIRD PARTY 

Trial Date: May 12, 2010 UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

AS MODIFIED

Judge James Ware

1/12/2010

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 1 of 20
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J:\Docs\95451.076\Stip for Leave to File Complaint180528.doc 2 CASE C08-4606 JW - STIPULATION FOR ORDER

FOR LEAVE TO FILE CROSS COMPLAINT

The parties hereby stipulate by and through their respective counsel as follows: 

1. Defendants and Cross-complainants World Savings Bank, FSB renamed and now 

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

attached as Exhibit A. 

Dated: October 28, 2009 ANGLIN, FLEWELLING, RASMUSSEN 

 CAMPBELL & TRYTTEN LLP 

 By: /s/ Frederick J. Hickman 

 Frederick J. Hickman 

fhickman@afrct.com Attorneys for Defendants and Cross-Complainants 

World Savings Bank, FSB renamed and now 

known as Wachovia Mortgage, FSB 

Dated: October 28, 2009 FAIR HOUSING PROJECT LAW 

 FOUNDATION OF SILICON VALLEY 

 By: /s/ Annette D. Kirkham 

 Annette D. Kirkham 

annettek@lawfoundation.org Attorneys for Plaintiff and Cross-defendant 

BERNARDO REYES 

ATTESTATION PURSUANT TO GENERAL ORDER 45 

I, Frederick J. Hickman, attest that concurrence in the filing of this document has been obtained 

from each of the signatories. I declare under penalty of perjury under the laws of the United 

States of America that the foregoing is true and correct. Executed on October 28, 2009, at 

Pasadena, California. 

 ______/s/___Fred Hickman _________________ 

 Frederick J. Hickman 

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 2 of 20
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J:\Docs\95451.076\Stip for Leave to File Complaint180528.doc 3 CASE C08-4606 JW - STIPULATION FOR ORDER

FOR LEAVE TO FILE CROSS COMPLAINT

ORDER 

For good cause shown by the parties’ Joint Stipulation for Leave to File Cross-Complaint, 

 IT IS ORDERED THAT: 

 World Savings Bank, FSB renamed and now known as Wachovia Mortgage, FSB have 

leave to file the cross-complaint attached as Exhibit A. The Cross-complaint is deemed filed as 

of the date the Joint Stipulation for Leave to File Cross-complaint was filed. 

Dated: 

 United States District Judge 

shall be a separate docket entry on or before January 15, 2010. 

January 12, 2010 

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 3 of 20
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J:\Docs\95451.076\Cross-Complaint-180556.doc 1 CASE C08-4606 JW – CROSS-CLAIM BY WACHOVIA 

MORTGAGE, FSB AGAINST THE ESCROW FORUM

Frederick J. Hickman (#124406) 

 fhickman@afrct.com 

Robert A. Bailey (#214688) 

 rbailey@afrct.com 

ANGLIN, FLEWELLING, RASMUSSEN 

CAMPBELL & TRYTTEN LLP 

199 S. Los Robles Avenue, Suite 600 

Pasadena, California 91101-2459 

Tel: (626) 535-1900; Fax: (626) 577-7764 

Attorneys for Defendants 

WORLD SAVINGS BANK, FSB 

renamed and now known as 

WACHOVIA MORTGAGE, FSB 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA -- SAN JOSE DIVISION 

BERNARDO REYES, 

 Plaintiff, 

 v. 

PREMIER HOME FUNDING, INC., a 

California corporation; WORLD SAVINGS 

BANK, FSB; WACHOVIA BANK, N.A.; and 

JOEL MADERA CANDELARIO, 

 Defendants. 

WACHOVIA MORTGAGE, FSB; 

 Cross-claimant, 

 v. 

THE ESCROW FORUM, a California 

corporation, 

 Cross-defendant. 

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Case No. C08 04606 JW 

[Hon. James Ware, District Judge] 

CROSS- CLAIM BY WACHOVIA 

MORTGAGE, FSB AGAINST THE 

ESCROW FORUM, a California corporation, 

FOR: 

1. IMPLIED CONTRACTUAL 

 INDEMNITY; 

2. EQUITABLE INDEMNITY 

/ / / 

/ / / 

/ / / 

Exhibit A to Stipulation - Page 4

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 4 of 20
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J:\Docs\95451.076\Cross-Complaint-180556.doc 2 CASE C08-4606 JW – CROSS-CLAIM BY WACHOVIA 

MORTGAGE, FSB AGAINST THE ESCROW FORUM

The parties hereby stipulate by and through their respective counsel as follows: 

Defendant and Cross-claimant Wachovia Mortgage, FSB (“Cross-claimant”) alleges as 

follows: 

1. This court has supplemental jurisdiction pursuant to 28 USC §1367 (a), which 

allows the court to adjudicate state law claims that are transactionally related to the federal 

claim under the Truth in Lending Act alleged by Bernardo Reyes (“Reyes”) in his complaint. 

This includes claims against any properly-joined new parties. Id. As alleged below, this 

cross-claim is transactionally related to Reyes’ federal claim. 

2. Cross-claimant Wachovia Mortgage, FSB is and at all pertinent times has been a 

federal savings association organized and existing under the federal Home Owners Loan Act, 

12 U.S.C. § 1461 et seq. and regulated by the Office of Thrift Supervision, Department of the 

Treasury. Prior to January 1, 2008, Wachovia Mortgage, FSB was known as “World Savings 

Bank, FSB.” Effective as of December 31, 2007, World Savings Bank, FSB changed its name 

to Wachovia Mortgage, FSB. Hereafter, for ease of reference Wachovia Mortgage, FSB, 

formerly known as World Savings Bank, FSB, will be referred to as “Wachovia” or Crossclaimant. 

3. Wachovia made a loan (“Loan”) on or about October 5, 2007 to Reyes. The 

Loan was secured by a deed of trust in first priority against by Reyes’ residence, commonly 

known as 14030 Aldo Ct., San Jose, California 95127 (hereinafter, the “Security”).1

4. Cross-defendant, The Escrow Forum, is a California corporation that acted as 

Wachovia’s closing agent for the Loan., pursuant to written instructions. Cross-complainant 

is informed and believes and thereon alleges that cross-defendant’s agent or employee, Paul 

Sepulveda, was the escrow officer principally responsible for the management of Crossdefendant’s conduct in executing Wachovia’s instructions for consummation of the Loan on its 

 

1

 While the cross-claim relates to a loan secured by California real property, this suit does not 

seek to enforce the Loan, but rather to preserve all rights and interests related to the Loan and its 

Security. Accordingly, by this action and any claims made herein, Cross-claimants do not intend 

to waive or compromise the Security for the Loan or the full obligation of the Loan itself in any 

respect, or to violate the anti-deficiency or one-action rules set forth in the California Code of 

Civil Procedure §§ 580a, 580b, 580d, 726 or otherwise. 

Exhibit A to Stipulation - Page 5

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 5 of 20
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J:\Docs\95451.076\Cross-Complaint-180556.doc 3 CASE C08-4606 JW – CROSS-CLAIM BY WACHOVIA 

MORTGAGE, FSB AGAINST THE ESCROW FORUM

part as Cross-claimant’s closing agent. 

OPERATIVE FACTS

5. On or about October 3, 2008, Reyes filed this case against Wachovia, among 

others, alleging claims purportedly arising from the Loan. Among other things, Reyes alleges 

violation of certain duties incumbent on a lender under the Truth in Lending Act, 15 U.S.C. § 

1601 et seq., including: 

[That] on the night Mr. Reyes signed the closing documents of the aforementioned 

transaction [i.e., the Loan], Defendants provided no copies of any of the loan 

documents, including the document notifying Mr. Reyes of his right to rescind. Mr. 

Reyes was provided with a copy of his Notice of Right to Cancel, and other loan 

documents, weeks after the loan closed. He then attempted to rescind but was told that 

it was “too late.” 

Reyes First Amended Complaint, ¶13 (emphasis in original). 

