403-17 Deposition Zachary Bumpus, May 10, 2019

Case 1:15-cv-00293-LTS-RWL Document 403-17 Filed 05/10/19 Page 1 of 18
In the Matter Of:
S & A CAPITAL PARTNERS V. JPMORGAN CHASE

15-cv-00293
ZACHARY ALLEN BUMPUS
January 16, 2019

ZACHARY ALLEN BUMPUS January 16, 2019
S & A CAPITAL PARTNERS V. JPMORGAN CHASE 1
·1· · · · · · · ·UNITED STATES DISTRICT COURT
·2· · · · · · · SOUTHERN DISTRICT OF NEW YORK
·3· ·---------------------------X
·4· ·S&A CAPITAL PARTNERS, INC.,
·5· ·MORTGAGE RESOLUTION SERVICING,
·6· ·LLC, and 1ST FIDELITY LOAN
·7· ·SERVICING, LLC,
·8· · · · · · · Plaintiffs,
·9· ·V.· · · · · · · · · · · · · · ·No. 15-cv-00293
10· ·JPMORGAN CHASE BANK, N.A.,· · ·LTS-JCF
11· ·CHASE HOME FINANCE, LLC, and
12· ·JPMORGAN CHASE & CO.,
13· · · · · · · Defendants.
14· ·---------------------------X
15· · · Videotaped Deposition of ZACHARY ALLEN BUMPUS
16
17· · · · · · · · · Washington, DC 20005
18· · · · · · · ·Wednesday, January 16, 2019
19· · · · · · · · · · · · 9:30 a.m.
20
21· ·Reported by: Denise Dobner Vickery, RMR, CRR
22· ·JOB NO. J3541004
800.211.DEPO (3376)
EsquireSolutions.com
·1
·2
·3
·4
·5
·6
·7· · · · · · · · · · · · · Wednesday, January 16, 2019
·8· · · · · · · · · · · · · 9:30 a.m.
·9
10· · · · Videotaped Deposition of ZACHARY ALLEN BUMPUS,
11· ·held at the offices of:
12
13· · · · · · ·COVINGTON & BURLING LLP
14· · · · · · ·One CityCenter
15· · · · · · ·850 Tenth Street NW
16· · · · · · ·Washington, DC 20001
17
18
19· · · · · · ·Pursuant to notice, before Denise Dobner
20· ·Vickery, Certified Realtime Reporter, Registered
21· ·Merit Reporter, and Notary Public in and for the
22· ·District of Columbia.
800.211.DEPO (3376)
·1· · · · A P P E A R A N C E S
·2
·3· ·ON BEHALF OF PLAINTIFFS:
·4· · · · ROBERTO L. DI MARCO, ESQ.
·5· · · · FOSTER WALKER & DI MARCO PC
·6· · · · 350 Main Street, Third Floor
·7· · · · Malden, MA 02148
·8· · · · rdimarco@fwd-law.com
·9· · · · 781.322.3700
10
11· ·ON BEHALF OF DEFENDANTS:
12· · · · CHRISTIAN J. PISTILLI, ESQ.
13· · · · COVINGTON & BURLING LLP
14· · · · One CityCenter
15· · · · 850 Tenth Street NW
16· · · · Washington, DC 20001
17· · · · cpistilli@cov.com
18· · · · 202.662.5342
19
20· ·Also Present:
21· · · · Glen Fortner, Videographer
22· · · · Laurence Schneider
800.211.DEPO (3376)
·1· · · · · Q.· ·Right.· And if S&A Capital wanted to,
·2· ·it could assign it to MRS tomorrow; right?
·3· · · · · A.· ·It would seem logical that that could
·4· ·happen.
·5· · · · · Q.· ·And you're not opining that any harm
·6· ·resulted from the assignment of the loan purchased
·7· ·by plaintiffs to the S&A Capital entity, are you?
·8· · · · · A.· ·Without looking at the details of this
·9· ·loan situation and what the passage of time may have
10· ·done moving a loan from one portfolio to the other,
11· ·it's hard to say.
12· · · · · Q.· ·And you have not done that work?
13· · · · · A.· ·I have not done that work.
14· · · · · Q.· ·So there's nothing in your report that
15· ·in any way indicates that harm to any plaintiff
16· ·entity occurred as a result of the Brooks
17· ·assignment?
18· · · · · A.· ·Correct.· There's nothing there to
19· ·suggest that.· It only is to suggest another example
20· ·of -- of activities happening without thorough
21· ·research on where the loan should be before it
22· ·was -- action was taken on it.
800.211.DEPO (3376)
YVer1f
·1· · · · · Q.· ·You turn back to page 13 of your
·2· ·report.· There's a discussion here of an entity
·3· ·called NTC.
·4· · · · · · · ·What's your understanding of NTC's
·5· ·role?
·6· · · · · A.· ·NTC seemed to be a doc prep --
·7· ·documentation preparation entity that printed
·8· ·documents and sent them on for -- for further -- for
·9· ·execution.
10· · · · · Q.· ·And so they're a third-party vendor?
