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INTRODUCTION
This is an action by Deutsche Bank National Trust Company
("DBNTC") as trustee of more than 240 mortgage securitization trusts (each one a
t
"Trust," and collectively the "Trusts" ) created by IndyMac Bank, F.S.B.
("IndyMac"). As more fully set forth herein, IndyMac breached its promises to the
Trusts before it failed and was placed in receivership with the Federal Deposit
Insurance Corporation (the "FDIC" ) in 3uly of 2008. DBNTC brings this action
against the FDIC as a successor to IndyMac in several capacities as described
10 below. This Court has subject matter jurisdiction over this action pursuant to inter
alia, the Constitution of the United States, 28 U.S.C. ) 1331, 12 U.S.C. )) 1819(a),
1819(b)(2)(A) and 182 1.(d)(6), 28 U.S.C. ) 1367, and. 28 U.S.C. II 1349.
2. Thi s action follows the FDIC's disallowance of an
admin
istrative
proof of claim filed with the FDIC in the receivership by DBNTC as Trustee on
behalf of Trust investors seeking essentially the same relief requested herein.
3. I nd y M a c created substantially all of the Trusts at issue in this action
and did so in a manner designed to make itself the dominant actor in the creation
and ongoing management of the Trusts' assets. IndyMac originated or acquired the
mortgage loans that became the principal assets of the Trusts, caused the I rusts to
20 be formed, made promises about the quality and servicing of the mortgage loans,
se>w iced the mortgage loans bef'ore and after their sale into the I'rusts, promised to
handle the defective mortgage loans, and performed duties for the 'Trusts. In doing
so, IndyMac promoted the benefits of having a single entity handle all of these
functions..
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property of the Trusts without just compensation and without due process of law.
6. A ft e r assuming IndyMac's rights and obligations related to the Trusts,
the FDIC purported to split the rights and obligations into pieces and to sell the
rights, while making no provision for many of the obligations. This purported
partial transfer extracts the benefIts of IndyMac's contracts related to the Trusts,
while attempting to avoid the obligations central to IndyMac's promises to!he
1 rusts and their investors. It also destroys the promised value of having a single
entity operate at the center of the Trusts. These actions therefore violated
THK PARTIES
20 8. Pla i n tiff DBNTC is a national banking association organized under the
laws of the United States of America to carry on the business of a limited purpose
22 trust company, and is a member of the Federal Reserve System. DBNTC's main
office and principal place of business is located at 300 South Grand Avenue, Suite
3950, Los Angeles, California, 90071-3175, and a site of its trust administration is
located at 1761 East St, Andrew Place, Santa Ana, California, 92705.
referred to hereinafter as the "Trustee" ) under the governing agreements and any
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manifesting the express intention to create a trust and setting forth the subject,
purpose, and beneficiaries of the Trusts. The 'I'rustee therefore brings this action
pursuant to Federal Rule of Civil Procedure 17(a)(1)(E) as the trustee of an express
trust for the benefit of the Trusts and the Trusts' investors.
13. O n i nformation and belief, the Trusts' investors include state and local
governments, federal government-sponsored entities, retirement plans (such as the
Police k I ire Retirement System of the City of Detroit and the Orange County
Public Employees Union Fund), mutual funds, insurance companies, and other
19 investors residing throughout the United States and the world.
14. D e f endant FDIC is an agency of the United States created by the
Federal Deposit Insurance Act, 12 U.S.C. $ 1 8 I i ~
et se . and related taws and
regulations. fhe FDIC acts, &om time to time, as a receiver and/or conservator of
The term "FDIC" refers to the FDIC in all or any of its capacities.
III.
JURISDICTION AND VENUE
17. T h i s action arises under the Constitution andlaws of the United States
and is a suit on a claim submitted to the FDIC pursuant to 12 U.S.C. ) 1821(d)
related to a depository institution with a main office and principal place of business I
located within this district. This Court has subject matter jurisd;ction over this
I
action pursuant to. inter alia, the United States Constitution, 28 U.S.C. g 1331, 12
actions and omissions described herein occurred within this judicial district and
IV.
FACTUAL BACKGROUND
A. In d NIac and Its
Successors
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liabilities of lndyMac Federal,
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26, O n i nformation and belief, on or about March 19, 2009, a purchase and i
assumption agreement and certain related agreements were entered into by and
among: the FDIC as conservator of IndyMac Federal; IMB HoldCo; and One%est
Bank F.S,B. or one or more of its affiliates (collectively '"One%est"). Pursuant to
these agreements, substantially all of IndyMac Federal's assets and liabilities,
including its operational platform, its personnel, and some, but not all, of the assets
relating to all but three of the Trusts were purportedly transferred to and assumed
by OneYVest.
27. O n M arch 19, 2009, the Director of the OTS, by Order Number 2009-
10 17, removed the FDIC as conservator for IndyMac Federal and made the FDIC the
receiver for IndyMac Federal. The term "conservator" is used in this Complaint to
address both roles the FDIC occupied with respect to IndyMac Federal to avoid
confusion with references to the FDIC's role as receiver of IndyMac.
8. Th e S e e uritization Trusts
28. P r i or to its failure in July 2008, IndyMac operated as a mortgage
16 securitizer. This means that it originated and otherwise acquired mortgage loans
and then sold the mortgage loans to the I'rusts through one of several limited
purpose intermediate entities (~e s IndyMac ABS, Inc. and IndyMac MBS, Inc.)
19 that were formed and controlled exclusively by IndyMac for the sole purpose of'
20 acting as the settlor of the Trusts. On rare occasioos, IndyMac also sold loans to,
and serviced loans for, Trusts sponsored by third parties, All allegations about the
Trusts in this Complaint include the Trusts sponsored by third parties.
23 29. I n d y M a c caused the sett/or of the Trusts to issue and sell to investors
interests in the mortgage loans) were then used to pay IndyMac f' or the!nortgage
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loans that were transferred to the Trusts, and to compensate IndyMac for
31. I n d yMac produced and sold into the Trusts an extensive array of non-
traditional mortgage loan products. Central to IndyMac's success in attracting
loans also be involved in servicing the loans for a number of reasons, including the
assurance that material defects in the mortgage loans could be promptly identified
c. pr o m i sing that the Trusts and the mortgage loans that would be
sold into the Trusts would be serviced by IndyMac, before and after the sale,
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employing the same degree of skill and care that IndyMac employsni servicing
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comparable mortgage loans for itself or others;
d. ma k i ng numerous representations regarding IndyMac's servicing '
process and the manner in which IndyMac would protect, preserve and administer
the Trusts and the underlying mortgage loans;
e. a c k n owledging its ongoing duty to notify other parties-in-interest!
to the Trusts, including the Trustee, of breaches of IndyMac's representations or
I
to the Trusts, including the Trustee, of defective documents with respect to the
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adversely affects the interests of the Trusts' investors or insurers in that mortgage
loan;
h. spe c i f y ing the limited circumstances and manner in which
modifications to the mortgage loans in the Trusts would be permitted;
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i. confi
rmingthat it would perform default management services,
and make certain property preservation advances and advances of principal and
interest, on delinquent loans in the Trusts;
12 one or more Governing Agreements by and among lndyMac, the settlor entity
controlled by IndyMac the Trustee, and certain other parties, such as mortgage loan
insurers and bond insurers. The Governing Agreements establish and regulate the
Trusts and the relationships among the parties-in-interest to the Trusts. The
Governing Agreements include Pooling and Servicing Agreements, Sale and
17 Servicing Agreements, lndentures, Trust Agreements, and related ancillary
agreements.
loans that did not comply with the representations or warranties IndyMac made
with respect to such mortgage loans;
j. mod i f y ing mortgage loans only when those loans v "ere seriously
delinquent and when each proposed modification would benefit Trust investors by
minimizing losses on the modified loan;
k. pro v i d ing accurate and timely reports to the Trustee regarding
the status of the Trusts and the underlying mortgage loans; and
l. ind e m nifying the Trustee for certain fees, costs and expenses
incurred by the Trustee in administering, protecting and defending the Trusts and
the underlying mortgage loan assets.
38. A s compensation for the performance of its duties, IndyMac received
the purchase price ot the loans (which included, in some instances, residual
interests in the Trusts) and also received monthly fees and income from the 'I rusts
based on the aggregate outstanding principal balance of the mortgage loans in each
Trust. IndyMac also retained certain additional fees and income from late payment
charges on the mortgage loans, as well as interest or other proceeds earned on assets
10 held in collection accounts.
