hallinan dep 1

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EXHIBIT 4

Excerpts from March 3, 2009 Deposition of Francis S. Hallinan

(Hallinan deposition I)

Case 1:09-cv-01710-JHR-JS Document 31-8 Filed 09/08/2009 Page 1 of 37


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1 Q. I would like to turn, then, to the

2 events leading up to the execution of the

3 Assignment in this case, Hallinan-3.

4 Could you describe for us, please,

5 the process by which the firm becomes involved in

6 the matter and leading up to the preparation of

7 the Assignment in this case?

8 A. I will speak generally about a

9 foreclosure as I was not the assigned attorney

10 overseeing this particular foreclosure file.

11 At some point in time, the

12 Mortgagors, Victor and -- I don't even know how to

13 say her name. I'll spell her first name.

14 E-N-O-A-B-A-S-I. Their last name is Ukpe,

15 U-K-P-E -- defaulted on their mortgage obligation.

16 There would be in-house collection efforts by the

17 mortgage servicing agent to try and bring the loan

18 current. And after a certain period of time, the

19 mortgage servicing agent, if unsuccessful, would

20 refer the file out to foreclosure counsel.

21 The decision was made by the

22 mortgage servicing agent to refer this matter to

23 Phelan Hallinan & Schmieg. A physical file would

24 be opened. Some quick title work would be ordered

25 against the property, 717 South Seventh Avenue,



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1 Galloway, New Jersey. That title work would be

2 returned to the law firm. The law firm would then

3 analyze that title work and compare it to the

4 client's referral.

5 In this instance, the referral

6 indicated that the Plaintiff should be Bank of New

7 York As Trustee. The title work, however,

8 indicated that the last holder of the mortgage was

9 MERS, a Nominee for America's Wholesale Lenders.

10 Therefore, an Assignment of Mortgage would need to

11 be prepared, executed and recorded, transferring,

12 showing everyone that the mortgage was assigned

13 from MERS into Bank of New York As Trustee.

14 This document would be prepared. It

15 would then be presented to me and I would execute

16 the document.

17 (Discussion off the record.)

18 MR. MALONE: Could I have this

19 document marked as an exhibit, please?

20 Can I have a group of documents

21 marked that were provided in Discovery?

22 (Exhibit Hallinan-4 marked for

23 identification.)

24 BY MR. MALONE:

25 Q. Mr. Hallinan, I now show you a group



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1 of F & P remains, yes.

2 Q. The number 2736, does that indicate

3 that's the 2,736th referral involving Countrywide

4 Home Loans?

5 A. I do not know the answer to that

6 question. I do not know how that number is

7 assigned to the file.

8 Q. Proceeding with your description,

9 then, of how the process unfolds leading up to the

10 preparation of the Assignment, what documents

11 would you look at next in Hallinan-4 for

12 identification?

13 A. Based upon a referral, our firm will

14 then order some Quick Title Search work done on

15 the specific property, 717 South Seventh Avenue,

16 Galloway, New Jersey, Atlantic County.

17 Q. And from whom do you order that

18 title search work?

19 A. Full Spectrum -- or Full -- yeah.

20 Full Spectrum Legal Services.

21 Q. And is that title search, is that

22 included in the fee we discussed earlier for

23 preparation of the Assignment, the recording, the

24 Acknowledgment, or is that a separate fee?

25 A. No. That's separate and distinct.



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1 Q. And how much is the title fee in a

2 case such as this case or is there a range?

3 A. There would be a range, based upon

4 the client. That range can vary anywhere from I

5 believe $200.00 to $325.00, possibly $350.00.

6 Q. And can you tell us how that title

7 search is accomplished? Is it done within Full

8 Spectrum Legal Services or does Full Spectrum

9 Legal Services contract it out?

10 MR. BERNHEIM: Or a combination

11 thereof.

12 Q. Or a combination thereof?

13 A. Full Spectrum Legal Services has

14 abstractors throughout the states of Pennsylvania

15 and New Jersey. In New Jersey, I believe they

16 have approximately ten abstractors that have one

17 courthouse to cover or perhaps up to three

18 courthouses to cover, based upon their territory

19 and the volume of foreclosures in those counties.