6. Cross-defendant had a contractual duty to Cross-claimant to provide Reyes with 

the Notice of Right to Cancel (“Notice”), and to obtain his signature on the Notice prior to or 

concurrent with the closing, as well as to provide other documents and disclosures necessary 

for loan origination, and also to obtain Reyes signature on some of the same, pursuant to 

written instructions from Cross-claimant, as described herein. Prior to the Loan closing, 

Wachovia and cross-defendant The Escrow Forum entered into a written contract (“Contract”) 

by which The Escrow Forum agreed to serve as Wachovia’s “closing agent” in connection 

with the Loan. The agreement is memorialized by, “Amended Lender’s Closing Instructions,” 

dated October 5, 2007. A true and correct copy of the “Amended Lender’s Closing 

Instructions” (“Closing Instructions” or “Contract”) is attached as Exhibit 1 and incorporated 

by reference herein. 

7. In the Closing Instructions, cross-defendant committed itself and warranted to 

Wachovia, inter alia, that it would comply with all instructions and conditions in the Closing 

Instructions before closing the Loan and paying out any of Wachovia’s funds. (Ex. 1, Section 

1 ¶2). Cross-defendant further committed itself to and warranted it would assure: "the 

Exhibit A to Stipulation - Page 6

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 6 of 20
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J:\Docs\95451.076\Cross-Complaint-180556.doc 4 CASE C08-4606 JW – CROSS-CLAIM BY WACHOVIA 

MORTGAGE, FSB AGAINST THE ESCROW FORUM

authenticity of the signatures of each party executing each document..." and "all original 

documents must be signed and dated were applicable." (Id. at parag. 4). 

8. The Closing Instructions further provide: 

[Y]ou are instructed to have the following documents properly executed and notarized 

(as required). Documents to be reported must be submitted for recording immediately 

upon settlement. See Page 2 for instructions for returning documents. ON THE DAY 

THE DOCUMENTS ARE SIGNED, YOU MUST GIVE BORROWERS A COPY OF 

ALL DOCUMENTS IN CONNECTION WITH THIS LOAN. 

Ex. 1, Section 7, emphasis in original. 

9. The Closing Instructions list the documents subject to the instruction quoted in 

Paragraph 11, above. The listed documents include the Notice. (Id.). 

10. Based on the alleged failure by Cross-defendant to provide him with the Notice 

and other loan documents as set forth in the allegation quoted in paragraph 9 above, Reyes 

seeks rescission of the Loan and damages. 

11. Cross-claimants are now forced to defend this action which, if Reyes’ 

allegations are correct, is the proximate result of culpable conduct by cross-defendant in 

violation of the Closing Instructions. 

12. Cross-claimant therefore seek indemnity based on the theories alleged below. 

FIRST CLAIM FOR RELIEF

(Implied Contractual Indemnity against The Escrow Forum by Wachovia) 

13. Wachovia incorporates the allegations of paragraphs 1 through 12 as though set 

forth in full. 

14. Wachovia complied with each and every term, condition and covenant required 

of it by the Contract. 

15. While Wachovia does not concede the truth of Reyes’ complaint and is 

vigorously contesting it, Wachovia hereby demands of The Escrow Forum that it comply with 

its implied covenant to indemnify Wachovia for all damages, defense costs, settlement 

payments, judgments and fees it incurs as a proximate result of the Reyes complaint. To date, 

Exhibit A to Stipulation - Page 7

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 7 of 20
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J:\Docs\95451.076\Cross-Complaint-180556.doc 5 CASE C08-4606 JW – CROSS-CLAIM BY WACHOVIA 

MORTGAGE, FSB AGAINST THE ESCROW FORUM

The Escrow Forum has failed and refused to comply with, and has breached its implied 

covenant to indemnify Wachovia. 

16. As a proximate result of the breach of implied covenant by The Escrow Forum, 

Wachovia has suffered damages in a sum subject to proof. 

17. As a result of Wachovia’s demand on The Escrow Forum for indemnity and the 

cross-defendant’s refusal, Wachovia is entitled to an award against cross-defendant of its 

attorneys’ fees, costs, and expenses incurred to defend itself in a sum according to proof under 

Code of Civil Procedure section 1021.6. 

SECOND CLAIM FOR RELIEF

(Equitable Indemnity--Against Cross-defendant) 

18. Cross-claimants reallege and incorporate herein paragraphs 1-17. 

19. Cross-claimant has been or will be damaged as a proximate result of the 

negligent, improper, inequitable or illegal conduct of the cross-defendant. Such damages have 

arisen and continue to arise from the alleged failure by cross-defendant to provide Reyes with 

the Notice and, allegedly, to obtain his signature. Cross-claimants have also suffered 

additional damages in that the enforcement of the Loan and Security has been made more 

difficult and costly, and if the allegations are proved at trial, will potentially subject the Loan 

to rescission pursuant to the Truth In Lending Act, with a concomitant loss of interest and 

closing costs actually paid by Reyes, and which jeopardizes the Security. 

20. The conduct of Cross-claimant with respect to the Notice and the Loan and the 

execution of the Closing Instructions and Contract, which were entirely within the control of 

Cross-defendant. Cross-claimant is entitled to equitable indemnity from Cross-defendant in a 

sum according to proof. 

21. Cross-claimant has demanded and hereby demands that cross-defendant 

indemnify it, but cross-defendant fails and refuses to do so. Accordingly, Cross-claimant is 

entitled to an award against cross-defendant of its attorneys’ fees, costs, and expenses incurred 

to defend themselves in a sum according to proof under Code of Civil Procedure section 

1021.6. 

Exhibit A to Stipulation - Page 8

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 8 of 20
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J:\Docs\95451.076\Cross-Complaint-180556.doc 6 CASE C08-4606 JW – CROSS-CLAIM BY WACHOVIA 

MORTGAGE, FSB AGAINST THE ESCROW FORUM

PRAYER

ON THE FIRST CLAIM FOR RELIEF

 1. For damages for implied contractual indemnity, and for attorneys’ fees and 

costs, pursuant to California Code of Civil Procedure section 1021.6; 

ON THE SECOND CLAIM FOR RELIEF

 2. For damages for equitable indemnity and for attorneys’ fees and costs, pursuant 

to California Code of Civil Procedure section 1021.6; 

AND GENERALLY, 

3. For pre-judgment interest as permitted by law; 

4. For costs of suit; 

5. And for other relief as determined appropriate by this Court. 

Dated: October 28, 2009 ANGLIN, FLEWELLING, RASMUSSEN 

 CAMPBELL & TRYTTEN LLP 

 By: /s/ Frederick J. Hickman 

 Frederick J. Hickman 

fhickman@afrct.com 

Attorneys for Defendants and Cross-Complainants 

World Savings Bank, FSB renamed and now 

known as Wachovia Mortgage, FSB 

Exhibit A to Stipulation - Page 9

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 9 of 20
(Page 1 of 11)

I WORLD SAVINGS I AMENDED LENDER’S CLOSING INSTRUC11ONS

‘TO: THE ESCROW FORUM

23161 I.AEE CENTER DRIVE, SUITE 120

LAKE FOREST, CA 92630 DATE: October 5, 2007

LOAN NUMBER: 0047328505

CONCURRENT LOAN NO.: N/A ATTE: PAUL SEPULVEDA GFIORDER/FILE NO.: 87990 (949) 380—9701 BORROWER(S),

Fax# (949) 380”7899 BERNABDO MORALES REYES

TICOR TITLE COMPANY OF CALIFORNIA

898L93—12

BORROWER PHONE NUMBERS PROPERTY ADDRESS; HOME: (408) 937—8971 14030 ALDO CT

WORK:(408)892—7436 SAN JOSE, CA 95127—4101

* * * ATTENTION CLOSING AGENTS * * *

THESE CLOSING INSTRUCTIONS DATED 10/05/2007 SUPERCEDE AND REPLACE OUR CLOSING INSTRUCTIONS

DATED 10/02/2007 WElCH ARE HEREBY WITIWEAWN.

THIS DOCUMENT CONSTITUTES WORLD SAVINGS’ CLOSING INSTRUCTIONS FOR LOAN NUMBER 0047323505,

WHICH (S TO BE A FIRST UEN.