39. T h eT r ustee and the Trust investors had the right to, and did, rely on
12 IndyMac's representations that a single entity, IndyMac, would sponsor the
transactions, sell mortgage loans into the Trusts, and thereafter service the Trusts
and the underlying mortgage loan assets unless either (a) IndyMac's rights and
obligations were terminated by them for cause or (b) the Trustee (and, in some
cases, other parties-in-interest to the Trusts ) consented to IndyMac's transfer of its
17 rights and obligations.
40. N e i t her the Trustee nor Trust investors terminated any of IndyMac's
rights and obHgations relating to the Trusts or consented to any transfer of such
20 rights and obligations.
41, T h eG overning Agreement for each Trust provides that the Trustee
shall not be required to expend, advance or risk its own funds or otherwise incur
financial liability in ihe performance of any of its duties thereunder or in the
exercise of any of its rights or powers.
42, T h e T r ustee and ihe Trusts' investors had the right to, and did, rely on
IndyMac's promises to indemnify the Trustee for the fees, costs and expenses
I
43. T h eG o verning Agreements represent an integrated set of contractual
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b. In d y Mac has the full corporate power and authority to sell and
service each mortgage loan, to execute, deliver and perform the Governing
Agreements, and to enter into and consummate the transactions contemplated
thereunder;
any other material agreement to which IndyMac was bound, or (iii) constitute a
material violation of any statute, order or regulation applicable to IndyMac of any
court, regulatory body, administrative agency or governmental body having
jurisdiction over IndyMac (including without limitation the OTS and the FDIC);
!
policv (or certificate of title as applicable) remained in effect on the date of transfer I
by IndyMac into the Trust;
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b. In d y Mac had good title to each mortgage loan and the mortgage
loan was subject to no valid offsets, defenses, counterclaims or rights of rescission
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c. ea c h mortgage loan was secured by a valid first lien on, or a first ',
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perfected security interest with respect to, the mortgaged property (subject only to
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permissible title insurance exceptions, if applicable, and certain other exceptions
described in the Governing Agreement} and the property was free of material I
10 damage;
d. t h ei nformation provided on one or more schedules to the
Governing Agreements regarding the mortgage loans v as true and correct in all
material respects at the time of execution;
14 at the time of origination, there were no delinquent tax or
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Governing Agreements and necessary to enforce the mortgage loans; and
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the Representations and Warranties or seeking remedies for any breaches thereof.
Trustee
obligated to, and by operation of law did, assume all of IndyMac's obligations
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under the Governing Agreements.
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provision for the performance of IndyMac's other obligations to the Trusts and the
Trustee under the Governing Agreements.
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65. I n attempting to sell, and thereby reap the benefits of, the Governing
Agreements without assuming and assigning (or otherwise performing) the related
obligations, the FDIC acted outside the scope of its statutorily defined authority.
66, I n t h e sale to One'II}}/est, the FDIC purported to split unitary contracts
without transferring the corresponding obligations deprived the Trusts and the
lo Trustee of property without due process of law and took private property of the
Trusts and the Trustee without just compensation.
16 from the FDIC about the sale to One%'est, including by making two requests to the
FDIC pursuant to the Freedom of Information Act, 5 U.S,C, ct 552, ~t sect. for
19 71. T o date, the Trustee has not received all of the information it has
requested, nor has the FDIC provided the Trustee with a complete copy of the
One%est sale agreement, together with all of the related agreements, exhibits, and
schedules.
72. A s a result of the FDIC's failure to provide all of the relevant
documents and information, many of the details of the sale to One%est, while
knov } n to and in control of the FDIC, remain unclear to the 'I'rustee,
notwithstanding that the sale affects significant and valuable rights of the Trusts
and thef'rustee.
Trustee that it was formallv repudiating certain of the Governing Agreements for
15 the Radian Trusts pursuant to 12 U.S.C. ) 1821(e), claiming that those Governing
Agreements are "burdensome" and that repudiation would "promote the orderly
17 administration of the institution's flndyMac's ] affairs."
18 77. T h e FDIC has not notified the Trustee or, on information and belief,
any other party in interest to any Trust, that it has repudiated any of the Governing
20 Agreements other than those associated with ihe Radian Trusts.
H. Pro o f of Claim
78. O n October 14, 2008, the Trustee timely filed with the FDIC as
23 receiver for IndyMac a Proof of Claim on behalf of the Trusts and the Trustee
pursuant to 12 U.S.C. |'I 1821(d) (together with all exhibits thereto, the "Proof of
Claim" ), outlining various claims against the FDIC under or related to the
GoverningAgreements.
27 79. 1 he I rustee hereby incorporates by reference as if set forth here in full ~
the entirety of its Proof of Claim, along with the exhibits thereto and materials
herein by reference as if set forth in f'ull, but because thev include confidential and
sensitive information, the Trustee v ould submit the exhibits to the Proof of Claim
under seal if they must be filed.
investors. 'I he claims asserted in these other proofs of claim may be related or
10 supplemental to the claims asserted by the Trustee and the Trusts in this action.
The Trustee hereby incorporates by reference any such proofs of claims, along with
12 the exhibits thereto and any materials referenced therein to the extent appropriate
and/or necessary.
81. I n its Proof of Claim, the Trustee identified the failure of IndyMac and
its successors (including the FDIC in multiple capacities), in contravention of'the
Governing Agreements, to provide access to books and records, and to properlv
notify the Trustee of the ongoing multiple breaches of Representations and
Warranties that were concealed from the Trustee.
82. I n its Proof of Claim and otherwise, the Trustee also requested that it
20 be given reasonable access and time to investigate its claims (the "Requested
Access" ), so thai, among other things, the Trustee could provide more information
to the FDIC in support of its claims.
23 83. I n its Proof of Claim, the Trustee further reserved its rights to amend
or supplement its Proof of Claim and made clear that its Proof of Claim was in no
way intended to waive or release any claim it or the Trusts may have.
84. O n M a rch 31, 2009, without providing or addressing the Trustee's
h4c!tn:;.:.", hb'.e!a te
Trustee's Proof of Claim. A copy of the Notice of Disallowance is attached as
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institution's principal place of business is located or the United States District Court
for the District of Columbia (and such court shall have jurisdiction to hear such
10 claim)" within 60 days. This action is therefore timely and appropriately brought in
this Court.
12
BREACHES AND DAMAGES
A. In d Mac's Breaches Iof
ts R e resentations and %'arranges
86. I n d y Mac breached numerous provisions of the Governing Agreements
87. W i thout li mitingthe generality of the foregoing, and by way of
17 example only, IndyMac committed the following breaches of the Representations
18 and Warranties;
a. Nu m e rous
mortgage loans IndyMac sold into the Trusts did not
comply with IndyMac's credit underwriting standards and origination process,
21 There was "little, if any review of borrower qualifications, including income, assets
and employment," as v;ell as a failure to obtain proper property appraisals(see
Office of the Inspector General, Department of the Treasury, Audit Report,
'"SAFETY AND SOUNDNESS: Material Loss Review of IndyMac Bank, FSB,"
d. T h e origination of many
mortgage loans did not comply with
applicable laws; and
e. M a n y mortgage loans did noi comply v-ith the characteristics set
forth in the schedules to the Governing Agreements.
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which the FDIC was managing its affairs.
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l0 d. in d e mnify the Trusts and the Trustee for ihe liabilities, expenses
and losses associated with the breaches of the Representations and Warranties.
consistently refused to allov the Trustee and, on inf'ormation and belief, such other
Warranties, the Trustee is not aware of all of the breaches that have occurred.
97. O n i n f o rmation and belief, the breaches of Representations and
Warranties more fully described herein have damaged the 'I rusts and ihe Trustee in
26 theapproxim
teaamount of $6 billion to $8 billion or more.
