Free Answer to to CounterClaim - District Court of California - California

Case 3:08-cv-02201-WHA

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SCOTT A. FLAXMAN (SBN 241285) SCOTT FLAXMAN LAW 21 Buena Vista Road South San Francisco, California 94080 Telephone: (415) 571-0582 Facsimile: (650) 952-0409 [email protected] ATTORNEY FOR PLAINTIFF

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA ) ) ) Case No. 3:08-CV-02201-WHA MAROUANE OUZIZ ) [Assigned for All Purposes to the ) Honorable Judge William H. Alsup] Plaintiff ) ) ANSWER OF COUNTER vs. ) DEFENDANT MAROUANE OUZIZ ) TO DEFENDANT GREENPOINT GREENPOINT MORTGAGE FUNDING, INC., ) MORTGAGE FUNDING, INC.'S ) COUNTERCLAIM CAPITOL MORTGAGE CORPORATION, et al. ) ) ) ) Defendants

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GREENPOINT MORTGAGE FUNDING, INC.,

Counterclaimant

vs.

MAROUANE OUZIZ Counter Defendant

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

) ) ) MAROUANE OUZIZ ) ) ) ) Counter-Counterclaimant ) ) ) ) vs. ) ) ) ) GREENPOINT MORTGAGE FUNDING, INC.; ) ) CAPITOL MORTGAGE COMPANY ) ) ) ) Counter-Counter-Defendants )

ANSWER
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Plaintiff, Counter-Counterclaimant, and Counter-Defendant Marouane Ouziz ("Mr. Ouziz") hereby answers Defendant, Counter-Counter-Defendant and Counterclaimant Greenpoint Mortgage Funding, Inc.'s ("Greenpoint") counterclaim dated, June 23, 2008 ("Counterclaim") as follows:

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Except as expressly admitted herein, all allegations in the Counterclaim are denied. References to paragraph numbers refer to Greenpoint's Counterclaim unless otherwise expressly stated.

1. Mr. Ouziz admits that the claims alleged in the underlying Complaint that Mr. Ouziz filed were brought pursuant to the Real Estate Settlement Procedures Act ("RESPA") and the Civil Racketeer Influenced and Corrupt Organizations Act ("Civil RICO"). The last sentence of the first paragraph states a conclusion of law to which no response is required. 2. Paragraph 2 does not contain any material allegation concerning Mr. Ouziz and on that basis, Mr. Ouziz does not respond to the statements contained therein. 3. Mr. Ouziz admits that he is and was a resident of California residing at 95 Cleopatra Drive, Pleasant Hill, California ("Property"). 4. Mr. Ouziz denies that he was an agent or employee or acting within the course and scope of such agency or employment with permission, knowledge or consent or ratification of any entity or person with any relevance to the Counterclaim or Mr. Ouziz's original Complaint. 5. Paragraph 5 does not contain any material allegations concerning Mr. Ouziz and, on that basis, Mr. Ouziz does not respond to the statements contained therein. To the extent that paragraph 5 requires an answer, Mr. Ouziz denies the allegations in paragraph 5. 6. Paragraph 6 does not contain any material allegations concerning Mr. Ouziz and, on that basis, Mr. Ouziz does not respond to the statements contained therein. To the extent that paragraph 6 requires an answer, Mr. Ouziz denies the allegations in paragraph 6 7. Mr. Ouziz admits that paragraph 17(e) of the Complaint states that Defendant Kevin Nafai ("Defendant Nafai") is "an individual, and upon information and belief, was, at all times relevant to this matter, either an employee or an independent contractor working for Defendant Capitol Mortgage." 8. Mr. Ouziz admits that Mr. Ouziz discussed the possibility of refinancing the Property with Defendant Nafai. 9. Mr. Ouziz denies the allegations contained in paragraph 9. 10. Mr. Ouziz admits that he dealt directly with Defendant Capitol Mortgage Corporation ("Capitol") concerning the refinance. Mr. Ouziz admits that Capitol was the Broker of Record.

