Preview
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
Exhibit 34
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790
MLS LOAN NUMBER:
Tampa,FL, 33618
OVERVIEW
The subject loan closed on 05/17/2006, in the amount of $15,700, as a purchase of a non-owner occupied,
attached, single family dwelling located in a Planned Unit Development (PUD). The loan was approved as a
Stated Income loan, with a 10%/90% LTV/CLTV, and a 38% DTl. There was an Assetwise AUS approval dated
05/12/2006, in the loan file.
Representations and Warranties
Finding Breach Classification Finding Category
Breached
Section 8 (xii)No Event of Default
Misrepresentation of Debt
1. Capacity . Section 8 (i) Rating Agency
Obligations
Information True and Correct
Section 8 (ii)No Fraud
Misrepresentation of Debt
2. Capacity Section 8 (i) Rating Agency
Obligations
Information True and Correct
Section 8 (i) Rating Agency
3. Capacity Failure to Verify Employment
Information True and Correct
Error or Negligence - NP
Underwriting
4. Credit
Credit Inquiries
Failure to Obtain Required NP
5. Other
Documentation
Section 8 (xii)No Event of Default
6. Capacity Misrepresentation of Income Section 8 (i) Rating Agency
Information True and Correct
Section 8 (ii)No Fraud
7. Capacity Misrepresentation of Income Section 8 (i) Rating Agency
Information True and Correct
Failure to Determine Reasonable Section 8 (i) Rating Agency
8. Capacity Ability to Repay due to Underwriter Information True and Correct
Error or Negligence
Page 1
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, F L, 33618
Representations and Warranties
Finding Breach Classification Finding Category
Breached
Section 8 (i) Rating Agency
9. Capacity Excessive DTI
Information True and Correct
Misrepresentation of Debt Section 8 (i) Rating Agency
10. Capacity
Obligations Information True and Correct
Section 8 (i) Rating Agency
11. Capacity Misrepresentation of Income
Information True and Correct
Itis my opinion that there were one or more breaches of the Representations in the MLPA that materially
and adversely affected the value of the Loan or the interest therein of the Purchaser or Purchaser's assignee,
transferee or designee.
SS
GUIDELINE SCENARIO RESMNSE
COMPENSATING FACTORS
Page 2
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790
MLS LOAN NUMBER:
Tampa, FL,33618
GENERAL LOAN INFORMATION
MLS/Originator Audited
Loan Amount: $15,700.00 (MLS) $15,700.00
Originator: -- Aegis Wholesale Corporation
Purpose: PURCH (MLS) Purchase
Occupancy: Investor (MLS) Verified
Doc Type: Reduce VOA (MLS) Stated
Property Type: PUD-A (MLS) PUD Attached
Lien Position: -- 2
DTl: 42.80% (MLS) 145.16%
FICO: 694 (MLS) 694
LTV: 0.00% (MLS) 10.00%
CLTV: 90.00% (MLS) 90.00%
Reserves: Unknown - Data Unavailable Unknown - Data Unavailable
Loan Type: Balloon (ORIG) Balloon
R INFORMATIO
MLS/Originator Audited
Borrower Employer: -- --
Primary
Borrower Position: -- --
Borrower Income: Unknown - Data Unavailable Unknown - Data Unavailable
Monthly
Page3
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790
MLS LOAN NUMBER:
Tampa, FL,33618
MLS/Originator Audited
Co-Borrower Employer: -- --
Primary
Co-Borrower Position: -- --
Co-Borrower Income: Unknown - Data Unavailable Unknown - Data Unavailable
Page4
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790
MLS LOAN NUMBER:
Tampa, FL,33618
SUPPORTING DATA
MLS/Originator Audited
Borrower: 694 694
TO-VALUE RATIO DATA
MLS/Originator Audited
First Lien Amount: -- Unknown - Data Unavailable
Second Lien Amount: $15,700.00 (MLS) $15,700.00
Sales Price: $157,000.00 (ORIG) $157,000.00
Appraised Value: $157,000.00 (MLS) $157,000.00
LTV Ratio: 0.00% (MLS) 10.00%
CLTV Ratio: 90.00% (MLS) 90.00%
INCOME RATIO
MLS/Originator Audit
DTI Ratio: 42.80% 145.16%
Total Required Assets: Unknown - Data Unavailable
Page5
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790
MLS LOAN NUMBER:
Tampa, FL, 33618
DESCRIPTION OF SIGNIFICANT DEFECTS
Identifier | Group Category Representations
Section 8 (xii) No Event of
Default
