Wells- 11-20-14...

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Internal. CM/ECF Live Database Page 1 of 45

File a

Motion:

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Case Flag: PPEL, ME;, LED, CLM0;*, 0eale2 Do38s9, C7*FIMED

#t

Distri3t of Dela+are

*oti3e of Ele3troni3 Filing

6e follo+ing transa3tion +as re3eive2 fro? Eli@abet6 . 0loan entere2 on 5/A'/A%1% at 1:%5 PM ED

an2 file2 on 5/A'/A%1%Case *a?e: *e+ Centr 0 ol2ings, In3.

Case *?ber: %&-1%41'-()C

Do3?ent *?ber: 1%114

Do3et eBt:

Motion to rove Co?ro?ise n2er le %1 in Support of Stipulation of Global Settlement

Among New Century Liquidating Trust, Carrington Securities, L.P., Carrington ortgage Ser!ices, LLC and Carrington Capital anagement, LLC "esol!ing T#eir "especti!e Claims File2 b *e+

Centr Lii2ating rst. earing s36e2le2 for '/A4/A%1% at 11:%% M at 03anning>n3 %1 EN %5A'1%11415.2f Ele3troni3 2o3?ent 0ta?:

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6tts://e3f.2eb.s3orts.gov/3gi-bin/Disat36.lO5A'AA'&' 5/A'/A%1%



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In re:C6ater 11

NEW CENTURY TRS HOLDINGS, Case *o. %&-1%41' 8()C9

iIN C --, a Dl.L"-el a w a r e.,_._,co r! o r a io n , e a l .,- 1

-----i-----.1J o inHHti

De#"or$. earing Date: )ne A4, A%1% at 11:%% a.?.7bHe3tion Dea2line: )ne 1&, A%1% at 4:%% .?.

NOTICE O% &OTION

7: 7ffi3e of t6e



6earing on t6e Motion +ill be 6el2 on 6(ne 89, 8--a":-- a.0. before t6e



ele6one: 8%A9 4A5-'4%%

Fa3si?ile:T

-an2-

8%A9 4A5-'4'4

H1HN & HESSEN LL'

Mar 0. In2eli3ato,Es. Mar . Po+er,

Es. Ja6ir . Rirani,

Es. 4 Ma2ison

vene

*e+ Sor, *e+ Sor 1%%AA

ele6one: 8A1A9 4&-&A%%

Fa3si?ile: 8A1A9 4&-&4%%

Co&Counsel to t#e New Century Liquidating

Trust and "eorgani'ed Access Lending

- A -



IN THE UNITED ST1TES *1NING THEIR RES'ECTI>E CL1I&S

7 E 7*7=LE (ERI* J. CES,



Ma A5, A%1%, a 3o of +6i36 is anneBe2 as EB6ibit $l$ to t6e Proose2 7r2er 8t6e

$Stipulation$%. 6e rstee sb?its t6at t6e 0tilation reresents a reasonable settle?ent of t6e

arties 2istes an2 t6at its aroval is int6e best interest of t6e rst an2 its 3re2itors an2

benefi3iaries, and4iu;ther reresents an2 state0-a........----------------

*ac+2ro(n)

1. 7n ril A, A%%& 8t6e $Petition +ate$%, t6e Debtors 8ot6er t6an *e+ Centr

Gare6ose Cororation9 file2 36ater 11 banrt3 etitions in t6e



-1%5''.%1'%%/4%1&15v.1

allege2 brea36es of reresentations an2 +arranties, first a?ent 2efalts, an2 failre to a

rea?ent re?i?s n2er an ?en2e2 an2 estate2 Master Mortgage Loan Pr36ase an2

0ervi3ing gree?ent 2ate2 Ma A5, A%%' 8t6e $LPSA$% an2 its relate2 3o??it?ent letters.

'. 7n gst 1, A%%&, C0 file2 :roofs of 3lai? nos. A4&&, A4&, AA, an2 A4

83olle3tivel, t6e $"67 "estatement Claims$% against *e+ Centr Mortgage Cororation

)$NCC$% an2 *C Caital. 6e VG estate?ent Clai?s arose ot of allege2 brea36es b

*C Caital an2 *CMC of 3ertain rovisions of t6e MMLP0 an2 relate2 3o??it?ent letters.

