I' I I I I I I I I I I I I I I I I I I SUPERIOR COURT OF NEW
JERSEY CHANCERY DIVISION INTHEMATTER OF RESIDENTIAL MORTGAGE
FORECLOSURE PLEADING AND DOCUMENT IRREGULARITIES GENERALEQUITY PART
MERCER COUNTY, DOCKET NO,:F-059553-IO CivilAction AFFIDAVIT OF
CHRIS COLLINS ON BEHALF OF JPMORGAN CHASE BANK, N.A. D82/225790351
F I LED JUL2 8 2011 SUPERIOR COURT CLERK'S OFFICE I' I I I I I I I
I I I I I I I I I I I STATE OF OHIO COUNTY OFFRANKLIN ) ) SS: )
AFFIDAVIT OF CHRIS COLLINS I,Chris Collins, being duly sworn,
depose andstate thefollowing: I.I am aVice President of Foreclosure
Operations at JPMorgan Chase Bank, National Association ("Chase").I
am one of severalindividualsresponsible for certain
foreclosureprocesses atChaseincluding thereview andremediation of
sworn documents andthe development andimplementation of procedures
concerning foreclosurelitigation. 2.I havereadthe affidavits of
Michael Zarro dated January 5,2011 andApril?, 2011, and agree with
the content of those affidavits. 3.1 make thisAffidavit infurther
support of Chase's prima facie showing to theHonorable Ri
chardJ.Williams, lA.D. (ret.).I addressbelow certain questions
concerning Chase's processes forthe execution of
foreclosuredocumentsin cases where Chase acts as servicer of
theloan, andinparticular, the court cases listedin Chase's Servicer
Portfolio (the "Chase Servicer Portfolio"). EMCMortgage Corporation
4.Chase's parent, JPMorgan Chase &Co., acquired TheBear Stearns
Companies Inc.("Bear Stearns") effective May 30, 2008. 5.Included
inthe acquisition was a servicing company ownedby Bear Stearns
namedEMC Mortgage Corporation (HEMC"). D821 22579035I I' I I I I I
I I I I I I I I I I I I I 6.From thetime of the
acquisitionuntilApril1,2011, EMCoperated asaseparatelegal
entity.However, foreclosuresof loansservicedbyEMC followedthe same
generalprocesses, procedures, and document execution practices of
Chase andits servicing subsidiary, Chase Home Finance LLC ("CHF").
7.OnMarch31,20 II, EMC convertedfromaDelaware corporation
toaDelawarelimitedliability company and changeditsname
toEMCMortgageLLC ("EMCLLC").Copies of the Certificate of Formation
of EMCMortgage LLC and Certificate of ConversionConverting EMC
Mortgage Corporation (a Delaware corporation) toEMCMortgageLLC (a
Delaware limitedIiabihty company) are annexed hereto
andincorporatedherein asExhibits A andB,respectively.
8.OnApril1,2011 , EMC LLC solditsmortgage servicing rights to
Chase.Asa result, servicing of the
mortgageloanspreviouslyservicedbyEMC/EMC LLC was transferred to
Chase onthat date.Copies of the Assignment and Assumption
Agreement, and relateddocuments, are collectively attached hereto
andincorporated hereinasExhibit C. 9.FromMarch 2008
untilApril1,2011, records forEMCIEMC LLC loans weremaintained by
EMCunder Chase's control,management andsuperviSIon. Effective
April1,2011, those records aremaintained byChase. 10.Further,
notwithstanding theApril1,2011date,Chase's enhanced
processes,procedures, and document execution practices
outlinedinthe January 5,2011 andApril7,2011Zarro
affidavitshaveappliedtotheEMCportfolio since theinception of
theprocesses,procedures, and document execution practices. 2 D82/
22579035I I I I I I I I I I I I I I I I I I I I
II.Allforeclosurerelated affidavits and certifications executedby
Chase willreflect that the loanisserviced byChase, and to the
extent necessary,all procedures willbeupdated to reflect this
change. 12.Theloansformerl y servicedbyEMC areincludedinChase' s
previously submitted ChaseServicer Portfolio. Chase Home FinanceLLC
13.Effecti ve May1, 201I , CHF mergedintoChase, andChaseisnow the
servicer of the residentialmortgageloanspreviously servicedby
CHF.Annexed hereto andincorporatedhereinasExhibitD isa copy of
theCertificate of Merger of Chase HomeFinance LLC(aDelawareLimited
liabilityCompany) WithandInto JPMorgan Chase Bank,
NationalAssociation (a nationalbanking association organized under
thelawsof the United States of America). 14.The merger
hasmootedthesub-servicing agreement between CHF andChase described
inParagraphs 9 and30 of theApril7,2011Zarro affidavit.