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11. Mr. Ouziz denies that he submitted "LOAN APPLICATIONS" as alleged by Greenpoint and as reproduced by Greenpoint as Exhibits 2 and 3 of Greenpoint's Counterclaim. ("Greenpoint's LOAN APPLICATIONS"). Page 2 of 4 of Greenpoint's Exhibit 2 (Attached to this Answer as Plaintiff's Exhibit E and hereby incorporated by reference) and page 2 of 4 of Exhibit 3 (Attached as Plaintiff's Exhibit F and hereby incorporated by reference) ("Greenpoint's LOAN APPLICATIONS") contain false and fraudulent information NOT supplied by Mr. Ouziz. Greenpoint admits that Capitol Mortgage submitted these documents to Greenpoint and that Greenpoint did not receive a copy signed by Mr. Ouziz but rather received a copy signed by: Amanda Rawls [Greenpoint's Answer dated June 23, 2008 at paragraph 30] who was either an employee or independent contractor of Capitol Mortgage at all relevant times. Greenpoint's LOAN APPLICATIONS page 2 of Exhibit E and F contain neither signature nor initial of Mr. Ouziz. Greenpoint's LOAN APPLICATIONS are highly irregular. They purport to be Uniform Residential Loan Application forms, (Freddie Mac Form 65 7/05 and Fannie Mae Form 1003 7/05) ("Uniform Residential Loan Application")[A true and correct copy of a Uniform Residential Loan Application is attached hereto as Exhibit G and hereby incorporated by reference]. Greenpoint's LOAN APPLICATIONS are starkly different than the Uniform Residential Loan Application in critical ways. A pivotal difference between the Uniform Residential Loan Application and Greenpoint's LOAN APPLICATIONS is that on the industry standard loan applications there are areas at the bottom of pages 1 and 2 where a loan applicant is required to place his or her initials. The purpose of these initial blocks is to allow the borrower to confirm information and to prevent other entities from writing in false and fraudulent information about the borrower. A true and correct copy of page 2, the monthly income page, of the Uniform Residential Loan Application is attached hereto as Exhibit H and hereby incorporated by reference. Greenpoint's Loan Application's instead of having initial blocks, in these necessary locations, have black, rectangular boxes. (Compare page 2 of Exhibits E and FGreenpoint's LOAN APPLICATIONS-with page 2 of Exhibit G and Exhibit H--Freddie Mac/Fannie Mae Uniform Residential Loan Applications). Mr. Ouziz denies that he signed Greenpoint's LOAN APPLICATIONS as alleged by Greenpoint; Greenpoint admits that Mr. Ouziz did NOT sign the "Loan Applications" that Greenpoint is alleging Mr. Ouziz signed. Greenpoint and/or Capitol altered the Uniform Residential Loan Application to eliminate initials from the monthly income page. Greenpoint did receive a series of signed documents with the $16,750.00 monthly figure on it faxed from Capitol to Greenpoint on June 20th, 2006. ("Greenpoint/Capitol Uniform Underwriting and Transmittal Summary Documents") attached as Exhibit I and hereby incorporated by reference. The middle of page 1 states: Total Income: $16,750.00 at the

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bottom of page 1 the document states: Contact Name: Amanda Rawls; Loan Officer, Phone Number: 916-691-5515. The top of page 2 states: Underwriter Name: Gwen Thrower; middle of page 2 states total income: $16,750.00 the bottom of page 2 contains Gwen Thrower's signature and the date: 6/15/06. Top of page 3 states: Underwriter's name: Gwen Thrower and the middle of page 3 states: total income: $16,750.00; page 4 contains the same information as page 3.

