Document 1

Case 5:16-cv-01518-JGB-DTB Document 1 Filed 07/12/16 Page 1 of 83 Page ID #:1
AILED
~~I6 Jl~! 12 ~~ ~i~ 3~+

Socorro Diaz & Francisco Diaz, In Pro Per u l~T~~~`u1~T.i~= ~y~Li
i 3891 Fox Tail Lane j~ ~ ~v`~~
Riverside, CA 92509 r-~•
2
TEL: 951.733.3401
3 ~,o Fo-~
UNITED STATES FEDERAL COURT HOUSE IN THE STATE
4
,~~ ,~
5 OF CALIFORNIA COUNTY OF RIVERSIDE ~ ~ k~'~@
6 ~ ~ ~ ~'
Socorro Diaz & Francisco Diaz,

~D~~ X06 w Q ..
~
a Plaintiffs, ~~ COMPLAINT FOR VIOLATION

~ OF CALIFORNIA
9 FAIR DEBT COLLECTION
PRACTICES ACT [CIVIL
io vs.
1 CODES 1788.2]
11 ~ UNLAWFUL, UNFAIR AND
DECEPTIVE BUSINESS
1z GB Inland Properties, LLC ) p~CTICES [CAL. BUS. &
and/or Its Successors and/or ~ PROF. CODES 17200 ET
13
~ SEQ.]
14 Assignees In Interest; The Bankj BREACH OF CONTRACT;
FRAUD;PROMISSORY
is of New York Mellon as Trustee ) ESTOPPEL
16 for Structured Asset Mortgage j
i~ Investments II, Inc., Mortgage j
is Pass thorough Certificates j
19 Series2005-AR8; Nation star ~
20 Mortgage; Continental HL-011 ~
zi Trust; Rafael Perez; Quality j
22 Loan Servicing, Platinum ~
23 Capital Group and Does 1 ~
24 through 100 Inclusive. ~
25 Respondent, ~
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Page 1 of 73
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~~I
1
Plaintiffs, Francisco Diaz & Socorro Diaz, acting individually
2
3 and on behalf of all other Persons similarly situated and in
4 the public interest, hereby allege as follows as against
5
defendants, GB Inland Properties, LLC and/or Its Successors
6
and/or Assignees In Interest; The Bank of New York Mellon as
Trustee for Structured Asset Mortgage Investments II, Inc.,

8
9 Mortgage Pass thorough Certificates Series2005-AR8; Nation star
io Mortgage; Continental HL-011 Trust; Rafael Perez; Quality Loan
ii Servicing, and Does 1 through 100 Inclusive.:

12
SiJNIlKARY OF ACTION
13
1. Plaintiffs bring this action on behalf of themselves
14
15 and a Class of all similarly situated consumers pursuant to a
16 variety Of California statutes, including the Consumers Legal

17
Remedies Act and Unfair Competition Law, plus common law
is
causes action.
19
2. Defendants GB Inland Properties, LLC and/or Its Successors
20
21 and/or Assignees In Interest; The Bank of New York Mellon as
22 Trustee for Structured Asset Mortgage Investments II, Inc.,

23
Mortgage Pass thorough Certificates Series2005-AR8; Nation star
24
Mortgage; Continental HL-011 Trust; Rafael Perez; Quality Loan
25
Servicing, Platinum Capital Group and Does 1 through 100
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Inclusive., are in the business of servicing mortgage loan on

i
z behalf of lenders and investors, including "pooled" mortgage-
3 backed security investments.
4
3. This complaint seeks to remedy GB Inland Properties, LLC
5
and/or Its Successors and/or Assignees In Interest; The Bank of
6
New York Mellon as Trustee for Structured Asset Mortgage
s Investments II, Inc., Mortgage Pass thorough Certificates
9 Series2005-AR8; Nation star Mortgage; Continental HL-011 Trust;
10
Rafael Perez; Quality Loan Servicing, Platinum Capital Group and
li
Does 1 through 100 Inclusive. unlawful acts in servicing
12
mortgage loans, summarized as follows:
13
I 4. a. repeatedly failing to grant, implement, or consider in

14
15 good faith or in a timely manner, b. Plaintiff' requests for
16 loan modifications, including misrepresenting the requirements

1~
for achieving permanent loan modifications and the status of
is
loan modification applications; requesting and accepting
19
20 interim debtor payments as a "condition" for promised permanent
2i loan modifications, under temporary modifications c. or Trial
22 Period Plans ("TPPs"), without any reasonable basis to believe

23
that the loans would be permanently modified, and without
24
taking diligent or reasonable steps to implement loan
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modifications or even to consider the borrowers' applications as

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2 promised; systematically and continually erecting artificial
3 obstacles in the loan modification process (such as repeatedly
4
"losing" borrower documents; rotating personnel assigned to
5
borrower files; altering modification requirements; making
6
duplicate requests for the same documents;
8
5. delaying the modification approval process and then
9 rejecting applications on grounds that submitted documents
10
were "stale" or outdated; and engaging in similar "red tape")
ii
with the intent of obstructing, delaying, or preventing
12
permanent loan modifications; misrepresenting the amounts due
13
14
under and the terms of the loans being serviced, including
15 unlawfully applying mortgage payments or otherwise holding
16 payments in "suspense accounts," resulting in improperly

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escalated debt obligations, including interest and other
18
unlawful charges;
19
2~
6. instructing loan modification applicants to stop making their
21 existing mortgage payments purportedly as a prerequisite to
22 qualifying for a loan modification, thereby subjecting such

23
applicants to additional financial jeopardy including
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25
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foreclosure, risk of foreclosure, late payment fees or

1
2 penalties, and negative references on credit histories;
3 7. Inducing borrowers to participate in temporary
4
modifications, TPPs, and/or forbearance agreements, then
5
diverting payments made by borrowers to a "suspense account,"
6
which is not applied to the borrowers' principal or interest,
s then reporting borrowers as delinquent to credit reporting
9 agencies, thus destroying their credit and leaving borrowers at
10
the mercy of defendants' loan modification hoax; improperly
11
recording notices of default regarding mortgage loans,
~z
initiating unlawful foreclosure actions, and causing improper
13
14
I re-conveyance fees and other charges to be assessed;
15 and, knowingly and intentionally maintaining a system of
16 employee compensation incentives that assured employees would be

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motivated to act in contravention of defendants' obligations to
ie
It's borrowers. Through their orchestrated loan modification
19 I~'
20 hoax, GB Inland Properties, LLC and/or Its Successors and/or
21 Assignees In Interest; The Bank of New York Mellon as Trustee
22 for Structured Asset Mortgage Investments II, Inc., Mortgage

23
Pass thorough Certificates Series2005-AR8; Nation star Mortgage;
24
Continental HL-011 Trust; Rafael Perez; Quality Loan Servicing,
25
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and Does 1 through 100 Inclusive, have induced consumers,

i
z including Plaintiff, to continue making excess or other
3 unjustified payments in pursuit of illusory permanent loan
4
modifications.
5
8. GB Inland Properties, LLC and/or Its Successors and/or
6
Assignees In Interest; The Bank of New York Mellon as Trustee
8
for Structured Asset Mortgage Investments II, Inc., Mortgage
9 I Pass thorough Certificates Series2005-AR8; Nation star Mortgage;
io Continental HL-011 Trust; Rafael Perez; Quality Loan Servicing,

li
and Does 1 through 100 Inclusive, have thereby avoided or
12
delayed the need to initiate, prosecute, and conclude multiple
13
14
foreclosures (which might tax or exceed their available
15 resources); and have avoided the need to liquidate excessive and
16 under-valued real estate inventory, whether REO or otherwise

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(again beyond available resources).
is
9. In engaging in this scheme, defendants have increased profits
19
through escalated loan servicing fees. Under defendants'

20
21 Pooling & Servicing Agreements, they receive a higher fee per
22 loan for servicing delinquent or distressed loans. ATTACHED ON

23
EXHIBIT "A" containing 7 pages are loan documents showing fraud i
24
and payment and loan denied by Plaintiffs and faxed back to
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(canceled loan 04/26/2005 lender prior to date indicated in which

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2 mortgage company continued loan anyway. Property was four
3 different lots in which only one lot was suppose to be
4
refinanced and was stopped by home owner attached copies.
5
10. Defendants' conduct has artificially bolstered their
6
( financial statements, both on their own behalf and on behalf of
8 ( their clients (lenders and investors), by minimizing mandatory
9 ( reporting of defaulted or distressed loans.
10
11. Defendants' practice of cruelly stringing along homeowners
li
who desperately need financial relief, while ultimately failing
12
to provide them with permanent loan modifications, has been
13
14
aptly characterized as a scheme of "extend & pretend."
15 12. This is not a product of mere negligence but rather is an
16 I intentional scheme with the foreseeable and known effect of

1~ 'I
harming consumers.
18
PARTIES
19
zo 13. Plaintiff Francisco Diaz & Socorro Diaz residing at 3891 Fox
21 Tail Lane Riverside, CA 92509, located in the County of
22 Riverside State of California. Their mortgage loan has been

23
serviced by Defendants GB Inland Properties, LLC and/or Its
24
Successors and/or Assignees In Interest; The Bank of New York
25
26
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Mellon as Trustee for Structured Asset Mortgage Investments II,
2 Inc., Mortgage Pass thorough Certificates Series2005-AR8; Nation
3 star Mortgage; Continental HL-011 Trust; Rafael Perez; Quality
• 4
Loan Servicing, and Does 1 through 100 Inclusive, for several
5
years, and Prior to mortgage servicers was Bank of America.
6
14. Francisco Diaz & Socorro Diaz is herein suing GB Inland
a Properties, LLC and/or Its Successors and/or Assignees In
9 Interest; The Bank of New York Mellon as Trustee for Structured
10
Asset Mortgage Investments II, Inc., Mortgage Pass thorough
ii
Certificates Series2005-AR8; Nation star Mortgage; Continental
12
HL-011 Trust; Rafael Perez; Quality Loan Servicing, and Does 1
13
14
through 100 Inclusive, Francisco Diaz & Socorro Diaz suffered
15 injury in fact and otherwise damaged as a result of the unlawful
16 conduct of Defendants GB Inland Properties, LLC and/or Its

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18
19
Inc., Mortgage Pass thorough Certificates Series2005-AR8; Nation

20
zi i star Mortgage; Continental HL-011 Trust; Rafael Perez; Quality
22 Loan Servicing, and Does 1 through 100 Inclusive, as described

23
herein.
24
25
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X15. Plaintiff Francisco Diaz & Socorro Diaz, reside in
2 Riverside, located in the County of Riverside, State of
3 California. Their mortgage lender or investor is GB Inland
4
Properties, LLC and/or Its Successors and/or Assignees In
5
Interest; The Bank of New York Mellon as Trustee for Structured
6
( Asset Mortgage Investments II, Inc., Mortgage Pass thorough
s ( Certificates Series2005-AR8; Nation star Mortgage; Continental
9 ~ HL-011 Trust; Rafael Perez; Quality Loan Servicing, and Does 1
10
through 100 Inclusive.: .
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16. Their loan has been serviced by GB Inland Properties, LLC
12
13
14
15 Investments II, Inc., Mortgage Pass thorough Certificates
16
Series2005-AR8; Nation star Mortgage; Continental HL-011 Trust;
i~
Rafael Perez; Quality Loan Servicing, and Does 1 through 100
is
Inclusive.: , since 06/Ol/2005,GB Inland Properties, LLC and/or
19
20 Its Successors and/or Assignees In Interest; The Bank of New
2i York Mellon as Trustee for Structured Asset Mortgage Investments
22 II, Inc., Mortgage Pass thorough Certificates Series2005-AR8;

23
Nation star Mortgage; Continental HL-011 Trust; Rafael Perez;
24
25
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Quality Loan Servicing, and Does 1 through 100 Inclusive.: Loan

1
2 Number( ), and was serviced by Platinum Capital Group Mortgage.
3 17. The Plaintiff Francisco Diaz & Socorro Diaz, Suffered injury
4
in fact and was otherwise damaged as a result of the unlawful
5
conduct of defendants as described herein. Mortgage Services was
6
a wholly owned subsidiary of Bear Steams. Bear Steams was
a acquired by, and is now owned GB Inland Properties, LLC and/or
9 Its Successors and/or Assignees In Interest; The Bank of New
10
York Mellon as Trustee for Structured Asset Mortgage Investments
li
II, Inc., Mortgage Pass thorough Certificates Series2005-AR8;
12
Nation star Mortgage; Continental HL-011 Trust; Rafael Perez;
13
14
Quality Loan Servicing, and Does 1 through 100 Inclusive, is now
15 a wholly owned subsidiary. GB Inland Properties, LLC and/or Its
16 Successors and/or Assignees In Interest; The Bank of New York

~~
is
19
20 star Mortgage; Continental HL-011 Trust; Rafael Perez; Quality
21 Loan Servicing, and Does 1 through 100 Inclusive, is
22 headquartered in California, with its principal executive

23
offices in California located in the County of Los Angeles, City',
24
of Los Angeles.
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18. Is both a lender and a loan servicer. Some of loans are

i
2 ( serviced in-house by GB Inland Properties,' LLC and/or Its
3 ( Successors and/or Assignees In Interest; The Bank of New York
4
5
6
' star Mortgage; Continental HL-011 Trust; Rafael Perez; Quality
a Loan Servicing, and Does 1 through 100 Inclusive.: , a division
9 of GB Inland Properties, LLC and/or Its Successors and/or
10
i~
12
13
14
Continental HL-011 Trust; Rafael Perez; Quality Loan Servicing,
15 and Does 1 through 100 Inclusive.:, and others are serviced by
16 its subsidiary, NEW YORK MELLON BANK.