Misrepresentation of Debt
20906550 Credit Underwriting Section 8 (i)Rating Agency
Obligations
Information True and
Correct
Hunter Final Finding:
The Seller represented and warranted that there was no default existing under the Mortgage for the
Mortgage Loans. The subject Mortgage required the Borrower to perform allobligations under the
corresponding first Mortgage. Further, the corresponding firstMortgage provides that the delivery of any
false, misleading or inaccurate statements to the Lender by the Borrower or any agent thereof in connection
with the approval of the loan constitutes a default under the Mortgage. Had the Lender performed due
diligence in verifying whether the recent credit inquiries on the credit report resulted in any new debt, the
Lender would have uncovered the Borrower's misrepresentation of debt obligation, that ultimately resulted
in a default under the Mortgage. The following facts support the conclusion that the Borrower
misrepresented the debt obligations listed on the loan application: A search of public records conducted
through Mortgage Electronic Registration System (MERS), Site-X and a review of the audit credit report (ACR)
revealed that the Borrower acquired an additional rental property the same day as the subject transaction,
utilizing the services of a different lender. The additional property located in Tampa, FL was financed with a
first mortgage of $140,000 and payment of $786 per month and secondary financing of $35,000 with a
payment of $370, per the ACR. The origination credit report (OCR) dated 05/12/2006 identified multiple
inquiries from 04/06/2006 through 05/11/2006. A recalculation of DTI ratio based on the Borrower's
undisclosed debt and verified income yields a DTI ratio of 145.16%, which exceeds the guideline maximum.
No Rebuttal
Despite Mr. Forester's claim that that he is unable to reach a definitive opinion, he concedes that he "did not
breach."
rule out the possibility that the original underwriting may have resulted in a material He provides
Page 6
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, FL, 33618
no substantive response and raises no objections to the information that I have presented. I maintain that
my initialconclusion remains correct.
Itis my opinion that this finding describes a breach of one or more of the Representations in the MLPA that
materially and adversely affects the value of the Loan or the interest therein of the Purchaser or Purchaser's
assignee, transferee or designee.
Page 7
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, FL,33618
No. Document Type Document Description Document Pincite
1. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZIlll 01691856
100 - Prime 200 - Prime 300 - Second
Edition, 3/31/2006 Prime 300
Program Matrix, page 11
2. Loan Document Loan File NOM_ZAMBEZIlV 01436937
3. Loan Document Loan File NOM_ZAMBEZIlV 01436938
4. Loan Document Loan File NOM_ZAMBEZIlV 01436939
5. Loan Document Loan File NOM_ZAMBEZIlV 01436940
6. Loan Document Loan File NOM_ZAMBEZIlV 01436941
7. Loan Document Loan File NOM_ZAMBEZIlV 01436972
8. Loan Document Loan File NOM_ZAMBEZIIV 01436973
9. Loan Document Loan File NOM_ZAMBEZIlV 01436974
10. Loan Document Loan File NOM_ZAMBEZIlV 01436975
11. Loan Document Loan File NOM_ZAMBEZIlV 01436976
12. Loan Document Loan File NOM_ZAMBEZIlV 01436977
13. Loan Document Loan File NOM_ZAMBEZIlV 01436978
14. Loan Document Loan File NOM_ZAMBEZIlV 01436979
15. Loan Document Loan File NOM_ZAMBEZIlV 01436980
16. Loan Document Loan File NOM_ZAMBEZIlV 01436981
17. Loan Document Loan File NOM_ZAMBEZIlV 01437064
18. Loan Document Loan File NOM_ZAMBEZIIV 01437065
19. Loan Document Loan File NOM_ZAMBEZIIV 01437066
20. Loan Document Loan File NOM_ZAMBEZIlV 01437067
21. Loan Document Loan File NOM_ZAMBEZIlV 01437068
22. Loan Document Loan File NOM_ZAMBEZliV 01437069
23. Loan Document Loan File NOM_ZAMBEZIlV 01437070
Page 8
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, FL, 33618
24. Loan Document Loan File NOM_ZAMBEZIlV 01437071