INDEX

SECTION I’ GENERAL INSTRUC11ONS. PAGE 2

SECTION Il’ ‘ERANSACTION TERMS AND COST ALLOCA11ONIBREAKOOWN, PAGE 3

SECTION III, IV, V

AND VI ThIRD PARTY SETTLEMENT SERVICE PROVIDER NAME(S); PAYEES, FEES PAID AT CLOSING BY LENDER;

FEES PAID OUTSIDE OF CLOSING, PAGE 4

SECTION VII WORLD LOAN DOCUMENTS, PAGE 6

SECTION VIIF DOCUMENTS PREPARED OR FORWARDED BY CLOSING AGENT PAGE 6

SECTION IX TiTLE INSURANCE, PAGE 7

SECTION X AND XI’ TAXESIHAZARDIFIRE/FL000 INSURANCE; STATE SPECIFIC REQUIREMENTS, PAGES

SECTION XI AND XI STATE SPECIFIC REQUIREMENTS CONTINUED; AODONAL REQUIREMENTS PAGE 9

SECTION XIII’ SPECIAL INSTRUCTIONS, PAGE 10, ii

SECTION XIV’ FUNDING INSTRUCTIONS, LAST PAGE

PLEASE TAKE A MOMENT TO REViEW OUR CLOSING INSTRUCTIONS.

P*go I

DIS1N1BU11ON I COPY-CLOSER I COPY-LOAN CENTER 1 COPY-lOAN FiLE

CA Li11_iiii 030

urn ii ii ROEWE USE ONLY—

QUESTIONS

For questions concerning:

• the closing or funding of this loan, please call our Final Documentation Department at:

1400473-7340; or

• the Payoff of an existing World loan, please call our Payoff Department at; 1-800-642-0257.

Note; To ensure quality customer service, your call may be monitored or recorded.

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

1.800-873-7340

(3F440A (2004-83-3)

WM59

Exhibit A to Stipulation - Page 10

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 10 of 20
(Page 2 of 11)

WORLD SAVINGS [ LENDER’S CLOSING INSTRUCTIONS

DATE: October 5, 2007 LOAN NUMBER: 0047328505

GFIORDERJFILE NUMBER 81990 CONCURRENT LOAN NUMBER: N/A

BORROWER(S): BERNADO MORA!-RS REYES

SECTION I GENERAL INSTRUCTIONS

YOU MUST COMPLY WITH ALL INSTRUCTIONS AND CONDI11ONS IN ThESE CLOSING INSTRUCTIONS BEFORE YOU CLOSE AND FUND

THIS LOAN. EXCEPT AS EXPRESSLY PROVIDED OThERWISE IN ThESE LENDERS CLOSING INSTRUCTIONS, ANY MODIFICATIONS OR

AMENDMENTS HERETO MUST BE IN wRmNdg AND SIGNED BY WORLD SAVINGS.

1. AUTHORIZED CLOSING AGENT

World Savings (‘we’) requires that an Independent third party, called a ‘closing agent ryou’),” coordinate the settlement of every real estate loan

we make Depending on local Ouslom, a closing agent may be an escrow company, a title insurance company or an attorney A borrower, a

mortgagor or a real estate broker or any other person who is a party to the transaction cray not act as the closing agent You represent and

warrant that you are not a party to the transaction You further represent and warrant that you are an escrow company, a title Insurance

company or an attorney, duty lIcensed and legally authorized to perforon the services required by these instructions.

2. AGREEMENT TO ADHERE To CLOSING INSTRUCTIONS

By closing the above referenced loan, you represent end warrant that you have followed each 01 the requirements and instructions set forth in

these Lender’s Closing Inutructions

1. IMPORTANT NOilCE- Compliance wIth the USA Patriot Act. SectIon 126

U S, CITIZEN BORROWERS

You are instructed to photocopy the borrower(s)’ authentic state issued driver’s license or other state issued photo idenuitication used to venfy the

borrower(s)’ identity arid to forward the photocopy to World Savings with the closing package

NON(LS. CITiZEN BORROWERS

You are instructed to photocopy the borrower(s)’ passport or similar foreign government issued picture rderititlcation (Ii S state issued dnve?s

license is NOT sufficient) after verifying authenticity of the document and the borrower(s)’ identity and forward a legible copy to World Savings

with the dosing package

The copy must show at least the number of the passport or other document and the picture of the borrower

4. SIGNATURE REQUIREMENTS

You warrant the authenticity of the signatures of each party esectitug each document and the authonty of each representahee esecuting any

document on behalf of another, escept to the extent such signatures are warranted by a Unaed Slates Nabonal Bank All original documenrs must

be signed and dated where applicable

For Eqoity Lines of Credit that are not closing concurrently with another World loan: If you were authorized ln.mrltyig by Wortd to use a

signing agent to obtain signatures from the esecuting panties, you witI venfy the signing agent’s compliance with each of our instructions given in

the Documents To Be Signed At ClOsing’ form

6. NOTARYIWITNESS REQUIREMENTS

Cur Security Instrument requires acknowledgement/notarrzatron Prepare and attach rrotarrai acknowledgement(s) With current notarial stamp as

required by state law If state statute so requires, please have each borrower’s signature witnessed

6. ALTERA11ONS1ERASURES ON DOCUMENTS

Alterations or Erasures are riot permitted on any document without poor wnitteyi approval from our Final Documtntation department Any

approved alterations or sttachrnents must be initialed by the parties concerned

7. POSSESSION OF DOCUMENTS REQUIREMENTS

DO NOT MAIL out or othelwrse release documents from hour office without our post written approval II we give written approval for you to

release documents from your office for any reason you will remain responsible for the documenis and for compliance with alt aspects of these

Lender’s Closing Instructions

B. MORTGAGE BROKER DISBURSALS! ThIRD PARTY FEE DISBURSALS

YOU ARE INSTRUCTED TO PAY ONLY THE MORTGAGE BROKER FUNDS AND THIRD PARTY FEES IDENTIFIED ON PAGES SAND 4 OF

THESE INSTRUCTIONS, AND ONLY AT THE TIME OF THE FINAL DISBURSAL OF ThE LOAN FUNDS.

BROKER 2’IINDS 1tD OThER THIRD I’ARTY ll’UNDS ARE INCLUDED IN YOUR TOTAl. WIRE DISBURSE14ENT.

9. “ DOCUMENT EXPIRATION DATE

The loan documents are VOID and must be returned to World Savings Tor cancellation within 24 hours If tIre documents are not

executed and you have irot disbursed the loan funds by: 11IO1!2507, THE INTEREST PAID TO DATE, OR l1lO3I2007, ThE COMMITMENT

EXPIRATION DATE, WHtCHEVER IS EARLIER.

Yeur scheduled clesmg data may l?ect time fez pailbrnianee. Please call it you have arty quesfioris.

10. REDRAW REQUIREMENTS

To request a redraw, (a) contact your loan originslion otfice, (b) return tIre voided loan documents and any loan hinds to World, as applicable,

(NOTE World will not redraw documents unless we are in receipt of previously issued documents and funds,) and (c) notify the borrower that they

may be charged a $20000 redraw fee pen occurrence

ii, INSTRUCTIONS FOR RETURNING DOCUMENTS

Ensure that all orrgmal documents are signed arid dated as required Please retain the documents to be recorded Forward CERTIFIED copies of

the documents sent for recording, together with all other ongrnal signed documents including the final HOD-I or HUD-IA Settlement Statement,

to. WORLD SAVINGS, A1TN.. IMAGING DEPARTMENT. 41111 WISEMAN BOULEVARD. BLDG. #108, SAN ANTONIO, TEXAS 78291,

WITHIN 24 HOURS AFTER LOAN DISBURSAUSEflLEMENT VIA OVERNIGHT COURIER.

WORLD SAVINGS WILl. ROT PAY COURIER FEES.