17
is
19
21 Pass thorough Certificates Series2005-AR8; Nation star Mortgage;
22 Continental HL-011 Trust; Rafael Perez; Quality Loan Servicing,

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and Does 1 through 100 Inclusive.: Mortgage Services, a division]
24
of One West Bank FSB is headquartered at Corporate Headquarters
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One West Bank, with its principal executive offices in

1
2 California located at 888 East Walnut Street Pasadena, CA 91101.
3 Plaintiff alleges, based on information and belief that GB
4
INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN
5
INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE FOR STRUCTURED
6
ASSET MORTGAGE INVESTMENTS II, INC., MORTGAGE PASS THOROUGH
8
CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL
9 is among the nation's largest mortgage loan servicing companies.
10
20. Plaintiff are informed and believe, and based thereon
ii
allege, that DOES 1 through 100 are persons, corporations or
12
other entities which reside in or are authorized to do and are
13
14
doing business in the State of California, and who are liable in
15 whole or in part for the misconduct described in this complaint.
16
21. The true identities of these DOES are currently unknown to
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Plaintiff, and Plaintiff therefore pray for leave to amend this
18
complaint to assert the proper names when there identity is
19
Zo discovered.
21 JURISDICTION AND VENUE
22 22. This is an action for damages, equitable, injunctive and

23
other appropriate relief arising under various California
24
statutes, including the Consumers Legal Remedies Act and Section )
25
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17200 of the California Business & Professions Code, and under

i
2 California common law. The amount in controversy exceeds the
3 jurisdictional minimum for this court.

4
23. The unlawful acts and practices alleged herein occurred in,
5
or concern, the County of Riverside, State of California.
6
24. Defendants are qualified to do business in the State of
a California, and conduct substantial business in the State of
9 California, specifically including the County of Riverside and
10
Los Angeles. 25. Some of the subject real estate at issue is
ii
located in the County of Los Angeles, as is GB Inland
12
13
14
15 Asset Mortgage Investments II, Inc., Mortgage Pass thorough
16 Certificates Series2005-AR8; Nation star Mortgage; Continental

17
HL-011 Trust; Rafael Perez; Quality Loan Servicing, and Does 1
18
through 100 Inclusive, principal executive office in California,
19
20 and many of the events giving rise to this action occurred
21 primarily in the County of Riverside and Los Angeles.
22 26. Jurisdiction and venue are therefore appropriate in this

23 'I
court.
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25
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FACTUAL SUl~ARY
i
2 (THE HAMP PROGRAM)
4
27. The United States is suffering through an extended
5
foreclosure crisis. Increased foreclosures adversely affect not
6
only the borrowers who lose their homes, but also the
s surrounding neighborhoods that suffer decreased property values
9 and the municipalities that lose tax revenues.
10
28. Congress therefore passed the Emergency Economic
ii
Stabilization Act of2008 on October 3, 2008, and amended it with
12
the American Recovery and Reinvestment Act of 2009 on February
13
14
17, 2009 (collectively, 24 the "Act"), 12 U.S.C.A. X5201 et.
15 seq.
16
29. The purpose of the Act is to grant the Secretary of Treasury
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the authority to restore liquidity and stability to the
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financial system, and ensure that such authority is used in a
19
20 manner that "protects home values" and "preserves
21 homeownership."12 U.S.C.A. §5201.
22 30. The Act grants the Secretary of Treasury the authority to

23
establish the Troubled Asset Relief Program, or TARP. 12 U.S.C.
24
§5211. Under TARP, the Secretary may purchase troubled assets
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from financial institutions. Congress allocated up to $700

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2 billion to the United States Department of Treasury for TARP. 12
3 u.s.c. § 5225. In exercising its authority to administer TARP,
4
the Act mandates that the Secretary take into consideration the
5
"need to help families keep their homes and to stabilize
6
communities." 12 U.S.C. § 5213(3).
s 31. With regard to any assets acquired by the Secretary that are
9 ' secured by residential real estate, the Act mandates that the
10
Secretary "shall implement a plan that seeks to maximize
ii
assistance for homeowners" and use the Secretary's authority
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over loan servicers to encourage them to take advantage of
13
14
programs to "minimize foreclosures." 12 U.S.C.A. § 5219.
15 32. On February 18, 2009, pursuant to the Act, the Treasury
16 Secretary and the Director of the Federal Housing Finance Agency

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announced the Making Home Affordable Program.
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33. The Making Home Affordable program consists of two sub-
19
20 programs. The first sub-program concerns the creation of re-
21 financing products for individuals with minimal or negative
22 equity in their home, and is now known as the Home Affordable

23
Refinance Program, or HARP.
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34. The second sub-program concerns the creation and

i
2 implementation of a uniform loan modification protocol, and is
3 now known as the Home Affordable Modification Program, or HAMP.
4
35. HAMP is funded by the federal government, primarily with
5
TARP funds. The Treasury Department has allocated at least $75
6
billion to HAMP, of which at least $50 billion is TARP money.
8
1 36. Under RAMP, the federal government incentivizes
9 participating loan servicers to modify existing mortgage
10
obligations for struggling homeowners in order to make their
ii
monthly payments more affordable - and thereby reduce
12
foreclosures.
13
14
37. Should a loan servicer elect to participate in HAMP, it must
15 execute a Servicer Participation Agreement ("SPA") with the
16 I
federal government.
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38. GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR
1s
ASSIGNEES IN INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE
19
20
FOR STRUCTURED ASSET MORTGAGE INVESTMENTS II, INC., MORTGAGE
21 PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE;
22 CONTINENTAL both executed SPAS, thereby making them

23
participating servicers in HAMP. The SPAs incorporate all
24
guidelines, procedures and "supplemental documentation,
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I~instructions, bulletins, frequently asked questions, letters,

i
2 ~ directives, or other communications" issued by the Treasury,
3 ' Fannie Mae or Freddie Mac.
4
I 39. These documents together are known as the "Program
5
IlDocumentation." The SPA states that a Participating Servicer
6
"shall perform" the activities described in the Program
8
' Documentation "for all mortgage loans it services." The Program
9 Documentation requires Participating Servicers to evaluate all
10
loans which are 60 or more days delinquent for HAMP
ii
modifications.
12
40. In addition, if a borrower contacts a Participating Servicer
13
14
regarding a HAMP modification, the Participating Servicer must
15 collect income and hardship information to determine if HAMP is
16 appropriate.
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41. A RAMP modification consists of two stages. First, a
is
Participating Servicer is required to gather information and, if
19
20 appropriate, offer the homeowner a TPP (Trial Period Plan). The
21 TPP consists of a time frame, typically a three-month period, in
22 which the homeowner makes mortgage payments based on a formula

23
utilizing the initial financial information provided.
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42. The monthly mortgage payments under a TPP are lower than the
i
2 borrower's monthly payments under the ordinary mortgage
3 I lcontract. GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
4
AND/OR ASSIGNEES IN INTEREST; THE BANK OF NEW YORK MELLON AS
5
TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS II, INC.,
6
MORTGAGE PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR
8 MORTGAGE; CONTINENTAL offer TPPs to eligible homeowners, often
9 but not always, by way of a TPP Agreement, which describes the
10
homeowner's duties and obligations under the plan and promises a
11
permanent HAMP modification for those homeowners who execute the
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TTP and fulfill certain documentation and payment requirements.
13
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If the homeowner executes the TPP Agreement, complies with all
15 documentation requirements and makes all TPP monthly payments,
16 the second stage of the HAMP process is supposed to be

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triggered, in which the homeowner is offered a permanent
18
modification.
19
43. In reality, defendants are ignoring the HAMP guidelines and

20
21 allowing TPPs to continue for months or years beyond the three
22 month trial period.

23
44. Francisco Diaz & Socorro Diaz was qualified under the HAMP
24
Program, but was never offered an appropriate permanent loan
25
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modification, and was kept in an indefinite cycle of TPPs and

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2 forbearance agreements. Although Francisco Diaz .& Socorro Diaz
3 tried applying for a loan modification pursuant to HAMP (her
4
loan balance was too large), Plaintiff believe that the
5
defendants process loan modification applications in the same
6
manner and with the same core protocols, whether or not HAMP is
B
applicable.
9 45. Defendants have routinely failed to offer or process loan
10
modification applications -in violation of TPP Agreements and
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other written agreements. In January 2010, the U.S. Treasury
12
reported that Chase had 424,965 RAMP-eligible loans in its
13
14
portfolio.
15 46. Of these loans, just 7,139 resulted in permanent
16 modifications (approximately 1.70), although many more

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homeowners had made the payments and submitted the documentation
18
required by the TPP Agreement. By failing to comply with their
19
20 obligations under the TPP Agreements, and by failing to timely
zi convert TPPs into permanent modifications or process loan
22 modification applications in good faith, defendants are forcing

23
homeowners into a state of anxiety and uncertainty, wondering if ~i
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25
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their homes can be saved, and inducing them to pay "trial

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2 payments" or "forbearance payments" indefinitely. .
3 47. Further, defendants are preventing homeowners from pursuing
4
other avenues of resolution, including using the money they are
5
putting toward TPP payments to fund relocation costs, short
6
sales, bankruptcy, or other means of curing their default.
s 48. These "extend & pretend" practices are deceptive and
9 unlawful. Francisco Diaz & Socorro Diaz - Purchase Money Loan On
10
or about Date, Francisco Diaz & Socorro Diaz purchased a single
ii
family residence, located at 3891 Fox Tail Lane Riverside, CA
12
92509, in the State of California (the "Residence") for
13
14
occupancy by Francisco Diaz & Socorro Diaz and their family.
15 49. The Residence was purchased from a Loan Company unknown to
16 Plaintiff and shall be amended if applicable, and is located in

1~
the City of Los Angeles, County of Los Angeles,' and State of
is
California. As a condition of the purchase, the developer
19
20 required that Francisco Diaz & Socorro Diaz obtain her purchase
zi money financing from a lender of the Agent or Broker choice.
z2 That lender was GB Inland Properties, LLC and/or Its Successors

23
24
Trustee for Structured Asset Mortgage Investments II, Inc.,
25
26
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28

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2 Mortgage; Continental.
3 50. Francisco Diaz & Socorro Diaz was approved for the purchase
4
money financing by GB Inland Properties, LLC and/or Its
5
6
e Inc., Mortgage Pass thorough Certificates Series2005-AR8; Nation
9 ~I star Mortgage; Continental Mortgage Services. The terms of the
io GB Inland Properties, LLC and/or Its Successors and/or Assignees