11· · · · · A.· ·They're a third-party vendor.
12· · · · · Q.· ·Is use of a third-party vendor like
13· ·this typical in the industry based on your
14· ·experience?
15· · · · · A.· ·It's certainly not unusual.
16· · · · · Q.· ·Did Bank of America use a third-party
17· ·vendor?
18· · · · · A.· ·In some instances.· Not exclusively, by
19· ·any means.
20· · · · · Q.· ·What -- what did the third-party vendor
21· ·do for Bank of America?
22· · · · · A.· ·Document prep.
800.211.DEPO (3376)
YVer1f
·1· ·deposition, to your knowledge, that no one at NTC
·2· ·does it?
·3· · · · · A.· ·No, he does not.
·4· · · · · Q.· ·Right.· So we know Bly doesn't do it?
·5· · · · · A.· ·Correct.
·6· · · · · Q.· ·What we don't know if someone else at
·7· ·NTC does it?
·8· · · · · A.· ·We don't know if it's part of the
·9· ·service level agreement for NTC to do.
10· · · · · Q.· ·Right.
11· · · · · A.· ·And we don't know and he does not
12· ·reflect where who is doing this research before the
13· ·documents are printed or after the documents are
14· ·printed.
15· · · · · Q.· ·Okay.· So when you say in your report
16· ·that "NTC did not engage in any quality control,"
17· ·you don't have a basis for that statement; right?
18· · · · · A.· ·I have it only from his statement here
19· ·that he does not.· Mr. Bly.
20· · · · · Q.· ·Mr. Bly personally does not do it;
21· ·correct?
22· · · · · A.· ·Correct.· And I do not know what the
800.211.DEPO (3376)
YVer1f
·1· ·service level agreement --
·2· · · · · Q.· ·Right.
·3· · · · · A.· ·-- at NTC calls for.
·4· · · · · Q.· ·Right.· As to whether or not NTC does
·5· ·it, you simply don't know?
·6· · · · · A.· ·Correct.
·7· · · · · Q.· ·What about Chase?· What is your
·8· ·understanding of the steps that Chase undertakes to
·9· ·determine that there is an intact lien in place in
10· ·its name prior to releasing a lien?
11· · · · · A.· ·Well, the discussion we had earlier
12· ·about procedures coming out of the Reserve 1 is
13· ·exactly the same.· I do not see what identifies or
14· ·prevents a lien that's been attached to another --
15· ·that has been sold to another investor and how that
16· ·goes through the process to ensure that it is not
17· ·sent to NTC for printing and it doesn't end up being
18· ·signed by Chase employee when, in fact, it should
19· ·have been held back --
20· · · · · Q.· ·So you don't --
21· · · · · A.· ·-- and assigned onto the actual owner
22· ·of the loan if it's been sold.
800.211.DEPO (3376)
YVer1f
·1· · · · · Q.· ·So you don't know what the procedures
·2· ·are?
·3· · · · · A.· ·Correct.· I do not know what the
·4· ·procedures are.
·5· · · · · Q.· ·So you don't know that those procedures
·6· ·are inappropriate?
·7· · · · · A.· ·I do not know whether they exist or how
·8· ·they exist or where for sure they exist.
·9· · · · · Q.· ·You considered in forming your opinions
10· ·the deposition testimony of Jason Oquendo; correct?
11· · · · · A.· ·Yeah.· Yes.
12· · · · · · · · · · ·(Document marked for
13· ·identification purposes as Bumpus Exhibit 6.)
14· ·BY MR. PISTILLI:
15· · · · · Q.· ·I've handed you what's been marked as
16· ·Bumpus Exhibit 6.
17· · · · · · · ·Do you recognize this?
18· · · · · A.· ·I do recognize these pages.
19· · · · · Q.· ·And did you review the testimony by
20· ·Mr. Oquendo that we're looking at here?
21· · · · · A.· ·I did.
22· · · · · Q.· ·And Mr. Oquendo testifies that Chase
800.211.DEPO (3376)
EsquireSolutions.comYVer1f
·1· ·performed a "lien scrub" before releasing a lien;
·2· ·correct?
·3· · · · · A.· ·Correct.
·4· · · · · Q.· ·And he described various entities that
·5· ·were involved in the lien scrub, such as POTS, which
·6· ·is an internal Chase --
·7· · · · · A.· ·Right.