0e3ifi3all, in t6e VG estate?ent Clai?s, C0 alleges t6at after C0 r36ase2 3ertain

?ortgage loans fro? *C Caital +it6 t6e intent of se3riti@ing t6ose loans 8t6e $8n!estor #/05

Loans$%, *C Caital an2 *CMC +ere 3ontra3tall obligate2, bt faile2, to restate 3ertain

entit-level reresentations an2 +arranties to C0 se3riti@ation 3onterarties in brea36 of t6e

MMLP0 an2 3o??it?ent letters. C0 asserts t6at t6e brea36 ren2ere2 C0 in3aable of

transferring t6e Investor 14 Loans to a EMIC trst for se3riti@ation. =e3ase it +as nable

to se3riti@e t6e Investor 14 Loans, C0 3lai?s t6at it +as lti?atel for3e2 to sell t6e

Investor

14 loans to 0tton Fn2ing, an2 as a reslt, C0 sstaine2 an e3ono?i3 loss of aroBi?atel

UA ?illion.

&. 7n Febrar A4, A%%, t6e rstee file2 a sbstantive obHe3tion to t6e VG estate?ent

Clai?s 8t6e $(b9ection$ KD.I. 4'9, on t6e gron2s t6at, a?ong ot6er t6ings, 8a9 t6e *C

Caital an2 *CMC 2i2 not brea36 an rovisions reiring t6e? to restate reresentations or

+arranties in 3onne3tion +it6 a resale of t6e Investor 14 Loans 8b9 t6e MMLP0 an2

3o??it?ent letters 2i2 not reire t6at *C Caital or *CMC garantee s33essfl 3o?letion

of an se3on2ar sale 839 C0 faile2 to s6o+ +6at, if an, losses it in3rre2 solel as a reslt of

*C Caitals allege2 failre to restate t6e reresentations an2 +arranties, as oose2 to a

general 2e3line in t6e vale of sbri?e loans in t6e se3on2ar ?ortgage ?aret 2ring t6e

relevant ti?e fra?e 829 C0 3lai? to losses reslte2 2ire3tl fro? eBosre to t6e bon2



?arets, not an a3tion attribtable to *C Caital or *CMC an2 8e9 3ertain VG

estate?ent Clai?s +ere 2li3ative of 3lai?s asserte2 b 3rrent 6ol2ers of t6e


http:///reader/full/wells-11-20-14-carrington-settlement-new-century-mortgage-stipulated-global-settlement-with-… 10/34

?ortgage loans. C0 reson2e2 to t6e 7bHe3tion 8t6e $"esponse$ KD.I. '9 taing isse

+it6 all of t6e bases of t6e 7bHe3tion.

CL1I&S 1SSERTED *Y THE TRUST 1G1INST C1RRINGTON

. *CMC asserte2 a 3lai? against C0, alleging t6at C0 o+es *CMC t6e a?ont of

UA,',5&.1' in 3onne3tion +it6 nrei?brse2 servi3ing fees an2 a2van3es for t6e 3ost of

servi3ing t6e Investor 14 Loans rior to t6e sale of t6e Debtors servi3ing latfor? to CM0

8t6e $8n!estor :/05 Claim$%. C0 2iste2 t6e a?ont of t6e Investor 14 Clai?, alleging t6at

t6e 3orre3t a?ont 2e for nrei?brse2 servi3ing fees an2 a2van3es +as U1,5,''.%5, an2

frt6er asserts t6at it 6as a rig6t of setoff or re3o?ent of t6e a?onts o+e2 n2er t6e

Investor

14 Clai? against t6e a?onts it alleges it is o+e2 n2er t6e VG estate?ent Clai?s. 6e

rstee 2iste2 C0 3lai? to a rig6t of offset or re3o?ent of t6e Investor 14 Clai? against

a?onts C0 believes it is o+e2 n2er t6e VG estate?ent Clai?s.

