ITEM 1. Business.
Omitted.
ITEM 1A.
ITEM 1A. Risk Factors.
Omitted.
ITEM 1B.
ITEM 1B. Unresolved Staff Comments.
Omitted.
ITEM 2.
ITEM 2. Properties.
Omitted.
ITEM 3.
ITEM 3. Legal Proceedings.
Omitted.
ITEM 4.
ITEM 4. Submission of Matters to a Vote of Security Holders.
Omitted.
PART II
ITEM 5.
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Omitted.
ITEM 6.
ITEM 6. Selected Financial Data.
Omitted.
ITEM 7.
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Omitted.
ITEM 7A.
ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk.
Omitted.
ITEM 8.
ITEM 8. Financial Statements and Supplementary Data.
Omitted.
ITEM 9.
ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
Omitted.
ITEM 9A.
ITEM 9A. Controls and Procedures.
Omitted.
ITEM 9A(T). Controls and Procedures.
Omitted.
ITEM 9B.
ITEM 9B. Other Information.
None.
PART III
ITEM 10.
ITEM 10. Directors, Executive Officers and Corporate Governance.
Omitted.
ITEM 11.
ITEM 11. Executive Compensation.
Omitted.
ITEM 12.
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
Omitted.
ITEM 13.
ITEM 13. Certain Relationships and Related Transactions, and Director Independence.
Omitted.
ITEM 14.
ITEM 14. Principal Accounting Fees and Services.
Omitted.
PART IV
ADDITIONAL ITEMS REQUIRED BY GENERAL INSTRUCTION J(2)
Item 1112(b) of Regulation AB, Significant Obligor Financial Information.
No single obligor represents 10% or more of the pool assets held by the issuing entity.
Item 1114(b)(2) of Regulation AB , Significant Enhancement Provider Information.
No entity or group of affiliated entities provides any external credit enhancement or other support for the certificates within this transaction as described under Item 1114(a) of Regulation AB.
Item 1115(b) of Regulation AB, Certain Derivatives Instruments (Financial Information).
The Royal Bank of Scotland plc provides an interest rate swap agreement, interest rate cap agreement and a basis risk cap agreement for the trust as disclosed in the 424 Prospectus. No additional disclosure is necessary because the aggregate significance percentage for the interest rate swap agreement, interest rate cap agreement and the basis risk cap agreement are less than 10%.
Item 1117 of Regulation AB, Legal Proceedings.
On or about February 6, 2008, Franklin Credit Management Corporation ("Franklin") filed an action against WMC Mortgage, LLC ("WMC") in Supreme Court of New York, New York County, seeking to have WMC repurchase approximately 440 loans that WMC had sold to Franklin in September and November 2006. Franklin alleges that WMC breached certain representations and warranties in the loan sale agreements and claims that it has incurred damages in excess of $35 million. Franklin also seeks attorney fees. WMC's initial response to the complaint is due on April 4, 2008.
On or about December 7, 2007, PMI Mortgage Insurance Co. ("PMI") and PMI Guaranty Co. ("PGC"), affiliated insurance companies, initiated an action against WMC Mortgage Corp. ("WMC") and GE Money Bank in the Superior Court of California, County of Los Angeles, seeking to have WMC specifically perform and repurchase 120 mortgage loans. The loans at issue are part of a pool of 5,000 loans that had been originated by WMC, and through a series of subsequent transactions, transferred to a trust (the "Trust"), which issued securities secured by the loans. PMI and PGC separately contracted with the Trust to insure $29.6 million of payments of the mortgage loans (PMI) or principal and interest payments (PGC) on one particular class of securities. The complaint alleges that WMC breached certain representations and warranties in the loan sale agreements. PMI and PGC also assert claims for negligent and intentional misrepresentation. They seek unspecified damages and punitive damages, but do not allege making any payments under their policies. WMC has filed a motion to dismiss the complaint.
On or about May 4, 2007, two former salespersons, Charmaine Van Heyn and Christine Boskovich, filed a class action complaint against WMC Mortgage Corp. ("WMC") and WMC-GEMB Mortgage Corp. in Superior Court of the State of California, Los Angeles County on behalf of all California business development representatives ("BDRs") and business development associates ("BDAs"). The complaint alleges that WMC violated various provisions of the Fair Labor Standards Act, the California Labor Code, and the California Business and Professions Code. In substance, the claims are that: (1) all the putative class members should have been paid overtime; (2) BDRs were improperly required to pay other employees in violation of California wage deduction laws; (3) the compensation of some members of the putative class violated minimum wage laws; (4) the putative class members did not receive meal and rest breaks; (5) accurate wage statements were not provided; and (6) not all expenses were reimbursed. Plaintiffs seek general, liquidated and punitive damages, and attorney's fees. WMC has denied the allegations in the complaint; the parties are currently engaged in discovery.