IS.Allforeclosure relatedaffidavitsand certifications executedby
Chase willreflect that theloanisserviced byChase, andtothe extent
necessary,all procedures willbe updated toreflect this change.
16.The processes andprocedures detailedinthe January 5, 201I and
April7,201 I Zarro affidavits are otherwise unaffectedbythemerger
or CHF intoChase andanyrepresentationsMr.Zarromade concerning
thepractices of CHFappl y to Chase.
17.TheloansformerlyservicedbyCHFareincludedinthe Chase Servicer
Portfolio. 3 DB2/ 225790351 I I I I I I I I I I I I I I I I I I I
Document Execution,Data Integrity and ThirdPartyVendors
18.Allsworndocuments executed byChase inconnection with
residentialmortgage foreclosures for theChase Servicer Portfolio
are executed "in house"byChase employees.Chase doesnot
outsourceitssworndocument execution for theChase
ServicerPortfolio,and does not usesub-servicers. 19.Although
Chaseusessomeoutside vendorstoassist inthe management of
defaultedloansandprocessing of foreclosures, thereisnoabil ityfor
the manipulation of core loanrecords. 20.Regardless of (a)how Chase
came tobe theservicer of an individualloan(i.e- Chase has been
theservicer sincetheloan's origination, Chase acquiredthe servicing
post-origination,Chase acquiredtheservicing fromEMC or CHF); or (b)
who owns the beneficialinterest intheloan(Chase, a Government
Sponsored Enterprise such asFreddie Mac or Fannie Mae, or a
privateinvestor),for allloans identifiedinthe ChaseServicer
Portfolio, Chaseisrelying on theMSP system described inthe Zarro
affidavits to store, retrieve, and otherwise access
criticalloandata. 21.Moreover, allloans identifiedintheChase
Servicer Portfolio are handledthroughtheforeclosureprocesses
anddocument executionprocedures set forth the January 5,
2011andApril 7,2011Zarro affidavits, and this affidavit .When
documents such asCertifications of Proof of Amount Due areexecuted,
the Chase employees review real-time,up-to-date,vIew-only datainthe
MSPsystem. 22.The averagenumber of certifications/affidavits
preparedbyeach Chase document execution employeeiscurrently
approximately 5-6per day.More 4 DB2I 225790J5I I I I I I I I I I I
I I I I I I I I I experienced employees are processing about10per
day, and themost that havebeen executed by one personinone dayunder
the enhancedprocedures describedinthe Zarro affidavits is13(this
was done bya very experienced employee).There are times when a
givendocument execution employee willhave zero completed
certifications/affidavitsin a day. 23.Inaddition to
theloansidentifiedinthe Chase Servicer Portfolio, Chase has
approximately 331pending foreclosuremattersinNew Jersey based
onhome equityloans.Home equity loan dataismaintained on a computer
systemknownas VendorLive andChaseisdeveloping procedures tocomplete
affidavits and Certifications of Proof of AmountDue based on a
reviewof that system.While the systems andscreens accessed
tocomplete foreclosuredocuments for home equityloans are different
fromthoseused onfirst-lienloans,Chase willfollow thesame general
processes and procedures previously described to ensure that the
Chase employee executing the document haspersonallyreviewed the
dataandhas therequisite personal knowledge toexecute the
Certifications of Proof of Amount Due. Reliability of Chase' s
Affidavitsinthe Event a Payment is Tendered 24.Payments may
betendered after the commencement foreclosure action either
(a)inthe context of a forbearanceagreement or other
lossmitigationplan, or (b) outside of such context. 25.If a
paymentistenderedinthecontext of a forbearanceagreement or other
loss mitigationplan,thepayment isrecordedinMSP.If the forbearance
agreement or lossmitigationplanisultimatelyunsuccessful, any
forbearancepayments 5 DB21225790l 5I I I I I I I I I I I I I I I I
I I I I applied to theaccount willbe reflectedin the amounts due
set forthinthe Certification of Proof of AmountsDue (" CPAD").