. In a22ition to t6e foregoing 3lai?s, *CMC an2 *CFC asserte2 3lai?s against CM0, alleging t6at

CM0 o+es *CMC an2 *CFC UA%,41. 8t6e $TSA Claim$%, n2er t6e ransitional 0ervi3es

gree?ent 2ate2 )ne A, A%%& 8t6e $TSA$% entere2 into as art of t6e Debtors sale of t6eir

servi3ing latfor? to CM0. CM0 asserte2 t6at s36 a?ont s6ol2 be re23e2 b UA1,5.5A

o+e2 to CM0 b *CFC an2 *CMC for nrei?brse2 servi3ing a2van3es ?a2e b CM0 in

3onne3tion +it6 *CMC +6ole loans t6at +ere. servi3e2 b CM0 ntil *CMC sol2 t6e loans to

t6ir2 arties bet+een )l an2 73tober A%%& 8t6e $TSA (ffset Claim$%. 6e rstee arges in

resonse t6at t6e 0 eBressl rovi2es t6at t6e a?onts 2e for sbservi3ing 3annot be offset

against a?onts 2e n2er t6e 0, an2 t6at CM0 faile2 to ti?el file a reest for t6is a?ont

rior to t6e a2?inistrative bar 2ate.

1I%5''.%1'%%/4%1EE&15v.1



- 4 -



- 5 -1%5''.%1'%%/4%1&15v.1

1%. 6e rstee is 3rrentl 6ol2ing t6e s? of U4',%&.55 8t6e $;scrow Account



ortion of Clai? A'4% arising ot of failre to a rea?ent re?i?s n2er

t6e MMLP0 s6all be allo+e2 as a general nse3re2 3lai? against *C

Caital in t6e a?ont of U1&,%%.4 )$Claim 2451b$% in 3lass 7P'3 of t6e

Mo2ifie2

$ 6e VG estate?ent Clai?s s6all be 2isallo+e2 in t6eir entiret an2 eBnge2

$ 6e rstee +aives an an2 all rig6ts to assert t6e Investorl4 Clai? an2 t6e

0 Clai?, an2 Carrington +aives an an2 all rig6ts to assert t6e 0 7ffset

Clai?

$ Carrington +aives an2 releases an 3lai? or rig6t, eit6er for itself or in

its 3aa3it as servi3er, to t6e Es3ro+ 33ont Fn2s an2

$ CM0 s6all 3ontine to servi3e t6e t+o re?aining 0ervi3e2 Loans, an2 s6all re?it

all ?onies 2e to t6e rst +it6 rese3t to t6e 0ervi3e2 Loans after 2e23ting

3ertain nai2 servi3ing fees an2 nrei?brse2 a2van3es 2e CM0, an2

?aintaining a U5%,%%% reserve for ftre otential servi3ing a2van3es, rior to

re?itting all ?onies 2e to t6e rst +it6 rese3t to t6e 0ervi3e2 Loans.

6(ri$)ic"ion

15. 6is Cort 6as Hris2i3tion over t6is ?otion rsant to A



1I%5''.%1'%%/4%1EE&1 0v.1- ' -



- & -1%5''.%1'%%/4%1&15v.1

1&. 6e rstee 6as 3onsi2ere2 t6e 3lai?s an2 2efenses available to t6e rst an2 6as 2eter?ine2

t6at t6e settle?ent e?bo2ie2 b t6e 0tilation is fair an2 reasonable n2er t6e 3ir3?stan3es.

6e roose2 settle?ent +ill reslt in t6e rsts settle?ent of ?ltile Clai?s

+it6o,t t6e nee2-for 3ostl an2-ti?eL3o-11s?lXlin#g l+it ig##aPY,5t1#To'*!nc.---------------------

1. 6e stan2ar2 for aroval of a roose2 3o?ro?ise is +ell establis6e2. 6e Dela+are Distri3t

Cort 6as 6el2 t6at a Cort s6ol2 arove a 3o?ro?ise +6ere it #is fair, reasonable, an2 in t6e

interest of t6e estate.# In re Marvel Entertain?ent ;ro, In3., AAA =.. A4, A4 8D. Del.

19 8oting In re Loises, In3., A11 =.. &, %1 8D. Del. 1&99 see also

Mers v. Martin 8In re Martin9, 1F.2, 4 82 Cir. 1'9.