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8. Serv i c ia B e f i ciemies
98. I n d yMac failed to comply with its obligations to service the mortgage
loans in the Trusts in accordance with applicable standards, the Representations and
Warranties, and the other provisions of the Governing Agreements.
applicable standards, the Representations and Warranties, and the other provisions
of the Governing Agreements,
10 100. Without limiting the generality of the foregoing, and by way of
example only, IndyMac and its successors have failed to appropriately service the
mortgage loans in the Trusts by:
a. fai l i n g to notify the Trustee and others, and take appropriate
steps, relating to mortgage loans failing to conform with the Representations and
15 Warranties;
b. improperlystaffing, key functions
fa i l i ng to adequately staff, or
involved in collections on mortgage loans, particularly with respect to delinquent
18 mortgage loans, resulting in collection delays and losses;
c. co n d ucting loss mitigation activities, including loan
20 modifications, that fall below the servicing standard set forth in the Governing
Agreements or otherwise violate the Governing Agreements, including but not
22 limited to: (i) failing to fully or consistently consider borrower assets, recent credit
activity or prior loan purpose; (ii) imposing substantive and procedural biases
against effective remedial activity and in favor of loan modish>cations,
even when
such modifIcations were not reasonably expected to minimize investors' losses on
the mortgage loans; (iii) delaying the initiation of foreclosure proceedings; (iv)
failing to properly preserve property; and (v) conducting loss mitigation activities
with inadequate or improper controls over such activities;
I
10 herein and other breaches by IndyMac and its successors, the Trustee and the Trusts
have incurred, and v ill continue to incur, significant costs and legal expenses,
including attorneys' fees and costs, and face substantial liability for third-party
claims. These third-party claims include, but are not limited to, claims made in
14 civil litigation proceedings against the Trustee and/or the Trusts, including but not
IS limited to the pending litigation and arbitration proceedings relating to the Radian
Trusts and other lawsuits filed against the Trustee and/or the Trusts relating to
Trustee's initial and ongoing obligation and agreement to act as Trustee and for the
investors' purchase of securities issued by the Trusts.
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106. IndyMac failed, and its successors have continued to fail, to comply
fully with their indemnification obligations to the Trustee.
D. Dam a e s From Sale to One%'est
107. Hecause of the breaches by IndyMac and its successors, the Trustee
and the Trusts are entitled under the Governing Agreements and applicable law to
exercise remedies of setoff and recoupment against any rights which IndyMac or its
I
successors have to receive payments or reimbursements from the Trustee and/or the
Trusts.
108. U nder terms of the Governing Agreements, IndyMac and its
10 successors have the right to recover from Trust assets certain unpaid servicingfees
and ce>tain advances previously made by them for the benefit of the Trusts.
I
109. On information and belief, as more fully set forth above, the sale to !
One%est attempted to transfer to OneWest many of the benefits of the Governing
14 Agreements, including the rights to recover amounts from the Trusts as described in i
the paragraph above, without transferring or otherwise assuring the performance of;
all of the related and/or necessary obligations and without expressly transferring the
right of setoff or recoupment that the Trusts and the Trustee would have against
18 those amounts.
described in paragraph 107 above free and clear of the Trusts' and the Trustee's
112. One%'est therefore may contend that the Trusts and the Trustee do not ~
have the setoff and recoupment rights that the Trusts and the Trustee v ould have if
IndyMac or the I.DIC still owned all of the assets transferred to OneWest.
113. The Trustee notified the FDIC of its rights to setoff and recoupment
both in its Proof of Claim and in communications preceding the closing ol the
One West sale transaction.
114. The Trusts and the Trustee are directly damaged by the FDIC's actions
in the One%est sale transaction to the extent that the sale transaction deprives them
VI.
18 CAUSES OF ACTION
19
20 COUNT ONK
PRE-FAILURE BREACH OF CONTRACT
AGAINST FDIC AS RECEIVER OF INDYMAC AND FDIC AS
23 CONSER V A T O R OF INDYM A C FKD K R A I.
24 117, The Trustee incorporates by reference the previous and succeeding
paragraphs of this Complaint as if they were set forth here in full.
118. The conduct alleged above constitutes multiple breaches of contract by !
IndyMac, including breaches of the Governing Agreements.
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127. As receiver of IndyMac, the FDIC is liable for IndyMac's breaches of '
contract arising before the failure of IndyMac.
128. In addition, the FDIC's breaches of the Governing Agreements, and its '
failure to cure IndyMac's breaches, constitute breach of contract and wrongful
((' iS 0
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28 obligations under the Governing Agreements as of approximately July 11, 2008,
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including the obligations to service and administer the Trusts and the mortgage
loans included in the Trusts.
134. Upon assuming IndyMac's obligations, the FDIC was required to cure
IndyMac's breaches of the Governing Agreements.
135. In addition, the FDIC v as required to abide by the Governing
Agreements it assumed. In fact, the FDIC acknowledged its obligation and
represented to the Trustee that it would abide by those agreements by letter dated
September 8, 2008.
136. The FDIC failed to cure IndyMac's breaches of the Governing
Agreements.
137, The FDIC's failure to cure IndyMac's breaches constitutes wrongful
conduct in its administration of the IndyMac Federal conservatorship that gives rise
to a priority right of payment that is superior or equivalent to an administrative
claim under the preference scheme outlined in 12 U.S.C. ) 1821{d)(11).
138. In addition, the FDIC as conservator of IndyMac Federal committed
16 several breaches of the Governing Agreements it had assumed.
139. Without limiting the generality of the foregoing, the FDIC breached
and continues to breach the Representations and Warranties in the Governing
Agreements and also failed to:
20 a. re p u rchase loans that the FDIC knew were subject to material
21 breaches of Representations and Warranties;
b. not i f y the other parties to the Governing Agreements of the
existence of material breaches of the Representations and Warranties
Agreements.
Governing Agreements
give rise to an administrative priority right of payment
under 12 U.S.C. ) 1821(d)(20).
142. As a direct and proximate cause of the FD1C's wrongful conduct and
breaches of contract, the Trusts and the Trustee have suffered significant damages,
10 143. The FDIC is liable for breaching the Governing Agreements during its ~
conservatorship of IndyMac Federal.
144. The Trustsand the Trustee are entitled to an award of damages caused
by the FDIC's failure to cure IndyMac's pre-failure breaches of contract and the
FDIC's post-failure breaches of contract, which are currently estimated at $6 billion
I
15 to $8 billion or more.
145. The Trusts and the Trustee are entitled to recover these damages either
in full or as an administrative priority claim in light of the FDK's willful conduct
18 in failing to cure the pre-failure breaches of contract by IndyMac and in light of the
FDIC ss further breaches of the Governing Agreements during the conservatorship
20 period.
%HEREFORE, the Trusts and the Trustee demand judgment in their favor
against the FDIC as conservator of IndyMac Federal for damages in an amount to
be determined, plus pre- and post-judgment interest, costs of suit, attorneys' fees,
and such other relief as they may be entitled to receive.
COUNT THREE
B REACH OF CONT R A C T FOR SALK TO ONE% E S T
3 AGAINST FDIC AS RKCKIVKR OF INDYMAC F DIC AS
CONSER V A T O R OF INDYM A C FED E RA L AN D FM C liNITS
CORPORATE CAPACITY
146. The Trustee incorporates by reference the previous and succeeding
paragraphs of this Complaint as if they were set forth here in full
One West.
151. On information and belief, the FDIC in its corporate capacity benefited-
from the sale of IndyMac's servicing rights to OneWest because it used the profits
to pay IndyMac ss insured depositors and to protect the deposit insurance fund. 'I'he
evidence of the precise distribution of such assets, however, is in the hands of the
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FDIC and has been concealed from the Trusts the Trustee, and the investors in ihe
Trusts.
MoRGAN, LEPiis 4
disaffirm or repudiate a contract entered into by the failed institution that it deems
8 0<. K I i! '5 L L f
.'Y1t:..'v. '.T L. w
QhP FP.14 DB ''21132 i30. I COMPLAi NT
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burdensome where the repudiation "will promote the orderly administration of ihe
institution's affairs." 12 U.S,C, ( 1821(e)(1).
1 58, As more fully set forth above, the I DIC as receiver of IndyMac
repudiated certain Governing Agreements pertaining to the three Radian Trusts.
159. Pursuant to 12 U,S,C. ) 1821(e)(3), the FDIC's repudiation of these
certain Governing Agreements pertaining to the three Radian Trusts gives rise to a
claim by the Radian Trusts and the Trustee for resulting damages.
160. As a direct and proximate cause of the repudiation by the FDIC, the
Radian Trusts and the Trustee have suffered significant damages and will continue
10 to suffer
such damages.