·8· · · · · Q.· ·-- unit; correct?
·9· · · · · A.· ·Correct.· A name no one seems to know
10· ·what it means, what the acronym is for but...
11· · · · · Q.· ·He also referenced CoreLogic.
12· · · · · · · ·Do you know what CoreLogic is?
13· · · · · A.· ·I also know it's an analytical tool
14· ·that's used by Chase in this process.
15· · · · · Q.· ·Okay.· It's an outside vendor; right?
16· · · · · A.· ·And it's an outside vendor, yeah.
17· · · · · Q.· ·And what they do is, they go to
18· ·counties and look and actually --
19· · · · · A.· ·Right.
20· · · · · Q.· ·-- see in the county records whether
21· ·there's an attached lien in Chase's name; correct?
22· · · · · A.· ·Right.
800.211.DEPO (3376)
·1· ·where that loan was, from the way I understand it,
·2· ·but, again, I don't understand the POTS database
·3· ·that well.
·4· · · · · Q.· ·So you don't know one way or the other
·5· ·about what the POTS database is?
·6· · · · · A.· ·Correct.· It has just been a referenced
·7· ·item within the depositions I've seen.
·8· · · · · Q.· ·Okay.· And for all you know, POTS could
·9· ·be a database that records lien releases and lien
10· ·status?
11· · · · · A.· ·It's tracking liens in foreclosures the
12· ·way it's been presented, but beyond how -- what it
13· ·does, I cannot say.
14· · · · · Q.· ·Okay.· But you'd agree that Mr. Oquendo
15· ·describes a multistep process to ensure that Chase
16· ·owns any liens it releases?
17· · · · · A.· ·Mr. Oquendo does describe a process
18· ·that is consistent with what you ask.
21· ·BY MR. PISTILLI:
22· · · · · Q.· ·I've handed you what's been marked as
800.211.DEPO (3376)
·1· ·Bumpus Exhibit 7.
·2· · · · · · · ·Do you recognize this document?
·3· · · · · A.· ·(Reviews document).· I do not.· Do I
·4· ·make reference to it?
·5· · · · · Q.· ·Take a look at page 13 of your report.
·6· · · · · A.· ·Oh, yes, I do recognize this document.
·7· ·I apologize.· Yeah.· Yes.
·8· · · · · Q.· ·And you reviewed this in connection
·9· ·with forming your opinions?
10· · · · · A.· ·I did.
11· · · · · Q.· ·And sitting here today, do you have any
12· ·reason to believe that Mr. Boyle was being
13· ·untruthful when he provided this certification?
14· · · · · A.· ·I have no reason to believe that he was
15· ·being untruthful as he went through the specific
16· ·mailers that he was doing for that particular
17· ·procedure.
18· · · · · Q.· ·And the particular procedure here is a
19· ·Chase lien release effort that occurred in the 2014
20· ·time period; correct?
21· · · · · A.· ·Correct.
22· · · · · Q.· ·And he describes a number of steps that
800.211.DEPO (3376)
·1· ·were taken; correct?
·2· · · · · A.· ·Correct.
·3· · · · · Q.· ·And that description includes steps
·4· ·that would be designed to ensure, among other
·5· ·things, that Chase owned any liens it was releasing
·6· ·as part of that lien release effort; correct?
·7· · · · · A.· ·Correct.
·8· · · · · · · ·Good to note on here, it is also in
·9· ·2014, well after these loans that are in problem for
10· ·the plaintiff had been sold and moved to them.· So I
11· ·did not see evidence within -- it was still in the
12· ·audit reports saying these procedures and processes
13· ·were still to be determined.
14· · · · · · · ·So, but I have no reason to believe
15· ·that Patrick Boyle did not execute these activities,
16· ·as he has said he executed them, going through two
17· ·different or two different outside vendors to look
18· ·at possible lien releases and analyze that within
19· ·the process.
20· · · · · Q.· ·Do you have an opinion as to the
21· ·appropriateness of the steps taken by Chase in
22· ·connection with this lien release effort?
800.211.DEPO (3376)
·1· · · · · A.· ·This process is consistent with what I