12. Paragraph 12 does not contain any material allegations concerning Mr. Ouziz and, on that basis, Mr. Ouziz does not respond to the statements therein. To the extent that paragraph 12 makes any allegation against Mr. Ouziz, Mr. Ouziz denies those allegations. Mr. Ouziz is informed and does believe that Greenpoint did immediately sell those loans to a third party. Mr. Ouziz notes that Greenpoint does not state the date of the sale of those loans in the Counterclaim, but does state the dates that Greenpoint transferred servicing of those loans. 13. Paragraph 13 does not contain any material allegations concerning Mr. Ouziz and, on that basis, Mr. Ouziz does not respond to the statements therein. To the extent that paragraph 13 does require a response or contains an allegation against, Mr. Ouziz, Mr. Ouziz denies the allegation. 14. Mr. Ouziz denies that Mr. Ouziz signed Greenpoint's LOAN APPLICATIONS as represented by Greenpoint. 15. Mr. Ouziz admits that Mr. Ouziz was employed as a Sales Director for Swipe USA. Mr. Ouziz admits that Swipe USA is a company that places, leases and sells ATMs (Automated Teller Machines) to businesses. 16. Mr. Ouziz denies that he stated that he earned a gross monthly income of $16,750.00. Either Capitol created the $16,750.00 monthly income figure on its own OR Capitol, under the direction of Greenpoint, created the $16,750.00 monthly income figure knowing that this is the minimum amount that Greenpoint would need to show to its investors when it went to sell the Ouziz loans as Greenpoint has admitted they did. Furthermore, as detailed above, Greenpoint has stated in their Counterclaim that Mr. Ouziz did not sign or initial any representation of a monthly income and Greenpoint has alleged that an employee or independent contractor of Capitol is the only party that signed any alleged representation of Mr. Ouziz's monthly income. Greenpoint's LOAN APPLICATIONS are very unusual in their contrast to the standard Fannie Mae and Freddie Mac Uniform Residential Loan Forms which have an initial block on the monthly income page. Greenpoint's LOAN APPLICATIONS have a black, rectangular box covering the word: "initials" and the line used to enter the initials.

17. Mr. Ouziz denies that he signed the Greenpoint "LOAN APPLICTIONS." Furthermore, Greenpoint admits that Mr. Ouziz did NOT sign the Loan Applications that Greenpoint is alleging Mr. Ouziz signed.

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18. Mr. Ouziz is informed and believes that Greenpoint's allegations in paragraph 18 are false. Mr. Ouziz denies the allegations in paragraph 18. 19. Mr. Ouziz denies the allegations in paragraph 19. Mr. Ouziz denies that he made the "statements" in the alleged "LOAN APPLICATIONS" that Greenpoint claims Mr. Ouziz made. Greenpoint has admitted that Mr. Ouziz did NOT sign Greenpoint's LOAN APPLICATIONS that were allegedly submitted to Greenpoint. Furthermore, Capitol either on its own, or under direction from Greenpoint made the false and fraudulent "statements" on the alleged Loan Applications (Greenpoint's LOAN APPLICATIONS) that Greenpoint is now complaining about. 20. Mr. Ouziz denies the allegations in paragraph 20. Greenpoint admits that Mr. Ouziz did not sign Greenpoint's LOAN APPLICATIONS in the manner it is now alleging or make representations about Mr. Ouziz's monthly income. Capitol, either on its own, or under direction from Greenpoint made the false and fraudulent, "representations of monthly income" that Greenpoint is complaining about. 21. Mr. Ouziz denies the allegations in paragraph 21. Mr. Ouziz denies that Greenpoint has been damaged in any amount as Greenpoint has alleged. Capitol either on its own or under direction from Greenpoint made the "fraudulent and false representations" that Greenpoint is complaining about. 22. Mr. Ouziz denies the allegations in paragraph 22. 23. Paragraph 23 does not contain any material allegations concerning Mr. Ouziz and on that basis, Mr. Ouziz does not respond to the statements contained therein. To the extent that paragraph 23 contains an allegation against Mr. Ouziz, Mr. Ouziz denies the allegation. 24. Mr. Ouziz admits that funds were used to pay off pre-existing debt that had been incurred by Mr. Ouziz. Mr. Ouziz is informed and believes that Exhibit 4 and Exhibit 5 of Defendant Greenpoint's Counterclaim appear to be correct copies of the HUD-1s, however the pay-off of the pre-existing debt of $565,969.17 was made to GMAC Mortgage Corporation and not to WGMAC [sic] Mortgage Corporation as alleged in Greenpoint's Counterclaim. 25. Mr. Ouziz admits that Mr. Ouziz entered into two contracts with Greenpoint in the form of promissory notes secured by Deeds of Trust in the total amount of $612,000.00. 26. Mr. Ouziz denies the allegations contained in paragraph 26.

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FIRST AFFIRMATIVE DEFENSE
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(Failure to State Cause of Action) 1. As a first affirmative defense, Mr. Ouziz alleges that the Counterclaim fails to state facts sufficient to constitute any cause of action against Mr. Ouziz upon which relief can be granted.

SECOND AFFIRMATIVE DEFENSE
6 7 8 9 10 11 12

(Ambiguous and Uncertain Counterclaim) 2. As a second affirmative defense, Mr. Ouziz alleges that the Counterclaim and each cause of action purportedly stated therein is ambiguous and uncertain.