V'HEREFORE, the Radian Trusts and the Trustee demand judgment in their
favor against FDIC as receiver of lndyjvfac for damages in an amount to be
determined, plus pre- and post-judgment interest, costs of suit, attorneys' fees, and
COUNT FIVE
BREACH OF THE .DUTY OF GOOD FAITH AND FAIR DEALING
17 AGAINST FDIC AS RECEIVER OF INDYMAC AND FDlC AS
C ONSERVA fOR OF INDYMA C FFDE R A L
161. The Trustee incorporates by reference the previous and succeeding
20 paragraphs of this Complaint as if they were set forth here in full.
21 162. Applicable law implies a duty of good faith and fair dealing in the
contracts at issue in this case, including the Governing Agreements.
163, A party breaches its duty of good faith and fair dealing when it
deprives another party to the contract of the essential or material benefits of the
contract.
164. The FDIC as receiver of lndyMac and as conservator of IndyMac
Federal have such a duty of good faith and fair dealing to the Trustee and to the
2g Trusts.
DB2:~1132730.! COMPLAINT
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l 65. The conduct of the FDIC as described herein breached that duty, by
among other things:
WHEREFORE, the Trusts and the Trustee seek judgment in their favor and
against the FDIC as receiver of IndyMac and as conservator of IndyMac Federal for ~
II
COUNT SIX
BREACH OF FIDUCIARY DUTY
AGAINST FDIC AS RECEIVER OF INDYMA C AND AS C ONSERVA T O R
OF INDYiVIAC FEDERAL
20 166. The Trustee incorporates by reference the previous and succeeding
paragraphs of this Complaint as if they were set forth here in full.
167. The FDIC as the receiver of IndyMac and as conservator and receiver
of IndyMac Federal has a fiduciary obligation to manage the assets of the
receivership in a manner that "maximizes the net present value return from the sale
25 or disposition" and "minimizes the amount of any loss realized." 12 U.S.C. 4)
26 1821(d)(3) and 1821(d)(13).
27 168. As a receiver and a fiduciary, the FDIC must act for the benefit of all
".Wtg dr
Mtsg AN, I.;- parieswho may establish rights during the administration of the receivership.
80 Klt::5 LI,P
\ rr. . Iisv" sr t s w
S ar: ra/k c c o D82 2 I I 32730. I COMPf,,AiNT
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preserve the property in its possession, and to act in a manner thai ITIaximizes
potential recovery by those claimants and to allocate the proceeds of such assets
impartially and in accordance with rights established by claimants, and statutory
priorit ies.
170. The FDIC has failed to comply with its fiduciary duties as receiver,
including but not limited to, its duties with respect to the management and
disposition of IndyMac and IndyMac Federal assets, and its treatment of the Trustee
and the investors in the Trusts. The FDIC further breached its fIduciary duties as
receiver by furthering its interests in its other capacities, including in iis corporate
capacity and as the insurer of bank deposits, at the expense of the Trusts, the
'I rustee, and the receivership estate.
171. The conduct by the FDIC described herein in its administration of the
15 IndyMac and IndyMac Federal receiverships gives rise to the personal and
individual liability of the receiver (as opposed to just the assets of the receivership),
17 and a priority right of payment that is superior or equivalent to an administrative
claim under the preference scheme outlined in 12 U.S.C. ) 1821(d)(1 I).
172. As conservator of IndyMac Federal, the FDIC had an obligation either
20 to honor in their entirety the Governing Agreements to which IndyMac Federal
succeeded and to lawfully and properly assign the rights and obligations
22 transferred from IndyMac, or to repudiate these agreements in their entirety. 'I'he
FDIC breached this duty.
1 73. The "I"rusts and the Trustee have suffered damages as a result of the
FDIC' s breaches of fiduciary duty.
174. The Trusts and the Trustee are entitled to recovery of these damages
27 either in full from the funds of the FDIC or as an administrative priority claim in
h1'san;a'J,. t.gw ha g:
lighi of the FDIC's wrongful conduct in failing to properly manage the assets of the
Bt>t.".K it!s hf.,V
. =,! nano! h ' '! : Iv
.sa t's. !.')8":Q!! 32730.! 37 COMPLAINT
Case 2: 9-cv-03852-GAF-FFM Document 1 Filed05/29/09 Page 38 of 68 Page ID 4:38
177. The FDIC's actions described herein violate the Fifth Amendment of
the Constitution.
178. The contractual rights of the Trusts and the Trustee under the
19 Governing Agreements constitute property rights.
20 179. The FDIC exercised government authority under the Financial
Institutions Reform, Recovery Enforcement Act ("FIRREA"), 12 U.S.C, ) 1821, to
sell certain rights under the Governing Agreements to One%'est.
180. By selling rights under the Governing Agreements without also
transferring the associated obligations, the FDIC has: (a) prohibited beneficial uses
and taken, destroyed and deprived the Trustee and ihe Trusts of economically
viable use of ftxed and certain rights under the Governing Agreements; and (b)
frustrated, taken and deprived the Trustee and the Trusts of reasonable investment-
181. The FDIC's actions caused the Trustee and the Trusts to be unable to
profit or obtain a reasonable return on their investments.
182. These actions further harmed the economic interest of the Trustee and
the Trusts to benefit the economic interest of the United States Goveriiment. The
'I rustee and the I rusts should not be forced to bear these burdens for the benefit of
others.
183. By these actions, the FDIC has taken the property of the 'I"rusts and the ;' =
Constitution.
184. The Trusts and the Trustee are entitled to an award of just
compensation for the taking of their property rights pursuant to FIRREA.
18S, Such wrongful conduct by the FDIC in iis administration of the
IndyiVIac receivership gives rise to a priority right of payment that is superior or
WHEREFORE, the Trusts and the Trustee demand judgment in their favor
against the FDIC in all capacities in an amount to be determined representing just
compensation, as well as pre- and post-judgment interest, costs of suit, attorneys'
188. The Trustee's and the Trusts" contractual rights under the Governing
I
Agreements constitute property rights
189. The I DIC exercised its authority under 12 U.S.C. ) 1821. to sell
certain rights under the Governing Agreements to OneW'est
190. Pursuant to the Governing Agreements, the Trustee is the party who
has the right to replace IndyMac as a servicer, This is a valuable right that would
ordinarily bring substantial revenue to the Trustee and the Trusts.
I
I
Agreements without allowing the Trustee to replace and/or appoint the successor
10 servicer, the FDIC has: (a) prohibited beneficial uses and taken, destroyed and
deprived the Trustee and ihe Trusts of economically viable uses of its rights under
the Governing Agreements; and (b) frustrated, taken and deprived the Trustee and
the Trusts of reasonable investment-backed expectations of their property.
i
I
192. The FDIC's actions caused the Trustee and the Trusts to be unable to
IndyMac. The Trustee and the Trusts should not be forced to bear these burdens for
19 the benefit of others.
20 194. By these actions, the FDIC has taken the property of the Trusts and the
21 Trustee without just compensation in violation of the FiAh Amendment to the
Constitution.
23 195. The 'I rusts and the Trustee are entitled to an award of just
compensation for the taking of their property rights under the Governing
Agreements pursuant to F IRREA.
196. Such wrongful conduct by the FDIC in its administration of the
Mo;-."afa, I.atvts d;
28
itttc Kit.s I,I..F
it i'rioaai ss ar LA'A
S . a sfls.; i s ( ro DB2'21)32730 I 40 COMpi AWr
Case 2: 9-cv-03852-GAF-FFM Document 1 F i led 05/29/09 Page 41 of 68 Page ID :41
WHEREFORE, the Trusts and the Trustee demand judgment in their favor
against the FDIC in all capacities in an amount to be determined representing just
compensation, as well as pre- and post-judgment interest, costs of suit, attorneys'
COUNT NINE
DUE PROCESS VIOLATION FOR SALK TO ONE%'EST AND SPLITTING
OBLIGATIONS
AGAINST FDIC IN ALL CAPACITIES
198, The Trustee incorporates by reference the previous and succeeding
paragraphs of this Complaint as if they were set forth here in full.
199. The Fifth Amendment to the Constitution prohibits the taking of
I
l)f3" t 1 3273L>. I COMPLA iN'i' I
I
Case 2: 9-cv-03852-GAF-FFM Document 1 Filed05/29/09 Page 42 of 68 Page ID :42
23 include assets that rightfully belong to the Trusts or the Trustee including setoff
One%est in a manner that purported to eliminate the setoff and recoupment rights
of the Trusts of the Trustee.
