The following is an excerpt from a 10-K SEC Filing, filed by BEAR STEARNS ASSET BACKED

The following is an excerpt from = a 10-K SEC Filing, filed by BEAR STEARNS ASSET BACKED ... on 3/31/2008, with emphas= is added by www.msfraud.org.

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Item 14. Prin=
cipal Accounting Fees and Services.

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bsp;



Omitted.

ADDITIONAL DISCLOSURE =
ITEMS UNDER REGULATION AB

<= b>

<= b>Item 1112(b) of Regula= tion AB. Significant Obligors Financial Information.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Not Applicable.

<= b>

<= b>Item 1114(b)(2) of Regulation AB. Significant Enhancement Provider Financial

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span class=3DGramE>In= formation.

<= span class=3DGramE>No= ne.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= b>Item 1115(b) of Regula= tion AB. Certain Derivatives Instruments Financial

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span class=3DGramE>In= formation.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>
Wachovia provides an Interest Rate Swap derivative instrument for the trust= as

<= span class=3DGramE>di= sclosed in the 424 Prospectus= . No additional disclosure is necessary because

<= span class=3DGramE>th= e significance percenta= ge for the interest rate corridor is less than 10%.

<= b>

<= span class=3DGramE>Item 1117 of Regulation AB. Legal Proceedings.=

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>The sponsor has receiv= ed a civil investigative demand (CID), from the Federal=

Trade Commission (FTC), seeking documents and data relating to the sponsor's

<= span class=3DGramE>bu= siness and servicing practic= es. The CID was issued pursuant to a December 8,

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>2005 resolution of the= FTC authorizing non-public investigations of various

<= span class=3DGramE>un= named subprime lenders, loan servicers and loan brokers to determine whether

<= span class=3DGramE>th= ere have been violations = of certain consumer protections laws. The sponsor is

<= span class=3DGramE>co= operating with the FTC's inquir= y.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>On March 10, 2008, EMC received notice from the Staff of the FTC that the Staff<= /p>

<= span class=3DGramE>be= lieved EMC and its parent, The Bear Stearns Companies, Inc. = had violated a

<= span class=3DGramE>nu= mber of Federal consumer protection statutes in connection with its servicing

<= span class=3DGramE>ac= tivities. With the notice, the= Staff delivered a draft complaint and draft

<= span class=3DGramE>co= nsent order seeking certain injunctive relief regarding business practices and

<= span class=3DGramE>un= specified monetary redress. The= Staff also indicated that it had been

<= span class=3DGramE>au= thorized to offer an opportuni= ty to resolve the matter though consent

<= span class=3DGramE>ne= gotiations before it seeks appro= val from the FTC to proceed with the filing of

<= span class=3DGramE>a<= /span> complaint. EMC expect= s to engage in such discussions with the Staff.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

RODRIGUEZ v. EMC Mortgage Corporation and The Bear Stearns Companies. This

<= span class=3DGramE>pu= rported class action is pendi= ng in U. S. District Court for the District of

<= st1:State w:st=3D"on">Connecticut. The case was filed in December 2007. It seeks certification = of a

<= span class=3DGramE>cl= ass made up of African-Am= erican and Hispanic borrowers who had a non-prime

<= span class=3DGramE>lo= an serviced by EMC and w= ho were subjected to allegedly improper servicing

<= span class=3DGramE>pr= actices, including imposition= of unwarranted fees, pyramiding of late fees,

<= span class=3DGramE>un= justified forced-placing of insurance, failure to properly apply payments,

<= span class=3DGramE>im= proper reporting of derogato= ry credit information, and failure to properly

<= span class=3DGramE>ad= minister escrow accounts. EMC and Bear Stearns have filed mo= tions to dismiss

<= span class=3DGramE>an= d to strike.=

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

NAACP v. Ameriquest

Ameriquest Mortgage Company has advised that it has discontinued active business

<= span class=3DGramE>op= erations and has ceased provid= ing updates regarding pending litigation and