1~ '~
In Interest; The Bank of New York Mellon as Trustee for
12
Structured Asset Mortgage Investments II, Inc., Mortgage Pass
13
14
thorough Certificates Series2005-AR8; Nation star Mortgage;
15 Continental purchase money loan entailed, among other things,
16 an "Option ARM" feature that allowed for negative amortization

~~
of accrued interest.
Zs
51. Negative amortization occurs when the loan payment for any
19
20 period is less than the interest charged over that period, so
21 that the outstanding balance of the loan increases. The
22 difference between accrued interest and accrued interest plus

23
principal is then added to the total principal owed on the loan. .
24
52. That feature was disadvantageous to Francisco Diaz & Socorro
zs
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Diaz 's goal of one day owning the Residence free and clear.
i
2 Following Francisco Diaz & Socorro Diaz purchase of the
3 Residence, she made substantial improvements to its interior and
4
exterior, thereby increasing its market value.
5
53. On or about July 07, 2006 Francisco Diaz & Socorro Diaz
6
Purchased her home by receiving a Loan by GB Inland Properties,
8
LLC and/or Its Successors and/or Assignees In Interest; The Bank
9 of New York Mellon as Trustee for Structured Asset Mortgage
10
Investments II, Inc., Mortgage Pass thorough Certificates
li
Series2005-AR8; Nation star Mortgage; Continental which is now
12
a dissolved corporation. Due to plaintiff's employment income
13
14
and FICO score, her loan was categorized as "sub-prime" and the
15 Loan's interest rate and terms were aggressively set by the
16 lender. 54. Under the terms of the Loan, the interest rate
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could never fall below 8.34 regardless of how low market
is
interest rates declined Francisco Diaz & Socorro Diaz was not
19
20 informed of the identity of the new holder of the Loan.
21 55. Plaintiff Loan was registered pursuant to the Mortgage
22 Electronic Registration Systems, Inc. ("MERS"} system of

23
registration that was and continues to be utilized by lenders as
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25
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a means of transferring loans that are held in pooled mortgage-

i
2 backed securities investments.
3 56. Francisco Diaz & Socorro Diaz - First Started a Loan
4
Modification Beginning in or about the summer of 2011, Francisco
5
Diaz & Socorro Diaz began experiencing difficulty in Employment.
6
At the same time, she saw an increase in her family expenses,
a household expenses. Consequently, Francisco Diaz & Socorro Diaz
9 fell behind in her payments on the Loan.
10
57. In about late August 2011, Francisco Diaz & Socorro Diaz
ii
contacted GB Inland Properties, LLC and/or Its Successors and/or
12
13
14
16 concerning a modification of the Loan. At the time

Continental
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she was late about one to two months in which they indicated to
is
her that she had to be late at least four months in order to
19
qualify for a modification, An individual with GB Inland

20
21 Properties, LLC and/or Its Successors and/or Assignees In

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24
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who identified himself as Representative of GB Inland

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2 Properties, LLC and/or Its Successors and/or Assignees In
4
5
6
indicated that GB Inland Properties, LLC and/or Its Successors
8
9 Trustee for Structured Asset Mortgage Investments II, Inc.,
10 I
i~
Mortgage; Continental was
12
Receptive to modifying the Loan, specifically including a
13
14
reduction in the interest rate, which by then was substantially
15 above market rates.
16
58. On November 6, 2011, Francisco Diaz & Socorro Diaz and GB
i~
Inland Properties, LLC and/or Its Successors and/or Assignees In
is
19
21 Certificates Series2005-AR8; Nation star Mortgage; Continental '~
22 entered into a written agreement (hereinafter referred to as the

23
"First Temporary Loan Modification"). GB Inland Properties, LLC
24
25
26
Page 24 of 73
27
28
3 Series2005-AR8; Nation star Mortgage; Continental indicated to
4
Francisco Diaz & Socorro Diaz that the Loan would be permanently
5
modified, provided she complied with the payment terms under the
6
First Temporary Loan Modification.
a 59. Under the terms of the First Temporary Loan Modification
9 agreement, Francisco Diaz & Socorro Diaz agreed to make six
10
payments commencing November 9, 2011. The First Temporary Loan
Zi
Modification payments were significantly less than the payments
12
required under the original terms of the Loan.
13
14

~~
is
Continental informed Francisco Diaz & Socorro Diaz that the six
19
payments would be automatically debited from plaintiff's banking

20
21 account. GB Inland Properties, LLC and/or Its Successors and/or

23
24
25 I
26
Page 25 of 73
27 '
28 ~I
Continental Reps. further instructed Francisco`Diaz & Socorro

i
z Diaz that she must lower her credit expenses as they were to
3 high and payment of her Credit balances.
4
61. In reliance upon the enforceability of the First Temporary
5
Loan Modification agreement, and according to its terms,
6
Francisco Diaz & Socorro Diaz made the first of the anticipated
s six payments to GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
9 AND/OR ASSIGNEES IN INTEREST; THE BANK OF NEW YORK MELLON AS
Zo TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS II, INC.,

ii
12
MORTGAGE; CONTINENTAL on or about November 1, 2011.
13
14
62. When the second payment under the First Temporary Loan
15 Modification agreement was not auto-debited from Plaintiff bank
16 account, Francisco Diaz & Socorro Diaz immediately called GB

~~
is
19
20 Asset Mortgage Investments II, Inc., Mortgage f Pass thorough
2i Certificates Series2005-AR8; Nation star Mortgage; Continental ,
22 !I, on December, 2011, and this time was connected with a woman who
23
informed Francisco Diaz & Socorro Diaz that GB Inland
24
25
26
Page 26 of 73
27
28

i
z Asset Mortgage Investments II, Inc., Mortgage Pass thorough
3 Certificates Series2005-AR8; Nation star Mortgage; Continental ,
4
could not auto-debit her banking account and that the First
5
Temporary Loan Modification was not being reflected in GB Inland
6
a Interest; The Bank of New York Mellon as Trustee for Structured
io Certificates Series2005-AR8; Nation star Mortgage; Continental

11
system, although the November 9th payment had been received.
12
13
14

1~
Continental also repeated the instruction that Francisco Diaz &
18
Socorro Diaz should not make payments on her credit card
19
20 balances, as that would prevent the Loan from being modified.
21 During this conversation, Francisco Diaz & Socorro Diaz was
22 repeatedly placed on "hold" for long periods of time while the

23
representative represented she was speaking with her supervisor.
24
25
26
Page 27 of 73
27
28
64.Fransisco Diaz & Socorro Diaz - Second Temporary Loan
2 Modification By the conclusion of Plaintiff December 18, 2011
3 conversation with GB Inland Properties, LLC and/or Its
4
5
6
8
star Mortgage; Continental Rep. the terms of a Second Temporary
9 Loan Modification agreement had been structured.
10
65. Again, Rep, advised Francisco Diaz & Socorro Diaz that after
1~
"two or three months" of making the payments set forth in the
12
Temporary Loan Modification agreement, the Loan would be
13
14
permanently modified. Francisco Diaz & Socorro Diaz agreed to
15 the terms of the Second Temporary Loan Modification and Rep.
16
promised to send a written agreement memorializing its terms.
i~
This was the only conversation Francisco Diaz & Socorro Diaz had
is
with Rep. In addition, around this time, Francisco Diaz &
19
20 Socorro Diaz listed her Residence for sale.
21 66. Francisco Diaz & Socorro Diaz received an offer to purchase
22 the Residence, but she did not accept the offer or open escrow
23
because she reasonably believed that GB Inland Properties, LLC
24
25
26
Page 28 of 73
27
28
3 Series2005-AR8; Nation star Mortgage; Continental would modify
4
the Loan.
5
67. Pursuant to the directives initially given to Francisco Diaz
6
& Socorro Diaz by GB Inland Properties, LLC and/or Its
s Successors and/or Assignees In Interest; The Bank of New York
9 Mellon as Trustee for Structured Asset Mortgage Investments II,
10
Zi
star Mortgage; Continental Francisco Diaz & Socorro Diaz
12 ~
ceased making payments on her credit cards and any other
13
14
unsecured debt. Consequently, with the missed payments on the
15 Loan and the missed payments on her credit cards and other
16 debts, Plaintiff FICO credit score fell dramatically.

1~
68. Soon after December 2011, and before the Second Temporary
ie
Loan Modification agreement had been received by Francisco Diaz
19
20 & Socorro Diaz, Francisco Diaz & Socorro Diaz received un-signed
21 correspondence from GB Inland Properties, LLC and%or Its
22 Successors and/or Assignees In Interest; The Bank of New York

23
24
25
26
Page 29 of 73
27
28
star Mortgage; Continental wherein GB Inland Properties, LLC

1
2 and/or Its Successors and/or Assignees In Interest; The Bank of
3 New York Mellon as Trustee for Structured Asset Mortgage
4
Investments II, Inc., Mortgage Pass thorough Certificates
5
Series2005-AR8; Nation star Mortgage; Continental notified
6
Francisco Diaz & Socorro Diaz that the Loan had been referred to
s a trustee for foreclosure.
9 69. This notification was entirely inconsistent with the
10
conversation Francisco Diaz & Socorro Diaz had with Rep. of GB
it
12
13
14
15 Certificates Series2005-AR8; Nation star Mortgage; Continental .
16 Accordingly, on January 1, 2012, Francisco Diaz & Socorro Diaz

l~
called the trustee identified in the correspondence, Meridian
Zs
Foreclosure Services, and spoke with a man Francisco Diaz &
19
Socorro Diaz advised him of the Second Temporary Loan

20
21 Modification that was in process with GB INLAND `PROPERTIES, LLC
22 AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN INTEREST; THE BANK OF

23
NEW YORK MELLON AS TRUSTEE FOR STRUCTURED ASSET MORTGAGE
24
INVESTMENTS II, INC., MORTGAGE PASS THOROUGH CERTIFICATES
25
26
Page 30 of 73
27
28
SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL and Francisco )

1
2 Diaz & Socorro Diaz understood, based on the conversation, that
3 no further action would be taken by Meridian Foreclosure
4
Services because the foreclosure notification had been a mistake '.
5
on the part of GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
6
s TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS II, INC.,
9 MORTGAGE PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR
10
MORTGAGE; CONTINENTAL .
~~
70. On February 2012, Francisco Diaz & Socorro Diaz contacted GB
12
INLAND PROPERTIES; LLC AND/OR - ITS SUCCESSORS AND/OR ASSIGNEES IN S
13
14
INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE FOR STRUCTURED ~',
15 ASSET MORTGAGE INVESTMENTS II, INC., MORTGAGE PASS THOROUGH
16
17
again because she had not received the agreement by which the
is
Second Temporary Loan Modification would be documented. During
19
this call Francisco Diaz & Socorro Diaz was promised a

20
21 modification package and asked to fax all documents, then about
22 a few days later she received a letter indicating that her home
23
was on short sale that she needed other financial documents as
24
she called bank again and they told her she would be qualified
25
26
Page 31 of 73
27
28
for a modification so she needed to send all her financial

i
2 information again and that they would give her a modification.
3 71. Pursuant to the terms of the "Repayment Agreement," which
4
set forth the Second Temporary Loan Modification, Francisco Diaz
5
& Socorro Diaz was to pay monthly payments to GB INLAND
6
PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN
s INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE FOR STRUCTURED
10
CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL .
11
Pursuant to the "Repayment Agreement, "Francisco Diaz & Socorro
12
Diaz caused the required down payment thereunder, to be wired to
13
14
GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS'AND/OR ASSIGNEES
15 IN INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE FOR
16 STRUCTURED ASSET MORTGAGE INVESTMENTS II, INC., MORTGAGE PASS

17
THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE;
18
CONTINENTAL
19
72. Francisco Diaz & Socorro Diaz - Secret Notice of Default

20
zi Unbeknownst to Francisco Diaz & Socorro Diaz, and contrary to
22 her written "Repayment Agreement" with GB INLAND PROPERTIES, LLC

23
AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN INTEREST; THE BANK OF
24
25
26
Page 32 of 73
27
28

1
SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL (which set

2
3 forth the Second Temporary Loan Modification), and contrary to
4
her conversation with Meridian Foreclosure Services, a Notice of
5
Default was secretly recorded against plaintiff's Residence by
6
GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES
8
IN INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE FOR
10
11
CONTINENTAL on March 05,2012.. The Notice of Trustee Sale was
12
"secretly" recorded because at no time did GB INLAND PROPERTIES,
13
14
LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN INTEREST; THE BANK.
15 OF NEW YORK MELLON AS TRUSTEE FOR STRUCTURED ASSET MORTGAGE
16 INVESTMENTS II, INC., MORTGAGE PASS THOROUGH CERTIFICATES

i~
SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL or Meridian
18
Foreclosure Services cause to be served on Francisco Diaz &
19
Socorro Diaz a copy of the Notice of Default by certified or

20
21 registered mail, in violation of California Civil Code section
22 28 2924b (b) (1).

