2014

Institutional Holders of Countrywide-Issued RMBS Issue Notice of Non-Performance Identifying Alleged Failures by Master Servicer to Perform Covenants and Agreements in More Than $47 Billion of Countrywide-Issued RMBS

HOUSTON, Oct. 18 /PRNewswire/ --Today, the holders of over 25% of the Voting Rights in more than $47 billion of Countrywide-issued RMBS sent a Notice of Non-Performance (Notice) to Countrywide Home Loan Servicing, as Master Servicer ("Countrywide Servicing"), and to Bank of New York, as Trustee, identifying specific covenants in 115 Pooling and Servicing Agreements (PSAs) that the Holders allege Countrywide Servicing has failed to perform.

The Holders' Notice alleges that each of these failures has materially affected the rights of the Certificateholders under the relevant PSAs. Under Section 7.01 of the PSAs, if any of the cited failures "continues unremedied for a period of 60 days after the date on which written notice of such failure has been given ... to the Master Servicer and the Trustee by the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates," that failure constitutes an Event of Default under the PSAs.

In a previous release, the Holders emphasized their intent to invoke all contractual remedies available to them to recover their losses and to protect their rights. Kathy Patrick of Gibbs & Bruns LLP, lead counsel for the Holders, emphasized that the Holders' notice does not seek to halt loan modifications for troubled borrowers. Instead, it urges the Trustee to enforce Countrywide Servicing's obligations to service loans prudently by maintaining accurate loan records, demanding the repurchase of loans that were originated in violation of underwriting guidelines, and compelling the sellers of ineligible or predatory mortgages to bear the costs of modifying them for homeowners or repurchasing them from the Trusts' collateral pools.

Patrick also noted that the group of Holders that tendered today's Notice of Non-Performance is larger, and encompasses more Countrywide-issued RMBS deals, than were included in the August 20 instruction letter. When asked why the group of holders was larger, Patrick replied, "Ours is a large, determined, and cohesive group of bondholders. We have a clearly defined strategy. We plan to vigorously pursue this initiative to enforce Holders' rights."

The Notice of Non-Performance, which is the first step in the process of declaring an Event of Default, was issued on behalf of Holders in the following Countrywide-issued RMBS:

Deal Name

Deal Name

Deal Name

CWALT 2004-32CB


CWHL 2004-22


CWL 2006-15

CWALT 2004-6CB


CWHL 2004-25


CWL 2006-16

CWALT 2004-J1


CWHL 2004-29


CWL 2006-19

CWALT 2005-14


CWHL 2004-HYB9


CWL 2006-2

CWALT 2005-21CB


CWHL 2005-11


CWL 2006-20

CWALT 2005-24


CWHL 2005-14


CWL 2006-22

CWALT 2005-32T1


CWHL 2005-18


CWL 2006-24

CWALT 2005-35CB


CWHL 2005-19


CWL 2006-25

CWALT 2005-36


CWHL 2005-2


CWL 2006-26

CWALT 2005-44


CWHL 2005-3


CWL 2006-3

CWALT 2005-45


CWHL 2005-30


CWL 2006-5

CWALT 2005-56


CWHL 2005-9


CWL 2006-7

CWALT 2005-57


CB CWHL 2005-HYB3


CWL 2006-9

CWALT 2005-64


CB CWHL 2005-HYB9


CWL 2006-BC2

CWALT 2005-72


CWHL 2005-R3


CWL 2006-BC3

CWALT 2005-73CB


CWHL 2006-9


CWL 2006-BC4

CWALT 2005-74T1


CWHL 2006-HYB2


CWL 2006-BC5

CWALT 2005-81


CWHL 2006-HYB5


CWL 2006-SD1

CWALT 2005-AR1


CWHL 2006-J2


CWL 2006-SD3

CWALT 2005-J5


CWHL 2006-OA5


CWL 2006-SD4

CWALT 2005-J9


CWHL 2006-R2


CWL 2006-SPS2

CWALT 2006-14CB


CWHL 2007-12


CWL 2007-2

CWALT 2006-20CB


CWHL 2007-16


CWL 2007-5

CWALT 2006-37R


CWHL 2008-3R


CWL 2007-6

CWALT 2006-41CB


CWL 2005-10


CWL 2007-7

CWALT 2006-HY12


CWL 2005-11


CWL 2007-9

CWALT 2006-OA11


CWL 2005-13


CWL 2007-BC1

CWALT 2006-OA16


CWL 2005-16


CWL 2007-BC2

CWALT 2006-OA17


CWL 2005-2


CWL 2007-BC3

CWALT 2006-OA6


CWL 2005-4


CWL 2007-QH1

CWALT 2006-OA9


CWL 2005-5


CWL 2007-S3

CWALT 2006-OC10


CWL 2005-6



CWALT 2006-OC2


CWL 2005-7



CWALT 2006-OC4


CWL 2005-8



CWALT 2006-OC5


CWL 2005-9



CWALT 2006-OC6


CWL 2005-AB2



CWALT 2006-OC7


CWL 2005-AB3



CWALT 2007-17CB


CWL 2005-AB4



CWALT 2007-23CB


CWL 2005-BC5



CWALT 2007-24


CWL 2005-IM1



CWALT 2007-OA7


CWL 2006-10



CWALT 2008-2R


CWL 2006-12





SOURCE Gibbs & Bruns, LLP



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