On or about July 11, 2007, the National Association for the Advancement of Colored People ("NAACP") filed a class action complaint against eleven mortgage lenders, including WMC Mortgage Corp. ("WMC"), in United States District Court in the Central District of California, alleging that the lenders violated the Fair Housing Act ("FHA"), 42 U.S.C. ss.3601, et seq., the Equal Credit Opportunity Act ("ECOA"), 15 U.S.C. ss.1691, et seq., and the Civil Rights Act ("CRA"), 42 U.S.C. ss.ss. 1981, 1982. NAACP has amended the complaint twice and the number of defendants is now seventeen. In the second amended complaint, filed on March 8, 2008, NAACP bases its claims of discrimination against WMC on assertions, inter alia, that (1) WMC unlawfully "steered" African American consumers to less favorable subprime mortgage loans and (2) WMC marketed to minorities adjustable rate loans with low initial rates without evaluating the ability of the applicant to pay the subsequent adjusted higher rate. NAACP purports to bring the action as a class action "on behalf of itself and all others similarly situated, as well as on behalf of the General Public and Acting in the Public Interest," and seeks declaratory, equitable and injunctive relief, and attorneys' fees and costs. Pursuant to a Stipulated Initial Case Management Order entered by the Court on March 14, 2008, defendants may move to dismiss the Second Amended Complaint by April 4, 2008, a hearing thereon is scheduled for June 2, 2008, a schedule/status conference is scheduled for July 7, 2008, and no discovery is to occur until after the Conference.
On or about January 25, 2008, two alleged "minority borrowers" filed a class action complaint (Lopez et al. v. GE Money Bank et al.) against GE Money Bank, and WMC Mortgage Corp. and WMC Mortgage, LLC in United States District Court in the Central District of California asserting that defendants' credit pricing policy had a discriminatory impact on minority applicants for home mortgage loans, in violation of the Fair Housing Act ("FHA"), 42 U.S.C. ss.3601, et seq., the Equal Credit Opportunity Act ("ECOA"), 15 U.S.C. ss.1691, et seq., and the Civil Rights Act ("CRA"), 42 U.S.C. ss.ss. 1981, 1982. Plaintiffs seek disgorgement of "all disproportionate non-risk charges imposed on minority borrowers," restitution, actual and punitive damages, declaratory and injunctive relief, including an order enjoining, inter alia, "any non-risk-related discretionary policy employed by Defendants," and attorneys' fees and costs. As of March 24, 2008, plaintiffs had not served the complaint on any of the defendants.
Item 1119 of Regulation AB, Affiliations and Certain Relationships and Related Transactions.
The information regarding this Item has been previously filed in a 424(b)(5) filing dated March 21, 2007.
Item 1122 of Regulation AB, Compliance with Applicable Servicing Criteria. Reports on assessment of compliance with the servicing criteria for asset-backed securities are attached hereto under Item 15.
ITEM 15. Exhibits, Financial Statement Schedules.
(a) Exhibits
4.1 Pooling and Servicing Agreement, dated as of March 1, 2007, by and among Financial Asset Securities Corp. as Depositor, Countrywide Home Loans Servicing LP as Servicer and Deutsche Bank National Trust Company as Trustee, relating to the Series 2007-1 Certificates, originally filed on Form 8-K on April 9, 2007 and incorporated by reference herein.
10.1 Incorporated by reference as Exhibit 4.1.
31 Rule 13a-14(d)/15d-14(d) Certification.
33. Reports on assessment of compliance with the servicing criteria for asset-backed securities. .. 33.1 Servicer's Annual Report on Assessment of Compliance for Year End December 31, 2007.
33.2 Trustee's Annual Report on Assessment of Compliance for Year End December 31, 2007.
33.3 Custodian's Annual Report on Assessment of Compliance for Year End December 31, 2007.
34. Attestation reports on assessment of compliance with servicing criteria for asset-backed securities.
34.1 Servicer's Annual Attestation Report on Assessment of Compliance with Servicing Criteria for Year End December 31, 2007.
34.2 Trustee's Annual Attestation Report on Assessment of Compliance with Servicing Criteria for Year End December 31, 2007.
34.3 Custodian's Annual Attestation Report on Assessment of Compliance with Servicing Criteria for Year End December 31, 2007.
35.1 Servicer's Annual Statement of Compliance for Year End December 31, 2007.
(b) Exhibits identified in paragraph (a) above.
(c) Not Applicable.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
By: Financial Asset Securities Corp. as Depositor on behalf of the Registrant
By: /s/ John Anderson
(Senior Officer in Charge of Securitization of the Depositor)
Date: March 28, 2008
EXHIBIT INDEX
Exhibit Document
4.1 Pooling and Servicing Agreement, dated as of March 1, 2007, by and among Financial Asset Securities Corp. as Depositor, Countrywide Home Loans Servicing LP as Servicer and Deutsche Bank National Trust Company as Trustee, relating to the Series 2007-1 Certificates, originally filed on Form 8-K on April 9, 2007 and incorporated by reference herein.
10.1 Incorporated by reference as Exhibit 4.1
31 Rule 13a-14(d)/15d-14(d) Certification.
33. Reports on assessment of compliance with servicing criteria for asset-backed securities.
33.1 Servicer's Annual Report on Assessment of Compliance for Year End December 31, 2007.
33.2 Trustee's Annual Report on Assessment of Compliance for Year End December 31, 2007.
33.3 Custodian's Annual Report on Assessment of Compliance for Year End December 31, 2007.
34. Attestation reports on assessment of compliance with servicing criteria for asset-backed securities.
34.1 Attestation Report on Assessment of Compliance with Servicing Criteria for Servicer's Report for Year End December 31, 2007.
34.2 Attestation Report on Assessment of Compliance with Servicing Criteria for Trustee's Report for Year End December 31, 2007.
34.3 Attestation Report on Assessment of Compliance with Servicing Criteria for Custodian's Report for Year End December 31, 2007.
35.1 Servicer's Annual Statement of Compliance for Year End December 31, 2007.