26.BecauseChase intends toexecute new CPADs for pre-judgment
filesIn the ChaseServicer Portfolio, anyforbearancepayments thatmay
havebeen applied during themoratorium on accounts
whereforbearancewasunsuccessfulwillbe captured on the new
CPAD.Further, Chase will develop additionalprocedures tohelp ensure
that counselisadvised ifforbearance payments are appliedbetween the
time the CPADiscompleted and judgment isrendered.
27.Inaddition,borrowers sometimes tender payment outside the
context of a forbearanceagreement or loss mitigationplan.If
thepayment bringsthe borrower's loan account either current or
withina certaininvestor-defined delinquency (i.e., within 60 days
of current status), theforeclosure actionwillbe terminated.If the
paymentisless than thatamount,Chase willreturn the
fundstotheborrower. Attorney Communication. Compliance with the New
Jersey Supreme Court Order. andOversight 28.Chase communicates
withits foreclosureandbankruptcy attorneys through a variety of
mediums, including telephone, e-mail, and LPSDesktop. 29.There are
numerous mechanismsforeclosurecounsel can use to communicate
andescalateissues as needed to Chase,including dedicated Chase
liaisons and the use of generalmailboxes. 30.Chase has developed
the followingplan to complywith the Supreme Court Order (the
"Order")and court rulerevisionsissuedonJune 9, 2011. 6 D821
225790351 I I I I I I I I I I I I I I I I I I I 31.For
eachpre-judgment fileintheChase Servicer Portfolio, Chase intends
to execute anew CPADbasedonChase's enhanced processes
andprocedures, reflecting the amount due asof the time
theCPADisexecuted. 32.For these pre-judgmentfiles, a representative
of Chase willreview thecomplaint, Chase's systems,the noteandthe
mortgage (andrecordedassignments,if any) toconfirm theaccuracy of
the core factsallegedinthe complaint.The reviewer will record
theresults of thereview on a written statement.This statement of
review will contain thename, title and contact
informationforthereviewer. 33.The written statement of review
willbeimagedintoLPSDesktop for counsel's review,and a
messageconfirming the transmission of theimage willbe sent
tocounsel throughLPSDesktop's "intercom" function,anelectronic
messaging system that provides fordirect, two-way,
personalcommunicationbetween foreclosure counsel
andthereviewer.Foreclosure counsel willbeable toraise anyfollow-up
questions, comments or concerns with the reviewer through
"intercom" or the contact information set forthonthestatement of
review.The communications with counselwill beprivileged.However,
Chase willmaintaina copy of thestatement of review for purposes
ofmamtaming anaudll trail. 34.For eachpost-judgment fileintheChase
Servicer Portfolio, a representative of Chase willconduct a review
of the complaint inthe manner described above aswellasa similar
review of theCPAD submittedinsupport of the judgment. Chase
willcommunicate the resultsof thereviewinthesamemanner
describedabovefor pre-judgment files . 7 D821 225790351 I I I I I I
I I I I I I I I I I I I I 35.Finally, on ago-forwardbasis fornew
cases, a representative of Chase willreview each complaint andeach
CPAD, together with Chase' s records,the noteand the mortgage
(andassignments,if any) to confirm thefactualaccuracy of the
complaint andCPAD.Again, theresultsof the review will be
communicated througha written statement transmittedthrough
theLPSDesktop " intercom"function,and Chase willprovide contact
information for the reviewer so that counsel canaddress
anyfollow-upquestions. 36.Inaddition to the
direct,real-time,personal communication described
above,foreclosurecounsel andChase areinregular communication with
each other throughphone calls, e-mail and theoversightprogram