209, The Trusts and the Trustee have a superior right to some of the assets
!
that the FDIC purported to sel1 to One%'est,
210, I he Court should therefore impose a constructive trust on the proceeds ;-.'
!
from the One%est sale.
211. For al1 the foregoing reasons, the 'I rustee and the 'I'rusts respectfully
request that this Court impose a constructive trust on the proceeds of the sale of
in their favor and against the FDIC in each of its capacities imposing a constructive I
t orneys or ai n t >
Deutsche Bank National Trust
Company, as Trustee for certain
residential mortgage-backed
securitization trusts sponsored by
IndyMac Bank, F.S,H,
20
Case 2: 9-cv-03852-GAF-FFM Document 1 Filed05/29/09 Page 44 of 68 Page ID :44
/ Q/
f
o neys or a m i
Deutsche Bank National Trust
Company, as Trustee for certain
residential mortgage-backed
securitimtion trusts sponsored by
IndyMac Bank, F,S,H.
13
27
VXHIBI r I
E+8181T 1
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gxgl81'I 1
Page 46
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EXHIBIT I
Page 47
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I.XHmrr >
Page 48
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EXHIBIT 1
Page 49
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KXHIBIT I
Page 50
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KXI Il BIT I
Page 5I
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KXHIBIT I
Page 52
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PROOF OF CLAII)fl
CONFIDENTIAI TREATMENT RE VESTED
Attachment A contains confidential, non-public financial information. Claimant Oautschs Bank National Trust
Company requests that the claim, the information contained in Attachment A, and the non-public documents
attached hereto be considered and treated as confidential.
The undersigned further states that he/she makes this Ciairn on behalf of
The penalty for knowingly making or inviting reliance of any false, forged, or counterfeit statement, document, or thing
for the purpose of influencing in any way the action of the Federal Deposit insurance CorporatiOn is a fine of not more
than $1,000,000 or i mpriso nmentfor not more than thirty years, or both (18 U.S.C, Section 1007}.
RLS?2
)e~oi": ' s
08=: Otla0024.6
KXH181T 2
Page 59
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ATTACHMVN T A
to
Proof ofClaim of
D ElJTSCHK SANK .":
:iA TIONAL TRUST COM P A N Y ,
A S TRUSTEE AND CUSTODI A N
A. C~ p,~ctTtKs:xxn Dort.ME>Ts.
This proof ot claim (" Proof of Claim" ) is made by Deutsche Bank National Trust
Comp
any (" DBNTC"} (a) as trustee('"'I'rustce") for the 243 securitization trusts listed
on Exhibit A-1 attached hereto (thc '"Trusts"}, on behalf of itself, thc Trusts and the
owners of certain residential mortgaged backed sccuritics issued by thc Trusts (the
"Securities" ), (b) as trustee of certain "net interest margin" trusts listed on Exhibit A-2
("NIM Trusts", and collectively with the Trusts, the "Securitization Trusts" ) pursuant
to which DBNTC owns, on behalf of NI M Tr u st beneficiaries, interests in certain
Securities (thc "NIM Trustee" ) and (c) as custodian (the "Custodian" ) under certain
custody agreements listed on Exhibit A-3 (the "Custody Agreements" ) by and among
DBNTC, and one or more of Indymac Bank, F.S.B, and/or its affiliates (collectively,
"Indymac"), and/or third party lcnders or purchasers of mortgage loans.
Each of the Trusts holds, as Trust assets or collateral, mortgage loans originated by
and/or sold into thc Trusts by lndymac.
%'ith respect to each Trust, DBNTC entered into one or more Pooling and Servicing
Agrccmcnts, Servicing A greements, Indentures or T r ust A g reements, and related
ancillary agreements (collectively. the "Governin D o c uments" ), Th e Governing
Documents arc voluminous and are in the possession of both the Trustee and lndymac.
Accordingly it is impractical and wasteful to attach each and every one of them to this
Proof of Claim. H o wever, electronic files containing a representative sample of
Governing Documents relating to approximately 216 Trusts have been provided to the
FDIC concurrently with a copy of this Proof of Claim. A dditional documentation
the monthly d istribution reports and prospectus supplements for e ach T rust are
available on the Trustee's investor reporting website at htt : ! !tss.sfs.db corn/invest ubii
Upon request by the FDIC, the Trustee will furnish electronic or hard copies of any
additional Governing Documents in its possession.
4. Pur s u ant to the Governing Documents for each Trust, Indymac sold, either directly or
indirectly, mortgage loans into the related Trusts. I n c o nnection with such sales,
Indymac a l s o ma d e num e r ou s r e p resentations, w a r ranties a n d cov e nants
("Rc rcscntations a n d N' a r ranties"
} c o n cerning t h e mortgage loans, which
Rcprcscntations and Warranties were ultimately assigned to the Trusts pursuant th
Governing Documents and certain ancillary agreements. The Trusts have claims for
brcach of such Representations and Warranties as further described herein.
EXHISIT 2
Page 54
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DBNTC has also served as Custodian under the Custody- Agreements. Pursuant to the
Custody Agreements, DBNTC has hcM in custody mortgage loan files evidencing
m ortgage loans originated, purchased, financed and/or serviced by lndymac. I n
addition pursuant to certain Custody Agreements, the Custodian held and disbursed
funds with r i."spect to th e f u nding and!or f i nancing o f s u c h m o rtgage loans ifi
ccordancc with instructions furnished to the Custodian by Indymac, loan purchasers
or lcndcrs. The Custody Agrecmcnts are voluminous and are in thc possession of both
the 'I rustce and Indymac, Accordingly it is impractical and unnecessary to attach them
to this Proof'of Claim. I I owever. clcctronic files containing a rcprcscntativc sample of
Custody Agrccmcnts have been provided to the FDIC concuiTcntly with a copy ot this
Proof o f' Claim.
DBNTC is aware that certain other parties to the Trusts, including, without limitation.
securities underwriters, depositors, loan serviccrs, insurers and investors, intend to hie
proofs of claim in these proceedings relating to the Governing Documents and
ancillary agreements which may be duplicative of; or supplemental to, the claims
*
stated herein (the '"Third Part T r u st Related Claims' ), To the extent that such Third
Party Trust Related Claims relate to or are property of the Trusts, DBNTC incorporates
such Third Party Trust Related Claims herein by rcfercnce.
8. OEscRtn'towor CLwtMs.
Pursuant to the Governing Documents, lndymac, as seller and jmastcrj scrvicer, made
certain Representations and Warranties in connection with the sale of the mortgage
loans to the T rusts. I n d y mac has breached certain of t hese Representations and
Warranties. Pursuant to the Governing Documents, Indymac has express contractual
obligations (i) to notify certain parties to the Governing Documents, including the
Trustee, when Indymac becomes aware of breaches of Representations and Warranties,
(ii) to make certain cure payments with respect to certain such breaches or (iii) to
repurchase the mortgage loans aA'ected by Indymac's breaches, at the repurchase price
(thc "Re urchasc Price" ) specified in the Governing Documents (typically equal to the
unpaid principal balance of such mortgage loans, plus accrued intcrcst thereon through
ihe date of repurchase) (the "Re urchase Obli ations"), Further, as described below,
Indymac is liable to the Trustee and the Trusts for all liability, loss, cost and expense
arising from b reaches of Representations and Warranties, including all costs and
expenses of enforcemcnt of these obligations.
KXHI81T 2
Page 55
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As stated above. the Trustee serves as Trustee for 243 Trusts, which hold in excess of
Sgl billion i n c urrent principal bahnce outstanding of mortgage loans sold to the
' I rusts by I n d ymac. Not w i t hstanding provisions o f t h c Cioveming D o cuments
permitting thc Trustee and certain other parties access to Indymac's books and records
concerning thc mortgage loans. during the last 12 months, Indymac has consistently
refused to alIow thc Trustee, bond insurers, and investors with an interest in the Trusts
to perform any meaningful due diligence to determine vvhcther Representations and
Warranties were breached, As sampling of'correspondence regarding such parties'
attempts to access to mortgage loan flles is attached hereto as Exhibit A-4. M o reover,
immediately prior to the initiation of these receivership and conservation proceedings,
disputes concerning these access rights gave rise to certain of the litigation described
under 'i ndemnification Claims" below. S i n c e Indymac's denial of c ounterpartics'
contractual inspection rights has deprived those parties of the ability to detect and
quantify specific breaches of Representations and Warrantics, claimants must be given
reasonable access and time to investigate their claims prior to specifying them with
greater particularity. N evertheless, on the basis of the limited data currently available
to the Trustee, thc Trustee further describes these claims below.