THIRD AFFIRMATIVE DEFENSE (Laches) 3. As a third affirmative defense, Mr. Ouziz alleges that the Counterclaim is barred by the equitable doctrine of laches. FOURTH AFFIRMATIVE DEFENSE

13 14 15 16

(Waiver) 4. As a fourth affirmative defense, Mr. Ouziz alleges that the Counterclaim is barred by the equitable doctrine of waiver.

FIFTH AFFIRMATIVE DEFENSE
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(Estoppel) 5. As a fifth affirmative defense, Mr. Ouziz alleges that the Counterclaim is barred by the equitable doctrine of estoppel. SIXTH AFFIRMATIVE DEFENSE (Failure to Mitigate Damages) 6. As a sixth affirmative defense, Mr. Ouziz alleges that if and to the extent that Greenpoint has sustained any damages (which Mr. Ouziz denies) as a result of the alleged actions or omissions of Mr. Ouziz, any recovery from Mr. Ouziz should be limited to the extent that Greenpoint failed to mitigate its damages.

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SEVENTH AFFIRMATIVE DEFENSE
1 2 3 4 5

(Ratification) 7. As a seventh affirmative defense, Greenpoint, at all times had actual and/or constructive knowledge of the circumstances upon which Greenpoint's Counterclaim is based. Greenpoint expressly accepted those circumstances and thereby ratified the conduct of which Greenpoint complains.

EIGHTH AFFIRMATIVE DEFENSE
6 7 8 9 10 11 12 13 14 15 16 17 18

(No Specificity ) 8. As an eighth affirmative defense, Mr. Ouziz alleges that Greenpoint has failed to plead allegations with the specificity required to state a cause of action for Fraud or Equitable Subrogation.

NINTH AFFIRMATIVE DEFENSE (Comparative Negligence) 9. As a ninth affirmative defense, Mr. Ouziz alleges that as to any damages Greenpoint alleges were sustained, which damages are denied by Mr. Ouziz, such damages were proximately caused by the negligence of Greenpoint and third parties.

TENTH AFFIRMATIVE DEFENSE (Reservation of Right to Assert Further Affirmative Defenses) 10. As a tenth affirmative defense, Mr. Ouziz hereby reserves his right to assert any additional affirmative defenses as may be applicable to this action as further discovery may warrant.

ELEVENTH AFFIRMATIVE DEFENSE
19 20 21 22 23 24 25

(Unclean Hands) 11. As an eleventh affirmative defense, Mr. Ouziz alleges that Greenpoint, by Greenpoint's actions is barred from recovery under the doctrine of unclean hands.

TWELTH AFFIRMATIVE DEFENSE (Justified Acts) 12. As a twelfth affirmative defense, Mr. Ouziz alleges that at all times relevant to the Counterclaim, Mr. Ouziz's actions were justified.

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THIRTEENTH AFFIRMATIVE DEFENSE 13. As a thirteenth affirmative defense, Mr. Ouziz denies that he has breached any oral or written agreement; any damages incurred herein by Greenpoint is solely and totally due to the acts and omissions of Greenpoint or other persons for which Mr. Ouziz has no responsibility.

FOURTEENTH AFFIRMATIVE DEFENSE 14. As a fourteenth affirmative defense, Greenpoint is liable to Mr. Ouziz for damages and, consequently, any recovery must be offset by those damages. FIFTEENTH AFFIRMATIVE DEFENSE 15. As a fifteenth affirmative defense, Mr. Ouziz alleges that the Counterclaim and each cause of action therein is barred in that Greenpoint has not suffered any damages whatsoever from the events complained of therein by any acts of Mr. Ouziz, or if Greenpoint has suffered any damages, such damage is nominal and not actionable. SIXTEENTH AFFIRMATIVE DEFENSE

13 14 15 16 17 18 19 20 21 22 23 24 25

16. As a sixteenth affirmative defense, Mr. Ouziz alleges that there was an intervening and/or superseding cause of any injury suffered by Greenpoint (which as detailed above Mr. Ouziz denies) or any damages suffered by Greenpoint, if any, and Greenpoint's claims are barred, in whole or in part, as a result thereof.