<= span class=3DGramE>re= lated matters, and has decl= ined to provide an update in response to a request

<= span class=3DGramE>by= the Bear Stearns Asset Backed Securities I LLC (the "Depositor"). The<= /p>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Depositor has therefor= e used its best efforts to ascertain from publicly

<= span class=3DGramE>av= ailable sources and reasonable inquiries the status of previously-reported

<= span class=3DGramE>li= tigation matters and any litig= ation matters reported herein by the [Issuer] in

<= span class=3DGramE>wh= ich Ameriquest also is a party. By disclosing any matt= ers herein, the Issuer

<= span class=3DGramE>do= es not represent that th= ey are material to Ameriquest, that the descriptions

<= span class=3DGramE>pr= ovided include all material information relating to their status or that might

<= span class=3DGramE>be= available to Amerique= st, or that other matters do not exist.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>On January 23, 2006, ACC Capital Holdings Corporation,= the parent company of

Ameriquest Mortgage Company, AMC Mortgage Services, Inc. (formerly known= as

Bedford Home Loans, Inc.) and Town and Country Credit Corporation (collectively,

<= span class=3DGramE>th= e "Affiliates"= ;) and of Argent Mortgage Company, L.L.C., announced that it had

<= span class=3DGramE>en= tered into a settlement agr= eement with forty-nine states and the District of

<= st1:City w:st=3D"on">Columbia. The settlement was r= eached after representatives of the financial

<= span class=3DGramE>re= gulatory agencies and/or attor= ney general's offices of many of the forty-nine

<= span class=3DGramE>st= ates and the District of Columbia raised concerns r= elating to the lending

<= span class=3DGramE>po= licies of the Affiliates; fo= r the appropriateness of discount points charged

<= span class=3DGramE>pr= ior to February 2003; the accuracy of appraisal valuations; stated income

<= span class=3DGramE>lo= ans and oral statements to borrowers relating to loan terms and disclosures.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>ACC Capital Holdings Corporation has agreed on behalf of itself and the

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Affiliates to suppleme= nt several of its business practices and to submit itself

<= span class=3DGramE>to= independent monitorin= g. Under the terms of the settlement agreement, ACC

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Capital Holdings Corpo= ration agreed to pay $295 million toward restitution to

<= span class=3DGramE>bo= rrowers and $30 million to co= ver the States' legal costs and other expenses.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>In June 2005, ACC Capi= tal Holdings Corporation recorded a provision of $325

<= span class=3DGramE>mi= llion in its financial stat= ements to reflect the expected settlement. Ameriquest

<= span class=3DGramE>ha= s provided no additional information regarding the status of this matter.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>This purported class a= ction is pending in the U. S. District Court for the

<= span class=3DGramE>Ce= ntral District of California. A second amended complaint was fil= ed on March

<= span class=3DGramE>7,= 2008. The complaint names 18 lenders as defendants, including Ameriquest

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Mortgage Company. It alleges that each defendant eng= ages in disparate treatment

<= span class=3DGramE>of= African-Americans and= has adopted facially neutral policies that have a

<= span class=3DGramE>di= sparate and discriminatory im= pact on African-Americans. For each lender, the

<= span class=3DGramE>pl= aintiff seeks certification o= f a sub-class made up of African-Americans (a)

<= span class=3DGramE>wh= o received subprime loa= ns even though they qualified for loans on more

<= span class=3DGramE>fa= vorable terms, or (b) whose variable rate loans were approved based on a low

<= span class=3DGramE>in= itial "teaser" in= terest rate but who would not have qualified for the loan

<= span class=3DGramE>ba= sed on the anticipated ad= justed interest rate during the first four years of

<= span class=3DGramE>th= e loan. The claims are brought under the F= air Housing Act, the Equal Credit

