sor & Associates Reporting and Transcription, Inc. UIT COURT OF T NTH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA CASE NO. 50 2008 CA 037322XXXX MB AW INDYMAC FEDERAL BANK, FSB, Plaintiff, vs. ANY AND All UNSNOWN PARTIES CLAIMING BY, THROUGH, UI AND AGAINST TH! NAMED INDIVIDUAL DEFENDAN KNOWN TO BE DEAD OR ALIVE, Wil CLAIM AN INTEREST AS ) OR OT! CLAIMANTS; TENANT #1, NANT #3, and TENANT # 4, the names being fictitious WHO ARE Nor e: sion, to account for parties in p Defendants. THE DEPOSITION OF ERICA A. JOHNSON-SECK VOLUME I Pages 1 - 84 July 9, 2009 1655 Palm Beach Lakes Boulevard West Palm Beach, Florida 12:54 p.m. - 2:59 p.m. REPORTED BY: Deborah H. Rodgers, CSR Reporting & Transcription 1655 Palm Beach Lakes Boulevard, Suite 500 Consor & Associates West Palm Beach, Florida 33401 Phone: 561.682.0905 Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc. 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 page 2 APPEARANCES: on behalf of the Plaintiff: JOSEPH MANCILIA, JR., BSQ. Florida Default Law Group, P 9119 Corporate Lake Drive Suite 300 Tampa, Florida 33634 On behalf of the Defendants: THOMAS E. ICE, ESQ. DUSTIN A. ZACKS, ESQ. Ice legal, P.A. 1975 Sansburys Way, Suite 104 West Palm Bea: » Florida 33411 Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc. 16 17 18 19 20 21 22 23 24 25 INDEX TESTIMONY OF ERICA A. JOHNSON-SECK Direct Examination by Mr. Ice CERTIFICATE OF OA’ CERTIFICATE OF REPORTER TA T TA Ci TIFICATE READ AND SIGN NOTIFICATION NUMBER Defendants' Exhibits A - Q Defendants! Exhibit R Defendants’ Exhibit S Defendants' Exhibit 1 Defendants" Exhibit Defendants’ Exhibit Defendants' Exhibit v v Defendants’ Exhibit W x Defendants' Exhibit Y z Defendants’ Exhibit Page 3 PAGE 218 216 217 218 219 PAGE 88 113 114 162 167 174 Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc. 18 19 20 22 23 24 25 Page 4 (Thereupon, Defendants! Exhibits No. A through Q were marked for identification.) was called as a witness herein, and after being first sworn, testified as follows: THE WITNESS: Yes. DIRECT EXAMINATION ICE: Q. Could you state your full name for the record, please. A, Erica Antoinette Johnson-Seck. Q. And what is your business address? A. 7700 West Parmer Lane, P-A-R-M-E-R, Building D, Austin, Texas, 78729. Q. And who is your employer? A. OneWest Bank. Q iow long have you been employed by OneWest Bank? A ince March 19th, 2009. Prior to that you were employed by IndyMac Federal Bank, FSB? A. Yes. Q. And prior to that you were employed by Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc. 18 19 20 22 23 24 25 Page 5 IndyMac Bank, A. Yes. Q. Your title with OneWest Bank is what? A. Vice president, bankruptcy and foreclosure. That hasn't changed in all the various IndyMac carnantions -- incarnations, I should say? A. No. Q. Now, the IndyMac Bank, FSB ceased to exist of last year, correct? A. Yes Q. ‘That was taken over by the FDIC, correct? AL Yes Q. And that's when IndyMac Federal Bank, Federal Bank, FSB took ove A. Yes. Q. And then as of March 19th of this year OneWest came in and purchased the assets of IndyMac Federal Bank? A. Yes. Q. Now, the plaintiff in this case is IndyMac Federal Bank, FSB, correct? A. Yes Q. When T say this case, I know we're scheduled for two depositions. I don't know if you know we're starting with Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc. 18 19 20 22 23 24 25 page 6 A. Okay. @. Would you agree with me that the plaintiff in se, no longer exists? A. Yes AL Wo @. You have signing authority to sign on behalf of Mortgage Electronic Registration Systems as a vice president, correct? AL @. Are you an officer of any other corporation? A. No. @. Do you have signing authority for any other corporation? A. Yes. @. What corporations are those? A. IndyMac Federal Bank, IndyMac Bank, FSB, FDIC as receiver for IndyMac Bank, FDIC as conservator for IndyMac, Deutsche Bank, Bank of New York, U.S. Bank. And that's all I can think of off the top of my head. a. was the one before U.S. Bank of New york? AL of New York. Q. Bank of New York. Is that Bank of New York Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc. Page 7 1 Mellon? 