SEVENTEENTH AFFIRMATIVE DEFENSE 17. As a seventeenth affirmative defense, Mr. Ouziz alleges that Greenpoint, knowing the probable consequences thereof, freely and voluntarily participated in the activities as Greenpoint has alleged in the Counterclaim and Greenpoint thereby assumed all risks attendant thereto and Greenpoint's claims are barred, in whole or in part, as a result thereof.

WHEREFORE, Mr. Ouziz prays for relief on all of Greenpoint's causes of actions in Greenpoint's Counterclaim as follows: 1. Greenpoint takes nothing from its Counterclaim; 2. Costs of suit, including reasonable attorney fees; and 3. Any other further relief the court deems just and proper.

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SCOTT FLAXMAN LAW
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DATED: July 3rd, 2008

______________/S/___________________ SCOTT A. FLAXMAN ATTORNEY FOR PLAINTIFF MAROUANE OUZIZ

CERTIFICATE OF SERVICE

I hereby certify that on July 3rd , 2008, I electronically transmitted the attached document to the Clerk of Court using the ECF System for filing.

s/Scott A. Flaxman________ Scott A. Flaxman

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EXHIBIT E

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EXHIBIT F

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EXHIBIT G

Case 3:08-cv-02201-WHA Uniform Residential Loan Application

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This application is designed to be completed by the applicant(s) with the Lender's assistance. Applicants should complete this form as "Borrower" or "Co-Borrower," as applicable. Co-Borrower information must also be provided (and the appropriate box checked) when the income or assets of a person other than the Borrower (including the Borrower's spouse) will be used as a basis for loan qualification or the income or assets of the Borrower's spouse or other person who has community property rights pursuant to state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person has community property rights pursuant to applicable law and Borrower resides in a community property state, the security property is located in a community property state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan.

If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below):

Borrower

Co-Borrower

I. TYPE OF MORTGAGE AND TERMS OF LOAN Mortgage Applied for:
Amount $ Subject Property Address (street, city, state & ZIP) Legal Description of Subject Property (attach description if necessary) VA FHA Conventional Other (explain): Agency Case Number Lender Case Number USDA/Rural Housing Service Interest Rate No. of Months Amortization %

Fixed Rate GPM

Other (explain): ARM (type): No. of Units Year Built

Type:

II. PROPERTY INFORMATION AND PURPOSE OF LOAN

Purpose of Loan

Purchase Refinance

Construction Construction-Permanent Amount Existing Liens $ Amount Existing Liens

Other (explain):

Property will be: Primary Residence (b) Cost of Improvements $ Describe Improvements Cost: $ Manner in which Title will be held

Secondary Residence Total (a + b) $

Investment

Complete this line if construction or construction-permanent loan.
Year Lot Acquired Original Cost $ Year Acquired Original Cost (a) Present Value of Lot $ Purpose of Refinance

Complete this line if this is a refinance loan.
made to be made

$ Title will be held in what Name(s)

$

Estate will be held in: Fee Simple Leasehold (show
expiration date)

Source of Down Payment, Settlement Charges, and/or Subordinate Financing (explain)

Borrower
Borrower's Name (include Jr. or Sr. if applicable) Social Security Number Home Phone (incl. area code) DOB

III. BORROWER INFORMATION

Co-Borrower

Co-Borrower's Name (include Jr. or Sr. if applicable)
Yrs. School

Social Security Number

Home Phone (incl. area code)

DOB
(mm/dd/yyyy)

(mm/dd/yyyy) Unmarried (include single, divorced, widowed)

Yrs. School

Married Separated

Dependents (not listed by Co-Borrower) no. ages

Married Separated

Unmarried (include single, divorced, widowed)

Dependents (not listed by Borrower) no. ages

Present Address (street, city, state, ZIP)

Own

Rent

No. Yrs.

Present Address (street, city, state, ZIP)

Own

Rent

No. Yrs.

Mailing Address, if different from Present Address

Mailing Address, if different from Present Address

If residing at present address for less than two years, complete the following:
Former Address (street, city, state, ZIP) Own Rent No. Yrs. Former Address (street, city, state, ZIP) Own Rent No. Yrs.