GF4408 (2t04.03.3) Page 2 CA

wrntE FUNDiNG DISTRIBUTiON 1 COPY-CLOSER I COPY-LOAN CENTER 1 COPY-LOAN FJL,E

WM6O

Exhibit A to Stipulation - Page 11

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 11 of 20
(Page 3 of 11)

WE WILL L,...n,..,, , n roALOWING

Worlds Loan Fee

Vdsrlds Discount Fee

Saleable Loan Discount Fee

Mortgage Broker Fee

1.750%i-$850.O0

Total Broker Check $

Interest from date of WIRE to 11/01/07

at $84.76duy

Escrow Deposit Net Funded at Close per RESPA Regulations

Application Fee

Apprasial/Property Evaluation Fee

Appraisal Review Fee

Buydown Fee

Third Party Buydown Fee

Commitment Fee

Fannie Mae Automated Underwriting Fee

Document Preparation Fee

Equity Builder Servicing Fee

Flood Zona Initial Determination Fee

Flood Zone Ongoing Monitoging Fee

Funding Fee

Holdback

Loan Origination Fee

Mortgage Credit Certificate (MCC) Fee

Mortgage Insurance Premium

Payoff World Loan Number

Processing Fee

Redraw Fee

TaxSe,viceFee

Trust Review Fee

Loan Sales Processing Fee

Employment Verification Fee

CLOSING COSTS PAID BY WORLD (added to Funds to Closing Agent)

Notary Fee

Courier Fee

Recording Fee

Title Insurance

Closing/Settlement Fee

Mortgage Tax Paid By Lender

TOTAL FUNDS TO CLOSING AGENT

Flood Ins .._L. Pyml $ .00 $ .00

Hazard Ins ._.Q_.. Pymt$ .00 $ 0n

MortgageIns_3.._PymtS.0O $ .00

NO RAZD INSURANCE ESCROW

NO TA3C ESCROW

Less Aggregate Accounting Adjustment SC .00)

$

8 .00

S 325.00

8 .00

S .00

S .00

8 .00

8 .00

S 50.00

S .00

S

S

S RO.tifl

8 .00

S .00

8 .00

$ .00

S

8 310.00

$ 200.00

$ 61.00*0.

$ .00

$ .00

$ .00

8 .00

$ .00

$ .00

$ .00

$ .00

$ TO BE DETERMINED

AItP Assistance Total $ .00

DPA Grant Amount Total $_________________________

FUNDS FOR CLOSING AGENT DISBURSAL

Funds to he disbursed to Broker $ 14 .912.50

Mortgsge Insurance Premium $ . 00 *00

Funds Payable to PAYEE 4): (1) .00 °°

Funds Payable to (2) . 00 *00

Funds Payable to (3) $ . 00

WiRE AMOUNT $ TO RE DETERMINED

Deduction of Ihe teen listed is pursuant to our agreement to finonce these loan costs Borrower is not to pay these amounts out of his/tier own cash

See Page 4 torThird Party Settlement Service Provider Names. if apphcable

NOTE: The HUD-l or IIUD-l A Settlement Statement or Summary of Closing Fees must reflect the actual disbursat)ftrndinrg date

(I), (2), 43) See Page 4 for Payees.

GF44iIC(2004-03-1) Page 3

WM 61

WORLD SAVINGS I LENDER’S CLOSING INSTRUCTIONS LOAN NO: 0047329505

SECTION II - TRANSACTION TERMS AND COST ALLOCATION - See Section VI for Fees Outside of Closing (POC)

TERMS OF TRANSACTION: Mortgage Broker Fee - (Broker to

Sales Price $ .00 submit demand to closer) S .00

Amount of this Loan $ 375,000.00 Provide Copy of Dowripnymerrt

Funds to Close $

ADDITIONAL FINANCING:

Amount $ .00 lntereidRate .000

MonttityPaynnent $ .00 Term(Years)

DISBURSAL INFORMATiON FIRST PAYMENT DUE DATE WortdLoanAmount $ 375,000.00 12/01/07

BrokerFeePaidbyLender 8 7,500.00

Broker Fee Paid by Seller (% +8 ) S .00 * II seller paid fees EXCEED what in shown on these instructions as closing agent you era required b ontaot 1400.573.7340, for approval

PAID BY BORROWER PAID BY SELLER

5 .00

$ .00

S .00

$ 7,412.50

$ ‘‘c BZ DfltlFaN5D

.00

$

$

S

.00

.00 °

.00

Escrow Account Breakdown

County Tax __Q_ Pyml$ .00

CityTax —D._Pymt$.O

SchoolTax ._D_Pymt$.O0

WaterTax _,Pymt$ .00

Sp Den Tax _Pymt 8.00

Bond _D_Pymt$.O0

$ .00

$ .00

$ .00

.00

.00

$ _OO

- tin

C nfl

DI5TRIBU11ON I COPY-CLOSER I COPY-LOAN CENTER I COPY-LOAN F1LE

CA

Exhibit A to Stipulation - Page 12

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 12 of 20
(Page 4 of 11)

WORLD SAVINGS 1.ENDER’S CLOSING INSTRUCTIONS LOAN NO: 0047328505

SECTION III -ThIRD PARTY SETTLEMENTSERVICE PROVIDER NAMEISI

To assist you with preparation of the HUD-1 or HIID-1A Settlement Statement, listed below are the names and addresses of the firms receiving the

payments shown, if applicable

SETTLEMENT SERVICE SETFLEMENT PROVIDER

. Appraisal!Property Inspection WaFer Fee World Savings Bank

• Credit Report Provider CBC Corripenies, Equifax Information Service, Trans Union Corporation, Expenan Consumer

Center

• Fannie Mae Automated Underwriting Fee

P Employment Venfication Fee

• Mortgage Broker Fee

PREMIER HOME FUNDING, INC.

25332 CABOT ROAD, #100

Z.AGtJNA HILLS, CA 92653

• Mortgage Insurance Premium

• NHSA Affiliate Fee Neighborhood Housing SeNices otAmence AffilIated Organization

• Tea Service Fee First Amenceri Real Estate Tax Services

• Initial Flood Determination Feel First American Flood Data Servicee

Ongoing Flood Zone Monitoring Fee

SECTION IV - PAYEE(S) - The following names arid addresses are provided to assist you with (a) disbursal ol loan proceeds and (b)

preparation of the HUD-I or HUD-IA Settlement Statement.

PAYEE(S) NAME AND ADDRESSEES)

2

3

SECTION V - FEES PAID AT CLOSING BY LENDER

Recording $ .00 Title Insurance $ .00

Closing/Setllement S .00 ProceasiiW $ .00

Couner $ . O Appraisal $ .00

Application $ .00 Mortgage! Intangible properly!

Notary $ .00 Recording lair $ .01)

SECTION VI - FEES PAID OUTSIDE OF CLOSING

The followIng fees were paId outsIde of closIng. Please reflect the fees on the HUD-1 or HUD-IA Settlement.

DO NOT COLLECT ThESE FEES AT CLOSING.

FEES PAID OUTSIDE OF CLOSING (POC) BY BORROWER: FEES PAID OUTSIDE OF CLOSING BY LENDER:

(These are not credits)

Application $ .00 CreditRepor’t $ 3.55

Appraisal $ . oo Loan Submission $ .00

Trust Review $ . 00 Electronic Facility $ .00

Telte-Out Commilment $ .00 Mortgage 8rokerInitial Flood Zone $ .00

Determination $ 3 • 00 Cash ReflJnd to Borrower $

Mortgage Broker $ .00 Tax Service $ .00

NHSA Affiliate $ . 00 Initial Flood Zone Determination $ .00

Processing $ 97 .00 Real Estate Agenl Services $ .00

Mortgage Credit Certif (MCC) $ . 00

Rate Lock-In $ .00 Employment Verification Fee $ .00

COMPLETE THE ROD—i OR Ht)D-1A SETTLEMENT STATEMENT, WHICHEVER XE APPLZCASZ.2, AT THE TIME

OF CLOSING AND FORWAND A CKRTIFIED COPY WITH THE CLOSING PACKAGE, WITHIN 24 HOURS AFTER

SETTLEtiOT TO: World SavIngs

Attn.: IMAGING DEPARTMENT

4101 Wisemen Boulevard, Bldg. # 108, Sari AntonIo, Texas 78251

NOTE: The HUD-1 or HIJD.IA Settlement Statement must reflect lhe ectual disbursal!funding date

GF4400 gooit-03-5) Pane 4

0l$TRiot.rilON 1 COPY-CLOSER I COPV4,OitN CENTER 1 COPY-LOAN FILE

CA

WM 62

Exhibit A to Stipulation - Page 13

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 13 of 20
(Eage 5 of 11)

WORLD SAVINGS I LENDER’S CLOSING INSTRUCTIONS LOAN NO: 0047328505

SECTION VII - WORLD LOAN DOCUMENTS

You are instructed to have the following documents properly executed and notarized (as required) Documents to be recorded must be submitted for

recording immediately upon settlement See Page 2 for instructions for returning documents ON THE DAY THE DOCUMENTS ARE SIGNED, YOU MUST

GIVE BORROWERS A COPY OF ALL. DOCUMENTS IN CONNECTION WITH THIS LOAN.