describedbelow.Thus, to the extent any questions arise that cannot
beresolved with a reviewer,there are multiple additionalpaths of
communication and escalation points available. 37.From a
relationship andoversight standpoint, Chase has greatly
enhanceditspractices.Previously, relationships were managed almost
exclusively by a non-lawyer Attorney Management
teamwhichreportedupthroughforeclosureand bankruptcymanagement.That
teamwasalso responsible forauditing the performance of each
lawfirmthrough on-site visits.Inorder toexercise greater
supervision of our foreclosureand bankruptcy attorneys,many changes
havebeenmade(and continue tobe made). 38.Under the current
structure, thenon-lawyer Attorney Management teamisresponsible for
managing the overall relationship with foreclosure counsel.This
group isinconstant contact with foreclosure counsel, and questions
fromcounsel can be escalated through this group. 8 D82/ 22579035I
I' I I I I I I I I I I I I I I I I I I 39,Second, Chase has
established anindependent team toconduct on-site audit review of
foreclosurefirms,This group doesnot report up throughforeclosure
andbankruptcy management 40,Third, Chasehascreated a new
attorneymanagement groupwithin Chase's LegalDepartment, known as
the Attorney Oversight Group ("AOG").The AOG conducts its
ownon-site visits (separate fromthe audit team), reviews policies
and procedures, and provides support and advice
toChase'sbusinesspeopleincharge of foreclosuremanagement 41.The
AOGisa teamof lawyers whose soleresponsibilityisthe oversight
andsupervision of foreclosure,bankruptcy andeviction counsel.The
teamis currently comprised of eight (8) attorneys,plus a
supervising attorney andmanaging attorney,Inaddition to these
ten(10)attorneys, Chase iscurrentlyinterviewing and plans
toaddanother two (2) tofour (4) attorneysintheimmediate future.
42.Over thepast severalmonths, the AOGhas developed a robust and
proprietary process forthesupervision and oversight of
localcounsel, whichincludes regular on-site visitsseveral daysat a
time. 43.No practices that Chase willagree to withany regulators
willbe substantially different than what has been set forthinthe
affidavits filedby Chasein connection with thismatter. FURTHER
AFFIANT SA YETH NAUGHT. 9 092/ 22579035I I' 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 I declare under penalty of perjury under thelaws of the
UnitedStates of America .,1-that theforegoing Affidavtt is true and
correct.Executed on the.27day of July,2011, inFranklin County,
Ohio. STATE OF OHIO COUNTY OFFRANKLIN ) ) SS: ) Chris Collins Vice
P_ldent I HEREBY CERTIFY that on this day personally appearedbefore
me,an officer duly authorized to oaths andtake acknowledments
intheCounty aforesaid, Chris Collins,0isersonally knowtome or
produced ____ -=====----,---__ -,-----,-_ asidentification, and who
executed the foregoing Affidavit, andacknowledgedbefore me that he
hadthe authority to do so on behalf of JPMorgan Chase Bank,
National AssociatIOn. I havehereunto set myhandandaffixed
myofficial sealthis of July, 2011. Mycommission
expires:VV\ruiLl,lOI:> 0821 225790351 MEUSSA HAMMOCK NoIaIy
Pub!'1C. Stale 01 Ohio My Comm. Expires May 4, 2015 10 Melissa
Hammock Notary Public I I I I I I I I I I I I I I I I I I I I I I I
I I I I I I I I I I I I I I I 'lJe [awa re PAGE2 %e State
I,JEFFREYW.BULLOCK,SECRETARYOFSTATEOFTHESTATEOF
DELAWAREDOHEREBYCERTIFYTHATTHEATTACHEDISATRUEAND
CORRECTCOPYOFCERTIFICATEOFFORMATIONOF"EMCMORTGAGELLC"
FILEDINTHISOFFICEONTHETWENTY-EIGHTHDAYOFMARCH,A.D.
2011,AT8:47O'CLOCKA.M.
ANDIDOHEREBYFURTHERCERTIFYTHATTHEEFFECTIVEDATEOF
THEAFORESAIDCERTIFICATEOFFORMATIONISTHETHIRTY-FIRSTDAY
OFMARCH,A.D.2011. 22423398100V 110344567
rOUm4yverjfyth1SceIt1f1C4Cd4tcorp. del" .....u.1Igov/,,"uthver.