Borrower
Name & Address of Employer
Self Employed

IV. EMPLOYMENT INFORMATION
Yrs. on this job Name & Address of Employer

Co-Borrower
Self Employed

Yrs. on this job

Yrs. employed in this line of work/profession Position/Title/Type of Business
Business Phone (incl. area code)

Yrs. employed in this line of work/profession Position/Title/Type of Business
Business Phone (incl. area code)

If employed in current position for less than two years or if currently employed in more than one position, complete the following:
Name & Address of Employer
Self Employed

Dates (from - to)

Name & Address of Employer

Self Employed

Dates (from - to)

Monthly Income $ Position/Title/Type of Business Name & Address of Employer
Business Phone (incl. area code)

Monthly Income $ Position/Title/Type of Business Name & Address of Employer
Business Phone (incl. area code)

Self Employed

Dates (from - to)

Self Employed

Dates (from - to)

Monthly Income $ Position/Title/Type of Business
Business Phone (incl. area code)

Monthly Income $ Position/Title/Type of Business
Business Phone (incl. area code)

Freddie Mac Form 65 7/05 Fannie Mae Form 1003 7/05

-21N
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(0507) Initials: VMP Mortgage Solutions, Inc. (800)521-7291

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V. MONTHLY INCOME AND COMBINED HOUSING EXPENSE INFORMATION
Gross Monthly Income Borrower Co-Borrower Total Combined Monthly Housing Expense Present Proposed

Base Empl. Income* Overtime Bonuses Commissions Dividends/Interest Net Rental Income
Other (before completing, see the notice in "describe other income," below)

$

$

$

Rent First Mortgage (P&I) Other Financing (P&I) Hazard Insurance Real Estate Taxes Mortgage Insurance Homeowner Assn. Dues Other:

$ $

Total

$

$

$

Total

$

$

* Self Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements. Describe Other Income Notice: Alimony, child support, or separate maintenance income need not be revealed if the Borrower (B) or Co-Borrower (C) does not choose to have it considered for repaying this loan.

B/C

Monthly Amount $

VI. ASSETS AND LIABILITIES
This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-Borrowers if their assets and liabilities are sufficiently joined so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are required. If the Co-Borrower section was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed about that spouse or other person also. Completed Jointly Not Jointly

ASSETS
Description Cash deposit toward purchase held by: $

Cash or Market Value

Liabilities and Pledged Assets. List the creditor's name, address, and account number for all outstanding debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support, stock pledges, etc. Use continuation sheet, if necessary. Indicate by (*) those liabilities, which will be satisfied upon sale of real estate owned or upon refinancing of the subject property.

LIABILITIES
Name and address of Company

Monthly Payment & Months Left to Pay
$ Payment/Months $

Unpaid Balance

List checking and savings accounts below
Name and address of Bank, S&L, or Credit Union

Acct. no.

Name and address of Company
Acct. no. $

$ Payment/Months

$

Name and address of Bank, S&L, or Credit Union

Acct. no.

Name and address of Company
Acct. no. $

$ Payment/Months

$

Name and address of Bank, S&L, or Credit Union

Acct. no.

Name and address of Company
Acct. no. $

$ Payment/Months

$

Name and address of Bank, S&L, or Credit Union

Acct. no.

Name and address of Company
Acct. no. $

$ Payment/Months

$

Stocks & Bonds (Company name/number $ & description)

Acct. no.

Name and address of Company Life insurance net cash value Face amount: $ $

$ Payment/Months

$

Subtotal Liquid Assets
Real estate owned (enter market value from schedule of real estate owned) Vested interest in retirement fund Net worth of business(es) owned (attach financial statement) Automobiles owned (make and year)

$ $
Acct. no.

$ $

Name and address of Company

$ Payment/Months

$

$
Acct. no.

Alimony/Child Support/Separate Maintenance Payments Owed to: Other Assets (itemize) $ Job-Related Expense (child care, union dues, etc.)

$

$

Total Assets a.
Freddie Mac Form 65 7/05 Fannie Mae Form 1003 7/05 -21N ( 0 5 0 7 )

$

Total Monthly Payments Net Worth
(a minus b) $

$

Total Liabilities b.