RECORD THE DOCUMENTS BELOW (NOTARY REQUIREDI

x Secunty Instrument dated O/05/O7 for $375,000.00

including the attached Exhibit “A Legel Description (see

instructions for prepanng Exhibit “A on Page 6 of these

instructional

Security Instrument securing the Downpayment Assistance

Repayment Agreement dated for S including the attached

Exhibit A Legal Description (see instructions for preparing

Exhibit “A on Page Sot these instructions)

RIDERS TO THE SECURITY INSTRUMENT

(x) RIDERS WI’rROUT A ItECORDING REQUEST ZitOST

BE ATTACHED TO THE SECURITY INSTRUMENT AND

RECORDED TOGETHER.

) Rider-Second Home

Rider-Borrowers Warranty of Financing Terms (00)

Rider-Fixed Rate

Rider-Fixed/Adjustable Rate

Rider-i -4 Family Rider, Assignment of Rents

Rider-Planned Unit Development

Rider-Adjustable Rate

Rider-Additional Collateral Pledged

Rider-Fised Rate Option Feature

( Rider-Condomssium

Rider-Demand Provision

Rider-Cross Collateralization and Defeult

OThER DOCUMENTS

Request for Notice (see preparation instructions in section VIII

on Page 6 of these instructions)

Homestead Waiver Exemption (GO)

Waiver of Borrowers Rights/Closing Attorney

AftdavitiForeclosure Diolosure (GA)

Voluntary Designation or Homestead and Exhibit “A

with legal description

Texas Home Equity Affidavit and Agreement

Transfer of Lien (TX) including the attached

Exhibit “A” Legal Description (see instructions

for prepanng Exhibit “A” on PageS of these instructions)

( I

DO NOT RECORD (RETURN SIGNEDj

X Promissory Note

Rider to Promissory Note - temporary Payment Options

Accaunl Opening Advance Request

BLOC Agreement and Disclosure Statement

Moditication to Note

X Regulation Z Disclosure

Loan Program Disclosure

K I Document Correction Agreement

Holdback Agreement

Buydown Agreement

X Notice of Fire/Hazard Insurance Requirements

K Notice of Right to Cancel (each consumer with en ownership

interest in the property, including non-borrowing spouse when

applicable, must acknowledge receipt and be given two copies

to keep)

Information Sheet for Non-pnmary Ii S Applicant

Tax Bill Authorization Letter

Acknowledgement Letter

K Prepay Feature Acknowledgement Letter

Notice of Special Flood Hazard Insurance

X ) Loan Application Addendum -Second Request for Information

Lenders Release and Indemnity Agreement (MOC Program)

Personal Guaranty (include mailing address of trot signer)

Notitication of Rate Lock-in Period and Estimated

Processing Time (VA)

( I

I I

(XI

( I

I I

I I

Escrow Account Agreement

Employee Benefit Disclosure

Initial Escrow Account Statement

Referral Notice(s) WEIA

Mortgage Servicing Transler Disclosure (each borrower must sign)

Security Agreement and Secionty Assignment Under

Land Trust (Assignment of Beneltc.al Interest) (IL)

Addendum to Note and Security Agreement and

Security Assignment Under Land Trust (Assignment of Beneficial

Interest) (Esculpetary Rider) (IL>

Disclosure Regarding Availability of Interim Financing,

Legal Representation and Appraisat (CT)

Verification of Personal Information

Cloning Agent Transmittal (MA>

Equity Builder -EFT Authorization

Mortgage Insurance Notice

ACORN Closing Certificate

Actcnowtedgernent of Value-Notarized (TX)

Receipt of Closing Documents (TX)

Texas Equity Special Closing Instructions (TX)

Equity Line of Credit-Final Confirmation ol Closing Fees

pad by World Savings

Attomey/lnsurerioe Preference Form (SC) (each borrower must sign)

Texas Equity Loan Application Addendum (TX)

Location For Notices Tesas Equity Loans (TX)

Request for Initial Payment Amount

Pick-A-Payment Loan

(K)

I)

(XI

(K)

( I

I I

I)

(X)

I)

I I

I I

I I

I I

I)

( I

IRS W-4 Employee WIthholding Allowance Certificate,

Adtustment Notice (MCC)

Valuation Disclosure c/VA)

I X I Itemization of the Amount Financed

x ) FACTA Notice to Home Loan Appticantl

Credit Score Notification

Addendum to Welcome Latter

GF44OE (2004.05-14)

SEE NEXT PAGE FOR ADDITIONAL DOCUMENTS

PageS

DISTRiBUTiON 1 CopY-CLOsER I COPY-LOAN CENTOR

CA

1 COPY-LOAN FILE

WM 63

Exhibit A to Stipulation - Page 14

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 14 of 20
(Page 6 of 11)

j WORLD SAVINGS J LENDER’S CLOSING INSTRUCTIONS LOAN NO: 0047328505 I

SECTION VIII - DOCUMENTS PREPARED OR FORWARDED BY CLOSING AGENT PREPARE ANDIOR ENSURE EXECUtiON OF THE FOLLOWING DOCUMENTS. RETURN WITH CLOSING PACKAGE TO WORLD

If there are any changes In the temis on this page. call 1-800475-7340 to request verbal approval.

X ) HUD-l or HIJO-1A Settlement Statement

Certified copies of Buyers Affidavit of TItle arid Seller’s Affidavit of Title (NJ)

Certified copies of Affidavit to insure against mechanics/matenalmens lien(s)

Special Closing Instructions for Land Trusts (IL)

Lead Paint form(s) - Notification and Indemnification, if applicable (MA)

Smoke Detector form(s) - Qert,tcation and Indemnification (MA)

Septic System form(s) -Certification end Indemnification, if appircabte (for properties with septic systems) (MA)

60 Certificate (for condominium loans in MA)

Cerliteit copy of the Homestead Demgnation Affidavit (TX)

X ) For 00 loans, provide evidence of the source of funds for the downpaymenit end closing costs

I You may record a concurrent secunty instrument, securing a note, in the amount of S as subordinate junior lien to our first lien Please forward a

certified copy of the note and security instrument

You must record a Subordination Agreement in the amount of $ subordinating a prior recorded lien to our Security Instrument (You are insuring

our first lien position) Please forward a certified copy of the Subordination Agreement

Forward a certified copy of the GRANTIWARRANTY DEED1BARGAIN AND SALE DEED

NOTE: Ir the vesting on the GranhiWarranty DeedlBargain and Sale Deed differs from our Security Instrument,

YOU must call 1-800473-7340 IMMEDIATELY.

For all states with a Request for Notice of Default andlor Sale (i) complete alt blank sections of the Request for Notice, (ii) attach the legal

description to the Notice if the Notice references an Exhibit A or if the legal description ia necessary for recording, (iii) sign the Notice as l.imrted

Agent for World, and have the signature notarized, and (iv) send the Notice to be recorded Forward a CERTIFIED copy of the Notice sent for

recordIng to the address shown on Page 2 of these instructions

GF44OF (2004-03-7)

SEE NEXT PAGE FOR “TITLE INSURANCE” REQUIREMENTS

Page S

DISTRISUUOO1 1 COPY-CLOSER I COPY-LOAN CENTER i COPY-LOAN RLE

CA

FOR ALL STATES EXCEPT MISSISStPPI AND WASHINGTON

I X ) Preparing Exhibit “A’S - Detach the legel description from your Preliminary Title ReportlCornmttment to Insure dated 09/11/07.