23
73. At the time the Notice of Default was secretly recorded, the y
24
principal amount owing on the Loan was approximately $428,000.00
25
26
Page 33 of 73
27
28
and Plaintiff Residence had a fair market value well in excess

1
z of $346,500. Also, Plaintiff Residence was still listed for sale
3 on the MLS. On August 2012, Francisco Diaz & Socorro Diaz never
4
received from GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
5
6
s MORTGAGE PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR
9 MORTGAGE; CONTINENTAL a copy of a new trustee sale that
10
Meridian Foreclosure Services had sent to Susan Rodriguez on
li
March 02,2012 which was supposedly going to be given a
12
modification and under process of a modification. While under
13
14
modification they said it was with under righter and there was
15 no sale a week prior to the sale date. Which also set forth the
16 fees that would be charged for Meridian Foreclosure Services in

17
handling a foreclosure under the Loan? The correspondence
is
appeared to be preliminary.
19
74. Immediately upon receipt of the correspondence, Francisco

20
21 Diaz & Socorro Diaz called Meridian Foreclosure Services and
22 spoke with a man He advised that -the Notice of Default had been
23
sent for recording, but he did not know if it had yet been
24
recorded, and that the statutory mailing of the'Notice. Most of
25
26
Page 34 of 73
27
28
the fees could be avoided if GB INLAND PROPERTIES, LLC AND/OR
2 ITS SUCCESSORS AND/OR ASSIGNEES IN INTEREST; THE BANK OF NEW
3 YORK MELLON AS TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS '.
4
II, INC., MORTGAGE PASS THOROUGH CERTIFICATES SERIES2005-AR8;
5
NATION STAR MORTGAGE; CONTINENTAL directed Meridian Foreclosure
6
Services to close the file. Immediately following Plaintiff
a conversation with GB INLAND PROPERTIES, LLC AND/OR ITS
9 SUCCESSORS AND/OR ASSIGNEES IN INTEREST; THE BANK OF NEW YORK
10
MELLON AS TRUSTEE FOR STRUCTURED ASSET MORTGAGE`INVESTMENTS II,
11
INC., MORTGAGE PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION
12
STAR MORTGAGE; CONTINENTAL and demanded that GB INLAND
13
14
15 INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE FOR STRUCTURED

17
18
instruct Meridian Foreclosure Services to close its file and
19
cancel any Notice of Default, because it had been an error on

20
21 the part of
22 GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES

23
24 ~
STRUCTURED ASSET MORTGAGE INVESTMENTS II, INC., MORTGAGE PASS
25
26
Page 35 of 73
27
28

1
2 CONTINENTAL Later that same day, Francisco Diaz & Socorro
3 Diaz spoke to a rep who confirmed that GB INLAND PROPERTIES, LLC

5
NEW YORK MELLON AS TRUSTEE FOR STRUCTURED ASST MORTGAGE
6
8 SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL 's system was
9 reflecting that the Loan was in a "repayment program" and that
to the Notice of Default and any related fees with Meridian

ii
Foreclosure Services would be "backed-out."
12
75. I never been served with a copy of the Notice of Sale again
13
14 after they told me the March 02,2012 Sale Date Stopped
is foreclosure process, via certified mail, she was informed and
16 reasonably believed that the Notice of Sale had been stopped and
i~
she would receive a Modification and that Meridian Foreclosure
is
Services was not taking any further action, pursuant to GB
19
20 INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN
2~ INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE FOR STRUCTURED
22 ASSET MORTGAGE INVESTMENTS II, INC., MORTGAGE Ph.SS THOROUGH '
23
24
's directives. '
25
26
Page 36 of 73
27
28
76. (A) Plaintiff were induced to make trial payments both

i
2 during and after the TPP periods.
3 77. (b) Plaintiff forewent other productive remedies that they
4
might have pursued or other strategies to deal with their
5
financial distress and/or mortgage loan defaults. Had they
6
pursued such alternative remedies or strategies, rather than
s proceed toward a loan modification in reliance on defendants'
9 representations, Plaintiff would not necessarily have spent the
10
monies that they spent on their existing mortgage loans with
ii
defendants.
12
78. These alternatives included, inter alias restructuring their
13
14
debts under the Bankruptcy Code; refinancing their homes with
15 other lenders; allowing a foreclosure; pursuing a "short sale";
16 selling their homes and then purchasing different homes at lower

1~
prices or renting homes. Plaintiff had no need to pursue these
18
other remedies and strategies, having the desire to remain in
19
20 their existing homes and the reasonable belief in reliance of
21 defendants' representations that loan modifications would be
22 forthcoming.
23
79. (c) Plaintiff suffered fees and costs on their accounts
24
and/or foreclosure/collection activity against their homes.
25
26
Page 37 of 73
27
28
80. (d)Because defendants improperly applied mortgage payments

i
2 ~ and/or held mortgage payments in "suspense" accounts rather than
3 I~ applying those payments to principal and interest, Plaintiff
4
suffered escalated debt obligations, including interest and
5
other charges, and/or negative references to credit rating
6
agencies.
~ ,
s 81. (e) Because defendants instructed Plaintiff to cease making

~
9 I existing mortgage payments, Plaintiff were subjected to
10 ~I
additional financial losses including foreclosure, risk of
11
foreclosure, late payment fees or penalties, and/or negative
12
references to credit rating agencies.
13
14
82. (f) Because defendants instructed Plaintiff-to cease making
15 payments on credit cards and/or other unsecured debt, Plaintiff
16 were subjected to additional financial losses including late

i~
payment fees or penalties, negative referenced to credit rating
18
agencies, and/or legal action by those creditors.
19
20 83. (g)Plaintiff were subjected to improperly recorded notices
2i of default regarding Plaintiff' loans.
22 84. (h) Plaintiff were subjected to unlawful foreclosure actions

23
regarding Plaintiff' loans.
24
CLASS ACTION ALLEGATIONS
25
26
Page 38 of 73
27
28
85. Plaintiff bring this lawsuit as a class action on behalf of

i
z herself and all others similarly situated in California, as
3 members of a proposed plaintiff Class pursuant to Rule 23 of the
4
Federal Rules of Civil Procedure. The Class is defined as
5
f011OWS:
6
86. All individuals who currently reside in the State of
8
California and who 1) applied for a mortgage loan
9 modification with any defendant; and 2)complied with their
10 loan modification, a temporary

obligations under a temporary
Zi
payment plan, a trial period plan (TPP), or a loan forbearance;
12
and 3) were not offered a permanent loan modification by any
13
14
defendant, or declined to accept a permanent loan modification.
15 87. The following persons are excluded from the Class:
16 (1) defendants and their subsidiaries and affiliates, including

i~
defendants' officers, directors and employees; (2)all persons
18
who make a timely election to be excluded from the proposed
19
20 Class; and (3)the judges) to whom this case is'assigned and any
21 immediate family members. Plaintiff reserves the right to modify
z2 or amend the Class definition before the Court determines

23
whether certification is appropriate.
24
25
26
Page 39 of 73
27
28
88. The Class for whose benefit this action is brought is so

i
2 numerous that joinder of all Class members is;impracticable.
3 While the exact number and identities of individual Class
4 members are unknown at this time to Plaintiff, thousands of

5
Class members likely applied for loan modifications with
6
defendants in California. The claims of Plaintiff are typical of
8 the claims of the Class in that Plaintiff, like all Class
9 members, applied for loan modifications with defendants GB
to INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN

1~
INTEREST; THE BANK OF NEW YORK MELLON AS TRUSmEE FOR STRUCTURED
12
13
14 CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL
is and suffered losses due to GB INLAND PROPERTIES, LLC AND/OR ITS

~~
MELLON AS TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS II,
18
19
20 STAR MORTGAGE; CONTINENTAL misconduct in connection with loan
21 modifications and/or were exposed to the illegal conduct
22 described above.
23
89. Plaintiff, like all Class members, has been similarly
24
injured by GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
25
26
Page 40 of 73
27
28
AND/OR ASSIGNEES IN INTEREST; THE BANK OF NEWYORK MELLON AS

1
2 TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS II, INC.,
4
MORTGAGE; CONTINENTAL misconduct. Plaintiff have experienced
5
these injuries or been exposed to the likelihood of such
6
conduct, but, as of the time of the filing of~this lawsuit, have
a not had the issue remedied or been provided appropriate
9 compensation. The factual basis of GB INLAND PROPERTIES, LLC
~o AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN INTEREST; THE BANK OF

11
~2
13
14
SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL misconduct as
15 described above is common to all Class members and represents a
16 common thread of illegal, unfair and/or deceptive misconduct.

17
There are numerous questions of law and fact common to the
18
Class, which common questions predominate over any questions
19
20 affecting individual Class members.
2i 90. Among questions of fact common to the Class are whether GB

23
24
25 i
26
Page 41 of 73
27
28
CERTIFICATES SERIES2005-AR8; NATION STAR MORTQAGE; CONTINENTAL

i
z and:
3 (a) Misrepresented to consumers the requirements for achieving
4
permanent loan modifications and the statusesof loan
5
modification applications;
6
91. (b)requested and accepted interim debtor payments under
8 temporary modification or TPP Agreements or forbearance
9 agreements as a condition for promised permanent loan
io modifications, without any reasonable basis tb believe that the

ii
loans would be permanently modified, and without taking
12
reasonable steps to implement permanent loan modifications;
13
14
92. (c) Misrepresented to consumers seeking loan modifications
15 the terms of and the balances of the loans being serviced;
16
17
93. (d)held mortgage payments made under temporary modification,
is
TPP Agreements, or forbearance agreements in "suspense
19
accounts," or otherwise misapplied such payments, resulting in

20
21 increased debt obligations, including interest '• and other
22 charges;
23
94. (e)instructed loan modification applicants that they must
24
stop making their existing mortgage payments as a prerequisite
25
26
Page 42 of 73
27
28
to qualifying for a loan modification, thus subjecting them to

1
2 additional financial jeopardy including foreclosure, risk of
3 i foreclosure, late fees or penalties, and negative references on
4
their credit histories;
5
95.(f)instructed consumers seeking loan modifications that they
6
must cease making payments on credit cards and/or other
a l~ unsecured debt as a prerequisite to qualifying for a loan
9 I modification, thus subjecting them to additional financial
io I jeopardy including late fees or penalties and negative
~ ~ ',
references on their credit histories;
12 'I
96. (g)caused to be recorded notices of default for mortgage
13 'I
14
loans of loan modification applicants;
15 97.(h) caused to be initiated unlawful foreclosure actions
16 against loan modification applicants; and

i~
98. (i) implemented procedures and systems that effectively made
is
it unlikely that permanent loan modifications would be granted.
19
20 Among the questions of law common to the Class are:
21 99. (a) Whether GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS

23
24
25
26
Page 43 of 73
27
28
MORTGAGE; CONTINENTAL engaged in violations of California Bus.