10. A ssuming, for purposes of this Proof of Claim, that Indymac has and will continue to
breach its obligations with respect to Repurchase Claims, the damages flowing from
such breaches will vary depending on the fosses suffered by thc Trusts in respect ot the
related mortgage loans, Certain of the properties underlying the mortgage loans
subject to Repurchase Claims either (a) have been foreclosed upon and are owned by
the Trusts as of the date of this Proof of Claim (thc "REO Loans" ) or (b) arc owned by
the Mortgagors {the "Mort a or-Owned L o ans" ), T he dollar a mount o f a n y
R epurchase Claims related to RE O L o ans and M o rtgagor-Owned Loans w il l b c
affected by th c v a lue of t hose loans and their underlying collateral because the
damages suffcrcd by thc 'I rusts as a result of Indymac's breach will be partially ol'fsct
by thc value of'the collateral retained by the Trusts. Duc to thc ever-changing nature
of market forces impacting the value of REO Loans and Mortgagor-Ovvned Loans, the
amount due to the Trusts on account of the REO I..oans and Mortgagor-Owned Loans
remains in flux. Until the amount of I ndymac's exposure on REO Loans and
Mortgagor-Owned Loans i s f i n ally d etermined, the ' I'rusts' corresponding claim
remains unliquidated and may decrease or increase as a result of fluctuations in the
valuation of the underlying property and related loans, and payments of principal and
interest either made or not made by the mortgagor of the underlying loans. Certain oi
}}}P}}i':77 (i
EXHIBIT 2
Page 56
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the properties underlying the mortgage loans subject to Repurchase Claims have been
foreclosed upon and in turn sold ("REO Sold I pans"). Th c s ale prices of the
properties underlying the REO Sold Loans will be a partial offset to the Repurchase
Price related to such REO Sold Loans.
On information and belief u s ing c laims estimation methodologies that take i nto
account (a} industry information regarding f'requcncy of breaches of representation
and warranties in portfolios of mortgage loans similar to those so'ld by Indymac to the
Trusts, (b) the performance of the mortgage loans held by the Trusts and (c} the
severity of losses experienced by the Trusts to date and anticipated in thc future, thc
'I rustce estimates that the Trusts have claims in respect to breaches of Representations
and Warranties, in thc estimated range of $5.439 to $8.117 billion,
Although Representations and Warranties were breached at the time that they werc
made, certain of the Repurchase Claims of the Trusts are unmatured, unliquidated
and/or contingent in nature because, although breaches of Representation and
Warranties exist for certain mortgage loans, such breaches have not been (a}
discovered andor (b) asserted, and/or (c) otherwise given rise to claims for the
Repurchase Price as of the date hereof. The actual Repurchase Claims relating to such
l oans would b e i n c reased by a c crued i nterest thereon and t h e T r u sts' c ost o f
enforcementand be partially of fset bv the value of m o rtgage loan collateral and
mortgage payments retained by the Trusts by reason of Indymac's f'ailurc to rcpurchasc
such loans.
(a) Rescissions asserted by MGIC: approximately $4.9 million, plus interest and costs
(See, ~e. . Exhibit A-S hereto - actual rescission letters will be provided upon request
and are not attached hereto because they contain confidential borrower information},
(b} Rescissions asserted by Radian: approximately $77 million plus interest and costs
*'
(See, ~e.. "Indemnification Claims below).
In addition to the foregoing. under the Governing Documents, Indymac is also subject
to Repurchase Claims with respect to missing or defective documents in mortgage loan
ftles. Th e Governing Documents generally provide that if a material defect in any
Mortgage File is discovered which may materially and adversely affect the value ot thc
related Mortgage Loan, or the interests of the Trustee (as pledgee of the Mortgage
Loans). thc 'Aotehoiders or the Certiftcateholders in such Mortgage Loan, then the
rcsponsiblc party shall cure such defect, repurchase the rclatcd Mortgage Loan at the
purchase price or substitute a q u alified substitute mortgage loan fo r t h e r elated
Mortgage I,oan upon th e same terms and c o nditions sct f o rt h f o r b r eaches of
representations and warranties as to the Mortgage.
The Trustee or other document custodian has furnished Indymac, on an ongoing basis,
document exception reports with respect. to missing or defective loan file documents.
IU";U!77:.r)
EXHIBIT 2
DB:~08600 4.6
Page 57
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16. T h e Tr u sts have been damaged by virtue of I ndymac's defaults and breaches with
respect to the Representations and Warranties under the Governing
Documents and
ancillary agreements. Without limiting the generality of the foregoing, the Trusts have
incurred, and will continue to incur, significant legal expenses enforcing mortgage loan
documents and defending against borrower counterclaims and t hird party c laims
arising I'rom breaches or alleged breaches of Representations and Warranties or of
other obligations of I ndymac (including loan servicing obligations) under the
Governing Documents.
l7. W i t hout limiting the generality of the foregoing, Indymac is obligated to indemnify,
defend and hold the Trusts and the Trustee harmless all liability, loss, cost or expense
arising from the claims asscrtcd in the f'ollowing litigation matters:
(a) Radian Insurance Inc. v. Deutsche Bank National Trust Com an e t a l, filed
Junc 26, 2008, in thc United States District Court, Eastern District of Pennsylvania,
seeking to rescind mortgage insurance policies which provide certain Trusts with
approximately $77 million of aggregate coverage for losses on Indymac-originated
mortgage loans, by reason of lndymac's breach of Representations and Warrantics. To
the extent that Radian prevails in this suit, Indymac v ill be liable to the Trusts for the
full amount of'all lost coverage, plus all litigation expenses.
(b) Ind mac v. Radian Insurance Inc.,filed on June 7, 2008 in the Superior Court of
California, County of California, in which lndymac seeks to enforce the policies at
issue in the t'orcgoing matter. These matters are likely to bc consolidated into a single
rnatter for disposition.
DB' 2nJ
KAO!)24.6 KXHIBIT 2
Page 58
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for those Trusts, including thc obligation to furnish access to books and records
.oncerning mortgage loans he!d by certain Trusts.
(e) XL Ca ital Assurance v. Ind macftled on june 27, 2008 in the United District
Court, Southern District of New York A c l aim by a bond insurer with respect to
securities issued by certain Trusts, claim
ingthat Indymac has breached its obligations
under relevant Governing Documents and seeking access to books and records relating
to mortgage loans heM by certain Trusts.
(f) S u its and other proceedings against the Trusts and/or the Trustee by the cities of
Buf'falo, NY, Cleveland, OH, and other jurisdictions claiming that RFO properties
owned by thc Trusts have not been maintained in accordance with law and constitute a
nuisance. In addition, the Trusts and or the Trustee have been forced to address similar
allegations. Such property maintenance is the sole obligation of' Indymac, as loan
servicer, with respect to certain of the properties at issue in these matters. The affected
Trusts and the Trustee are entitled to indemniftcation by Indymac, its successors and
assigns, against any liability, loss, cost or expense sutTercd in connection with such
matters
(h) Allegations by certain Trust investors that Indymac, as tmastcr] servicer, has
failed to charge-off mortgage loans in accordance with the Governing Documents.
lg. P u r suant to the Governing Documents and applicable law, Indymac is liable to the
Trusts and the Trustee for any losses, claims, expenses or damages, including legal
fees and related costs, arising out of or based upon any breaches of any representation,
warranty or covenant made by Indymac or any affiliate of Indymac in the Governing
Documents. Such liability arises both from Indymac's breach of its contractual
obligation to the Trusts and the Trustee to p erformall of its obligations under the
Governing Documents and from lndymac's obligation to indemnify, defend and hold
the Trusts and the Trustee harmless from any liability, loss, cost or expense arising
from Indymac's failure to p erform such obligations. To th c e xtent that Indymac
(a) assumes, or assumes and assigns, any of its rights under the Governing Documents,
and (b) indemnifies, or causes its successor-in-intercst to indemnify, the 'I'rusts and the
Trustee for such matters, such indemnification obligation will have bccn satisfied.
Although, to date, Indymac Federal in conservation has performed certain of' such
obligations, Indymac, Indyrnac Federal and the FDIC have not expressly assumed, or
assumed and assigned, such obligations. A c cordingly, for purposes of this Proof of
Claim, the Trustee assumes such obligations may not bc fully satisf>ed.