1. In fa3t, a Cort s6ol2 reHe3t a roose2 settle?ent onl +6ere it falls belo+ t6e lo+est oint in

t6e range ofreasonableness. In re EBi2e e36s., et al., % =.. 4, ' 8D. Del. A%%9 see also

Cosoffv. o2?an (In re G. . ;rant Co.9 , ' F.A2 5, '% 8A2 Cir. 19

83iting *e+?an v. 0tein, 4'4 F.A2 ', ' 8A2 Cir. 1&A99. 0e3ifi3all, t6is stan2ar2 in3l2es

3onsi2eration of t6e follo+ing fa3tors: #819 t6e robabilit of s33ess in litigation 8A9 t6e liel

2iffi3lties in 3olle3tion 89 t6e 3o?leBit of t6e litigation involve2, an2 t6e eBense,

in3onvenien3e an2 2efa ne3essaril atten2ing it an2 849 t6e ara?ont interest of t6e

3re2itors.# In re Marvel Entertain?ent ;ro, In3., AAA =.. at A4.

A%. =ot6 si2es 6ave raise2 otentiall ?eritorios arg?ents t6at +ol2 liel reire eBtensive fa3t

2is3over an2 a trial on t6e ?erits before resoltion. 6e rstee believes t6at t6e roose2

settle?ent is in t6e best interests of t6e rst, an2 its 3re2itors an2 benefi3iaries, as it rovi2es for

a settle?ent of several sbstantial 3lai?s +it6ot t6e nee2 for eBensive an2 eBtensive litigation.



A1. In aling t6e legal stan2ar2s enn3iate2 above to t6e roose2 0tilation, it is 3lear t6at t6e

roose2 0tilation 8a9 +ill avoi2 lengt6, br2enso?e an2 eBensive litigation

8b9 reresents a reasonable 3o?ro?ise of t6e 3lai?s against t6e Debtors estates 839 is +ell

---''.- i.T.t..r,.n--t6e range of litigation 4ossibilities.P-an2 82-9-i-Q--in-:t6e best interests t6e Debtors estates.

*oti3e

AA. *oti3e of t6is Motion 6as been rovi2e2 to t6e 7ffi3e of t6e



-1%5''.%1'%%/4%1&15v.1

Gil?ington, Dela+are

Date2: Ma A', A%1%ese3tfll sb?itte2,

=onnie ;lant ell 8*o. %9Davi2 G. Cari36off 8*o. &159Eli@abet6 . 0loan 8*o. 5%459 1A%1 Maret 0treet, 0ite %%Gil?ington, DE 1%1ele6one: 8%A9 4A5-'4%%Fa3si?ile: 8%A9 4A5-'4'4

-an2- T

H1HN & HESSEN LL'

Mar . Po+er, Es.Ja6ir . Rirani, Es.4 Ma2ison vene *e+ Sor, *S 1%%AAele6one: 8A1A9 4&-&A%%Fa3si?ile: 8A1A9 4&-&4%%

Counsel to t#e New Century Liquidating Trust



ENI=I

P7P70ED 7DE



1%5''.%1'%%/4%1&14v.1

IN THE UNITED ST1TES *1NING STI'UL1TION O%

GLO*1L SETTLE&ENT 1&ONG NEW CENTURY LI?UID1TING TRUST,

C1RRINGTON SECURITIES, L.'., C1RRINGTON &ORTG1GE SER>ICES, LLC

1ND C1RRINGTON C1'IT1L &1N1GE&ENT, LLC RESOL>ING THEIR RES'ECTI>E CL1I&S .



$Carrington$%, 2ate2 Ma A5, A%1%, a 3o of +6i36 is anneBe2 6ereto as EB6ibit## 8t6e

$Stipulation$%, an2 noti3e of t6e Motion 6aving been sffi3ient an2 t6is Cort ossessing

Hris2i3tion to 3onsi2er t6e Motion an2 vene being roer an2 it aearing t6at no ot6er or

frt6er noti3e is reire2 an2 after 2e 2eliberation an2 sffi3ient 3ase aearing t6erefore, it is

6ereb

ORDERED, t6at t6e 0tilation anneBe2 6ereto as #EB6ibit 1# is arove2 an2 it is

frt6er

ORDERED, t6at t6is Cort s6all retain Hris2i3tion over all ?atters relate2 to

t6e interretation or i?le?entation of t6is 7r2er.

Date2:------A%1%

6e onorable (evin ). Care

CIEF



ENI=I 1

0IP



FI*L RE0I7*

I* E



+it6 C0 an2 CM0, #Carringto #9, on t6e ot6er 6an2, b an2 t6rog6 t6eir rese3tive 3onsel

8ea36 a #Part# an2 3olle3tivel, t6e #Parties#9, base2 on t6e follo+ing re3itals of fa3t:

RECIT1LS

. 7n ril A, A%%& 8t6e #Petition Date#9, t6e Debtors 8ot6er t6an *e+ Centr Gare6ose

Cororation9 file2 36ater 11 banrt3 etitions in t6e



3

noti3e 2ate2 De3e?ber 1, A%%.

