Mortgage Loan Sale and Assignment Agreement
(filed as an exhibit to Form 8-K on 2006-07-14)
On March 7, 2007 Fremont General Corporation ("FGC"), its wholly-owned industrial bank, Fremont Investment & Loan and Fremont General Credit Corporation, a wholly-owned subsidiary of FGC, have consented to the terms of a Cease and Desist Order issued by the Federal Deposit Insurance Corporation without admitting to the allegations contained in such order. The order calls, among other things, for the FGC to make a variety of changes in its sub-prime residential loan origination business and also calls for certain changes in its commercial real estate lending business.
The registrant knows of no other material pending legal proceedings involving the Trust and all parties related to such Trust, other than routine litigation incidental to the duties of those respective parties.
Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions.
Information required by Item 1119 was provided previously in a prospectus timely filed pursuant to Rule 424 promulgated under the Securities Act of 1933, under the same Central Index Key (CIK) code as this annual report on Form 10-K. No material changes to such information have occurred since the initial Rule 424 filing.
Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria.
The assessment of compliance for Wilshire Credit Corporation (“Wilshire”) has disclosed the following material noncompliance with servicing criterion 1122(d)(4)(iv), applicable to Wilshire during the year ended December 31, 2006.
On one of the forty-five loan payoffs selected for testing, Wilshire calculated the prepayment charge in accordance with the related mortgage note, but transposed the numbers when entering the charge into its system, resulting in an overcharge to the borrower. Such assessment further states that this error has been corrected and the overcharge has been refunded to the borrower.