EXHIBIT 2
Page 59
Case 2:09-cv-03852-GAF-FFM Document 1 Filed 05/29/09 Page 60 of 68 Page ID :60
-8-
Based upon thc f oregoing, the Trustee asserts a claim against lndymac for
indemnification for, inic.r alia, all losses, claims, expenses and damages. including
legal fees and related costs, arising out o f o r b a sed upon any b reaches of any
representation, w arranty o r c o v enant m ade b y l n d y ma c u n der t h c G o v erning
Documents,
S ervlein C l a i m s
As stated above, Indyrnac generally served as "servicer" or " i naster servicer" v ith
respect to the mortgage loans held by the Trusts, The Ir ustce is informed and believes.
on thc basis of the FDIC's public statements and on the basis of discussions with the
FDIC, that I ndymac Federal (o r i t s s u ccessors and assigns) intends to a ssume
lndymac's loan servicing rights and obligations, To the extent that such assumption
takes place, and the succcssor-in-interest to Indymac, as [mastcrj scrviccr, p erforms
all
obligations o f Indymac, as [master j scrvicer, under the Governing Documents
(including by curing any breaches that have occurred), Indymac will have mitigated
claims with respect to Indymac's servicing of the loans. The Trustee reserves the right
to amend this Proof of Claim to specify further any servicing claims in the event that
such assumption does not take place. I n a d d i t ion, as a p r ecaution, the Trustee
describes below certain issues relating to Indymac's and Indymac Federal's servicing
of loans, which issues may have given rise to and/or may, in the future, give rise to
breaches of Indymac's and/or Indymac Federal's obligations in respect to the servicing
of mortgage loans on behalf of the Trusts.
On the basis of thc Trustee's investigations to date, the Trustee notes the following
possible inadequacies in Indymac and/or lndymac Federal's servicing of mortgage
loans on behalf of the trusts:
(a) L oss mitigation activities may suffer from the material dcftciencies that violate
the Governing Documents, due to (i) inadequate or improper staffing of key functions,
resulting in collections delays and losses, (ii) inadequate or improper controls over loss
mitigation activities, (iii) substantive and procedural biases against effective collection
activity and in favor of loan modifications, even when such modifications are likely to
result in a lower net present value return on the mortgage loans to the Trusts, and (iv)
poor organization and accountability regarding loss mitigation efforts,
(b) Failure to notify the Trustee and other transaction parties of breaches of
Representations and Warranties known to lndymac.
(c) A l l egations by certain Trust investors that lndymac, as [mastcrj scrviccr, has
failed to charge-off mortgage loans in accordance with the Governing Documents.
In addition, in thc event that any of the obligations of Indymac as [mastcrj servicer are
subsequently repudiated by the FDIC, the Trustee will be obligated, pursuant to the
terms and conditions of the Governing Documents, to replace Indymac as [master]
scrvicer. Al l loss, cost and cxpcnsc of such replacem
ent vill constitute additional
claims against Indyrnac and/or Indymac Federal Bank
As NIM Trustee, the Trustee is the legal owner, for the benefit ol securities holders
under the NIM Trusts, of Securities issued by the Trusts, Since the NIM Trusts w rc
formed concurrently and in conjunction with the corresponding Trusts, th NIM
Trustcc v, as the original purchaser of such Securities.
As purchaser of the such Securities on behalf of thc NI M T r usts, the NIM T r ustee
hereby allcgcs that, to the cxicnt that Indymac knew or should have known of t he
brcachcs of Representations and V-'arrantics described above, the NIM T rusis have a
claim for common law fraud and/or negligent misrepresentation and!or violation ot
applicable federal and state securities laws in connection with ihc issuance, distribution
and sale of the such Securities to thc NIM T r usts. S uch claim is unliquidated and
partially unmatured, but would be measured by the impact, if any. of such breaches on
cash flows to the NIM Trusts.
Claims as Custodian
25. Pursuant to thc Custody Agreements, DBNTC is entitled to be paid certain fees
stipulated therein, plus expenses incurred in connection with its serving as Custodian.
In addition, where Indyrnac, is seller/serviccr under the Custody Agreement, lndymac
has agreed to indemnify, defend and hold the Custodian harmless against all liabilities,
loss, cost and cxpcnse incurred by the Custodian in the performance of its duties as
Cusiodian. (See, ~e , Exhibit A-7).
Indymac has generally continued to pay the fees and expenses of DBNTC as Custodian
upon invoicing thereof. As of the date hereof, however, approximately $243, l 22.35 in
fees and expenses incurred by DBNTC as Custodian remain duc and payable by
Indymac. Additional invoices for fees and expenses that have been received by the
Custodian to date have been submitted to Indymac for payment pursuant to the related
Custody Agreements and Governing Documents. T h e C u stodian w il l f u r nish to
Indymac, under separate cover, copies of such invoices, together with invoices for fees
incurred (and included in such amount) but not invoiced as of the date hereof.
C. Miser LLAwvous
27. By executing and filing this Proof of Claim, DBNTC does not waive any right to any
security or any other right or rights with respect to any claim that DBNTC has or may
have againsi Indymac or any other person or persons. The filing of this Proof of Claim
is not intended and should not be construed to bc an election of remedies or waiver of
any past, present or f u ture D efaults or E v ents o f D e f ault u nder t he Governing
Documents and ancillary agreem
ents.
To the knowledge of the signatory hereto, the claims are not subject to any setoff or
counterclaim, and no judgment has been rendered on the claims. The amount of all
payments made prior to the date hereof, if any, have been credited and deducted.
DBNTC reserves its right to amend and/or supplement this Proof of C laim and to
assert any and all other claims of v'hatevcr kind or nature that it has, or may have, that
come to DBNT( s attention or arise aAcr the tiling of this Proof of (.'Iaim. The filing
ot this Proof of Claim shall not bc deemed a waiver of any such claims or righis.
EXHIBIT 2
Page 61
Case 2:09-cv-03852-OAF-FFM Document 1 Filed 05/29/09 Page 62 of 68 Page ID :62
30. N o thing contained in this Proof ot Claim shall be deemed or construed as: (a) a waiver
of. or other limitation on, any rights or remedies of DHNTC or the Securitization
Trusts, or any predecessor in interest to DBNTC or the Sccuritization Trusts, under the
Governing L3ocumcnts or ancillary agreements, at 4w. or in equity (including any
setoff rights, lien rights, rights of recoupmentor any other rights that thc Trustee or
each Trust has or may have against lndymac or any other entity), all of which rights
arc expressly reserved; (b) a consent by DBNTC or the Sccuritization Trusts, or any
predecessor in interest to DBNTC or the Securitization Trusts, to the jurisdiction of
any court with respect to proceedings, if any, commenced in any action against, or
otherwise involving DHNTC or the Securitization Trusts, or any predecessor in interest
to f3BNTC or the Securitization Trusts; (c) a waiver or release of, or any limitation on
DBNTC's or the Securitization Trusts', or any predecessor in interest to DHNTC's or
the Securitization Trusts'. right to trial by jury in thc Court or any other court in any
proceeding; (d) a waiver or release of, or any other limitation on, DBNTC's or thc
Sccuritization Trusts', or any predecessor in interest to DBNTC or thc Sccuritization
Trusts', rights to have any orders cntcrcd only after de novo review by the applicable
court; (c) a waiver ol; or any other limitation on. DBNTC or the Securitization Trusts',
or any predecessor in interest to DBNTC's or thc Securitization 'I'rusts', right to seek a
withdrawal of the reference with respect to any matter, including any matter relating to
this Proof'ol'Claim; or (f) a waiver or rcleasc of, or any other limitation on, DBNTC's
o r the Securitization Trusts', or an y p r edecessor in i n terest to D B N T C' s o r t h e
Sccuritization Trusts', right to assert that any portion of the claims asserted herein are
c ntitlcd to t r catmcnt as p r iority c l aims, Wit h ou t l i m i t ing th e generality o f t h e
foregoing, the Trustee asserts, on behalf of each Trust and itself, the right to sct off the
amount of all claims of such Trust and itself as Trustee of such Trust, against all claims
and amounts asscrtablc by or distributable to lndymac (or its successors-in-interest
under the Governing Documents) in any capacity, including, without limitation, any
rights of I n dymac t o r e cover delinquency advances, servicing advances or other
amounts distributable with respect to securities or other interests in such Trusts.
