Salcedo

FACTS AND PROCEDURAL HISTORY

According to the SAC, in 2007 plaintiffs were renting a residence (Property) from Graciela Cabrera. Graciela’s husband, Ausencio, and his son Michael were managers of Coastal Real Estate and Loan Center, owned by Joan Marie Lowrance. Ausencio allegedly induced plaintiffs to purchase the Property from Graciela. Lowrance brokered plaintiffs’ $532,000 loan from BSM Financial (BSM). Plaintiffs allege all of these parties, plus Ultimate Escrow Service and Omar Cabrera, who notarized documents, all named defendants, conspired to defraud them. Plaintiffs plead they signed a purchase agreement, loan application and fixed rate note. The loan closed in June 2007. BSM sold the loan to Countrywide Bank, FSB, predecessor in interest to defendant. In December 2007 plaintiffs received their first payment coupon from Countrywide and, “[t]o their dismay,” it showed an adjustable rate loan. On contacting Countrywide, plaintiffs learned it had purchased a loan

2 supported by a different loan application, an adjustable rate note (Note), and a truth in lending disclosure. These documents were allegedly forged by the coconspirator defendants. In February 2008, on the…