".lJt:ml AUTHE"",,""'A'I' DATE03-28-11 I I I I I I I I I I I I I I
I I I I I CERTIfiCATE OF FORMATION OF EMC MORTGAGE LLC
StateoxLl9.1swa.re SecretaryoXState Divisionof Corporations
Delivered08: SlAM03/28/20ll FILED08: 47llH03/28/2011 SRV11.0344567-
2242339FILE ThisCertificate of
FormationisbeingfiledpursuanttoSection18-214(b)of the
DelawareLimitedLiabilityCompanyAct.6Del.C.18-101el
inconnectionwiththe conversionofEMC Mongage Corpomtion.a Delawnre
corporation,toa Delaware limitedliability company.
Theundersigned,beingdul}authorizedtoext:CuteandfilethisCertificateof
FOml:ltion, doeshereby certify as follows: I. (the "Comp:lnY-).
NruneThenameorthe limited nubilitycompanyisEMC Mortgage LLC
2.Registered Office andRegistered Agent.The Company's registered
office IntheStateof Delawareislocatednt1209OrangeStreeLCItyof
Wilmington,County of New Castle, State of Delaware,1980 I.1l.cagent
of theCompanyfor service of process at such addressi, The
Corp()ration Trust Company. 3.EffectiveTime.ThisCertificate of
Fommtionshallbeeffective 0[1 March 31,2011
INWITNESSWHEREOF,theundersignedhasdulyexecutedthisCertificatellf
FormationiU,of March 24,20[1. Name: Lauren V.H:Ul1S A.nAuthorized
Person I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
I I I I I I I I 'lJe [awa re PAGE1 %e :First State
I,JEFFREYW.BULLOCK,SECRETARYOFSTATEOFTHESTATEOF
DELAWAREDOHEREBYCERTIFYTHATTHEATTACHEDISATRUEAND
CORRECTCOPYOFTHECERTIFICATEOFCONVERSIONOFADELAWARE
CORPORATIONONDERTHENAMEOF"EMCMORTGAGECORPORATION"TOA
DELAWARELIMITEDLIABILITYCOMPANY,CHANGINGITSNAMEFROM"EMC
MORTGAGECORPORATION"TO"EMCMORTGAGELLC",FILEDINTHIS
OFFICEONTHETWENTY-EIGHTHDAYOFMARCH,A.D.2011,AT8:47 O'CLOCKA.M.
ANDIDOHEREBYFURTHERCERTIFYTHATTHEEFFECTIVEDATEOF
THEAFORESAIDCERTIFICATEOFCONVERSIONISTHETHIRTY-FIRSTDAY
OFMARCH,A.D.2011. jeffreyWBullock.Seuctaf'/of Sf at e
22423398100VAUTHENTION 8653511 110344567 DATE :03-28-11 I I I I I I
I I I I I I I I I I I I I CERTIFICATE OF CONVERSION CONVERTING EMC
MORTGAGE CORPORATION (a Delaware corporation) TO EMC MORTGAGELLC (a
Delaware limited liability company) StateorDelaware Secretaryof Sta
te Divi.sionof Cozporati01l.5 DE>live.red08:'1AM03/28/2011
YIL1lD08: 47AK03/28/2011 SRV110344!l67- 2242339FILl! lbis
Certificateof Conversionisbeingfiledforthepurposeof convertingEMC
Mortgage Corporation,a Delawarecorporation(the"Converting
Entity"),toa Delawarelimited liability companytobe named "EMC
Mortgage LLC" (the"Company") pursuant toSection18-214of the
Delaware Limited Liability Company Act,6 Del.C.18-101el
seq.(the"Delaware LLC Act''), and Section 266 of the
GeneralCorporationLaw of theState of Delaware,8 DelC. 101el
seq.(the "DGCL").