·2· ·have done and what others I have seen done.
·3· · · · · Q.· ·And you don't have any reason to
·4· ·believe that a substantially similar process was not
·5· ·used in connection with other lien release efforts;
·6· ·correct?
·7· · · · · A.· ·I have none, other than what was in the
·8· ·internal audit reports, suggesting that other things
·9· ·needed to be.· They were still to be determined
10· ·how -- how these procedures were going to be
11· ·applied.
12· · · · · Q.· ·But you don't know one way or another?
13· · · · · A.· ·Correct.· I do not know one way or the
14· ·other.
15· · · · · Q.· ·But if Chase used a process
16· ·substantially similar to the one described in the
17· ·Boyle certification and other lien release
18· ·campaigns, you've testified that that was an
19· ·appropriate process?
20· · · · · A.· ·This is an appropriate process, yes.
800.211.DEPO (3376)
·1· ·BY MR. PISTILLI:
·2· · · · · Q.· ·Handing you what's been marked as
·3· ·Exhibit 8.
·4· · · · · · · ·Have you seen this document before?
·5· · · · · A.· ·I have not.
·6· · · · · Q.· ·Did you review the deposition testimony
·7· ·of Robert Adamovic?
·8· · · · · A.· ·Let me reference it real quickly.
·9· · · · · · · ·I do not recall reviewing that
10· ·deposition.
11· · · · · Q.· ·Do you know if plaintiffs' counsel gave
12· ·you the Adamovic deposition?
13· · · · · A.· ·Not that I was aware of.
14· · · · · Q.· ·So you didn't have the opportunity to
15· ·consider the testimony of Mr. Adamovic in forming
16· ·your opinions regarding Chase's processes and
17· ·procedures; is that right?
18· · · · · A.· ·Correct.
19· · · · · Q.· ·Does Exhibit 8 appear to you to be a
20· ·Chase business document relating to another lien
21· ·release effort?
22· · · · · A.· ·It is titled as such being "Mortgage
800.211.DEPO (3376)
·1· ·environment as it was being criticized by the
·2· ·regulators and being criticized by your internal
·3· ·audit groups, hence, corroborated via the
·4· ·depositions.
·5· · · · · Q.· ·But you don't know what the policies
·6· ·and procedures are?
·7· · · · · A.· ·Correct.· I do not.· I wouldn't.
·8· · · · · Q.· ·So it's impossible to say whether
·9· ·they're proper or improper?
10· · · · · A.· ·It's not clear, and that's what I've
11· ·said through here.
12· · · · · Q.· ·You certainly have no basis to offer an
13· ·opinion that Chase's policies and procedures
14· ·relating to the identification of lien release
15· ·populations are improper?
16· · · · · A.· ·Not without further review.
17· · · · · · · · · · ·MR. PISTILLI:· No further
18· ·questions.
19· · · · · · · · · · ·MR. DI MARCO:· Just a couple of
20· ·questions.
21· · · · · · · · · · · ·EXAMINATION
22· ·BY MR. DI MARCO:
800.211.DEPO (3376)
·1· · · · · Q.· ·You've stated several times that you
·2· ·reviewed depositions and the internal audit report;
·3· ·correct?
·4· · · · · A.· ·Correct.
·5· · · · · Q.· ·Okay.· And in the internal audit
·6· ·report, you found that the auditors criticized what
·7· ·exactly?
·8· · · · · A.· ·In 2011, the auditors, that internal
·9· ·audit report called the procedures and processes
10· ·inadequate for the loan release process and all of
11· ·the payment processing that went on within the
12· ·activity in the Reserve 1 or within the foreclosure
13· ·or foreclosure and loss mitigation group, as it had
14· ·been defined as segregated away from the normal
15· ·servicing process.
16· · · · · Q.· ·Okay.· And when reviewing -- strike
17· ·that.
18· · · · · · · ·Your experience as an auditor, could
19· ·you please describe it for us?
20· · · · · A.· ·Well, as a CPA, I have spent quite a
21· ·bit of time focused primarily on control systems,
22· ·and the experience that I've had has been more
800.211.DEPO (3376)