25. Loan Document Loan File NOM_ZAMBEZIlV 01437072
26. Loan Document Loan File NOM_ZAMBEZIlV 01437073
27. Loan Document Loan File NOM_ZAMBEZIlV 01437074
28. Enclosure AUDIT SUPPORT LF2HSBC_00067207
29. Enclosure AUDIT SUPPORT LF2HSBC_00067208
30. Enclosure AUDIT SUPPORT LF2HSBC_00067221
31. Enclosure AUDIT SUPPORT LF2HSBC_00067222
32. Enclosure AUDIT SUPPORT LF2HSBC_00067223
33. Enclosure AUDIT SUPPORT LF2HSBC_00067224
34. Enclosure AUDIT SUPPORT LF2HSBC_00067225
35. Enclosure AUDIT SUPPORT LF2HSBC_00067226
36. Enclosure AUDIT SUPPORT LF2HSBC_00067227
37. Enclosure ACR LF2HSBC_00067188
38. Enclosure ACR LF2HSBC_00067189
39. Enclosure ACR LF2HSBC_00067190
40. Enclosure ACR LF2HSBC_00067191
41. Enclosure ACR LF2HSBC_00067192
42. Enclosure ACR LF2HSBC_00067193
43. Enclosure ACR LF2HSBC_00067194
Page 9
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, FL, 33618
Identifier Group Category Representations
Section 8 (ii)No Fraud
Misrepresentation of Debt Section 8 (i)Rating Agency
20906551 Credit Underwriting
Obligations Information True and
Correct
Hunter Final Finding:
The Seller represented and warranted that no fraud had taken place on the part of the Borrower or any
other party involved in the origination of the Mortgage Loans. The delivery of any false, misleading or
inaccurate statements to the Lender by the Borrower or any other party involved in the origination of the
Mortgage Loans demonstrates that fraud has occurred in the origination of the loan. Had the Lender
performed due diligence in verifying whether the recent credit inquiries on the credit report resulted in any
new debt, the Lender would have uncovered the Borrower's misrepresentation of debt obligation, resulting
in fraud in the origination of the loan. The following facts support the conclusion that the Borrower
misrepresented the debt obligations listed on the loan application: A search of public records conducted
through Mortgage Electronic Registration System (MERS), Site-X and a review of the audit credit report (ACR)
revealed that the Borrower acquired an additional rental property the same day as the subject transaction,
utilizing the services of a different lender. The additional property located in Tampa, FL was financed with a
first mortgage of $140,000 and payment of $786 per month and secondary financing of $35,000 with a
payment of $370, per the ACR. The origination credit report (OCR) dated 05/12/2006 identified multiple
inquiries from 04/06/2006 through 05/11/2006. A recalculation of DTI ratio based on the Borrower's
undisclosed debt and verified income yields a DTI ratio of 145.16%, which exceeds the guideline maximum.
No Rebuttal
Despite Mr. Forester's claim that that he is unable to reach a definitive opinion, he concedes that he "did not
breach."
rule out the possibility that the original underwriting may have resulted in a material He provides
no substantive response and raises no objections to the information that I have presented. I maintain that
my initial conclusion remains correct.
Page 10
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790
MLS LOAN NUMBER:
Tampa, FL,33618
Itis my opinion that this finding describes a breach of one or more of the Representations in the MLPA that
materially and adversely affects the value of the Loan or the interest therein of the Purchaser or Purchaser's
assignee, transferee or designee.
Page11
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, FL,33618
No. Document Type Document Description Document Pincite
1. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZIlll 01691856
100 - Prime 200 - Prime 300 - Second
Edition, 3/31/2006 Prime 300
Program Matrix, page 11
2. Loan Document Loan File NOM_ZAMBEZIlV 01436937
3. Loan Document Loan File NOM_ZAMBEZIlV 01436938
4. Loan Document Loan File NOM_ZAMBEZIlV 01436939
5. Loan Document Loan File NOM_ZAMBEZIlV 01436940
6. Loan Document Loan File NOM_ZAMBEZIlV 01436941
7. Loan Document Loan File NOM_ZAMBEZIlV 01436972
8. Loan Document Loan File NOM_ZAMBEZIIV 01436973