1
2 & Prof. Code X17200, et seq.;
3 100. (b) Whether GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS

5
6
8 MORTGAGE; CONTINENTAL engaged in violations of California's
9 Rosenthal Fair Debt Collection Practices Act, California Civil
to Code Section 1788, et seq.;

11
101. (c) Whether GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
12
AND/OR ASSIGNEES IN INTEREST; THE BANK OF NEW`YORK MELLON AS
13
14 TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS'' II, INC.,
16 MORTGAGE; CONTINENTAL breached contracts with consumers who

1~
applied for loan modifications;
18
102. (d)Whether GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
19
22 MORTGAGE PASS THOROUGH CERTIFICATES SERIES200~-AR8; NATION STAR

23
MORTGAGE; CONTINENTAL engaged in fraud with respect to
24
Consumers who applied for loan modifications;
25
26
Page 44 of 73
27
28
103. (e) Whether GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
4
5
MORTGAGE; CONTINENTAL have been unjustly enriched by their
6
course of dealings with consumers who applied for loan
s modifications;
9 104. (f)Whether GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
to AND/OR ASSIGNEES IN INTEREST; THE BANK OF NEW~YORK MELLON AS

~~
12
13
MORTGAGE; CONTINENTAL should be promissory estopped with

14
15 respect to their course of dealings with consumers who applied
16 for loan modifications; and

~~
105. (g)Whether, as a result of defendants' misconduct as
18
alleged herein, Plaintiff should be entitled to y recover damages,
19
equitable relief, injunctive relief, and/or other relief.

20
21 106. Plaintiff claims raise predominant common issues for all
22 Class members, as they arise out of the same acts and practices
23
of GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR
24
25
26
Page 45 of 73
27
28 I

1
2 PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE;
3 CONTINENTAL Plaintiff has suffered the harm alleged, and
4
Plaintiff has no irreconcilable interests antagonistic to the
5
interests of any other Class member. Plaintiff is committed to
6
the vigorous prosecution of this action. Accordingly, Plaintiff
s is adequate representatives of the Class and will fairly and
9 adequately protect the interests of the Class. To the extent it
10
is an element for class certification, a clasp action is
Zi
Superior to other available methods for the fair and efficient
lz
group-wide adjudication of this controversy and provides
13
14
substantial benefits.
15 107. Since the amount of each individual Class member's claim is
16 small relative to the complexity of the litigation, and due to

17
the financial resources of GB INLAND PROPERTIES; LLC AND/OR ITS
is
SUCCESSORS AND/OR ASSIGNEES IN INTEREST; THE BANK OF NEW YORK
19

20
21 INC., MORTGAGE PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION
22 STAR MORTGAGE; CONTINENTAL no Class member could individually

23
afford to seek effective legal redress for the claims alleged
24 ',
herein. Therefore, absent a class action, Class members will
25
26
Page 46 of 73
27
28
continue to suffer injury and losses, and defendants' violations

i
2 of the law will proceed without remedy.
3 FIRST CAUSE OF ACTION
4
(Violation of the California Fair Debt Collection Practices Act
5
Against All Defendants)&(California Civil Code Section 1788 et
6
seq.)
8 108. Plaintiff hereby incorporates by reference all the
9 foregoing paragraphs as though fully set forth herein. GB Inland
to properties, LLC and/or Its Successors and/or Assignees In

11
12
13
14 Certificates Series2005-AR8; Nation star Mortgage; Continental
is is a debt collector within the meaning of Cal. Civil Code
16 §1788.2(c). The monies allegedly owed by Plaintiff Francisco
17 Diaz & Socorro Diaz, the putative class, are "debts" within the ~,
18 I
meaning of Cal. Civil Code ~1788.2(d). ~
19
20 109. California's Rosenthal Fair Debt Collection Practices Act,
2i Cal. Civ. Code~1788 et seq. (the "Rosenthal AEt") incorporates
22 by reference, and requires compliance with, the provisions of

23
s, 15 U.S.C. § 1692
the federal Fair Debt Collection Practices Act
24
et seq. Cal. Civil Code § 1788.17. By the acts and practices
25
26
Page 47 of 73
27
28
3 described herein defendants have violated these laws, as
4 follows, without limitation:

5
• Using false, deceptive, or misleading representation or
6
means in connection with the collection of any debt, 15
a U.S.C. ~ 1692e, by, without limitation, falsely promising
9 to consider Plaintiff in good faith for loan modifications
10
on the condition that they submit TPP payments or
ii
forbearance payments;
12
. Using false representations or deceptive means to collect oz
13
14 attempt to collect on any debt, 15 U.S.C. ~ 1692e(10); and
15 . Using unfair or unconscionable means to collect or attempt

16
to collect any debt, 15 U.S.C. ~ 1692f. Pursuant to
17
California Civil Code§ 1788.30 and 1788.17, Plaintiff and
is
19
the class are entitled to recover actual damages sustained
20 as a result of defendants' violations of the Rosenthal Act.
21 110. Such damages include, without limitation, monetary

22
losses and damages, and emotional distress suffered, which
23
damages are in an amount to be proven at trial.
24
25
111. In addition, pursuant to California Civil Code §§
26 1788.30 and 1788.17, because defendants' violations of the
27 Rosenthal Act were committed willingly and knowingly,

26
Page 48 of 74
3 Plaintiff and the class are entitled to recover penalties
4 of at least $1,000 per violation. Pursuant to California

5
Civil Code§ 1788.30(c) and 1788.17, Plaintiff and the
6
class are entitled to recover all attorney's fees, costs,
and expenses incurred in this.

s
9
SECOND CAUSE OF ACTION
~o
(Unfair Competition Against All Defendants)
ii
12
(Violation of Business & Professions Code Section 17200,et seq.)
13 112. Plaintiff hereby incorporates by reference all the
14 foregoing paragraphs as though fully set forth herein. By their

15
conduct as alleged herein, defendants have engaged in unlawful,
16
deceptive, and unfair business acts or practices in violation of
i~
Business & Professions Code Sections 17200, et seq.
is
19 113. A. Unlawful Business Practices Defendants have engaged in
20 the following unlawful business acts or practices in violation

21
of Business & Professions Code Sections 17200, et seq:(a)
22
Violations of FTC Order.
23
113. On or about January 9, 2008, GB INLAND PROPERTIES, LLC
24
26 NEW YORK MELLON AS TRUSTEE FOR STRUCTURED ASSET MORTGAGE

27
28
Page 49 of 74
3 SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL entered into
4 a Stipulated Final Judgment and Order with the United States

5
Federal Trade Commission, which provided, in part, that GB
6
INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN

s

11
"...are hereby permanently restrained and enjoined, in
12
connection with the servicing of any loan, from:
13
A. Misrepresenting, expressly or by implication, the amount of
14
15 any payment or fee due on a loan;
16 B. Misrepresenting, expressly or by implication, that any

17
payment or fee due on a loan is allowed under the loan
is
instruments or permitted by law•
19
C. Misrepresenting, expressly or by implication, the amount,
zo
21 ~', nature, or terms of any fee or other condition or requirement of
22 any loan; and

23
D. Making any representation, expressly or by implication,
24
about the amount of any payment or fee, the date that any
25
payment or fee is due, or any other information regarding the
26
27 terms, conditions, or status of a loan, unless, at the time of
28
Page 50 of 74
Federal Trade Commission, which provided, in part, that GB

i
4
5
6
"...are hereby permanently restrained and enjoined, in
s connection with the servicing of any loan, from:
9 A. Misrepresenting, expressly or by implication, the amount of
10
any payment or fee due on a loan;
i1
B. Misrepresenting, expressly or by implication, that any
12
payment or fee due on a loan is allowed under the loan
13
14
instruments or permitted by law•
15 C. Misrepresenting, expressly or by implication, the amount,
16
nature, or terms of any fee or other condition or requirement of
i~
any loan; and
is
D. Making any representation, expressly or by implication,
19
20 about the amount of any payment or fee, the date that any
21 payment or fee is due, or any other information regarding the
22 terms, conditions, or status of a loan, unless, at the time of

23
making such representation, such persons possess and rely on
24
25
26
Page 51 of 74
27
28
competent and reliable evidence that substantiates the

1
z representation."
3 , 114. By the misconduct as alleged in this Complaint, GB INLAND
4
5
6
a CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE; CONTINENTAL
9 have violated the FTC Order. These violations constitute
10
unlawful business practices in violation of Business &
li
Professions Code Sections 17200, et seq.
12
(b) Violations of California Civil Code section 2923.6.
13
14
Defendant GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR
15 ASSIGNEES IN INTEREST; THE BANK OF NEW YORK MELLON AS TRUSTEE
16
1~
PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE;
18
CONTINENTAL have violated California Civil Code section
19
20 2923.6(b), which provides this State's legislative policy for
21 loan modifications: "It is the intent of the Legislature that
22 the mortgagee, beneficiary, or authorized agent offer the

23
borrower a loan modification or workout plan if such a
24
modification or plan is consistent with its contractual or other
25
26
Page 52 of 74
27
28
authority." Civil Code section 2923.6(b) requires defendants to

1
2 grant loan modifications to applicants who meet certain
3 criteria.
4
114. Although Plaintiff met the requisite criteria, defendants
5
failed to grant loan modifications to Plaintiff. Such
6
violations of Civil Code section 2923.6
s (b)Constitute unlawful business practices in violation of
9 Business & Professions Code Sections 17200, et seq.
10
(c)Violations of Dodd-Frank Wall Street Reform & Consumer
~1
Protection Act of2010. A stated purpose of the Dodd-Frank Wall
12
Street Reform & Consumer Protection Act of2010 (the "Act") is to
13
is ensure that consumer products and services are "fair,
15 transparent and competitive" and to provide consumers with
16
"timely and understandable information to make responsible
1~
decisions about financial transactions." The Act provides that
18
in dealing with consumers, "affiliated persons" that provide a
19
20 "consumer financial product or service" must not engage in
21 i unfair, deceptive or abusive acts or practices. The Act makes
22 it "unlawful" for any covered "person [defined as including any

23
business entity] or service provider" to "offer or provide to a
24
consumer any financial product or service not in conformity with
2s
26
Page 53 of 74
27
28
Federal consumer financial law" or "to engage in any unfair,

i
2 deceptive or abusive act or practice." The Act defines a
3 "financial product or service" as including the extending of
4
credit and the servicing of loans.
5
115. The Act authorizes that the Bureau of Consumer Financial
6
Protection to seek the following relief for violations:
s rescission, restitution, disgorgement, damages, and civil
9 penalties of up to $5,000 per day per violation. Through their
10
conduct alleged herein, GB INLAND PROPERTIES, LLC AND/OR ITS
11
12
13
14
15 STAR MORTGAGE; CONTINENTAL have not acted in a "fair" or
16
"transparent" manner, but have engaged in "unfair, deceptive and
i~
abusive practice[s]" in violation of the Act by, inter alia,
ie
enticing consumers to make payments on distressed or defaulted
19
20 loans in the reasonable expectation that their loans would be
21 modified.
22 (d)Breach of Contract. GB INLAND PROPERTIES, LLC AND/OR ITS

23
24
25
26
Page 54 of 74
27
28

1
2 STAR MORTGAGE; CONTINENTAL have engaged in unlawful business
3 practices by breaching their contracts with Plaintiff and
4
members of the class as allege herein.
5
(e) Fraud. GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
6
10
MORTGAGE; CONTINENTAL have engaged in unlawful business
11
practices by committing fraud in their dealings with Plaintiff
12
and members of the class as alleged herein.
13
is (f) California Fair Debt Collection Practices Act (Rosenthal).
15 GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES
16
1~
STRUCTURED ASSET MORTGAGE INVESTMENTS II, INC., MORTGAGE PASS
18
19
20 CONTINENTAL have engaged in activities that are in violation of
zi the Rosenthal Act, California Civil Code Section 1788, et. seq.,
z2 in their dealings with Plaintiff and members of the class as

23
alleged herein.
24
25
26
Page 55 of 74
27
28
(g) Unjust Enrichment. GB INLAND PROPERTIES, LLC AND/OR ITS