E. 7n gst 1, A%%&, C0 file2 roof of 3lai? no. A'4% 8#Clai? A'4%#9

3lai? against *C Caital in an a?ont of not less t6an U5, 1%4 , 15.%A arising ot of allege2

brea36es ofreresentations an2 +arranties, first a?ent 2efalts, an2 failre to a rea?ent

re?i?s n2er an ?en2e2 an2 estate2 Master Mortgage Loan Pr36ase an2 0ervi3ing

gree?ent 2ate2 Ma A5, A%%' 8t6e #MMLP0#9 an2 its relate2 3o??it?ent letters.

F. 7n gst 1, A%%&, C0 file2 roofs of 3lai? nos. A4&&, A4&, AA, an2 A4 83olle3tivel, t6e

#VG estate?ent Clai?s#9 against *CMC an2 *C Caital. 6e VG estate?ent Clai?s

arose ot of allege2 brea36es b *C Caital an2 *CMC of 3ertain rovisions of t6e MMLP0

an2 relate2 3o??it?ent letters. 0e3ifi3all, in t6e VG estate?ent Clai?s, C0 alleges t6at

after C0 r36ase2 3ertain ?ortgage loans fro? *C Caital +it6 t6e intent of se3riti@ing t6ose

loans 8t6e #Investor 14 Loans#9, *C Caital an2 *CMC +ere 3ontra3tall obligate2, bt

faile2, to restate 3ertain entit-level reresentations an2 +arranties to C0 se3riti@ation

3onterarties in brea36 of t6e MMLP0 an2 3o??it?ent letters. C0 asserts t6at t6e brea36

ren2ere2 C0 in3aable of transferring t6e Investor 14 Loans to a EMIC trst for

se3riti@ation. =e3ase it +as nable to se3riti@e t6e Investor 14 Loans,

C0 3lai?s t6at it +as lti?atel for3e2 to sell t6e Investor 14 loans to 0tton Fn2ing, an2 as

a reslt, C0 sstaine2 an e3ono?i3 loss of aroBi?atel UA ?illion.

;. 7n Febrar A4, A%%, t6e rstee file2 a sbstantive obHe3tion to t6e

VG estate?ent Clai?s 8t6e #7bHe3tion# KD.I. 4'9, on t6e gron2s t6at, a?ong ot6er

t6ings, 8a9 t6e *C Caital an2 *CMC 2i2 not brea36 an rovisions reiring t6e? to restate

reresentations or +arranties in 3onne3tion +it6 a resale of t6e Investor 14 Loans 8b9 t6e

MMLP0 an2 3o??it?ent letters 2i2 not reire t6at *C Caital or *CMC garantee

s33essfl 3o?letion of an se3on2ar sale 839 C0 faile2 to s6o+ +6at, if an, losses it

in3rre2 solel as a reslt of *C Caitals allege2 failre to restate t6e reresentations an2

+arranties, as oose2 to a general 2e3line in t6e vale of sbri?e loans in t6e se3on2ar

?ortgage ?aret 2ring t6e relevant ti?e fra?e 829 C0 3lai? to losses reslte2 2ire3tl fro?



eBosre to t6e bon2 ?arets, not an a3tion attribtable to *C Caital or*CMC an2 8e9

3ertain VG estate?ent Clai?s +ere 2li3ative of 3lai?s asserte2 b 3rrent 6ol2ers of t6e

?ortgage loans. C0 reson2e2 to t6e 7bHe3tion 8t6e #esonse# KD.I. '9 taing isse +it6

all of t6e bases of t6e 7bHe3tion.