9. Loan Document Loan File NOM_ZAMBEZIlV 01436974
10. Loan Document Loan File NOM_ZAMBEZIlV 01436975
11. Loan Document Loan File NOM_ZAMBEZIlV 01436976
12. Loan Document Loan File NOM_ZAMBEZIlV 01436977
13. Loan Document Loan File NOM_ZAMBEZIlV 01436978
14. Loan Document Loan File NOM_ZAMBEZIlV 01436979
15. Loan Document Loan File NOM_ZAMBEZIlV 01436980
16. Loan Document Loan File NOM_ZAMBEZIlV 01436981
17. Loan Document Loan File NOM_ZAMBEZIlV 01437064
18. Loan Document Loan File NOM_ZAMBEZIIV 01437065
19. Loan Document Loan File NOM_ZAMBEZIIV 01437066
20. Loan Document Loan File NOM_ZAMBEZIlV 01437067
21. Loan Document Loan File NOM_ZAMBEZIlV 01437068
22. Loan Document Loan File NOM_ZAMBEZliV 01437069
23. Loan Document Loan File NOM_ZAMBEZIlV 01437070
Page12
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, FL,33618
24. Loan Document Loan File NOM_ZAMBEZIlV 01437071
25. Loan Document Loan File NOM_ZAMBEZIlV 01437072
26. Loan Document Loan File NOM_ZAMBEZIlV 01437073
27. Loan Document Loan File NOM_ZAMBEZIlV 01437074
28. Enclosure AUDIT SUPPORT LF2HSBC_00067207
29. Enclosure AUDIT SUPPORT LF2HSBC_00067208
30. Enclosure AUDIT SUPPORT LF2HSBC_00067221
31. Enclosure AUDIT SUPPORT LF2HSBC_00067222
32. Enclosure AUDIT SUPPORT LF2HSBC_00067223
33. Enclosure AUDIT SUPPORT LF2HSBC_00067224
34. Enclosure AUDIT SUPPORT LF2HSBC_00067225
35. Enclosure AUDIT SUPPORT LF2HSBC_00067226
36. Enclosure AUDIT SUPPORT LF2HSBC_00067227
37. Enclosure ACR LF2HSBC_00067188
38. Enclosure ACR LF2HSBC_00067189
39. Enclosure ACR LF2HSBC_00067190
40. Enclosure ACR LF2HSBC_00067191
41. Enclosure ACR LF2HSBC_00067192
42. Enclosure ACR LF2HSBC_00067193
43. Enclosure ACR LF2HSBC_00067194
Page 13
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, FL,33618
Identifier Group Category Representations
Section 8 (i)Rating Agency
20906564 Employment Underwriting Failure to Verify Employment Information True and
Correct
Hunter Final Finding:
The Lender's guidelines required a Borrower's employment history to be verified for the 24 months
preceding the loan closing under the Stated Income program. In addition, the guideline required that
continuous employment for 2 years in the same job or in the same industry. A complete verification of
employment documentation under this loan program consists of a verbal verification of employment. The
employment information contained on the loan application indicated the Borrower had been employed with
their current employer for 9 years, as a Marketing Manager, and was employed with their previous employer
for 2 months as a Marketing Manager. The loan filecontained an employment verification from The Work
Number which indicated the Borrower's original hire date was 01/26/1998 and a verbal employment
verification that indicated an employment date of 01/26/1998; however, the most recent hire date was
01/24/2006, representing 3 months current employment and the previous employment was not verified. It
cannot be determined the date that the Borrower separated employment from the current employer before
returning in 01/2006.The file does not contain evidence that the underwriter requested or obtained
information verifying a full two years employment for the Borrower as required by the underwriting
guidelines.
No Rebuttal
Despite Mr. Forester's claim that that he is unable to reach a definitive opinion, he concedes that he "did not
breach."
rule out the possibility that the original underwriting may have resulted in a material He provides
no substantive response and raises no objections to the information that I have presented. I maintain that
my initialconclusion remains correct.
Itis my opinion that this finding describes a breach of one or more of the Representations in the MLPA that
Page14
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOO0003790
MLS LOAN NUMBER:
Tampa, FL,33618
materially and adversely affects the value of the Loan or the interest therein of the Purchaser or Purchaser's
assignee, transferee or designee.
