if you go down to the woods today...

Things were moving along at the usual snail's pace, when all of a sudden, a letter from Harold Piddlemeyer of Fannie Mae goosed the snail. An "accurate accounting" was finally done (it only took seven months), and cleared us of all allegations by OBI and NBI. An internal "resolution" between New Bastards Inc. and Old Bastards Inc. was finished, and it was time to start working on the terms of settlement. Of course, now that a settlement was in the works, NBI and Fannie couldn't move fast enough. They wanted their money (the seven payments I had put in a segregated account) and they wanted it yesterday. Unfortunately, I was nowhere close to finding my way out of the Mortgage Miasma Woods.

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January 13, 2011

Harold A. Piddlemeyer
Associate General Counsel
Fannie Mae - Legal Department
Re: My Clients: H and G Innocent
Address: XXXXX
Phoenix, Arizona
Loan #: XXXXX
Your Acct: XXXXX

Dear Mr. Piddlemeyer::

I write to confirm our conversation today about the Note Fannie Mae holds on the Innocents’ home in Phoenix. You indicated that neither Fannie Mae nor its loan servicing agent New Bastards Inc. (NBI) would initiate an action to foreclose the deed of trust that secures the note before NBI provides the Innocents an "accurate accounting” reflecting their documented payments on the note. You anticipated that the accounting will be produced by NBI on or before January 21, 2010.

Presumably Fannie Mae will furnish my clients a reasonable time to review the accounting for accuracy and to discuss/effectuate a settlement. The Innocents have acted expeditiously throughout, furnishing NBI proof of payment in the form of copies of cancelled checks etc. In contrast NBI has failed to timely produce an accurate accounting. From personal experience it takes a while to compare a NBI ledger to payments evidenced by cancelled checks. You requested that I contact my clients to confirm that they had set aside funds. I spoke with Mr. Innocent today and he confirmed the funds had been set aside from July 2010, the date NBI sent the Innocents the grossly inaccurate default notice.

Please call me immediately if I have misunderstood the substance of the conversation. Thank you, Mr. Piddlemeyer, Ms. Mensdick and Fannie Mae for your attempts to expeditiously address and resolve this matter. It is a welcome change to the NBI run-around.

Sincerely,

Jon Goodshepherd

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January 19, 2011


Jon,

I have been advised that as of this afternoon there has been an internal resolution of the disputed payments received by New Bastards Inc., (NBI) and the predecessor servicer, Old Bastards Inc. (OBI).

It appears that the borrowers will be brought current by NBI if the payments withheld (June through January) can be timely submitted to them. Please confirm that the funds withheld by the borrowers are in an account and immediately available to bring the account current. If so, when and how will they be transmitted to NBI?

I appreciate your cooperation and hope that we can resolve any remaining issue in the next few days.

Attached is the proposed settlement from NBI for your client's consideration.I will forward by separate e-mail your comments about the apparent forced flood insurance policy for their comments.

Please advise me of how soon your client will be prepared to tender the outstanding funds.


Harold A. Piddlemeyer

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January 20, 2011

Harold,

It appears we are making progress, but, still have two remaining issues. *1. Resolution of The Innocents Uncredited Payments.* Attached is the check I referred to in our T/C a few minutes ago. That amount should be credited to the Innocents to reduce the amount due, for the June to January (loan payment) total you proposed previously.

*2. Resolution of the Forced Flood insurance NBI purchased at more than double ($1,325.25) the annual amount paid on 11/20/09 for 2010 coverage ($571.00).* The issue might be resolved expeditiously by allowing the Innocents to purchase their own coverage and obtain a prorate reduction of the New Bastards Inc. (NBI) policy. To that end I called the customer service number listed on the certificate expecting to speak with a representative of an unrelated insurer, Rump Rider Insurance Corporation. Instead I got a NBI customer service representative who refused to state, on "privacy grounds", whether the policy could be canceled on a simple pro-rata basis. She declined to speak with William Asshat Jr. or Areola Humperdink at NBI to verify I represented the Innocents. Consequently could Fannie Mae:

(1) Obtain confirmation from its Loan Servicer, NBI, that the "Rump Rider/NBI" Flood Insurance policy may be canceled with a simple (no penalty) pro-rata premium reduction, if the Innocents produce a certificate from another carrier.

(2) Obtain a detailed explanation from NBI as to why they purchased a policy with limits at double the amount of the loan and double the FMV of the subject property. Unless the Deed of Trust specifically requires it, it seems pointless to insure for more than the amount of the note or the current FMV of the property; (3) Please have NBI outline the specific requirements for a qualifying Flood Insurance Policy. This will enable the Innocents to obtain an accurate quote and to submit a policy that complies with the loan documents.

Because I'm an optimist, I'll begin to draft a settlement agreement, for your review. Fannie Mae will want a Cashiers Check or like instrument. NBI promises to correct/withdraw any negative credit information furnished to a credit reporting agency related to this dispute.

Jon Goodshepherd

cc Client