$

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VI. ASSETS AND LIABILITIES (cont'd) Schedule of Real Estate Owned (If additional properties are owned, use continuation sheet.)
Property Address (enter S if sold, PS if pending sale or R if rental being held for income)
Type of Property Present Market Value Amount of Mortgages & Liens Gross Rental Income Mortgage Payments Insurance, Maintenance, Taxes & Misc. Net Rental Income

$

$

$

$

$

$

Totals $ Alternate Name

$ Creditor Name

$

$

$ Account Number

$

List any additional names under which credit has previously been received and indicate appropriate creditor name(s) and account number(s):

VII. DETAILS OF TRANSACTION
a. Purchase price b. Alterations, improvements, repairs c. Land (if acquired separately) d. Refinance (incl. debts to be paid off) e. Estimated prepaid items f. Estimated closing costs g. PMI, MIP, Funding Fee h. Discount (if Borrower will pay) $

VIII. DECLARATIONS If you answer "Yes" to any questions a through i, please use continuation sheet for explanation.
a. Are there any outstanding judgments against you?

Borrower Yes No

Co-Borrower Yes No

i. Total costs (add items a through h)
j. Subordinate financing k. Borrower's closing costs paid by Seller l. Other Credits (explain)

b. Have you been declared bankrupt within the past 7 years? c. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? d. Are you a party to a lawsuit? e. Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment? (This would include such loans as home mortgage loans, SBA loans, home improvement loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation, bond, or loan guarantee. If "Yes," provide details, including date, name, and address of Lender, FHA or VA case number, if any, and reasons for the action.) f. Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond, or loan guarantee? If "Yes," give details as described in the preceding question. g. Are you obligated to pay alimony, child support, or separate maintenance? h. Is any part of the down payment borrowed? i. j. Are you a co-maker or endorser on a note? Are you a U.S. citizen?

k. Are you a permanent resident alien? m. Loan amount (exclude PMI, MIP, Funding Fee financed) n. PMI, MIP, Funding Fee financed o. Loan amount (add m & n) p. Cash from/to Borrower ( subtract j, k, l & o from i)

l. Do you intend to occupy the property as your primary residence? If "Yes," complete question m below.
m. Have you had an ownership interest in a property in the last three years? (1) What type of property did you own - - principal residence (PR), second home (SH), or investment property (IP)? (2) How did you hold title to the home - - solely by yourself (S), jointly with your spouse (SP), or jointly with another person (O)?

IX. ACKNOWLEDGEMENT AND AGREEMENT
Each of the undersigned specifically represents to Lender and to Lender's actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.; (2) the loan requested pursuant to this application (the "Loan") will be secured by a mortgage or deed of trust on the property described in this application; (3) the property will not be used for any illegal or prohibited purpose or use; (4) all statements made in this application are made for the purpose of obtaining a residential mortgage loan; (5) the property will be occupied as indicated in this application; (6) the Lender, its servicers, successors or assigns may retain the original and/or an electronic record of this application, whether or not the Loan is approved; (7) the Lender and its agents, brokers, insurers, servicers, successors, and assigns may continuously rely on the information contained in the application, and I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the Loan; (8) in the event that my payments on the Loan become delinquent, the Lender, its servicers, successors or assigns may, in addition to any other rights and remedies that it may have relating to such delinquency, report my name and account information to one or more consumer reporting agencies; (9) ownership of the Loan and/or administration of the Loan account may be transferred with such notice as may be required by law; (10) neither Lender nor its agents, brokers, insurers, servicers, successors or assigns has made any representation or warranty, express or implied, to me regarding the property or the condition or value of the property; and (11) my transmission of this application as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or my facsimile transmission of this application containing a facsimile of my signature, shall be as effective, enforceable and valid as if a paper version of this application were delivered containing my original written signature. Acknowledgement . Each of the undersigned hereby acknowledges that any owner of the Loan, its servicers, successors and assigns, may verify or reverify any information contained in this application or obtain any information or data relating to the Loan, for any legitimate business purpose through any source, including a source named in this application or a consumer reporting agency.

Borrower's Signature

Date

Co-Borrower's Signature

Date

X

X
X. INFORMATION FOR GOVERNMENT MONITORING PURPOSES

The following information is requested by the Federal Government for certain types of loans related to a dwelling in order to monitor the lender's compliance with equal credit opportunity, fair housing and home mortgage disclosure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender may not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity and race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the information on the basis of visual observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the box below. (Lender must review the above material to assure that the disclosures satisfy all requirements to which the lender is subject under applicable state law for the particular type of loan applied for.)