. *CMC asserte2 a 3lai? against C0, alleging t6at C0 o+es *CMC t6e

a?ont ofUA,',5&.1' in 3onne3tion +it6 nrei?brse2 servi3ing fees an2 a2van3es fort6e

3ost of servi3ing t6e Investor 14 Loans rior to t6e sale of t6e servi3ing latfor? to CM0 8t6e

#Investor 14 Clai?#9. C0 2iste2 t6e a?ont of t6e Investor 14 Clai?, alleging t6at t6e

3orre3t a?ont 2e for nrei?brse2 servi3ing fees an2 a2van3es +as U1,5,''.%5, an2 frt6er

asserts t6at it 6as a rig6t of setoff or re3o?ent of t6e a?onts o+e2 n2er t6e Investor 14

Clai? against t6e a?onts it alleges it is o+e2 n2er t6e VG estate?ent Clai?s. 6e

rstee 2iste2 C0 3lai? to a rig6t of offset or re3o?ent of t6e Investor 14 Clai? against

a?onts C0 believes it is o+e2 n2er t6e VG estate?ent Clai?s.

I. In a22ition to t6e foregoing 3lai?s, *CMC an2 *CFC asserte2 3lai?s

against CM0, alleging t6at CM0 o+es *CMC an2 *CFC UA%,41. 8t6e #0 Clai?#9,

n2er t6e ransitional 0ervi3es gree?ent 2ate2 )ne A, A%%& 8t6e #0#9 entere2 into as art

of t6e Debtors sale of t6eir servi3ing latfor? to CM0. CM0 asserte2 t6at s36 a?ont s6ol2

be re23e2 b UA1,5.5A o+e2 to CM0 b *CFC an2 *CMC for nrei?brse2 servi3ing

a2van3es ?a2e b CM0 in 3onne3tion +it6 *CMC +6ole loans t6at +ere servi3e2 b CM0

ntil *CM0 sol2 t6e loans to t6ir2 arties bet+een )l an2 73tober A%%& 8t6e #0 7ffset

Clai?#9. 6e rstee asserts t6at t6e 0 eBressl rovi2es t6at t6e a?onts 2e for

sbservi3ing 3annot be offset against a?onts 2e n2er t6e 0, an2 t6at CM0 faile2 to ti?el

file a reest for t6is a?ont rior to t6e a2?inistrative bar 2ate.



5

). 6e rstee is 3rrentl 6ol2ing t6e s? of U4',%& .55 8t6e #Es3ro+

33ont Fn2s#9, for +6i36 t6e rstee 6as i2entifie2 1,51 36e3s totaling s36 s?, relating to

loans +6ere servi3ing rig6ts +ere sol2 an2 transferre2 to CM0 on )ne %, A%%&. 6e rstee

6as reeste2 t6at Carrington, eit6er in its o+n rig6t or in its 3aa3it as ?ortgage servi3er,

3onfir? t6at it 6as no 3lai? or interest in an2 to t6e Es3ro+ 33ont Fn2s.

(. 6e rstee 6as asserte2 an a22itional 3lai? against CM0 for a?onts

o+e2 b CM0 to t6e rst +it6 rese3t to t+o loans t6at are o+ne2 b t6e rst 8t6e #0ervi3e2

Loans#9, bt 3ontine to be servi3e2 b CM0 8t6e #0ervi3e2 Loans Clai?#9. CM0

a3no+le2ges t6e rstees 0ervi3e2 Loans Clai? bt asserts a rig6t to be rei?brse2 3ertain

servi3ing fees an2 nrei?brse2 servi3er a2van3es, as +ell as ?aintaining an aroriate

reserve, before releasing s36 fn2s to t6e rstee.

L. 6e *C Lii2ating rst 6ol2s 8a9 3ertain li?ite2 artners6i interests in Carrington

Invest?ent Partners 8



litigation, 3l?inating in t6e Parties entering into t6is 0tilation.

*7G, EEF7E, E PIE0 0IP



t6e Mo2ifie2 Plan )i.e., t6e Deter?ine2 Distribtion ?ont of ea36 llo+e2 EPD/=rea36



7

Clai? in Class 7P'b s6all be 1%%[ of t6e EPD/=rea36 llo+e2 ?ont for s36 llo+e2

EPD/=rea36 Clai? for roses ofre3eiving a Pro ata s6are of t6e *C Caital EPD/=rea36

Clai?ant Portion of t6e Litigation Pro3ee2s an2 s6all be 5%[ of t6e EPD/=rea36 llo+e2

?ont for s36 Clai? for roses of re3eiving a 2istribtion of its Pro ata s6are of t6e

