(DISCLOSURE: This article is not intended to be construed as legal advice. Seek advice from a licensed attorney in your jurisdiction regarding any of the information provided below.)
Thanks to the aggressive prosecution and discovery efforts put forth by Attorney Freshman and his team, the answer has now been revealed. JPMorgan Chase’s counsel has stipulated in paragraph #8, “Investor code AO1 in the Loan Transfer History File represents WaMu Asset Acceptance Corporation.”
Folks, I have opined against Chase for years now that this investor code does not signify “banked owned” loans on the “books of Washington Mutual Bank,” but rather a securitization subsidiary of Washington Mutual, Inc. I’ve been attacked by Chase who has argued vehemently that my opinion is simply dead wrong, and has sought to have my testimony stricken. Well it appears as though I’ve now been vindicated! This stipulated fact runs contrary to Chase’s long standing position, in thousands of foreclosures across the United States, that it acquired “AO1” loans because they were “on the books” of “Washington Mutual Bank” per the Purchase & Assumption Agreement (PAA) with the FDIC. This has been a lie, as these “AO1” loans could not have been a part of the PAA due to the sale and securitization of said loans by WMB through its “off-balance sheet activities.” More so, Chase’s use of the FIRREA argument against homeowners for loans not on WMB’s books may have suffered a tremendous blow here.
It has long been my opinion that testimony put forth by Chase witnesses, like the following by Peter Katsikas, have been downright false. Again, more vindication. Here’s what Katsikas had to say under oath regarding investor code “AO1”:
PETER KATSIKAS,
called as a witness, having been duly sworn, testified as follows:
(Beginning – P. 43):
Q. And do you know whether or not at the time of the acquisition of the assets that are identified in the purchase and assumption agreement with the FDIC to Chase dated September 2008, did it include a list of the loans that Chase was acquiring?
A. I mean, I didn’t see an actual list, but there’s — it’s in the system. It’s in the MSP servicing — that’s a system the bank uses to service the accounts.
Q. Is it your testimony that the Freeman loans were owned by Washington Mutual F.A. at the time the bank failed?
A. Yes.
Q. Is it your testimony that Washington Mutual Bank or some subsidiary of the bank was not servicing those loan at the time?
MR. HERMAN: Can you read that back, please.
(Question read)
MR. HERMAN: At what time?
MR. WRIGHT: Prior to September 25, 2008, between the time they were made and September 25, 2008.
A. The servicer was Washington Mutual F.A.
Q. Okay. Was there an investor?
A. It was bank-owned. It’s always been bank-owned.
Q. It’s always been bank-owned?
A. Correct.
Q. And you know that because?
A. I reviewed Chase’s books and records.
Q. What in the books and records would indicate to you that it was
bank-owned versus not bank-owned?
A. Well, they’re through the investor screens and also the ID codes,investor ID codes.
Q. Okay. And the ID codes are letters, aren’t they?
MR. HERMAN: Objection.
A. They consist of letters and numerals.
Q. Okay. And what letters would indicate an investor?
A. There’s three digits or three characters.
Q. Two letters and a number?
A. No, it could be a mixture of.
Q. So what three characters — well, let’s put it another way. What characters would indicate a Chase-owned asset — a WaMu-owned asset?
Excuse me.
A. For these two loans?
Q. Yes.
A. AO1.
Q. AO1?
A. Yeah.
Q. And that AO1 stands for what?
A. That’s just the three digit code, which is bank-owned.
Q. AO1?
A. Uh-huh.
(Recess)
Katsikas Depo Transcript
Bill Paatalo – Private Investigator – OR PSID# 49411 BP Investigative Agency, LLC P.O. Box 838 Absarokee, MT 59001 Office: (406) 328-4075 bill.bpia@gmail.com One Responseto “WaMu Investor Code “AO1” Revealed – Chase Stipulates It Represents “WaMu Asset Acceptance Corp.””
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