1
3 MELLON AS TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS II,
4
5
STAR MORTGAGE; CONTINENTAL have engaged in unlawful business
6
practices by unjustly enriching themselves in their dealings
a with Plaintiff and members of the class as alleged herein.
9 (h)Promissory Estoppel.
10
116. A. GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR
11
i2
13
14
PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR MORTGAGE;
15 CONTINENTAL has engaged in unlawful business practices by
16
engaging in representations and conduct in their dealings with
i~
Plaintiff and members of the class that establishes promissory
18
estoppels as alleged herein.
19
20 B. Unfair Business Practices Defendants have engaged in the
21 following unfair business acts or practices in violation of
22 Business & Professions Code Sections 17200, et seq.:

23
117. (a)Defendants requested and accepted interim payments under
24
temporary modification or TPP agreements (trial period plans) as
25
26
Page 56 of 74
27
28
a condition for the promised permanent loan modifications,

i
2 without any reasonable basis to believe that the loans would be
3 permanently modified, and without taking diligent or reasonable
4
steps to implement permanent loan modifications;
5
(b)Defendants misrepresented the terms of and the balances of
6
Plaintiff' loans;
a (c) Defendants unlawfully applied mortgage payments, and/or
9 held mortgage payments in suspense, resulting in escalated debt
10
obligations, including interest and other charges;
1~
(d)Defendants instructed Plaintiff to cease making existing
12
mortgage payments, thereby subjecting them to additional
13
14
financial losses including foreclosure, risk of foreclosure,
15 late payment fees or penalties, and/or negative references to
16
credit rating agencies;
1~
(e)Defendants instructed Plaintiff to cease making payments on
is
credit cards and/or other unsecured debt, thereby subjecting
19
zo them to additional financial losses including late payment fees
21 or penalties, negative references to credit rating agencies,
22 and/or legal action by those creditors;

23
(f) Defendants improperly recorded and/or caused to be recorded
24
notices of default regarding Plaintiff' loans; and
25
26
Page 57 of 74
27
28
(g) Defendants improperly initiated and/or caused to be
2 initiated unlawful foreclosure actions regarding Plaintiff'
3 ( loans.
4
1 119. Deceptive Business Practices Defendants have engaged in the
5
'~ following deceptive business acts or practices in violation of
6
Business & Professions Code Sections 17200, et seq.:
a (a) Defendants requested and accepted interim payments under
9 temporary modification or TPP agreements (trial period plans) as
10
a condition for the promised permanent loan modifications,
1~
without any reasonable basis to believe that the loans would be
12
permanently modified, and without taking diligent or reasonable
13
is steps to implement permanent loan modifications;
15 (b) Defendants misrepresented the terms of and the balances of
16
Plaintiff' loans;
17
(c) Defendants unlawfully applied mortgage payments, and/or helc
18
mortgage payments in suspense, resulting in escalated debt
19
20 obligations, including interest and other charges;
21 (d) Defendants instructed Plaintiff to cease making existing
22 mortgage payments, thereby subjecting them to additional

23
financial losses including foreclosure, risk of foreclosure,
29
25
26
Page 58 of 74
27
28
late payment fees or penalties, and/or negative references to

i
z credit rating agencies;
3 (e) Defendants instructed Plaintiff to cease making payments on

4
credit cards and/or other unsecured debt, thereby subjecting
5
them to additional financial losses including late payment fees
6
or penalties, negative references to credit rating agencies,
8 and/or legal action by those creditors;
9 (t) Defendants improperly recorded and/or caused to be recorded
10
notices of default regarding Plaintiff' loans; and
li
(g) Defendants improperly initiated and/or caused to be
12
initiated unlawful foreclosure actions regarding Plaintiff'
13
i4 loans. As a direct, foreseeable, and proximate result of
15 defendants' unlawful, unfair and deceptive business practices
16
alleged herein, Plaintiff and the Class members have suffered
1~
injury in fact and have lost money or property and have been
is
damaged in an amount to be determined according to proof at the
19
20 time of trial, in addition to equitable and/or injunctive
21 relief, as specified in the prayer.
22
23
THIRD CAUSE OF ACTION
24
(Breach of Written Contract Against All Defendants)
25
26
Page 59 of 74
27
2a
z X120. Plaintiff herein incorporate by reference all the foregoing
3 paragraphs as though fully set forth herein.
4
121. Defendants GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS
5
6
e MORTGAGE PASS THOROUGH CERTIFICATES SERIES2005-AR8; NATION STAR
9 MORTGAGE; CONTINENTAL executed Servicer Participation
10
Agreements ("SPAs") to participate in the HAMP program. Through
11
the HAMP program, lenders and servicers like GB INLAND
12
13
14
16
17
received portions of the $75 billion funded by the US Treasury
is
Department to assist distressed homeowners like Plaintiff by
19
20 providing loan modifications. HAMP includes a specific, uniform
21 loan modification protocol, described below.
22 121. As Participating Servicers, under their SPAS GB INLAND

23
24
25
26
Page 60 of 74
27
28

1
3 "shall perform" the activities described in the Program

4
Documentation "for all mortgage loans [they] service []." These
5
mandatory duties include:
6
a) evaluating for HAMP modifications all loans which are 60 or
s more days delinquent as well as loans of borrowers who contact
9 them regarding a RAMP modification; and
10
b) where appropriate, offering the homeowner a TPP in which the
11
homeowner makes mortgage payments, which are lower than the
12
payments under the existing mortgage contract, based on a
13
14
formula utilizing the initial financial information provided.
15 122. Under HAMP, if the homeowner executes the TPP Agreement,
16
complies with all documentation requirements and makes all TPP
i~
monthly payments, the homeowner must be offered a permanent
is
modification.
19
20 123. The formula utilized by Participating Servicers under HAMP
21 for calculating a modified loan under the HAMP Program is called
22 the "Waterfall Formula," pursuant to the U.S. Treasury

23
Department's HAMP Guidelines issued March 4, 2009 and its
24
Supplemental Directive 09-01 issued April 6, 2009. The Waterfall
25
26
Page 61 of 74
27
28
Formula provides the following criteria for Participating

i
2 Servicers to calculate the terms of a modified loan for eligible
3 homeowners: capitalize accrued interest, advances, and third
4
party fees; reduce the current interest rates in increments of
5
.125 percent with a floor of 2 percent;
6
extend the loan terms to up to 480 months; and provide a non-
a interest bearing forbearance amount that will result in a
9 balloon payment due on the maturity date of the loan.
10
124. The Waterfall Formula provides a specific, uniform protocol
11
for calculating loan modifications. Participating Servicers like
12
GB INLAND PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES
13
14
16
17
CONTINENTAL utilize the Waterfall Formula for calculating loan
is
modifications for borrowers who fit the HAMP criteria. Upon
19
20 information and belief, Participating Servicers like GB INLAND
21 PROPERTIES, LLC AND/OR ITS SUCCESSORS AND/OR ASSIGNEES IN

23
24
25
26
Page 62 of 74
27
28
also utilize the Waterfall Formula for calculating loan
2 modifications for borrowers who do not fit the RAMP criteria but
3 who are seeking or being considered for a loan modification.
4
125. Plaintiff entered into various written agreements with
5
defendants for modification of the terms of their loans
6
requiring, inter alia, forbearance, loan Home Affordable
8 Modification program, Supplemental Directive 09-01, April 6,
9 2009, located at:
10
https://www.hmpadmin.com/portal/programs/docs/hamp servicer/sd09
it
Ol.pdf modification, and/or good faith consideration for loan
12
modifications or TPPs (the "Agreements"). The promises
13
14
contained in the Agreements (both express and implied),in
15 conjunction with specific, uniform criteria contained in the
16
Waterfall Formula, plus further representations made by
1~
defendants, provide sufficient material terms for the formation
is '~I
of legally binding contracts between Plaintiff and defendants
19
for the modification of Plaintiff' loans. This information

20
21 constitutes a sufficient specified standard for ascertainment of
22 the material terms of the Agreements.

23
126. In addition, defendants made common, uniform oral
24
representations to Plaintiff that if Plaintiff complied with the
25
26
Page 63 of 74
27
28
terms of their trial plans, forbearance agreements, RMA

i
z Agreements, and/or TPPs, they would receive permanent loan
3 Modifications, and/or genuine and timely consideration for such
4
loan modifications. These common, uniform oral representations
5
were part of the Agreements as well. To the extent that
6
defendants may contend that oral representations are barred by
e the statute of frauds, promissory estoppel is a defense to the
9 statute of fraud.
10
127. Adequate legal consideration supports the Agreements. The
i1
consideration flowing from defendants was the promise to modify
12
loans and to consider, in good faith and in a timely manner,
13
14
Plaintiff' requests to modify their loans. The consideration
15 flowing from Plaintiff included, but was not limited to, the
16
following:
l~
(a) Plaintiff' foregoing or delaying selling their residences;
is
(b) Plaintiff' foregoing or delaying refinancing the debt on the
19
20 residences;
21 (c) Plaintiff' foregoing or delaying filing bankruptcy to
22 restructure or discharge their financial obligations;

23
(d) Plaintiff' foregoing or delaying legal action at an earlier
29
juncture; request;
25
26
Page 64 of 74
27
28
(e) Plaintiff' foregoing or delaying alternate remedies at an

i
z earlier juncture;
3 (f) Plaintiff' foregoing or delaying negotiating for a short
4
sale, deed in lieu of foreclosure, debt restructuring, or other
5
alternatives to foreclosure;
6
(g) Plaintiff' remaining in and maintaining their homes;
e (h) Plaintiff' continuing to pay money in mortgage payments, in
9 order to obtain the loan modifications, which amounts they
10
otherwise would not have paid;
Zi
(i) Plaintiff' continuing to pay money to keep the homes insurec
12
in order to obtain the loan modifications, which amounts they
13
14
otherwise would not have paid;
15 U) Plaintiff' fulfilling new documentation requirements; and
16
(k) Plaintiff' agreeing to enroll in credit counseling at
1~
defendants'.
is
128. Plaintiff performed all conditions, covenants and promises
19
20 required to be performed by Plaintiff in accordance with the
21 terms and conditions of the Agreements, except for such
22 performance as may be excused by defendants' conduct.

23
129. Defendants requested and accepted interim payments under
24
TPPs, temporary modifications, RMA Agreements and/or forbearance
25
26
Page 65 of 74
27
28
agreements as a condition for the promised permanent loan

i
2 modifications, without any reasonable basis to believe that the
3 loans would be permanently modified, and without taking diligent
4
or reasonable steps to consider in good faith or implement
5
permanent loan modifications.
6
130. Defendants breached the Agreements (including the covenant
8 of good faith and fair dealing inherent in every contract) by
9 failing to consider the applications in good faith and in a
10
timely manner, and in most instances, by failing to provide
i~
permanent loan modifications, as agreed.
is
131. Defendants in some cases have assigned various labels or
13
14
titles to some of these Agreements, such as "repayment plans,"
15 "agreements to cure delinquency," "forbearance agreements," or
16 These titles or
"request for modification and affidavit."
i~
Characterizations are not legally determinative, however, as to
18
whether the Agreements were in fact legally binding contracts
19
20 between Plaintiff and defendants.
21 132. Defendants also provided language in some of these
22 Agreements to the effect that the Agreements do not constitute a

23
modification of the loan documents. This also is not legally
24
determinative as to whether the Agreements were in fact legally
25
26
Page 66 of 74
27
28
binding contracts between Plaintiff and defendants.

1
2 '~ 133. Defendants may not escape the legally binding nature of
3 the Agreements through formalistic distinctions or clever
4
semantics. Instead, under the totality of the circumstances,
5
consideration existed and legally binding contracts were
6
created.
s 134. As a direct, proximate and foreseeable result of

9 I
defendants' breaches of the Agreements, Plaintiff and the Class
io members have been damaged in an amount to be determined

ii
according to proof at the time of trial, including equitable
12
and/or injunctive relief, and potentially rescission, as
13
i a ', specified in the Prayer.
15 FOURTH CAUSE OF ACTION
16 (Fraud Against All Defendants)

i~
135. Plaintiff herein incorporate by reference the foregoing
18
paragraphs as though fully set forth herein.
19
20 136. Defendants made numerous material misrepresentations to
21 Plaintiff relating to Plaintiff' mortgage loans and applications
22 for modification of those loans, as specified above in detail.