20 An internal employee at Full Spectrum will receive

21 an order from the law firm and will request that

22 the abstractor abstract the title and respond back

23 with a Quick Search and/or a title report on the

24 property that is to be foreclosed upon.

25 Q. In the case where you use an



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1 same rate to the law firm.

2 Q. And I'm asking you to generalize.

3 Generally, does a law firm accomplish a markup for

4 this service?

5 MR. BERNHEIM: Object to the form of

6 the question.

7 A. The law firm has an agreement with

8 the clients as to what it will -- as to what the

9 client will pay for title work.

10 Q. And does the law firm then try and

11 go out and get a title searcher who will work for

12 less than what the client is giving the law firm?

13 That's simply my question.

14 So, does the firm make a profit on

15 it?

16 MR. BERNHEIM: Object to the form of

17 the question.

18 A. The firm is paid for its services.

19 Is a profit made in abstracting title? Yes.

20 Q. Approximately, if a title agent is

21 asked to do services and bills at an amount -- let

22 me try it again.

23 Let's take this case.

24 Do you know if, in this case, a

25 title agent was used or was all the title work



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1 A. I do.

2 Q. Do you have any reason to dispute

3 his characterization of what he did; that is,

4 seeing if he recognized the signature?

5 A. No.

6 Q. The particular Assignment of

7 Mortgage in this case, the first page, if I can

8 invite your attention to it.

9 A. Sure.

10 Q. And the first line says, "For value

11 received, Mortgage Electronic Registration

12 Systems, Inc., as a Nominee for America's

13 Wholesale Lender, its successors and assigns."

14 I'll stop there.

15 The first question I have is what

16 value did MERS receive?

17 A. I don't know.

18 Q. Do you know if in fact there was any

19 value exchanged?

20 A. I don't know.

21 Q. Continuing on down about a little

22 more than halfway down the page -- well, not that

23 far down. That first full paragraph.

24 After identifying to whom the

25 Assignment is made, Bank of New York, and the



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1 He's given you a fairly detailed

2 explanation as to the information that Mr. Strain

3 possessed.

4 MR. MALONE: Fine. I would like an

5 answer to that question.

6 A. I don't know if I appeared exactly

7 before him on March 14, 2008. I don't know. I

8 don't recall. I've indicated time and time again

9 in this deposition how I customarily executed

10 these documents and the process by which Mr.

11 Strain would notarize the documents.

12 Q. Mr. Strain's deposition talked about

13 a stack of assignments being brought to him in his

14 office and him notarizing up to 50 a day, without

15 the Assistant Secretary and Vice President being

16 -- of MERS, being present.

17 Do you have any reason to dispute

18 his recollection of the process used for signing

19 Assignments, including the Assignment in this

20 case?

21 MR. BERNHEIM: Again, objection.

22 It's a mischaracterization of Mr. Strain's

23 testimony, taken out of context. It's also an

24 inappropriate question for a deposition.

25 You're asking him to adopt your,



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1 what I submit, is a misread of the deposition

2 transcript.

3 BY MR. MALONE:

4 Q. Having read Mr. Strain's deposition,

5 do you recall that part of his deposition?

6 A. I do.

7 Q. And my question is having now

8 recalled that part of his deposition, do you have

9 any reason to dispute it?

10 A. As I indicated previously, there

11 were occasions when documents would be messengered

12 over to Mr. Strain to notarize when I wasn't

13 standing in front of Mr. Strain. I have no reason

14 to dispute that fact. There were absolutely

15 instances like that, yes.

16 Q. All right. From a series of your

17 answers previously, I understand your recollection

18 is that there were times when the Acknowledgment

19 process took place while you and Mr. Strain were

20 together in the same place and while Mr. Strain

21 was -- while you were signing the document and

22 then he was acknowledging it and placing his seal

23 on it; is that correct? That happened some of the

24 time?

25 A. Yes. Were there instances when he



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hallinan dep 1

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