<= st1:place w:st=3D"on">Oppo= rtunity A= ct, and the Civil Rights Act. Acc= ording to the Court's docket,

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Ameriquest has not yet answered or otherwise responded to the Complaint.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Ameriquest has provide= d no additional information regarding the status of this

<= span class=3DGramE>ma= tter.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= b>Item 1119 of Regulatio= n AB. Affiliations and Certain Relationships and Related

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span class=3DGramE>Tr= ansactions.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Not Applicable.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span class=3DGramE>Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria.=

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>See Item 15, exhibits = (33) and (34)

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

LaSalle Bank National Association's ("LaSalle") Report on Assessment of

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Compliance with Servic= ing Criteria for 2007 (the "2007 Assessment") attached

<= span class=3DGramE>to= this Report on Form 1= 0-K describes in Appendix B the following material

<= span class=3DGramE>in= stance of noncompliance rela= ted to investor reporting:

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>"1122(d)(3)(i)(A) and (B) - Durin= g the Reporting Period, certain monthly

<= span class=3DGramE>in= vestor or remittance reports= were not prepared in accordance with the terms

<= span class=3DGramE>se= t forth in the transact= ion agreements and certain investor reports did not

<= span class=3DGramE>pr= ovide the information calcu= lated in accordance with the terms specified in the

<= span class=3DGramE>tr= ansaction agreements for which certain individual errors may or may not have been material."

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>The investor reporting errors identified on LaSalle's 2007 Assessment as material instances of

<= span class=3DGramE>no= ncompliance (the "Investor Reporting Errors") included, for example, revised delinquency, REO,

<= span class=3DGramE>fo= reclosure, repurchase, payoff or modified loan counts, category indicators and/or balances.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>The conclusion that the Investor Reporting Errors amounted to a material instance of noncompliance =

<= span class=3DGramE>wa= s based primarily on the aggregate number of errors as opposed to the materiality of any one error.<= o:p>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>The Investor Reporting Errors were generally caused by human error resulting

<= span class=3DGramE>pr= imarily from high volume mont= hly data processing demands that had to be

<= span class=3DGramE>ad= dressed within constricted ti= me frames with less than a full complement of

<= span class=3DGramE>op= erational staff. Between the fo= urth quarter of the Reporting Period and the

<= span class=3DGramE>da= te of the 2007 Assessmen= t, LaSalle has employed additional operational

<= span class=3DGramE>st= aff to accommodate the hi= gh volume of monthly investor reporting

requirements and minimize the risk of the Investor Reporting Errors recurring.

Other necessary controls are in place to minimize the risk of such errors.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

With respect to the specific pool assets and asset-backed securities related to = the

Inves= tor Reporting Errors, the errors did not have, and are not reasonable likely in= the

future to h= ave, any material impact or effect on pool asset performance, servicing of the

pool asse= ts and payments or expected payments on the mortgage-backed securities.=

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

Assurant Inc. (the "Asserting Party") has assessed its complia= nce with the

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Applicable Servicing Criteria for the Reporting Period and has identified a

<= span class=3DGramE>ma= terial instance of noncompli= ance with the Applicable Servicing Criteria.

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>Specifically, the Asse= rting Party did not have, during the Reporting Period,

<= span class=3DGramE>su= fficient policies and procedur= es to capture the information with respect to

<= span class=3DGramE>th= e Platform Transactions necessary to determine compliance with

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>§1122(d)(4)(xii).

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>As of January 1, 2008, Assurant, Inc. has implemented practices and procedures to

<= span class=3DGramE>ca= pture the information neces= sary to assess compliance with Section 1122(d)(4)(xii).

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>

<= span class=3DGramE>Item 1123 of Regulation AB. Servicer Compliance Statement.<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>=

<= span style=3D'font-size:10.0pt;font-family:"Courier New"'>See Item 15, exhibit (= 35)

Source: http://sec.edgar-online.com/2008/03/31/0001136999-08-000462/Section= 23.asp

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