EXHIBIT 2
Page 62
Case -GAF-FFM Document 1 F i led 05/29/09 Page 63 of 68 Page ID :63
CERTIFIED MAIL
RETURN RECEIPT REQUESTED 7008 18M 0000 8031 9925
Dear Claimant:
The Receiver of lndyMac Bank, F.S,B. has reviewed your claim against the receivership. After a
thorough review of your filed claim along with your supporting documentation the Receiver has
determined to disallow your claim for the following reason(s):
Your claim was not fixed and certain as of bank failure on July 11, 2008 and therefore
your claim is not proven to the satisfaction of the Receiver.
Pursuant to 12 U.S.C. Section 1821 (d) (6), if you do not agree with this disallowance, you have the right
to file' a lawsuit on your claim (or continue any lawsuit commenced before the appointment of the
R ) ' t h U n i ted States District (or Territorial) Court for the District within which the failed
institution's principal place of business was located or the United States District Court for he t Dis i tri
ri cot of
Columbia within 60 days from the date of this notice.
IF YOU DO NOT FILE A LAWSUIT (or conbnue any lawsuit commenced before the appointment of the
Receiver)BEFORE THE END OF THE 60-DAY PERIOD, THF DISALLOWANCE WILL BE FINAL,
YOUR CLAIM WILL BE FOREVER BARRED AND YOU WILL HAVE NO FURTHER RIGHTS OR
REMEDIES WITH RESPECT TO YOUR CLAIM. 12 U.S.C. Section 1821(d)(6){B).
However, if a portion of your claim is for an insured deposit, your claim is not against the Receiver but
rather is against the FDIC in its corporate" capacity as deposit insurer, An insured depositor's rights are
prescribed in 12 U.S.C. Section 1821(f) and differ from the rights described in the preceding paragraphs.
If you have any questions about this letter, please contact the und r i ned at ';. 72 761-2665
Sincerely, e
e
'
' e-
tr
Jeffry M. u ick tr
Claims Agent
Claims Department Feslage
EXHIBIT 3
RLS7218 Palye 63 teeny& FrtrFrltd ttCL, OCUr~Pre trtt,
cs i siye'ei Apr% t
SUMMONS
DEFENDANT(S).
Within 60 days after service of this summons on you (not counting the day you received it), you
must serve on the plaintiff an answer to the attached Sf complaint D amended complaint
G counterclaim U cross-claim or a motion under Rule 12 of the Federal Rules of Civil Procedure. The answer
or motion must be served on the plaintifFs attorney. Jami Wintz McKeon , whose address is
Mor an Lewis 4 Bockius One Market S ear Street Tower San Francisco CA 94I05 , I f you fail to do so,
judgment by default will be entered against you for the relief demanded in the complaint. You also must file
your answer or motion with the court,
Dated:
/l,''se 60darsif'the defendant is the Urtt'ted Statesora tfrtited Statesagene)t. oris an os'ioer '
of the i!'nited States. 3iloieed
60 days by Rttle f'-(ai(.3$/. 1198
A TTAC H M E N T TO SUM M O N S
PLA CAITIFF:
OE FEND%.NT:
Federat Deposit insurance Corporation, as Receiver of indyMac Bank, F.S.B.;
Federal Deposit Insurance Corporation, as Conservator and Receiver of IndyMac
Federal Bank F.S,B.; Federal Deposit Insurance Corporation, in its corporate
capacity; and Federal Deposit Insurance Corporation, as Government Entity
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Mein'-";ass Li-:rais te
Brit" niiis i,LJ'
I' ' ' ' 4 ' %' " s l i : 'A
D82::2 I i3 i 89it.a
VHI(a). IDENTICAL CASES. Has -:his action been previously B!ied in::his court and dismissed, remanded or closed? ~v(No 2 Yes
lf yes. list cme number(s):
VIH(b). RELATED CASES: Have any ca es been previously Bled in this court that are related to!he presentcase? II!|No :: :Yes
ii' yes, list case number(s).
Civil essessre deemed related if s previously Bled case snd the present case:
(Check all boxes!hat apply) '::: .A. Arise fmm the smne or closely related manssctions, happen!ngs, or even: or
!, 8, Cail lor determination of the same or subs!antially related or similar ques!ions of!axv and fact; or
~ C. For other reasons would entail suhstannai duplication of labor ii'held by diiyerent iudges; or
{ D. Irvolve the san;e patent,!radcmark or copyright,;-nd one oi'the fac!ors identiged above in s, b or c also is present
IX, V" NUE: (VYhc i compie!ing the fol!owmg;nfom s!ion, use an addi!iona! shee! i f necessary.)
::,al List the Coun!y in!his Distnct; Cali!orris County outside o!!hb Dis-ic!; S!a!e if:hcr!Inn Caiiibmis. or Forego Countr;, in v hich EACH nanoid plain!if! resides.
I') Check here if!he iovcmment, its auenc!cs or e!!!p!o ees i sa named niaint!t'!. !i'this box !s checked, vu!o i!em (b),
Courty in d;is Disric! Caiifornia County ou!side of!h!s D!s!nct; S!ate.!f other!han Cali!ornia; or Foreign Coun!!y
;- -Los Angeles County
I
:;bi List the County in this Dtstricti Californn County outside of this Dish".t;; State ii- ther than California,
orForeign Counuy, in which EACH named derendar;t
resides.
git Check herc if the ovcmment, its a.encics or em Iovee is s t.ameddefendant. If!his be;x is checks uo to item c .
County 'I."! gus Dismcn California County outside of ehis Distr'ct: St"ote, if other than Caiifomia: or Forci@Courtry
ic) { ! s! the County in!his Distr'ct: Ca!ifomia County outside ol'this District; Smte!f other than Caiiiomia; or Foreign f nuns, in which EACH claim arose.
Nore: ln land condemnation cases, use the location ot' the tract of!andinvolved.
I
! Coun!y!n this Dis!dc!:" California Countyou!side o dus Distdct; Sis!e. if other:hsn Caliiornia. or Foreign Country
!All c!aims arose!n Los Angeies County
I
I
"' Los Angeles, Orange, Ssn Bernardino, Riverside, Ventura, Santa Barb , or Ssn l.uis Obispo Counties
Note:!n land conaemnation cases rse 'lite loca!!on of!he!r - c inv
Id i A Ail clain;s for health insurance bene!:ts (lv!ed!care) under Title 13, Part A, o!'!he Soc!al Sccuri!y Act, asutltenucd.
A!sc, include claims by hospitals, skdled nursing faci!!ties, etc., for con!i!cat:-:on as providers of services under!he
prr gram. (42 U.S.C. 193SFF(b))
gn t BL All claims ."or "B!ack Lung" bene!3!s under Title@, Part B, of!hc Federal Coal Mine Health and Safety Ac! of::: 969.
(30 U.S.C. 923)
Ag cisims ftled by insured workers I' or disab!Iity insurarce beneg!n m!der Tit!e 2 oi'!he Socis! Securiry Ac!, as
amended: plus all clai!tsn I!Ied for ch!!d's insurance bene!ns bused on dissbiiity (4 U.S.C. 403(gj)
363 D! VVW A! I claims!iled Ibr widows or widowers insurance bene!1 based on disability unite! Title ot'!he Sociai Security
Ac as amended. (42 U.S.C, 40S(g))
All clairrrs r'or supp!entental security:ncome payments based upon disability fged urder Title 16 of! he Social Security
Act, as amended.
RSI All ciain s for reniremen: {old age) and su:vivors bcnelrL~ undtv T!tie of !he Socia! Scour!!y Ac!, as amended, !4'
LJ S.i,'. (g))
I. B KFK i NBANTS:
Federal Beposit Ensue'ance Corpora(ion, as Receiver of IndyMac Bank, F.S.H,;
Federal Deposit Insurance Corporation, as Cor.servator and Receiver of IndyMac
Federal Bank F.S,H.; Federal Deposit Insurance Corporation. in its corporate
capacity: and Federal Deposit Insurance Corporation, as Government Entity
VI. C A U S E GF ACT1GN:
10 All causes of action are against the Federal Deposit Insurance Corporation (FDIC)
in various capacities as more fully specified in the Complaint, and arise under ihe
Constitution and lav =s of the United States including the Federal Depcsit Insurance
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