23
These representations included, but were not limited to, the
24
25
26
Page 67 of 74
27
28
Uniform oral representations that if Plaintiff complied with the
2 terms of their trial plans, they would receive permanent loan
3 modifications. In addition, defendants made the common, uniform
4
representation that Plaintiff' loan modification applications
5
were still being processed, at times when in reality they were
6
not still being processed, either because they were dead, or
~ i
8 hopeless, or there was a temporary moratorium on loan
9 modification processing.
10
137. Plaintiff are informed and believe, and based thereon on
11
allege, that defendants' representations were in fact false and
is
that, at the time defendants made these misrepresentations,
13
14
defendants knew them to be false, and made them with the
15 intention to induce Plaintiff to act in reliance on said
16
representations as alleged herein, or with the expectation that
i~
Plaintiff would do so.
is
138. Plaintiff reasonably and justifiably relied on
19
ao defendants' representations. At the time the misrepresentations
21 were made by defendants, and at the time Plaintiff took the
22 actions alleged herein, or failed to act as alleged herein,

23
Plaintiff were ignorant of the falsity of defendants'
24
misrepresentation and believed them to be true. In reasonable
2s
26
Page 68 of 74
27
28
and justifiable reliance on such misrepresentations, Plaintiff

i
2 was induced to, and in fact did, take certain actions, to their
3 detriment, and/or forego or delay multiple alternative options
4
that would have been available to them.
5
139. As a direct, foreseeable, and proximate result of
6
defendants' wrongful actions alleged herein, Plaintiff and the
a Class members have been injured and damaged in amounts to be
9 determined according to proof at the time of trial. Had
10
Plaintiff known the true facts, they would not have taken the
1~
actions they did in reliance on defendants' representations, or
12
would not have taken such actions as and when they did, or would
13
have taken other actions altogether. In particular, Plaintiff

14
15 was induced to, and did, take certain actions to their
16 In addition, or in the alternative, Plaintiff was

detriment.
~~
induced to, and did, forego or delay certain alternative
is
actions, in chiding:
19
(a) selling their residences;

20
21 (b) refinancing the debt on the residences;
22 (c) initiating legal action at an earlier juncture;

23
(d) seeking alternate remedies at an earlier juncture;
24
(e) avoiding damage to their credit scores; or
25
26
Page 69 of 74
27
26
(f) negotiating for a short sale, deed in lieu of foreclosure,

i
z debt restructuring, or other alternatives to foreclosure.
3 140. In doing the acts alleged in this cause of action,
4
defendants acted intentionally, willfully, and with the intent
5
to injure Plaintiff with malice, fraud, and oppression. As a
6
result, Plaintiff seeks punitive and exemplary damages as
s provided by Section 3294 of the California Civil Code in an
9 amount sufficient to punish defendant and to deter such conduct
10
in the future.
i1
FIFTH CAUSE OF ACTION
12
(Promissory Estoppel Against All Defendants)
13
14
141. Plaintiff herein incorporate by reference the foregoing
15 paragraphs as though fully set forth herein.
16 In offering temporary loan modifications, forbearance

142.
1~
agreements, and TPPs to Plaintiff, defendants made
18
representations to Plaintiff that, if Plaintiff submitted
19
ao certain documents to defendants and made certain payments,
zi Plaintiff would receive permanent loan modifications, or at
22 least good faith and timely consideration. Plaintiff were led to