No. Document Type Document Description Document Pincite
1. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZlIll 01691875
100 - Prime 200 - Prime 300 - Second
Edition, 3/31/2006, Employment
History, Pages 30-32
2. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZIlll 01691876
100 - Prime 200 - Prime 300 - Second
Edition, 3/31/2006, Employment
History, Pages 30-32
3. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZIlll 01691877
100 - Prime 200 - Prime 300 - Second
Edition, 3/31/2006, Employment
History, Pages 30-32
4. Loan Document Loan File NOM_ZAMBEZIlV 01436903
5. Loan Document Loan File NOM_ZAMBEZIlV 01436904
6. Loan Document Loan File NOM_ZAMBEZIlV 01436905
7. Loan Document Loan File NOM_ZAMBEZIlV 01436906
8. Loan Document Loan File NOM_ZAMBEZIlV 01436907
9. Loan Document Loan File NOM_ZAMBEZIlV 01436908
10. Loan Document Loan File NOM_ZAMBEZIlV 01436989
11. Loan Document Loan File NOM_ZAMBEZIlV 01437000
Page 15
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022
NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790
MLS LOAN NUMBER:
Tampa, F L, 33618
Identifier Group Category Representa
Preview
FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 Exhibit 34 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790 MLS LOAN NUMBER: Tampa,FL, 33618 OVERVIEW The subject loan closed on 05/17/2006, in the amount of $15,700, as a purchase of a non-owner occupied, attached, single family dwelling located in a Planned Unit Development (PUD). The loan was approved as a Stated Income loan, with a 10%/90% LTV/CLTV, and a 38% DTl. There was an Assetwise AUS approval dated 05/12/2006, in the loan file. Representations and Warranties Finding Breach Classification Finding Category Breached Section 8 (xii)No Event of Default Misrepresentation of Debt 1. Capacity . Section 8 (i) Rating Agency Obligations Information True and Correct Section 8 (ii)No Fraud Misrepresentation of Debt 2. Capacity Section 8 (i) Rating Agency Obligations Information True and Correct Section 8 (i) Rating Agency 3. Capacity Failure to Verify Employment Information True and Correct Error or Negligence - NP Underwriting 4. Credit Credit Inquiries Failure to Obtain Required NP 5. Other Documentation Section 8 (xii)No Event of Default 6. Capacity Misrepresentation of Income Section 8 (i) Rating Agency Information True and Correct Section 8 (ii)No Fraud 7. Capacity Misrepresentation of Income Section 8 (i) Rating Agency Information True and Correct Failure to Determine Reasonable Section 8 (i) Rating Agency 8. Capacity Ability to Repay due to Underwriter Information True and Correct Error or Negligence Page 1 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, F L, 33618 Representations and Warranties Finding Breach Classification Finding Category Breached Section 8 (i) Rating Agency 9. Capacity Excessive DTI Information True and Correct Misrepresentation of Debt Section 8 (i) Rating Agency 10. Capacity Obligations Information True and Correct Section 8 (i) Rating Agency 11. Capacity Misrepresentation of Income Information True and Correct Itis my opinion that there were one or more breaches of the Representations in the MLPA that materially and adversely affected the value of the Loan or the interest therein of the Purchaser or Purchaser's assignee, transferee or designee. SS GUIDELINE SCENARIO RESMNSE COMPENSATING FACTORS Page 2 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790 MLS LOAN NUMBER: Tampa, FL,33618 GENERAL LOAN INFORMATION MLS/Originator Audited Loan Amount: $15,700.00 (MLS) $15,700.00 Originator: -- Aegis Wholesale Corporation Purpose: PURCH (MLS) Purchase Occupancy: Investor (MLS) Verified Doc Type: Reduce VOA (MLS) Stated Property Type: PUD-A (MLS) PUD Attached Lien Position: -- 2 DTl: 42.80% (MLS) 145.16% FICO: 694 (MLS) 694 LTV: 0.00% (MLS) 10.00% CLTV: 90.00% (MLS) 90.00% Reserves: Unknown - Data Unavailable Unknown - Data Unavailable Loan Type: Balloon (ORIG) Balloon R INFORMATIO MLS/Originator Audited Borrower Employer: -- -- Primary Borrower Position: -- -- Borrower Income: Unknown - Data Unavailable Unknown - Data Unavailable Monthly Page3 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790 MLS LOAN NUMBER: Tampa, FL,33618 MLS/Originator Audited Co-Borrower Employer: -- -- Primary Co-Borrower Position: -- -- Co-Borrower Income: Unknown - Data Unavailable Unknown - Data Unavailable Page4 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790 MLS LOAN NUMBER: Tampa, FL,33618 SUPPORTING DATA MLS/Originator Audited Borrower: 694 694 TO-VALUE RATIO DATA MLS/Originator Audited First Lien Amount: -- Unknown - Data Unavailable Second Lien Amount: $15,700.00 (MLS) $15,700.00 Sales Price: $157,000.00 (ORIG) $157,000.00 Appraised Value: $157,000.00 (MLS) $157,000.00 LTV Ratio: 0.00% (MLS) 10.00% CLTV Ratio: 90.00% (MLS) 90.00% INCOME RATIO MLS/Originator Audit DTI Ratio: 42.80% 145.16% Total Required Assets: Unknown - Data Unavailable Page5 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790 MLS LOAN NUMBER: Tampa, FL, 33618 DESCRIPTION OF SIGNIFICANT DEFECTS Identifier | Group Category Representations Section 8 (xii) No Event of Default Misrepresentation of Debt 20906550 Credit Underwriting Section 8 (i)Rating Agency Obligations Information True and Correct Hunter Final Finding: The Seller represented and warranted that there was no default existing under the Mortgage for the Mortgage Loans. The subject Mortgage required the Borrower to perform allobligations under the corresponding first Mortgage. Further, the corresponding firstMortgage provides that the delivery of any false, misleading or inaccurate statements to the Lender by the Borrower or any agent thereof in connection with the approval of the loan constitutes a default under the Mortgage. Had the Lender performed due diligence in verifying whether the recent credit inquiries on the credit report resulted in any new debt, the Lender would have uncovered the Borrower's misrepresentation of debt obligation, that ultimately resulted in a default under the Mortgage. The following facts support the conclusion that the Borrower misrepresented the debt obligations listed on the loan application: A search of public records conducted through Mortgage Electronic Registration System (MERS), Site-X and a review of the audit credit report (ACR) revealed that the Borrower acquired an additional rental property the same day as the subject transaction, utilizing the services of a different lender. The additional property located in Tampa, FL was financed with a first mortgage of $140,000 and payment of $786 per month and secondary financing of $35,000 with a payment of $370, per the ACR. The origination credit report (OCR) dated 05/12/2006 identified multiple inquiries from 04/06/2006 through 05/11/2006. A recalculation of DTI ratio based on the Borrower's undisclosed debt and verified income yields a DTI ratio of 145.16%, which exceeds the guideline maximum. No Rebuttal Despite Mr. Forester's claim that that he is unable to reach a definitive opinion, he concedes that he "did not breach." rule out the possibility that the original underwriting may have resulted in a material He provides Page 6 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, FL, 33618 no substantive response and raises no objections to the information that I have presented. I maintain that my initialconclusion remains correct. Itis my opinion that this finding describes a breach of one or more of the Representations in the MLPA that materially and adversely affects the value of the Loan or the interest therein of the Purchaser or Purchaser's assignee, transferee or designee. Page 7 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, FL,33618 No. Document Type Document Description Document Pincite 1. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZIlll 01691856 100 - Prime 200 - Prime 300 - Second Edition, 3/31/2006 Prime 300 Program Matrix, page 11 2. Loan Document Loan File NOM_ZAMBEZIlV 01436937 3. Loan Document Loan File NOM_ZAMBEZIlV 01436938 4. Loan Document Loan File NOM_ZAMBEZIlV 01436939 5. Loan Document Loan File NOM_ZAMBEZIlV 01436940 6. Loan Document Loan File NOM_ZAMBEZIlV 01436941 7. Loan Document Loan File NOM_ZAMBEZIlV 01436972 8. Loan Document Loan File NOM_ZAMBEZIIV 01436973 9. Loan Document Loan File NOM_ZAMBEZIlV 01436974 10. Loan Document Loan File NOM_ZAMBEZIlV 01436975 11. Loan Document Loan File NOM_ZAMBEZIlV 01436976 12. Loan Document Loan File NOM_ZAMBEZIlV 01436977 13. Loan Document Loan File NOM_ZAMBEZIlV 01436978 14. Loan Document Loan File NOM_ZAMBEZIlV 01436979 15. Loan Document Loan File NOM_ZAMBEZIlV 01436980 16. Loan Document Loan File NOM_ZAMBEZIlV 01436981 17. Loan Document Loan File NOM_ZAMBEZIlV 01437064 18. Loan Document Loan File NOM_ZAMBEZIIV 01437065 19. Loan Document Loan File NOM_ZAMBEZIIV 01437066 20. Loan Document Loan File NOM_ZAMBEZIlV 01437067 21. Loan Document Loan File NOM_ZAMBEZIlV 01437068 22. Loan Document Loan File NOM_ZAMBEZliV 01437069 23. Loan Document Loan File NOM_ZAMBEZIlV 01437070 Page 8 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, FL, 33618 24. Loan Document Loan File NOM_ZAMBEZIlV 01437071 25. Loan Document Loan File NOM_ZAMBEZIlV 