7erating Debtor *et Distribtable ssets9. 6e ortion of Clai? A'4% arising ot of failre to

a rea?ent re?i?s n2er t6e MMLP0 s6all be allo+e2 as a general nse3re2 3lai?

against *C Caital 8#Clai? A'4%b# or t6e #llo+e2 Pre?i? e3atre Clai?# an2 toget6er

+it6 t6e llo+e2 EPD/=rea36 Clai?, t6e #llo+e2 Clai?s#9 in t6e a?ont of U1&,%%.4 8t6e

#Pre?i? e3atre llo+e2 ?ont#9 in Class 7P'3 of t6e Mo2ifie2 Plan. 6e balan3e of

Clai? A'4% s6all be 2isallo+e2 an2 eBnge2.

4. 6e VG estate?ent Clai?s s6all be 2isallo+e2 in t6eir entiret an2 eBnge2.

5. 6e rstee +aives an an2 all rig6ts to assert t6e Investor 14 Clai? an2 t6e 0 Clai?

an2 Carrington +aives an an2 all rig6ts to assert t6e 0 7ffset Clai?.

'. Carrington 6ereb a3no+le2ges an2 agrees t6at it 6as no 3lai? or interest, eit6er in its o+n

rig6t or in its 3aa3it as ?ortgage loan servi3er, in an2 to an ortion of t6e Es3ro+ 33ont

Fn2s. Carrington 6ereb +aives an2 releases an 3lai? or rig6t, eit6er for itself or in its

3aa3it as servi3er, to t6e Es3ro+ 33ont Fn2s.

&. CM0 s6all 3ontine to servi3e t6e 0ervi3e2 Loans, an2 sliall be entitle2 to net ot an reasonable,

nai2 servi3ing fees an2 nrei?brse2 a2van3es 2e CM0, as +ell as ?aintain a U5%,%%%

reserve for ftre otential servi3ing a2van3es, rior to re?itting to t6e rstee all ?onies 2e

to t6e *C Lii2ating rst +it6 rese3t to t6e 0ervi3e2 Loans.



Carrington agrees to re?it s36 ?onies 2e +it6in ten 81%9 2as of t6e 0tilation Effe3tive

Date. Carrington s6all 3ontine to servi3e t6e 0ervi3e2 Loans in a33or2an3e +it6 3sto?ar

servi3ing stan2ar2s in t6e in2str an2 s6all rovi2e t6e rstee +it6 3sto?ar reorting as to

t6e stats of t6e 0ervi3e2 Loans.

. Carrington 6ereb releases, a3its an2 2is36arges t6e Debtors, t6e Lii2ating rst, t6e

rstee, t6e PC or t6e Plan 2visor Co??ittee 8t6e $PAC** as 2efine2 in t6e Plan9, t6eir

rese3tive retaine2 rofessionals, an2 t6eir rese3tive s33essors an2 assigns, of an2 fro? an

3lai?s, 2a?ages, a3tions, sits, 3ases of a3tion, rig6ts, liens, 2e?an2s, obligations an2/or

liabilities, of +6atever in2 or natre, in la+,_eit or ot6er+ise, +6et6er no+ no+n or

nno+n, veste2 or 3ontingent, +6i36 eBist no+ or ?a eBist in t6e ftre,

in3l2ing, bt not li?ite2 to, an interest or 3lai? in t6e Es3ro+ 33ont Fn2s, t6e VG

estate?ent Clai?s an2 t6e 0 7ffset Clai? pro!ided, #owe!er, t6at t6is release s6all not

release or ot6er+ise affe3t t6e llo+e2 Clai?s or Carringtons rig6t to be rei?brse2 for an

servi3ing fees or nrei?brse2 a2van3es 2e +it6 rese3t to t6e 0ervi3e2 Loans, an2 not6ing

3ontaine2 6erein s6all be 2ee?e2 to release an obligations t6e rstee 6as n2er t6is

0tilation.

