Whitney

I. Factual Background

On January 25, 2007, John Whitney (“appellant”) executed a promissory note (“the Note”) of $1 million in favor of Wells Fargo Bank (“Wells Fargo”) on his residence in Los Angeles. The Note defined the note holder as Wells Fargo, “or anyone who takes this Note by transfer and who is entitled to receive payments under this Note.” The Note was secured by a deed of trust which served as a lien against appellant’s home. The deed of trust was recorded in the Los Angeles County recorder’s office. On May 31, 2007, Wells Fargo securitized2 the Note. On June 4, 2007, the Bear Stearns ARM Trust 2007-4 (“BSARM 2007-4”) Prospectus was filed with the Securities

1 The facts are taken from appellant’s SAC. (See Howard Jarvis Taxpayers Assn. v. City of La Habra (2001) 25 Cal.4th 809, 814 [we assume the truth of the plaintiff’s pleaded facts when reviewing a judgment of dismissal following a sustained demurrer].) 2 “Although a mortgage securitization transaction is extremely complex and varies somewhat depending on the type of entity undertaking the securitization, the core of the transaction is relatively simple. [¶] First, a financial institution (the ‘sponsor’ or…