01437072 26. Loan Document Loan File NOM_ZAMBEZIlV 01437073 27. Loan Document Loan File NOM_ZAMBEZIlV 01437074 28. Enclosure AUDIT SUPPORT LF2HSBC_00067207 29. Enclosure AUDIT SUPPORT LF2HSBC_00067208 30. Enclosure AUDIT SUPPORT LF2HSBC_00067221 31. Enclosure AUDIT SUPPORT LF2HSBC_00067222 32. Enclosure AUDIT SUPPORT LF2HSBC_00067223 33. Enclosure AUDIT SUPPORT LF2HSBC_00067224 34. Enclosure AUDIT SUPPORT LF2HSBC_00067225 35. Enclosure AUDIT SUPPORT LF2HSBC_00067226 36. Enclosure AUDIT SUPPORT LF2HSBC_00067227 37. Enclosure ACR LF2HSBC_00067188 38. Enclosure ACR LF2HSBC_00067189 39. Enclosure ACR LF2HSBC_00067190 40. Enclosure ACR LF2HSBC_00067191 41. Enclosure ACR LF2HSBC_00067192 42. Enclosure ACR LF2HSBC_00067193 43. Enclosure ACR LF2HSBC_00067194 Page 9 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, FL, 33618 Identifier Group Category Representations Section 8 (ii)No Fraud Misrepresentation of Debt Section 8 (i)Rating Agency 20906551 Credit Underwriting Obligations Information True and Correct Hunter Final Finding: The Seller represented and warranted that no fraud had taken place on the part of the Borrower or any other party involved in the origination of the Mortgage Loans. The delivery of any false, misleading or inaccurate statements to the Lender by the Borrower or any other party involved in the origination of the Mortgage Loans demonstrates that fraud has occurred in the origination of the loan. Had the Lender performed due diligence in verifying whether the recent credit inquiries on the credit report resulted in any new debt, the Lender would have uncovered the Borrower's misrepresentation of debt obligation, resulting in fraud in the origination of the loan. The following facts support the conclusion that the Borrower misrepresented the debt obligations listed on the loan application: A search of public records conducted through Mortgage Electronic Registration System (MERS), Site-X and a review of the audit credit report (ACR) revealed that the Borrower acquired an additional rental property the same day as the subject transaction, utilizing the services of a different lender. The additional property located in Tampa, FL was financed with a first mortgage of $140,000 and payment of $786 per month and secondary financing of $35,000 with a payment of $370, per the ACR. The origination credit report (OCR) dated 05/12/2006 identified multiple inquiries from 04/06/2006 through 05/11/2006. A recalculation of DTI ratio based on the Borrower's undisclosed debt and verified income yields a DTI ratio of 145.16%, which exceeds the guideline maximum. No Rebuttal Despite Mr. Forester's claim that that he is unable to reach a definitive opinion, he concedes that he "did not breach." rule out the possibility that the original underwriting may have resulted in a material He provides no substantive response and raises no objections to the information that I have presented. I maintain that my initial conclusion remains correct. Page 10 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOOO3790 MLS LOAN NUMBER: Tampa, FL,33618 Itis my opinion that this finding describes a breach of one or more of the Representations in the MLPA that materially and adversely affects the value of the Loan or the interest therein of the Purchaser or Purchaser's assignee, transferee or designee. Page11 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, FL,33618 No. Document Type Document Description Document Pincite 1. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZIlll 01691856 100 - Prime 200 - Prime 300 - Second Edition, 3/31/2006 Prime 300 Program Matrix, page 11 2. Loan Document Loan File NOM_ZAMBEZIlV 01436937 3. Loan Document Loan File NOM_ZAMBEZIlV 01436938 4. Loan Document Loan File NOM_ZAMBEZIlV 01436939 5. Loan Document Loan File NOM_ZAMBEZIlV 01436940 6. Loan Document Loan File NOM_ZAMBEZIlV 01436941 7. Loan Document Loan File NOM_ZAMBEZIlV 01436972 8. Loan Document Loan File NOM_ZAMBEZIIV 01436973 9. Loan Document Loan File NOM_ZAMBEZIlV 01436974 10. Loan Document Loan File NOM_ZAMBEZIlV 01436975 11. Loan Document Loan File NOM_ZAMBEZIlV 01436976 12. Loan Document Loan File NOM_ZAMBEZIlV 01436977 13. Loan Document Loan File NOM_ZAMBEZIlV 01436978 14. Loan Document Loan File NOM_ZAMBEZIlV 01436979 15. Loan Document Loan File NOM_ZAMBEZIlV 01436980 16. Loan Document Loan File NOM_ZAMBEZIlV 01436981 17. Loan Document Loan File NOM_ZAMBEZIlV 01437064 18. Loan Document Loan File NOM_ZAMBEZIIV 01437065 19. Loan Document Loan File NOM_ZAMBEZIIV 01437066 20. Loan Document Loan File NOM_ZAMBEZIlV 01437067 21. Loan