BORROWER Ethnicity: Race: Sex:

I do not wish to furnish this information. Hispanic or Latino American Indian or Alaska Native Native Hawaiian or Other Pacific Islander Female Not Hispanic or Latino Asian White Male Black or African American

CO-BORROWER Ethnicity: Race: Sex:

I do not wish to furnish this information. Hispanic or Latino American Indian or Alaska Native Native Hawaiian or Other Pacific Islander Female Not Hispanic or Latino Black or Asian African American White Male

To be Completed by Interviewer
This application was taken by: Face-to-face interview Mail Telephone Internet

Interviewer's Name (print or type)

Name and Address of Interviewer's Employer

Interviewer's Signature Interviewer's Phone Number (incl. area code)

Date

-21N

(0507)

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CONTINUATION SHEET/RESIDENTIAL LOAN APPLICATION
Use this continuation sheet if you need more space to complete the Residential Loan Application. Mark B for Borrower or C for Co-Borrower. Borrower: Agency Case Number:

Co-Borrower:

Lender Case Number:

I/We fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1001, et seq. Borrower's Signature: Date Co-Borrower's Signature: Date

X
Freddie Mac Form 65 7/05 Fannie Mae Form 1003 7/05 -21N ( 0 5 0 7 )

X

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EXHIBIT H

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V. MONTHLY INCOME AND COMBINED HOUSING EXPENSE INFORMATION
Gross Monthly Income Borrower Co-Borrower Total Combined Monthly Housing Expense Present Proposed

Base Empl. Income* Overtime Bonuses Commissions Dividends/Interest Net Rental Income
Other (before completing, see the notice in "describe other income," below)

$

$

$

Rent First Mortgage (P&I) Other Financing (P&I) Hazard Insurance Real Estate Taxes Mortgage Insurance Homeowner Assn. Dues Other:

$ $

Total

$

$

$

Total

$

$

* Self Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements. Describe Other Income Notice: Alimony, child support, or separate maintenance income need not be revealed if the Borrower (B) or Co-Borrower (C) does not choose to have it considered for repaying this loan.

B/C

Monthly Amount $

VI. ASSETS AND LIABILITIES
This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-Borrowers if their assets and liabilities are sufficiently joined so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are required. If the Co-Borrower section was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed about that spouse or other person also. Completed Jointly Not Jointly

ASSETS
Description Cash deposit toward purchase held by: $

Cash or Market Value

Liabilities and Pledged Assets. List the creditor's name, address, and account number for all outstanding debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support, stock pledges, etc. Use continuation sheet, if necessary. Indicate by (*) those liabilities, which will be satisfied upon sale of real estate owned or upon refinancing of the subject property.

LIABILITIES
Name and address of Company

Monthly Payment & Months Left to Pay
$ Payment/Months $

Unpaid Balance

List checking and savings accounts below
Name and address of Bank, S&L, or Credit Union

Acct. no.

Name and address of Company
Acct. no. $

$ Payment/Months

$

Name and address of Bank, S&L, or Credit Union

Acct. no.

Name and address of Company
Acct. no. $

$ Payment/Months

$

Name and address of Bank, S&L, or Credit Union

Acct. no.

Name and address of Company
Acct. no. $

$ Payment/Months

$

Name and address of Bank, S&L, or Credit Union

Acct. no.

Name and address of Company
Acct. no. $

$ Payment/Months

$

Stocks & Bonds (Company name/number $ & description)

Acct. no.

Name and address of Company Life insurance net cash value Face amount: $ $

$ Payment/Months

$

Subtotal Liquid Assets
Real estate owned (enter market value from schedule of real estate owned) Vested interest in retirement fund Net worth of business(es) owned (attach financial statement) Automobiles owned (make and year)

$ $
Acct. no.

$ $

Name and address of Company

$ Payment/Months

$

$
Acct. no.

Alimony/Child Support/Separate Maintenance Payments Owed to: Other Assets (itemize) $ Job-Related Expense (child care, union dues, etc.)

$

$

Total Assets a.
Freddie Mac Form 65 7/05 Fannie Mae Form 1003 7/05 -21N ( 0 5 0 7 )

$

Total Monthly Payments Net Worth
(a minus b) $

$

Total Liabilities b.

$

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EXHIBIT I

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