403-17 Deposition Zachary Bumpus, May 10, 2019

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Case 1:15-cv-00293-LTS-RWL Document 403-17 Filed 05/10/19 Page 1 of 18

Case 1:15-cv-00293-LTS-RWL Document 403-17 Filed 05/10/19 Page 2 of 18

In the Matter Of:

S & A CAPITAL PARTNERS V. JPMORGAN CHASE

ZACHARY ALLEN BUMPUS

January 16, 2019

·1· · · · · · · ·UNITED STATES DISTRICT COURT

·2· · · · · · · SOUTHERN DISTRICT OF NEW YORK

·4· ·S&A CAPITAL PARTNERS, INC.,

·5· ·MORTGAGE RESOLUTION SERVICING,

·6· ·LLC, and 1ST FIDELITY LOAN

·7· ·SERVICING, LLC,

·9· ·V.· · · · · · · · · · · · · · ·No. 15-cv-00293

10· ·JPMORGAN CHASE BANK, N.A.,· · ·LTS-JCF

11· ·CHASE HOME FINANCE, LLC, and

12· ·JPMORGAN CHASE & CO.,

15· · · Videotaped Deposition of ZACHARY ALLEN BUMPUS

17· · · · · · · · · Washington, DC 20005

18· · · · · · · ·Wednesday, January 16, 2019

19· · · · · · · · · · · · 9:30 a.m.

21· ·Reported by: Denise Dobner Vickery, RMR, CRR

22· ·JOB NO. J3541004

·7· · · · · · · · · · · · · Wednesday, January 16, 2019

·8· · · · · · · · · · · · · 9:30 a.m.

10· · · · Videotaped Deposition of ZACHARY ALLEN BUMPUS,

11· ·held at the offices of:

13· · · · · · ·COVINGTON & BURLING LLP

14· · · · · · ·One CityCenter

15· · · · · · ·850 Tenth Street NW

16· · · · · · ·Washington, DC 20001

19· · · · · · ·Pursuant to notice, before Denise Dobner

20· ·Vickery, Certified Realtime Reporter, Registered

21· ·Merit Reporter, and Notary Public in and for the

22· ·District of Columbia.

·3· ·ON BEHALF OF PLAINTIFFS:

·4· · · · ROBERTO L. DI MARCO, ESQ.

·5· · · · FOSTER WALKER & DI MARCO PC

·6· · · · 350 Main Street, Third Floor

·7· · · · Malden, MA 02148

11· ·ON BEHALF OF DEFENDANTS:

12· · · · CHRISTIAN J. PISTILLI, ESQ.

13· · · · COVINGTON & BURLING LLP

14· · · · One CityCenter

15· · · · 850 Tenth Street NW

16· · · · Washington, DC 20001

20· ·Also Present:

21· · · · Glen Fortner, Videographer

22· · · · Laurence Schneider

·1· · · · · Q.· ·Right.· And if S&A Capital wanted to,

·2· ·it could assign it to MRS tomorrow; right?

·3· · · · · A.· ·It would seem logical that that could

·5· · · · · Q.· ·And you're not opining that any harm

·6· ·resulted from the assignment of the loan purchased

·7· ·by plaintiffs to the S&A Capital entity, are you?

·8· · · · · A.· ·Without looking at the details of this

10· ·done moving a loan from one portfolio to the other,

11· ·it's hard to say.

12· · · · · Q.· ·And you have not done that work?

13· · · · · A.· ·I have not done that work.

14· · · · · Q.· ·So there's nothing in your report that

15· ·in any way indicates that harm to any plaintiff

16· ·entity occurred as a result of the Brooks

18· · · · · A.· ·Correct.· There's nothing there to

19· ·suggest that.· It only is to suggest another example