23
believe that if they executed the Agreements, complied with all
24
25
26
Page 70 of 74
27
28
1 Documentation requirements and made all monthly payments, the
2 homeowner would be provided a permanent modification, or at
3 least good faith and timely consideration.
4 143. Defendants' promises and representations to Plaintiff
5 were clear and unambiguous. Under HAMP, if the homeowner
6 executes the TPP Agreement, complies with all documentation
requirements and makes all TPP monthly payments, the homeowner
s is offered a permanent modification. There is nothing "unclear"
9 or" ambiguous" about these representations. Moreover, specific
io loan modification terms are calculated by the "Waterfall
ii Formula" used by Participating Servicers under the HAMP Program,
12 detailed above.
13 144. Defendants' TPPs were intended to induce Plaintiff to
14 rely on them and to make monthly TPP payments, with the promise
15 of obtaining a permanent loan modification.
16 145. Plaintiff relied on defendants' representations, as
i~ demonstrated by, inter alia, Plaintiff submitting required
18 documents and making payments under TPPs.
19 146. Plaintiff' reliance on defendants' representations was
20 reasonable and foreseeable under the circumstances and given
zi the representations made in the TPP Agreements and in related
22 communications by GB INLAND PROPERTIES, LLC AND/OR ITS
24 MELLON AS TRUSTEE FOR STRUCTURED ASSET MORTGAGE INVESTMENTS II,
25
26
Page 71 of 74
27
28
2 ( STAR MORTGAGE; CONTINENTAL
3 147. As a direct, foreseeable, and proximate result of
4 defendants' wrongful actions alleged herein, Plaintiff and the
5 Class members have been damaged in an amount to be determined
6 according to proof at the time of trial, in addition to
~ ' equitable and/or injunctive relief, as specified in the prayer.
9 PRAYER FOR RELIEF
to WHEREFORE, Plaintiff, on behalf of herself, and in the public
ii interest, prays for judgment and relief as follows:
12 1.With respect to the Class claims, a declaration that the
13 action is a proper Class, that Plaintiff be appointed as Class
14 representatives, and that their counsel be appointed as Class
15 counsel;
16 2. For specific performance and/or injunctive relief,
i~ consisting of a temporary restraining order, preliminary
is injunction, and/or permanent injunction preventing defendants
19 from continuing their illegal business practices, and/or
20 compelling defendants to honor their representations,
21 specifically including the prompt implementation of permanent
2z loan modifications, as promised, or pursuant to an appropriate
23 loan modification standard or formula (such as HAMP);
24 3.In the alternative, and where appropriate, rescission and/or
25 restitution, or other appropriate equitable or statutory relief;
26
Page 72 of 74
27
28
i for general, compensatory and consequential damages in an amount
z to be determined according to proof at the time of trial;
3 5.For interest at the highest legal rate commencing from the
4 earliest date allowed by law;
5 6. For costs of suit incurred herein;
6 7. For reasonable attorney fees pursuant to the Rosenthal
Action (Civil Code ~1788.30(c) & 1788.17), the common fund
s doctrine, the substantial benefit doctrine, the private
9 attorney general doctrine (including Code of Civil Procedure
io Section 1021.5), and to the extent authorized under any
11 borrowed statute upon which Plaintiff' Business & Professions
12 Code Section 17200 et seq. claims are based;
13 8. For punitive damages, on the fraud cause of action; and
14 9. For such other and further relief as the Court may deem just
15 and proper.
16
17
1s DATED: ~ ~ , BY
19 Francisco Diaz & Socorro
20 Diaz
2i
Zz i 1; • ~+u%:~~~■~
23
24
25 Plaintiff, hereby demand a trial by jury.
26
Page 73 of 74
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3 DATED:~ Z ,~ (m BY
4 Francisco Diaz & Socorro Diaz
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Page 74 of 74
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~~ ~~
~~ ~~
Francisco Diaz
3191 Fo~deil Lane
Riverside Ca,92509
Phone:(951)685-2830
~~~~ ~p~
From Francisco Draz

Ta Platinum Capital Group
~~21- ~ ,a~,;i 2s,Zoos
F~ ~s4s> ~~~soo t~~`1 ~
ee)
Pte:~ ~na~a~ns comert
~+~:~s~as~ ~~-osao
CC: Aaron Hi(I(714)832-9810
Ree Loan number21~4746
❑ PMsss Reply ❑ Piase R~eyoN
❑Rom Re~vf~v ~ Please Comment
~ U~s~►t
•corn~nents: Dear Don,

ach ed for our loa n nu mb er 27 004746 as we have urrtil m~night
Canceilafion forms att knowrrf you
sd ay Apr i! 27 , 20 05 to can cel process of loan. Please let me
Wedne
should need anything else.
Case 5:16-cv-01518-JGB-DTB Document 1 Filed 07/12/16 Page 78 of 83 Page ID #:78 ~~~1C
Z
Platinum Capital Grroup

Dear Platinum Capital Group,
Loan number: 21004746
I Francisco Diaz wish to cancel the process of refinance.

Enclosed you will find the cancellation form signed and dated.
Please let me if you should need anything else. Please inform me

when you receive this xequest.
Francisco Diaz
(951)685-2830
3891 Fox Tail Lane.
Riverside, Ca 92509
~~
,~..
-~
Case 5:16-cv-01518-JGB-DTB Document 1 Filed 07/12/16 Page 79 of 83 Page ID #:79 1
N OTICE O~ RIGHT TO CANCEL

Loan Number: 21004745
DIAZ
Borrowers: FRANCISCO DIAZ, SOCORRO
RIVERSIDE, CALIFORNIA 92509

PropertyAddress:3891 FOX TAIL LP,NE,
YOUR RIGHT TO CANCEL

mortgage, lies or security interest on or is your home. You have
You are entering into a transaction that will result is a without cost, within three business days from whichever of the
a legal right under fedatal law to cancel this transaction,
following evenks occurs last:
2 05 ; or
1. the date of the transaction, which is APRIL 21, 0
res; or
2. the date you receive your Truth in Lending disclosu
3. the date you receive this notice of your right W cancel.
interest is also cancelled. Within 20 calendaz days after we
If you cancel the transaction, the mortgage, lion or security
the fact that the mortgage, lien or secariry interest on or in
receive your notice, we must take tb~e steps necessary. to reflect
money or property you have given to us or to anyone else
your home has beep cancelled, and we mast ntmn to yon any
in connection with this transaction.
the things mentioned above,but you must then
You may keep aay money or property we1~ave given yon ~mtil we have done to return the property, yon Est offer its
for you
offer to return the money or property. If it is impractical or unfair
value. You may offer to return the propert y at your home or at the location of the property. Money must be
reasonable
or property within 20 calendar days of your offer,
returned to the address below. If we do not take possession ofthe money
you may Beep it without further obligation.
HOW TO CANCEL
at
If you decide to cancel this transaction, you may do so by notifying us in writing,
PLATINITM CAPITAL GROUP
17101 ARMSTRONG AVENUE SUITE 200
IRVINE, CALIFORNIA 92614
Yon may use any written statement that is signed and dated by you aad states your intention to caacal, or yon may use this
your
notice by dating and signing below. Keep one copy of this notice because it contains iuYportant information about
rights.
If yon cancel by mail or telegram, you nmst send the notice no later than midnight of
your
(or midnight of the third business day following the latest of the threw evrnts listed above). If you scud or deliver
written notice to cancel some otbct way, it must be deliver ed to the above address no later than that time.
WISH TO CANCEL.
~ ~G ~~.5~
Consumer's Signattue Date
FRANCISCO DIAZ
ACKNOWLEDGMENT OF RECEIPT
F.A C'H(~F THE iINDERSIGNED HEgggY AG'dQTOWI.EDGES THE RECEIPT OF TWO(2)COMPLETED CpPIES OP
DATE:APRIL 21, 2005

, SOCORRO DIAZ
BORROWER: FRANCISCO DIAZ
CASE #:
LOAN #: 21004772 FORNIA 92509
TAIL LANE, RIVERSIDE, CALI
PROPERTY ADDRESS: 3891 FOX
N OTICE OF RIGHT TO CANCEL
Home Equity Line of Credit
and you have agreed to
to Cancel : We have agreed to establish an open-end credit account for you,
Your Right of your account is
ty interes t in your home as security for the account. If all or~ some portion
give us a securi ("the Purchase Portion"), we
e the downp aymen t for the purchase of the property identified above
used to financ date indicated below in the
Portion of your account prior to the expiration
are permitted to disburse the Purchase
section entitled "How to Cancel." the remainder of the
to cancel the security interest applicable to
You have a legal right under federal law busine ss days after the
chase Portion"), without cost, within three
funds available in your account ("the Nonpur
latest of the following events:
04/21/2005 ; or
1. the opening date of your account which is
in-L ending disclosures; or
2. the date you received your Truth-
notice of your right to cancel the account.
3. the date you received this subsequently
es any funds from the Purchase Portion that you
The Nonpurchase Portion of your line includ t is being used to purcha se the property
e. If none of the accoun
repay and then use again for some other purpos cancel, your
is the entire amount of the account. If you
identified above, then the Nonpurchase Portion portion. It
Portion and to the security interest resulting from that
cancellation will apply only to the Nonpurchase t we have
se Portion, and it will not affect the security interes
will not affect the amount you owe for the Purcha funds from your
terminate your ability to take additional
in your home for the Purchase Portion but it will to reflect the fact that the
we must take the necessary steps
account. Within 20 days of receiving your notice, chase Portion or cancel led, if
d by the amount of the Nonpur
security interest in your home has been reduce connec tion with reduci ng the securit y
or take any actions in
applicable. If we require you to sign any documents have given to us or to anyon e else
money or property you
interest, you must do so. We must return to you any
in connection with the Nonpur chase Portion .
until we have done the things mentioned above,
You may keep any money or property we have given you
ty. If it is impractical or unfair for you to return the
but you must then offer to return the money or proper
to return the property at your home or at the
property, you must offer its reasonable value. You may offer
s shown below. If we do not take possession of
location of the property. Money must be returned to the addres
may keep_ it without further obligation.
the money or property within 20 calendar days of your offer, you
ng us, in writing, at:
How to Cancel: If you decide to cancel the account, you may do so by notifyi
PLATINUM CAPITAL GROUP
17101 ARMSTRONG AVENUE. SUITE 200
You may use any written statement that is signed and dated by you and states your intention to cancel,
matter how you
or you may use this notice by dating and signing below. Keep one copy of this notice no
notify us because it contai ns import ant inform ation about your :rights .
If you cancel by mail or telegram, you must send the notice no later than midnight of
(or midnight of the third business day following the latest of the three events
Listed above). If you send or delive[ your written notice to cancel some other way it must be delivered to the
above address no later than that time.
WISH TO CANCEL
"/ —~~~
Date
The undersigned each acknowledge receipt of two completely filled in copies of the above Notice of Right to
Cancel.
Farh of tha ~~nrlarsianed has the right to Centel. The exercise of this right by nnA of tha ~~nrlprcinno~ ~tis~~ t,o
NOTICE OF RIGHT TO CANCEL

DIAZ
RIVERSIDE, C~I,IFORNIA 92509

Property Address: 3891 FOX TAIL LANE,

mortgage, lien or seciaity interest on or in yrnn home. Yon have
Yon are entering into a transaction tUat will result in a
n, without cost, within three business days from whichever of the
a legal right under federal law to cancel this transactio
following events occurs last:
;or
or
2. the date you receive your Troth in Lending disclosures;
3. the date you receive this notice of your ii~ght to cancel.
interest is also cancelled. Within 20 calendar days after we
If yon cancel the tcansactwn, the mortgage, lien or security
fact tbat the mortgage,-lien or security interest on or in
receive your notice, we must tale the steps Decessary to reflect the
money or property you have given W ns or to anyone else
your home has been cancellexl, and we must retain to yon any
done the things mentionrd above,but you most then
You may keep any money or property we have given yon until we have
cal or unfair for you to return the property, you must offer its
offer to return the money or property. If it is impracti
or at the location of the property. Money Est be
reasonable value. You may offer W retnm the property at your home
or property within 20 calendar days of your offer,
returned to the address below.If we do not take poss~'eession ofthe money
yon may keep it without further obligation.
HOW TO CANCEL
If you decide to cancel this transaction, you may do so by notifying us in writing, at
17101 ARMSTRONG AVENUE SUITE 200
use this
You may tree any writoen statement that is signod and dated by you and states your intention to cancel. or yon may
Keep one copy of this notice because it contains importan t informat ion about your
notice by dating and signing below.
rights.
If yon cancel by noail or telegram, yon must send the notice no later than midnight of
or deliver your
(or midIIight of the third i~usiness day following the latest of the thrx events listed above). If you send
written notice W cancel some other way, it most be delivere d to the above address no later than that rime.
WISH TO CANCEL.
~`~—_
~;onsumer•s ~Ygnatun
SOCORRO DIAZ
ue r~u nR Tuu Tnvr~uRcrCtNF?T~ ~.~RRggYAC~QTOWLEDGFS TfiE RECEIPT OF TWO(21 COMPT.RTF.1~ f'.nP7F?c nF

NOTICE OF RIGHT TO CANCEL

DIAZ
RIVERSIDE, CALIFORNIA 92509

Property Address: 3891 FOX TAIL LANE,

e, lien or security interest on or in yon home. Yon have
You are entering into a transaction that will result in a mortgag
without cost, within three business days from whichever of the
a legal right under federal law to cancel this transaction,
following events occtirs last:
5 ; or
or
2. the date you receive your Truth in Lending disclosures;
3. the date you receive this notice of your right to cancel.
is also cancelled. Within 20 calendar days after we
If yon cancel the transaction, the mortgage, lien or secariry interest
fact that the mortgage,lien or security interest on or in
receive your notice, we Est take the steps necessary to reflect the
awney or property you have given to us or to anyone else
your home bas been cancelled, and we must return to yon any
tlu things motioned above,but you must then
You may kcep any money or property we have givtn yon until we have done
or unfair for yon to retain the property, yon must offer its
offer to retuirn the money or property. If it is impractical location of the property. Money must be
the property at your home or at the
reasonable value. You may offer to return
or within 20 calendar days of your offer,
reiurAed to the address below.If we do not take possession ofthe money properiy
yon may keep it without further obligation.
HOW TO CANCEL
If you decide to cancel this transaction, you may do so by notifying us in writing, at
17101 ARMSTRONG AVENUE SUITE 200.
You may use any written statement that is signed and dated by yon and states your intention to cancel. or you may use this
notice by dating and signing below. Keep one copy of this notice because it contains important information about your
rights.
If you cancel by mail or telegram. yon nmst send the notice nn later than midnight of
(or midnight of the third business day following the latest of the three events listed above). If you send or deliver your
written notice to cancel some other way, it Est be delivered to the above address n~o later than that time.
WISH TO CANCEL.
Consumer's Signature Date

SOCORRO DIAZ
r~ n ru nu ~ruQ r n~muv crr~vu~n r~ppppY A C:KNAWi_SDGFJS THE R$CEIPT OF TR7l)(21 C'.!'1MPT .RTR11 Mvrac nu
NQTICE OF RIGHT TO CANCEL

Borrowers: FRANCISCO DIAZ, SOCORRO DIAZ
CALIFORNIA 92509
Property Address: 3891 FOX TAIL LANE, RIVERSIDE,

interest on or in your home. You have
You arc entering into a transaction that will resalt in a mortgage, lien or secoriry
within three business days from whichever of the
a legal right under federal law to cancel this transaction, without cost,
following events occurs last:
1. the date of the transaction, which is APRIL 21, 2005 ; or
2. the date you receive your Troth is L ending disclosares ; or
3. the dau you receive this notice of youir right W cancel.
Within 20 calendar days after we
If you cancel the transaction, the mortgage, lien or secarity interest is also cancelled.
necessary W reflect the fact that the mortgage, lien or security interest on or in
receive your notice, we nm~st take the steps
you have given to ns or to anyone else
your home has been cancelled, and we Est return to you any money or property
mentioned above, but you nmst then
You may keep any money or property we have given yon until we have done the things must offer its
property, you
offer to return the money or property. If it is impractical or unfair for yon W return the
properly at yota home or at the location of the property. Money must be
reasonable vahie. You may offer to retarn the
caltndar days of your offer,
returned to the address below.If we do not take possession ofthe money or property within 20
you may keep it without further obligation.
HOW TO CANCEL
If you decide w cancel this transaction, yon may do so by notifying us in writing, at
17101 ARMSTRONG AVENETE SUITE 200
You inay use any written statemcat that is sued and dated by you and states your intention to cancel, or you may use this
notice by dating and signing below. Keep one copy of this notice because it contains important inforimation about your
rights.
If you cancel by mail or telegram, yon Est send the notice no later than midnight of
(or midnight of the third business day following the latest of the three events listed..above). If yon send or deliver your
written notice to cancel some other way, it must be delivered to the above address no later than chat lime.
WISH TO CANCEL.
Consumer's Signature ~ Date

FRANCISCO DIAZ -
F.A C'.FT nF TNR T TNDF3RSTGNED F~TREBY AQ{NOWLEDGES THE REC'FSfPT nR TWn Ill M1~fD7 R~rRT rnvraC nu

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Case 5:16-cv-01518-JGB-DTB Document 1 Filed 07/12/16 Page 1 of 83 Page ID #:1

~~I6 Jl~! 12 ~~ ~i~ 3~+

Socorro Diaz & Francisco Diaz,

a Plaintiffs, ~~ COMPLAINT FOR VIOLATION

i~ Investments II, Inc., Mortgage j

is Pass thorough Certificates j

19 Series2005-AR8; Nation star ~

20 Mortgage; Continental HL-011 ~

zi Trust; Rafael Perez; Quality j

22 Loan Servicing, Platinum ~

23 Capital Group and Does 1 ~

24 through 100 Inclusive. ~

3 and on behalf of all other Persons similarly situated and in

4 the public interest, hereby allege as follows as against

Trustee for Structured Asset Mortgage Investments II, Inc.,

9 Mortgage Pass thorough Certificates Series2005-AR8; Nation star

io Mortgage; Continental HL-011 Trust; Rafael Perez; Quality Loan

ii Servicing, and Does 1 through 100 Inclusive.:

15 and a Class of all similarly situated consumers pursuant to a

16 variety Of California statutes, including the Consumers Legal

21 and/or Assignees In Interest; The Bank of New York Mellon as

22 Trustee for Structured Asset Mortgage Investments II, Inc.,

Inclusive., are in the business of servicing mortgage loan on

z behalf of lenders and investors, including "pooled" mortgage-

3 backed security investments.

s Investments II, Inc., Mortgage Pass thorough Certificates

9 Series2005-AR8; Nation star Mortgage; Continental HL-011 Trust;

I 4. a. repeatedly failing to grant, implement, or consider in

15 good faith or in a timely manner, b. Plaintiff' requests for

16 loan modifications, including misrepresenting the requirements

20 interim debtor payments as a "condition" for promised permanent

2i loan modifications, under temporary modifications c. or Trial

22 Period Plans ("TPPs"), without any reasonable basis to believe

modifications or even to consider the borrowers' applications as

2 promised; systematically and continually erecting artificial

3 obstacles in the loan modification process (such as repeatedly

9 rejecting applications on grounds that submitted documents

15 unlawfully applying mortgage payments or otherwise holding

16 payments in "suspense accounts," resulting in improperly

21 existing mortgage payments purportedly as a prerequisite to

22 qualifying for a loan modification, thereby subjecting such

foreclosure, risk of foreclosure, late payment fees or

2 penalties, and negative references on credit histories;

3 7. Inducing borrowers to participate in temporary

s then reporting borrowers as delinquent to credit reporting

9 agencies, thus destroying their credit and leaving borrowers at

15 and, knowingly and intentionally maintaining a system of

16 employee compensation incentives that assured employees would be

20 hoax, GB Inland Properties, LLC and/or Its Successors and/or

21 Assignees In Interest; The Bank of New York Mellon as Trustee

22 for Structured Asset Mortgage Investments II, Inc., Mortgage

and Does 1 through 100 Inclusive, have induced consumers,

z including Plaintiff, to continue making excess or other

3 unjustified payments in pursuit of illusory permanent loan

9 I Pass thorough Certificates Series2005-AR8; Nation star Mortgage;

io Continental HL-011 Trust; Rafael Perez; Quality Loan Servicing,

15 resources); and have avoided the need to liquidate excessive and

16 under-valued real estate inventory, whether REO or otherwise

through escalated loan servicing fees. Under defendants'

21 Pooling & Servicing Agreements, they receive a higher fee per

22 loan for servicing delinquent or distressed loans. ATTACHED ON

(canceled loan 04/26/2005 lender prior to date indicated in which

2 mortgage company continued loan anyway. Property was four

3 different lots in which only one lot was suppose to be