Document Loan File NOM_ZAMBEZIlV 01437068 22. Loan Document Loan File NOM_ZAMBEZliV 01437069 23. Loan Document Loan File NOM_ZAMBEZIlV 01437070 Page12 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, FL,33618 24. Loan Document Loan File NOM_ZAMBEZIlV 01437071 25. Loan Document Loan File NOM_ZAMBEZIlV 01437072 26. Loan Document Loan File NOM_ZAMBEZIlV 01437073 27. Loan Document Loan File NOM_ZAMBEZIlV 01437074 28. Enclosure AUDIT SUPPORT LF2HSBC_00067207 29. Enclosure AUDIT SUPPORT LF2HSBC_00067208 30. Enclosure AUDIT SUPPORT LF2HSBC_00067221 31. Enclosure AUDIT SUPPORT LF2HSBC_00067222 32. Enclosure AUDIT SUPPORT LF2HSBC_00067223 33. Enclosure AUDIT SUPPORT LF2HSBC_00067224 34. Enclosure AUDIT SUPPORT LF2HSBC_00067225 35. Enclosure AUDIT SUPPORT LF2HSBC_00067226 36. Enclosure AUDIT SUPPORT LF2HSBC_00067227 37. Enclosure ACR LF2HSBC_00067188 38. Enclosure ACR LF2HSBC_00067189 39. Enclosure ACR LF2HSBC_00067190 40. Enclosure ACR LF2HSBC_00067191 41. Enclosure ACR LF2HSBC_00067192 42. Enclosure ACR LF2HSBC_00067193 43. Enclosure ACR LF2HSBC_00067194 Page 13 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, FL,33618 Identifier Group Category Representations Section 8 (i)Rating Agency 20906564 Employment Underwriting Failure to Verify Employment Information True and Correct Hunter Final Finding: The Lender's guidelines required a Borrower's employment history to be verified for the 24 months preceding the loan closing under the Stated Income program. In addition, the guideline required that continuous employment for 2 years in the same job or in the same industry. A complete verification of employment documentation under this loan program consists of a verbal verification of employment. The employment information contained on the loan application indicated the Borrower had been employed with their current employer for 9 years, as a Marketing Manager, and was employed with their previous employer for 2 months as a Marketing Manager. The loan filecontained an employment verification from The Work Number which indicated the Borrower's original hire date was 01/26/1998 and a verbal employment verification that indicated an employment date of 01/26/1998; however, the most recent hire date was 01/24/2006, representing 3 months current employment and the previous employment was not verified. It cannot be determined the date that the Borrower separated employment from the current employer before returning in 01/2006.The file does not contain evidence that the underwriter requested or obtained information verifying a full two years employment for the Borrower as required by the underwriting guidelines. No Rebuttal Despite Mr. Forester's claim that that he is unable to reach a definitive opinion, he concedes that he "did not breach." rule out the possibility that the original underwriting may have resulted in a material He provides no substantive response and raises no objections to the information that I have presented. I maintain that my initialconclusion remains correct. Itis my opinion that this finding describes a breach of one or more of the Representations in the MLPA that Page14 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOO0003790 MLS LOAN NUMBER: Tampa, FL,33618 materially and adversely affects the value of the Loan or the interest therein of the Purchaser or Purchaser's assignee, transferee or designee. No. Document Type Document Description Document Pincite 1. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZlIll 01691875 100 - Prime 200 - Prime 300 - Second Edition, 3/31/2006, Employment History, Pages 30-32 2. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZIlll 01691876 100 - Prime 200 - Prime 300 - Second Edition, 3/31/2006, Employment History, Pages 30-32 3. Guideline Document Aegis Mortgage Corporation - Prime NOM_ZAMBEZIlll 01691877 100 - Prime 200 - Prime 300 - Second Edition, 3/31/2006, Employment History, Pages 30-32 4. Loan Document Loan File NOM_ZAMBEZIlV 01436903 5. Loan Document Loan File NOM_ZAMBEZIlV 01436904 6. Loan Document Loan File NOM_ZAMBEZIlV 01436905 7. Loan Document Loan File NOM_ZAMBEZIlV 01436906 8. Loan Document Loan File NOM_ZAMBEZIlV 01436907 9. Loan Document Loan File NOM_ZAMBEZIlV 01436908 10. Loan Document Loan File NOM_ZAMBEZIlV 01436989 11. Loan Document Loan File NOM_ZAMBEZIlV 01437000 Page 15 FILED: NEW YORK COUNTY CLERK 08/04/2022 08:00 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2570 RECEIVED NYSCEF: 08/04/2022 NAAC-2006-S4 HUNTER REPLY GLOBAL LOAN NUMBER: NAAC_2006_S4_OOOOO03790 MLS LOAN NUMBER: Tampa, F L, 33618 Identifier Group Category Representa