Using clear tape, attach the legal description to the Exhibit “A” page and photocopy. THE CORRECT LEGAL DESCRIPTION MUST BE

ATTACHED TO ThE APPLICABLE DOCUMENT IT IS SIGNED BY THE BORROWER. Attach the photocopy of the legal

description to our Security Instrument and submit for recording.

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

FOR TEXAS EQUITY LOANS ONLY

THE CORRECT LEGAL DESCRIPTION MUST BE ATTACHED TO THE APPLICABLE DOCUMENT 5g IT IS SIGNED BY THE

BORROWER. Attach a photocopy of the legal description to the voluntary desIgnatIon of homestead and submit for recording. Return

a certified copy of the Voluntary Designation or Homestead including the legal description in the closIng package.

FOR MISSISSIPPI STATE ONLY

Preparing Exhibit “A”

Complete the Indexing Information section located on the attached Eohlbut “A” page of the Security Instrument

Detach the legal descrIption from your Preliminary Title ReportlComenltrnent to Insure dated . Using Clear tape, atlach the legal

description to the Exhibit “A” page and photocopy. Attach the photocopy of the legal descriptIon to Worlds Security Instrument, As

Exhibit ‘A”, the correct Legal Description must be attached to tile Security Instrument and the lndealng Information must be

completed before the Security Instrument Is signed by the Borrower. SubmIt the entire signed and dated Security Instrument for

recordIng.

Return to World a certified copy of the Security Instrument, including the legal description, in the closing package

FOR WASHINGTON STATE ONLY

Washington State County Auditor!Recorder’s Indraing Form (Cover Sheet) - Detach the abbreviated legal description from your

Preliminary Title Repont!Commilment to Insure dated - Using clear tape, attach tile abbreviated legal description to the Cover Sheet

and photocopy. Attech the photocopy of the Cover Sheet to the Deed of Trust prior to recording.

Preparing Exhibit “A” - Detach the legal description from your Preliminary Title ReportlCommnitment to Insure dated . Using clear

tape, attach the legal description to the Exhibit “A’ page and photocopy. THE CORRECT LEGAL DESCRIPTION MUST BE ATTACHED

TO THE APPLICABLE DOCUMENT BEFORE IT IS SIGNED BY ThE BORROWER. Attach the photocopy of the legal description to our

Security Instrument and submit for recording.

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

WM64

Exhibit A to Stipulation - Page 15

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 15 of 20
(Eage 7 of 11)

WORLD SAVINGS LENDERS CLOSING INSTRUCTIONS LOAN NO: 0047328505

I SECTION IX —TITLE INSURANCE

THE NAMES SHOWN ON THE ENCLOSED SECURITY INSTRUMENT MUST BE EXACTLY AS TITLE TO ThE PROPERTY IS HELD. IF THE

NAMES ON ThE SECURITY INSTRUMENT DIFFER FROM THE NAMES ON TiTLE, PLEASE CALL 1-800.873-7340.

YOU MUST SEND ThE TITLE POLICY OR TITLE PRODUCT CHECKED BELOW TO THE ADDRESS INDICATED ON ThE SECOND PAGE OF

THESE INSTRUCTIONS WITHIN THE TIME FRAME REQUIRED.

X ) WORLD SAVINGS WILL ACCEPT AN ORIGINAL ALTA T FORM LENDERS TITLE POLICY. THE ORIGINAL SHORT FORM TITLE

POLICY MUST REFERENCE OUR LOAN NUMBER AND BE RE’flJRNEO TO US WITh THE EXECUTED CLOSING PACKAGE WITHIN 24

fj5 AFTER SETTLEMENT.

X ) In the event a Short Form Title Policy Is not available. World Savings will accept an original Long Form Lender’s Title Policy. The

orIgInal Long Form Title Policy must reference our Loan Number and be received by us within 30 business days after settlement.

I K WORLD SAVINGS WILL ACCEPT A CREDITORS RIGHTS EXCEPtiON ONLY IF IT IS IN THE FORM OF THE 1992 REVISION TO THE

ALTA POLICY OF TITLE INSURANCE

Collect for Survey/Improvement Location Certificate and remit to survey company, if applicable

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

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

X ) The Title Policy may only include the following Exceptions Identified ifl your Preliminary Title Report/Commitment to Insure dated 09/11/07

• A-C P/C, 0, Z, 1

X ) The Title Policy must jg contain an exception to coverage for the interest of any spouse

EQf,fiTYLINES OF CREDIT LOANS ONLY

I WORLD SAVINGS REQUIRES THE FOLLOWING TYPE OF ‘tiTLE PRODUCT WHICH MUST BE PROVIDED TO US NO LATER THAN

30 DAYS AFTER SETTLEMENT:

X ) The Secunty Instrument in the amount of $375,000.00 is to be recorded in FIP.S1’ lien position This must be reflected on the Title

Policy or Title Product checked above ii any

K Issue the Lender’s Title Insurance Policy or Title Product, as checked above, in the amount of $375,000.00 to WrId Savings. its

successors end/or assignees

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

same property

FOR LOANS CLOSING CONCURRENTLY WITH ANOThER WORLD LOAN

I Refer to the Closing Instructions for tire ‘rtd concurrent loan number for additional title coverage instructions

FOR TEXAS RATE AND TERM REFINANCES ONLY (NO EQUITY LOANSI

You are to obtain P-Cfig (b) Express Insurance with the litte pobcy insuring against

“Possible defect in the lien of the insured rnoltgage because gf the Insured’s inclusion of closing costs including mortgage broker compensation

in the original pnncipal of tire indebledness secured by the insured mortgage”

SPACE INTENTIONALLY LEFT BLANK.

GF4400 (2004-03-3) Pace 7 CA

DISTRISUTION 1 COPY-CLOSER 1 COPY-LOAN CENTER 1 COPY-LOAN 9L5

WM65

Exhibit A to Stipulation - Page 16

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 16 of 20
(Page 8 o 11)

I WORLD SAVINGS I LENDERS CLOSING INSTRUCTIONS LOAN NO:004’7328505

I SECTION X - TAXESIHAZG.RDIFIREIFLOODIINSURANCE

X ) TAXES AND ALL ASSESSMENTS (including Homeowner’s Asociatior, Assessxnenls) PROPERTY TAX BILLS RELEASED OR DUE

WITHIN 90 DAYS OF CLOSING MUST BE PAID CURRENT.

Complete and return the Escrow Account Agreement form with the HUD-l or HUD-1A Settlement Staleraent ii taxes are paid at closIng

x) Please review the attached “Closing Agent Notification of FirelHazard Insurance Requirements” form, which is incorporated herein by reference

Ensure that at requirements are net prier b loan settlement Including, but not lenited to, the policy amount and standard mortgagee clause

X) As closing agent you are responsible for ensuring that the borrower brings acceptable proof of insurance arid evidence of payment

as Outlined in item #7 of the “Closing Agent Notification of Flreiflazard Insurance Requirements” tonnn. You must deliver This proof of

insurance and evidence of payment to World Savings within 24 hours of loan setttement along with the execuied documents

This loon requires food Insurance Please review the attached ‘Closing Agent Noliltcation ot Flood Insurance Requirements” form to ensure

that alt requirements are met prior to loan settlement Borrower must provide proof of paid flood insurance policy prior to closing.

I SECTION XI - STATE SPECIFIC REQUIREMENTS I

ITEMS MARKED WITH AN ‘X ARE REQUIREMENTS FOR YOUR STATE. FOR LOANS IN ALL STATES

X ) You are authorized to record our documents and disburse funds only when you have complied with all of our instructions and there are 02

unauthorized ailerations

FOR RIDERS A’fl’ACHED TO ThE SECURITY INSTRUMENT FOR RECORDING

x FOR ALL STATES EXCEPT PA, you are lnstnlcted ID ensure that all riders to the Security Instrument Included in the closing package

are 1) executed, (2) attached to our Security Instrument and (3) submitted for recording.