. 6e rstee, on be6alf of 6i?self, t6e PC, t6e Lii2ating rst, an2 t6e Debtors estates, 8a9

6ereb releases, a3its an2 2is36arges Carrington, t6eir rese3tive retaine2 rofessionals an2

t6eir s33essors an2 assigns fro? an2 against an 3lai?s, 2a?ages, a3tions, sits, 3ases of

a3tion, rig6ts, liens, 2e?an2s, obligations an2/or liabilities, of +6atever in2 or natre, in la+,

eit or ot6er+ise, +6et6er no+ no+n or nno+n, veste2 or 3ontingent, +6i36 eBist no+ or

?a eBist in t6e ftre, in3l2ing, bt not li?ite2 to, t6e Investor 14 Clai?, t6e

0 Clai? an2 an 3lai?s retaine2 or reserve2 n2er t6e Mo2ifie2 Plan pro!ided, #owe!er, t6at



9

not6ing 3ontaine2 6erein s6all be affe3t, i?air or release t6e *C Lii2ating rsts rig6ts in

an2 to t6e CIP LP Interests, n2er t6e CCM Pro?issor *ote or +it6 rese3t to an obligations

t6at Carrington 6as n2er t6is 0tilation, in3l2ing, bt not li?ite2 to an obligations relate2 to

t6e 0ervi3e2 Loans.

1%. 6is 0tilation is t6e entire agree?ent bet+een t6e Parties +it6 rese3t of t6e sbHe3t ?atter

6ereof. 6is 0tilation serse2es an an2 all agree?ents, +6et6er +ritten or oral, t6at ?a

6ave reviosl eBiste2 bet+een t6e Parties +it6 rese3t to t6e ?atters set fort6 6erein. *o

state?ents, ro?ises, or reresentations 6ave been ?a2e b an Part to an ot6er,

or relie2 on, an2 no 3onsi2eration 6as been offere2, ro?ise2. eBe3te2 or 6el2 ot ot6er t6an

as ?a be eBressl rovi2e2 6erein.

11. Carrington reresents t6at 8i9 it is t6e sole o+ner of Clai? A'4%, t6e VG estate?ent Clai?s an2

t6e 0 7ffset Clai?, an2 8ii9 it 6as not assigne2 or ot6er+ise transferre2 o+ners6i of s36

Clai?s or ortion of s36 3lai? to an ot6er art an2 8iii9 ot6er t6an t6e llo+e2 Clai?s, it 6as

no ot6er otstan2ing 3lai?s to be allo+e2 against t6e Debtors estates.

1A. n a?bigities are not to be 3onstre2 against an Part solel 2e to t6e i2entit of t6e 2rafter.

1. 6is 0tilation s6all not be ?o2ifie2, altere2 or a?en2e2 +it6ot t6e roer +ritten 3onsent

of t6e Parties 6ereto.

14. Ea36 erson signing t6is 0tilation reresents an2 +arrants t6ats/6e 6as been 2l at6ori@e2

an2 6as t6e reisite at6orit to eBe3te an2 2eliver t6is 0tilation on



be6alf of s36 art an2 to bin2 6er/6is rese3tive Part to t6e ter?s an2 3on2itions of t6e

0tilation.

5. In t6e event of an 3onfli3t or ?3ons1sten3ies bet+een t6e ter?s oftlie

Motion, t6is 0tilation or t6e roose2 or2er, t6e ter?s of t6is 0tilation s6all govern.

6e =anrt3 Cort s6all retain Hris2i3tion of all 2istes 3on3erning t6e sbHe3t ?atter

of t6is 0tilation.

1'. 6is 0tilation ?a be eBe3te2 in 3onterarts, ea36 of +6i36 +6en so

eBe3te2 s6all be 2ee?e2 to be an original an2 all of +6i36 +6en tae toget6er s6all 3onstitte

one an2 t6e sa?e 0tilation. Deliver of an eBe3te2 3onterart of a signatre age of t6is

0tilation b tele3o or e-?ail trans?ission of a PDF version s6all be as effe3tive as 2eliver

of a ?anall eBe3te2 3o of t6is 0tilation.

IT IS SO

STI'UL1TED.

Date2: :JS A%1%

H1HN &

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Mar . Po+er, Es.Ja6ir Rirani, Es

4 Ma2ison vene, 15t6 Floor *e+ Sor, *e+ Sor 1%%AA

8A1A9 4&E-&A%%-ele6one8A1A9 4&-&4%% -Fa3si?ile

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Co&Counsel to t#e New Century

Liquidating Trust and "eorgani'ed

Access Lending



CI*;7* CPIL M*;EME*, .LLC, CI*;7*M77;:E 0ERlCE0 LLC, *D

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C#ief ;@ecuti!e (fficer

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11

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