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    HSBC MATTER PUT TO VOTE

    DO YOU KNOW IF THE INVESTORS WANT YOUR LOAN MODIFIED?

     

    Homeowners are subject to rules and whims of securitization participants with no actual idea of what the rules are or if they are followed by servicers. At loandatafinder.com we have compiled not only original trust information, but document exception reports, matters put to vote, loan sold in secondary market transactions for pennies on the dollar, claims and lawsuits against the trust by trustees, insurers, and investors, regulatory actions against servicers and securitizers, monthly investor reports, beneficiary EIN tax ID numbers, REMIC registrations, and INV numbers used to identify ownership.  After you identify your loan securitization trust, you be offered all of the documents which relate to that trust.  Don’t play this game without knowing all the rules and the backstory of your loan and securitization trust.  

     

    HERE’S AN EXAMPLE OF MODIFICATION MATTERS PUT TO VOTE

     

    THE LETTER READ

     

    HSBC as trustee for the following series of securitization trusts, put the matter of whether or not to modify loans to a vote of security holders. This was the result and the trust that were the subject of the vote.

     

    As you are aware, on October 5, 2010, HSBC Bank USA, N.A. (“HSBC”), as trustee (the “Trustee”) for each of the trusts listed in the table below (the “Trusts”), sent either (i) solely with respect to Deutsche Alt-A Securities Mortgage Loan Trust, Series 2006-AR5, the notice of complaint, attached hereto as Exhibit A (“Notice of Complaint”), or (ii) with respect to each of the other Trusts, a request for direction substantially in the form attached hereto as Exhibit B (the “Prior Request for Direction”) requesting each Certificateholder direct the Trustee either (A) to support the ability of OneWest Bank, F.S.B. (“OneWest”) to modify certain mortgage loans it services on behalf of the related Trust (the “Mortgage Loans”); or (B) to oppose OneWest’s ability to modify the Mortgage Loans in connection with the Amended Complaint (as defined in the Prior Request for Direction) filed by OneWest. The table below sets forth the direction the Trustee received from the certificateholders for each of the Trusts.

     

    Trust                                                                                                     Support        Oppose

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2006-AF1      51.47%        16.60%

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2006-AR1      45.60%        12.83%

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2006-AR5      34.64%          2.11%

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2006-AR6      35.09%          9.34%

    Deutsche Alt-B Securities Mortgage Loan Trust, Series 2007-AB1        0.00%          0.00%

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-AR1      24.04%        15.81%

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-AR2      26.92%          0.05%

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-AR3      50.77%        19.60%

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-BAR1   71.71%          2.45%

    Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-OA2      16.38%       24.94%

     

    On November 11, 2010, the Trustee filed its Answer to the Amended Complaint, a copy of which is attached hereto as Exhibit C. As expected, on December 7, 2010, OneWest filed papers on a motion for summary judgment (the “Summary Judgment Motion”). The Memorandum of Law in Support of Plaintiff OneWest Bank, FSB’s Motion for Summary Judgment (the “OneWest Brief”) is attached hereto as Exhibit D. The other papers in support of the motion are available on request from the Trustee. The deadline for responses to the Summary Judgment Motion is presently January 21, 2010.

     

    Certificateholders in all but one of the Trusts from which responses were received expressed support for modifications. Even in the one Trust in which modifications were opposed the close voting means that the Trustee lacks clear directions to oppose.

    Given these results and the more than plausible arguments made by OneWest, HSBC will neither support nor oppose the Summary Judgment Motion. If you believe that the granting of the Summary Judgment Motion would be in derogation of your rights, you may want to explore with your legal advisors whether there are ways to make your views known directly to the court.

    Questions or requests for additional information, including for copies of the papers on the Summary Judgment Motion beyond the OneWest Brief, may be directed to Alexander Pabon at 212-525-1540 or via email at alexander.x.pabon@us.hsbc.com

     

    Dated: December 28, 2010

    HSBC Bank USA, National Association, as Trustee for the Trusts

     

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