FOR ALL ARIZONA TITLE PRODUCTS ONLY Even if tire name(s) of the borrower(s) in Uris transaction ha&hsve riot been searched in the pubflc records tha title insurer must issue a

pohcylproduct that insures that our lien is supesor to matters such as proceedings, tens, or decrees against buyer(s) that do not specifically

describe the property securing our loan, but may affect the title or Impose hens or encumbrances thereon

FOR CONNEC’flCUT LOANS ONLY

Please delwer to the Mortgage Broker for this transaction, whose came sod address appears on these Closing lnstnjctions, signed copies or

tire Federal Truth In Lending Disclosure. Notice of Right to Cancel (if applicable), Initial Escrow Account Statement (II applicable), Promissory

Note, Mortgage, and HIJD-I or HUD-IA Settlement Statement [CONN GEN STAT §35A-493 I

FOR GEORGIA LOANS ONLY

You crust ensure that “Total Broker Fees Paid” and other points and fees as defined in the Georgia Fair Lending Act carmot exceed 499% of

the loan amount Do tint close This lean if (I) them are any addiloiaI tacker fees that are rrol on Vrthrtd’s Georgia Preferred Mortgage Broker

Demand Statement or, (2) taist points and fees exceed 499%

FOR ILLINOIS LOANS ONLY

For loans closed in Cook County, Illinois, pnor to funding, the closer must obtain the necessary Certificate of Compliance or Certificate of

Exemption (as applicable), as issued by the Illinois Department of Financial and Professional Regulation Predatory Lending Daiabsoe in

accordance with the provisions of 765 ILCS 771770 at saq

FOR LOUISIANA LOANS ONLY

The closer is instructed to complete the name of the Borrower(s)’ spouse(s) on psge 19, the ldenhfcation and Martai Status page of the Security

Instrument

Photocopy the signed and dated Secunty Instrument Send the photocopy to the recording office with the onglnai signed and dated Secunty

Instrument Request thaI tIre photocopy of the Secunty Instrument be stamped and returned to WORLD SAVINGS. ATTN.’ IMAGING

DEPARTMENT, 4101 WISEMAN BOULEVARD, BLDG #108 SAN ANTONIO, TEXAS 78281

EGB,MARVI.ANO L’jMrj,,,.,nu,

Do nol add Refinance Transfer lnfoirnation language directly onto our Deed of Trust IMien applicable, prepare an Affidavit of Refinance, attach

to our Deed of Trust end submit to the county recorder’s office for recording

FOR NEW YORK LOANS ONLY

Pnorto recording; complete section 25 ‘Borrower’s Statement Regarding the Properly ofthe Security Instrument for fixed rate loans

FOR PENNSYLVANIA LOANS ONLY

You are instructed to ensure that (a) all niters to lire Secuety Instrisrient included in the closing package are recorded as separate documents

and (b) at pages of the documents sent for recording are arranged in nLtlleflcal Order DO NOT ATTACH ThE RIDERS TO OUR SECURITY

INSTRUMENTS.

FOR TENNESSEE LOANS ONLY

For Fannie Mae fixed. Closed 2nds, and ELOC loans. Complete the Eon’oWer’s source of interest paragraph appearing to our Security

Instrument, prior to recording. The Borrower’s source of interest paragraph appears on Page 1 of our Security Instrument fur closed

second and second loans and PageS of our Security Instrument for Fannie Mae fixed rate loans.

For ARMs: Include the Borrower’s source of interest paragraph as a part of Exhibit ‘A” to tore Security Instrument.

SEE NEXT PAGE FOR ADDITIONAL “STATE SPECIFIC REQUIREMENTS”

Page

OisTivlStJTION I COPY.Ci.OSER I COPY-LOAN CENTER I COPY-LOAN FILE

GF440N (2004-03.7) CA

WM 66

Exhibit A to Stipulation - Page 17

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 17 of 20
(Page 9 of 11)

I WORLD SAVINGS I LENI3ER”S CLOSING INSTRUCTIONS LOAN NO:0047328505 I

I SECTiON XI -STATE SPECIFIC REQUIREMENTS -CONTINUED I

ITEMS MARKED WITH AN “X”ARE REQUIREMENTS FOR YOUR STATE.

FOR TEXAS LOANS ONLY

Please issue Express Insurance, t after review of the property survey, your title policji will include any esception(s) in Schedule B for

encroachments, lot violatIons, etc

Please issue Deletion 01 Arbitration ProvIsion as part of the fInal title policy Do Sot SiQfl, record or return Ibis provmron as an individual document

ff the Prooertv is Non-Owner Occunied, World requires a signed and recorded Homestead Designation Affidavit from borrower venfying some

other property as the homestead If borrower as married, borrowers spouse must sign as well Signatures must be notarized You must record the

Affidavit in the county where the homestead property is located end submit a ceititied copy including recording information to Woild Savings

If the Property Is the borrower’s homestuad and the loan proceeds exceed the amount necessary to pay off the existing purchase money loan and

permitted costs, you may ng( close this loan Instead you must return the loan documents to Vdarld to be redrawn together with tIre loan funds

( ) IfthlsisaTe refer to Special Closing Instructions for Texas Equity loans for additional instructions If you did not receive these

instructions, contact us immediately

If this is a Texas Eauity Loan, you must (a> fill in the name of the current record title holder on the Voluntary Designation of Homestead form prior

to the signing and recording, (ir) erisuura that The Designation is property mgned and notarized (if borrower is mamed. you must obtain the Spouse’s

signature as well), and (c> record the Designation and return the recorded copy to World Savings

II this is a Texas Equity Loan, you must ensure that the Location For Notices Texas Equity Loans document is signed by all borrowers and returned

to World

FOR WISCONSIN LOANS ONLY

This loan requires a Personal Guaranty All Gusrantora must sign the Personal Guaranty If the Guarantor(s) isa married person gthe spouse is

not also a Guarantor on the loan, the spouse must sign the Spouaal Consent signature page located as the hat pege of the document

SECTION XII - ADDITIONAL REQUIREMENTS

X I SPECIAL POWER OF ATTORNEY

If the borrower is granting power of attorney to a person who will act as attomey-in’fact end sign the loan documents, we require a certified copy of

tIre valid Special Power of Attorney which specifically references (1) the name of the person who will act as attorney-in-fact, (2) the property which

is the subject of-the loan transaction, (3) the transaction must be identified as a purchase or a relinance 5,and (4) the date the Special Power of

Attorney was granted, which must be within the previous six months Vanutions in the requirements set forth in items I through 4, ID 0 Special

Power of Attorney, are acceptable cnly when necessary to comply With state law Note: World isiS not CosepI a eawar of attorney for a trustee ore

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

a For Texas Equity loans, the Special Power of Attorney must specifcally authorize a loan under Section 50(a)(6), Article XVI of the Teitas

Constitution

(X) PERSONAL INFORMATION

You shall hold Personal Inforrvstion in strict confidence and take all measuresreasonably necessary to preserve its confidentiality and to dispose of

it property Personal Information means information identifiable tea particular World customer

(K) CO NOT DISBURSE ANY FUNDS PRIOR TO THE EXPIRATION OF THE CANCELLATION PERIOD DESCRIBED IN THE

ENCLOSED “NOTICE OF RIGHT TO CANCEL”

K ) HUD EARLY CLOSING BONUS CHECKS

When applicable, forward lender’s “Early Closing Bonus” check from I-lUG to World Savings with tile closing documents

PAYOFF OF EXISTING WORLD LOANS

Payoff loan number will be by separate payoff demand at closing/escrow

I For questions regarding Payoffs please call 1-800442-0251 or Fax 210-509-1121

PREPAID INTEREST CALCULATION INOT APPLICABLE TO ELOC)