Theundersigned,asanauthorizedpersonoftheConvertingEntityandthe
Company, does hereby certify asfollows: 1.Nameof
ConvertingEntity.Thenameof theConvertingEntitywhen
incorporatedwas"SouthwestEquityMortgageCorporation"Thenameof
theConverting Entityimmediatelypriortothefilingof thisCertificateof
Conversionwas"EMCMortgage Corporation." 2.DateandJurisdictionof
Incorporationof ConvertingEntity.The dateon which, andthe
jurisdiction where,the Converting Entity was incorporated, which
jurisdiction has not changed, are as follows: Jurisdiction
September 26.1990Delaware
3NameofContinuingLimitedLiabilityCompany.Thenameofthe
DelawareliIllltedliabilitycompanytowluchtheConvertmgEntityisbeingconvertt:dandthe
nwnesetforthintheCertificateof Formationof
theCompanyfiledinaccordancewithSection 18-214(b) of the Delaware
LLCAct is "EMC Mortgage LLC." 4.Approvalof
Conversion.TheconversIOnof theConvertingEntitytothe Companyhasbeen
approved inaccordanceWIththe proVisionsof Section 266 of theOGCL
and SectIOn18-214 of theDelaware LLC Act
5.EffectiveTIDIeThiSofshallbeeffectiveon March 31, 2011. I I. I I I
I I I I I I I I I I I I I I INWITNESS WHEREOF, the undersigned has
duly executed this Certificate of Conversion as of March 24, 2011.
BMCMORTGAGE COlU'ORATION 2852825 I I I I I I I I I I I I I I I I I
I I I I I I I I I I I I I I I I I I I I I Assignment
andAssumptionAgreement FORV
ALUERECEIVED.EMCMortgageLLC("Seller')hereby",lis.Jssigns.
delegatesandtransfelsto.IPMorgdllClIa,cBank.N./\.('Buyer")allof
Sellersnghts andJutit-s
Sr..:f\'lu:rand/ormasterscrvicerLInderthos.eccrtamPoolingandScrnclIlg
AgreementsorotherservIcingagreements(each.a"ServIclngAgreement")rclattngto
those transactionstowhich Seller isaparty.plovided.however.thatSdkr
,hallrctaInanyandallduties.l)bhgatiunsdndliabIlities(I)relatingtoanyservicing
actiVity"ecurnng pnor tothe
EffectiveDateIii)relatingtoanyIIabIllt}Withrespecttoa hrcachof
anymortgageloanrcprcscntatlOnor orItSrolt:asor useller or
themortgageloans10therelated,,,cunt,,ationtransactionand(iii)retainedby01
excludedlromtheM,sehsold toBuyelrromSdk,pu",uanttoor111accordance\\
lIh that (cl1amPurchase andSale AgreementbetweenBuyer and'ieller
datedasoftheElfective Date Buyerhere
b)agree,to""umctheduties.obligation,andIrabllItle\orSelicI'
!:tole-I)inib
CapaCIl)dSsc..;I\'lleIulH..h.:rthl.!PSI\:-.uh.lcc:tlOtheplcccding!-.cnh.'IH.:C
tothei.>'\1enln:quin:dto(:(fCCltl'(ln .... fl'f ofScllcr"s...
ervlcmg obligatIonsunder suchP';A
I",WITNE'iSthepartie,ha\ec'\eeutedtim!\,slgnlllelli,lIlel
A,Slllnpl!OnAglecmentas01,\pld!.II(the' Llkcl!\'cDate')
EMCMortgageLLC > By:I> Name:-;-', Title:I. 1,,\ JPMorgtm
ChaseBank.N.A. ,':/ 8 )':/I' ,j!,.....;. f;
..---....,...-....------,--_.--------.. Nalne:'DlaneBent,.
Title:Senior VicePresident I I I I I I I I I I I I I I I I I I I
OFFICER'S CERTIFICATE l.Diane[Jentz. a duly aUlhom.ccl"nicer of
JPMorgdllChaseBank.N A.C- Cha5e"). tothose cCl1ainpooling
andservicing agrccmcnls andservlcmg agreements (the "Servicing
Agreements") relating tothetransactionstowhichEMC \-Iortgage
l.LCISservlcer or master sen'leer (thehereby certIfies
thefollowlllgIn connectIOn\\lth lIlIdIn ,atls'dctllln of
ItsrcqullcmenttoplOvi,k all"l1lt lngthatKeqwrt:'dPanyc.-o
nsen!(Consent') to the tran