2 A. don't know. 3 Q. When you say you have signing authority, is 4 thority to sign as an officer of those 5 corporations? 6 A. Some. Deutsche Bank I have a POA gn as 7 attorney-in-fal Others I sign as an officer. The 8 FDIC T sign as attorney-in-fa IndyMac Bank and 9 IndyMac Federal Bank I now sign as attorney-in-fact 10 And now T only sign as a vice president for OneWest. Q. As part of your job, how often do you give 12 depositions? 13 A, Twice a month. 14 Q. So you're familiar with the deposition 1s process and what the rules are and what the court 16 reporter is doing and that you're under 7 A. Yes. 18 Q. Okay. T don d to explain all of those 19 hings to you? 20 A. No. 2 Q. Your job duties include supervision of three 22 direct reports and 52 employees? 23 A. It did 24 Q. Okay. How's that changed? 25 A. Let's see. Now I have two direct reports and Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc. 18 19 20 22 23 24 25 Page 8 47 people with 17 openings. @. Openings meaning you're looking for someone to fill those positions? Are you in charge of the loss m A. No Q. Who is? A. Karen Mastro is the senior vice president of ou spell the last name, please? AL oh, I'm sorry. She is the first vice president. Q. Is she nevertheless in charge of the loss mit ment? AL Yes. Q. Do you have the authority to settle any foreclosure case? A. Up to a certain dollar amount of loss, yes. Q. How is that dollar amount of loss determined? A. It depends on what the settlement offer looks like. Are you asking me how -- I mean, it depends. Q. Who sets the dollar amount? A. The senior executive co: Q. Of IndyMac? A. Of IndyMac, but it was adopted by IndyMac Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 9 Federal and has been adopted by OneWest, yes. Q. I'll probably be doing that all afternoon. So thank you for correcting me. If OneWest is the correct answer to that, please feel free to let me know. As part of your job duties, you personally manage the attorney network? A. Yes. Q. What other job duties do you have? A. I manage the bankruptcy and the foreclosure process. I also manage the breach process, the compliance of the breach letters as changes are made by different states and jurisdictions. And I manage a default, a forensic default group, research group that handles everything that's high loss related, compliance related, high level research @. Can you give me an example of what this forensic group default would be researching? A. We foreclose on a property where the investor won't cover the advances we've made. So one of the auditors would look to see if we got approval to make that advance, if there's some reason we wouldn't be getting approval for it, work with the investor to try to yet approval or work to bill it back to our outsource vendor or one of the firms -- now, this is Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401sor & Associates Reporting and Transcription, Inc 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 10 one of very many things that they do -- were at fault for a reason why we can't claim for the advances; taxes, let's say. @. So when you say high loss, you're referring to the losses that OneWest is experiencing versus the investor that you're doing the work for? A. That's another facet of what's managed in that group. That example I gave you is not necessarily a high-loss example. High loss is anything with a loss between the total debt and the current value of 250 or more. So those loans, whether it is owned by the bank or owned by an investor, are scrutinized because the losses are large. Q. And you said that's losses greater than 250,000? AL Yes. Q. If a property goes to foreclosure and the ultimate recovery is more than $250,000 of the debt on that property, is that something that the forensic default group would study? A. Not from that perspective. Q. In other words, they're not concerned about losses due to property values going down? A. That's economic, so it's baked into the equation of what they would review, but an economic Ph. 561.682.0905 - Fax. 561.682.1771 1655 Palm Beach Lakes Blvd., Suite 500 - West Palm Beach, FL 33401