World calculates prepsid interest from either (a) the date the funds are wired to you, or (b) the scheduled loan settlement (disbursement) date if funds are

provided to you by check If the actual settlement date shown on the certified settlement statement is later than tIre scheduled settlement date, World may

owe the borrower a refund Al ‘rdVcirld’s discretion, any prepaid interest may either be cmdited to the pnncipel balance of the borrower’s loan or refunded

directly to the borrower by check World will not send a refund check to any party other than the borrower Please close this loan based on the figures shown

on page 3 of this document

0F440l (200403-6)

SEE NEXT PAGE FOR “SPECIAL INSTRUCTIONS”

Paaa e CA

CNSTRIBU11ON I COPY’CLOSER ICOPY-LGN CENTER I COPY-l,OANFILE

WM67

Exhibit A to Stipulation - Page 18

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 18 of 20
(Page 10 of 11)

I WORLD SAVINGS LENDER’S CLOSING INSTRUCTIONS LOAN NO: 0047328505

L SECTION Xlii - SPECIAL INSTRUCTIONS

SPECIAL INSTRUCTIONS:

x ) In compliance with Subsection §6045 of the Inten,aI Revenue Code end as the person responsible for closing this real estate transaction, you

wilt ide as the Reporting Person an information retom with the Internal Revenue

FACTA Compliance

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

Non-Titled

If the

Spouse

Borrower(s)

Signature

is named

Requirements 5

and holds or is taking title individuaty, the non-tilted spoune(s) most sign either (1) the regular signature page of

the Security Instrument, or (2) the special BORROWER(S) SPOUSE(S) egnature page if provided Alternatively, the non-titled spouse may at

their election, divest him/herself of any and alt interest that they may have in the property If the non-titled spouse elects to divest hint/herself of

their interest in the property, you must provide World with a cerhlied copy of the eaecuted and recorded Duitclaim or other deed evidencing

such divestiture

tf an ALTA Lenders title insurance policy is required under Section IX of these Lenders Closing Instructions, end such policy wilt be

issued without eeception for the interest of the son-titled spouse, World may waive the requirements of (1) and (2) above in wnting Contact

Wortd at 2104434222 to obtain a wnEen waiver

Rig)tto Rescind

)c ) This loan is subtect to the right to rescind The Nobce of Right to Cancel form is date aeretive You must ensure that the dates on the Notice

of Right to Cancel are correctly completed ea eel forth in the attached ‘Notice of RIght In Cancel Instructions’

x ) Provide each parson having a right to rescind this transaction with two (2) copies of the Notice of Right io Cancel tons and one copy of the

Regulatioe Z Disclosure no bier than the day they sign the loan documents

(x ) DO NOT DISBURSE ANY FUNDS PRIOR TO THE EXPIRATION OF TNE CANCELLATION PERDD DESCRIBED IN The NOTICE OF RIGHT

TO CANCEL”COMpLETED AS SET FORTH IN TNE ATTACHED ‘NOTICE OP RIGHT TO CANCEL tNSTRUCTIONS.

NOTICE OF RIGHT TO CANCEL INSTRUCTIONS

I. Make Certain the Noltce of Right to Cancel Contatna the Correct Dales:

Included in World’s loan document pactrego are three copws of the Notes of Right to Cancel (Notice’) for each person entitled to receive copies of the

Notice under the federal Truth In Lending Act You must take the following steps in regard to the Notice

A Contirrn that the specihc date slated in subsection (1) of the ‘Ynur Right to Cuecet” Sectmn of each copy of the Nosce m the actual date the

borrowers sign the Note and Seconty Instrument If the date tha borrowers agn the Note and Security lnstnjweni is different then the dete set forth in

subsection (1) of the “Your Right to Cancel” Sectmn of the Notice, then the date sel forth in aobsection (1) of enery copy of the Notice must he changed

to the date the borrowers sign the Note end Security Instrument You must then have the corrected date on each copy initiated by the person who is to

receive that Notice

B Cnntrm that the specific date stated in the Thuw To Cancef’ Section of the Notice is the third business day, as determined below, following the

date the borrower signs the Note and Security Instrument (the ‘Ttnrd Eunineos Day’)

If the date in the ‘How To Cancel” Section is not the Third Business Day, you are instructed to cross out the incorrect date and insert the correct Third

Business Day on alt copies of the Notice You must then have the corrected Third Bumness Day on each copy initiated by the person who sb receive

that Notice

For purposes of celcolabng the Third Business Day

• Saturday is always counted as a business day

• Day 1 a the business day after the borrower signs the Note and Secunty Agreement

• Sundays and fedemt tegal holidays are not counted as businoss days (See the Federal Legal Holidays Chart below)

-

Federal Legal HotWsye

New Years Day January

Martin Luther king Jr Day 3rd Monday of January

Presidenfa DaL 3rd Mcnduy of February

F Memorial Day

Last Monday of May

Independence Day July 4

L. Labor Day 1st Monday of September

Columbus Day 2nd Monday of October

Veteran’s Day November 11

Thanksgiving Day 4th Thursday of November

Chretmas Day December25

p ProvIde Copies to Persona EndUed to Rescind:

You must provide each person having a right to rescind this transaction under the terms of the federal Truth In Lending Act with two (2) copes of the

Notice and one copy of the “Fedeml Troth In Lending Disclosure Required by Regolatron t on the day that thea aion the loan documents Have each

recipient of the Notice sign tho Acknowledgement of Receipt of Copies section of the third copy of the Notice provided to you for that person end return

it with the dosing package

THE SPECIAL INSTRUCTIONS SECTtON IS CONTINUED ON THE NEXT PAGE

OF44OJ p504-os-a) Page 10 CR

oisTRleunDN t COPY-CLOSER I COPY-LOAN CENTER 1 CDPY.LOAN RLe

WM 68

Exhibit A to Stipulation - Page 19

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 19 of 20
(Page 11 of 11)

WORLD SAVINGS I LENDER’S CLOSING INSTRUC11ONS LOAN NO: 0047328505

SECTION Xlii -SPECIAL INSTRUCTIONS - CONTINUED

(K) RECEIPT OF SIGNED WORLD SAVINGS LOAN DISCLOSURES.

(K) NON-BORROWING SPOUSE TO SIGN SECUIRTY INSTRUMENTS

(X) W.14 CONTACTS; *PROCESSOR: TESS?, KUNS - ThX# 866-490-1631,

TKUNZ7 4 6@W0RLDSAVII4GS. CON S’IAC VERSU -

SVERSH451@WORLDSAVINGS . CON -->PLEASN EMAII US FOR FILE STATUS AND FAX ALL

CONDITIONS TO TESSA. WE CAN ALSO BE REACHED 5 (714) 966-3804. THANK YOU

CX) CERTIFIED COPY OF AN ESCROW ANMENOMENT REGARDING I.ENDER,RATE AND TERM

(X) ATTENTION CLOSING AGENTS - PLEASE REFER TO PAGE 2, ITEM #3 - PATRIOT ACT.

(X) LOAN APPLICATION ADDENDUM TO BE COMPlETED AND SIGNED TO INCLUDE SOCIAL

SECURITY NUMBER ON PAGE 4 OF 4 AND RETURNED WITH CLOSING PACKAGE

(X) BORROWER. TO SIGN REQUEST FOR INITIAL PAYMENT AND RETURN WITH CLOSING

PACKAGE.

CX) PROOF OF HAZARD INSURANCE TO BE PROVIDED Al’ CLOSING AND RETURNED WITH

CLOSING PACK

(X) ATTN CLOSING AGENT: IF BROKER FEES DIFFER FROM WHAT IS DISCLOSED ON THE

LENDERS CLOSING INSTRUCTIONS, PLEASE CALL 1-800-873-7340 FOR SPECIFIC APPROVAL

OR FURTHER INSTRUCTION.

***** SPACE INTENTIO3LLY LEFT BLANK

GF44OK (2006-04-3) Pa9*11 CA

DISTRIBUflON I COPY-CLOSER I COPY.LOAN CENTER I COPY-LOAN FILE

WM69

Exhibit A to Stipulation - Page 20

Case 3:08-cv-04606-JSW Document 74 Filed 01/12/10 Page 20 of 20