June 2006 – Smiths were making payments of $900.

14 per month and had an interest rate

of 7.00% on a $134,000.00 loan to New Century Mortgage Company.

June 2006- Smith made their June 1st payment and received a notice that their June 1st
payment was still due. Upon calling New Century Mortgage the Smiths found that New
Century had charged them $1,800.00 for home owners insurance that they already had
and claimed May and June Payments were still due. The Smiths proved they had
insurance, but were still waiting on the credit.

July 1, 2006 – The Smiths saw a Television advertisement for “15 day Loans” through
Quick Loan Funding and called the 1-800 number. We spoke to a Quick Loan Funding
Loan officer and explained what had happened with regarding Insurance and our loan
payments with New Century and asked if they could refinance us. Upon calling Quick
Loan Funding ran a credit check and found that we qualified for a loan at 7.25%, we were
in agreement with that interest rate and their representative opened up and escrow. At
that time said representative said “Don’t make any payments”, “we can pay out of
escrow” since our loans only take 15 days..

July 2, 2006 to July 10, 2006 – between these days we supplied Quick Loan Funding with
12 months bank statements and 2 years tax returns in order to qualify for the loan. They
said all our paper work was in order, but that we may need an appraisal.

July 10, 2006 – Quick Loan Funding requested a payoff Demand letter from New
Century Mortgage, letter stating the total amount due.

July 20, 2006 – New Century Mortgage Filed a Notice of Default on our property 524 N.
Encina, Visalia, CA 93279 – they filed a notice of default and added a prepayment
penalty of 6 months interest and the 1,800.00 for Insurance along with their demand for
payment.. 20 days had already passed at this point since we had contacted Quick Loan
Funding. They told us do not worry the loan was in escrow and the money was there.

August 2006 – One month had passed since Quick Loan Funding had said they were
going to send their appraiser out. Quick Loan Funding had its own Escrow Company and
Appraisal Service.

August 19,2006 – At this time we were not sure if Quick Loan Funding was going to
follow through although they kept assuring us everything was ok, the appraisers were just
busy. Once again, don’t worry your house is in escrow. Our home/residence at 524 N.
Encina appraised for $249,000.00 and we only owed at that time 134,000.00 to New
Century which we borrowed to fix up the house. We own the DEED to the property and
borrowed less that the house was worth, the house was acquired through a private sale in
2003 we purchased the DEED. .
August 30, 2006 – other finance companies had offered to finance us but could not until
our house was out of escrow with Platinum Coast Escrow which was owned by Quick
Loan Funding. Called and spoke to Joshua Dramitos who was our Loan Officer at Quick
Loan Funding. We once again told Quick Loan Funding how worried we were and that
we need to know what they were going to do because this was no longer a 15 day loan
and our loan was in default. He told us don’t worry its going to happen and since a
7.25% loan with a fixed rate for 30 years was a good offer, we decided to wait it out.

September 18, 2006 – Up to this point we had never gotten any loan disclosures and were
promised an interest rate equal to what we had already which was 7.25% with a 30 year
loan. . We finally received loan documents, a Federal Truth and Lending Disclosure
statement with an annual percentage rate of 8.252% , total finance charge of 263,115.78,
amount financed 154,312.40. When I asked why the amount was so high he said there
were closing cost referred me to the “Good Faith Estimate” that shows that Quick Loan
Funding was to receive a total of $8,248.80 out of the loan proceeds and we were to
receive $9,463.38. He said they would try to do the 7.750% interest rate in the good faith
estimate, but that if could go up to the 8.252%. We agreed to no higher that 8.252%
verbally and signed these documents and sent them back.

September 26, 2006 – we met with a notary to sign documents. The first thing the notary
said was that she could not explain any of the documents that we should not what
everything was according to our discussions with the Quick Loan Funding Loan Agent.
The amount was nothing like we discussed and at that time we did not understand that it
was not a 30 year loan and that it was a 2 year loan due to go up in 2 years. No loan docs
were explained to us. The lady did mention that loan costs were added on, but at that
time I didn’t know that Quick Loan Funding had added another $7,500.00 or so to double
charge us for loan fees. The notary said their were other documents and that we needed
to sign a power of attorney so that if necessary Quick Loan Funding escrow could get
stuff signed if they needed to. The Notary that arrived said she was just there to
notarized and get signatures and that she didn’t really know about the loan, because they
had just hired her for that project.

On June 15, 2007 Khristi Matheny Filed a claim with the Bankruptcy Court claiming she
was the Assistant Vice President of Regions Bank. Yet on _________ assignment from
Mers to HSBC is signed by the same Khristi Matheny. Did Khristi Matheny change her
employer between __________ and

October 22, 2008

Letter from Les Zieve Claiming the current holder of our Note was HSBC Bank as
Trustee For Citi Bank Global Markets whos address is 10 E. 40th Stree 14th Floor, New
York 10016._______________.

Isn’t it a conflict of interest that Khristi Matheny is a dual employee of Regions Bank and
MERS? No one at Regions can verify that she indeed was the assistant to the Vice
President of Regions Mortage either. Could she be falsely claiming to be a bank officer
or falsely claiming to be an officer of MERS? Khristi Matheny it seems may have been
engaged in a subterfuge wearing various corporate hats. An individual who falsely
claims to be a bank officer –that is, who acts without authorization of the bank – commits
fraud. Because Mortgage assignments are sent repeatedly throughout the U.S. Mail, the
fraud becomes a federal offense of mail fraud.

Since they had never recorded the paper showing that they owned the loan, they were not
legally allowed to foreclose.
the assignment was from MERS on behalf of the original lender Quick Loan Funding
which is defunct and has been since 2007 when it was shut down by the California Board
of Corporations for Fraudulent loan practices amongst other charges.

1. Black's Law Dictionary offers the following six definitions:

Tender. "An offer of money. The act by which one produces and offers to a person holding a
claim or demand against him the amount of money which he considers and admits to be due,
in satisfaction of such claim or demand, without any stipulation or condition. . . ." (Id. at p.
1315, col. 2.) (Emphasis added.)

Daniel Sadek was the sole shareholder of Quick Loan Funding, Inc. and the recipient
of the company's profits. In 2005, the company's most successful year, he realized
profits of approximately $40,000,000 in addition to his salary. 2004 and 2006 were
also successful years, albeit not as profitable as 2005. Quick Loan Funding. Inc.
terminated its loan activity in August 2007, and has not transacted business since
that time.

Between 2002 and 2007, Quick Loan Funding, Inc. employed up to 1,000
individuals. Beginning in 2005, Respondent oversaw the operations and customer
service aspects of Quick Loan Funding, Inc.