Item 1. Business.
Omitted.
Item 1A.
Item 1A. Risk Factors.
Omitted.
Item 1B.
Item 1B. Unresolved Staff Comments.
Not applicable.
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 Operation.
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.
ADDITIONAL DISCLOSURE ITEMS PURSUANT TO GENERAL INSTRUCTION J
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.
1114(b)(2) Of Regulation AB, Credit Enhancement and Other Support, Except for Certain Derivative Instruments (Information Regarding Significant Enhancement Providers Financial 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 derivative instrument and an interest rate cap derivative instrument for the trust as disclosed in the 424(b)(5) Prospectus filed on January 30, 2007. No additional disclosure is necessary because the significance percentage for the swap and cap derivative instruments is less than 10%.
Item 1117 of Regulation AB, Legal Proceedings.
WMC Mortgage Corp. 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. ("WMCMC") and GE Money Bank in the Superior Court of California, County of Los Angeles, seeking to have WMCMC 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 WMCMC, 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 WMCMC 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. WMCMC 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 WMCM 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 WMCMC 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. WMCMC 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 WMCMC, 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. Section 3601, et seq., the Equal Credit Opportunity Act ("ECOA"), 15 U.S.C. Section 1691, et seq., and the Civil Rights Act ("CRA"), 42 U.S.C. Section 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 WMCMC on assertions, inter alia, that (1) WMCMC unlawfully "steered" African American consumers to less favorable subprime mortgage loans and (2) WMCMC 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 WMCMC and WMC 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. Section 3601, et seq., the Equal Credit Opportunity Act ("ECOA"), 15 U.S.C. Section 1691, et seq., and the Civil Rights Act ("CRA"), 42 U.S.C. Section 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 disclosed in a 424(b)(5) Prospectus filed on January 30, 2007.
Item 1122 of Regulation AB, Compliance with Applicable Servicing Criteria.
The reports on assessment of compliance with the servicing criteria for asset-backed securities and the related attestation reports on such assessments of compliance are attached hereto under Item 15.
Item 15. Exhibits, Financial Statement Schedules.
(a) Exhibits.
(4) The Pooling and Servicing Agreement, is dated and effective as of January 1, 2007, among ACE Securities Corp., as Depositor, Countrywide Home Loans Servicing LP, as Servicer, Wells Fargo Bank, N.A., as Master Servicer and Securities Administrator and HSBC Bank USA, National Association, as Trustee (incorporated herein by reference from Exhibit 4.1 of the Current Report on form 8-K of the registrant, as filed with the Commission).
(10) See Exhibit (4) of Item 15(a) above.
(31) Rule 13a-14(d)/15d-14(d) Certification.
(33) Reports on assessment of compliance with servicing criteria for asset-backed securities.
(34) Attestation reports on assessment of compliance with servicing criteria for asset-backed securities.
(35) Servicer compliance statement.
(b) See Exhibits identified in paragraph (a) of Item 15 above.
(c) Omitted.
SIGNATURES
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.
ACE Securities Corp. Home Equity Loan Trust, Series 2007-WM1 (Issuing Entity)
Wells Fargo Bank, N.A. (Master Servicer)
/s/ Kristen Ann Cronin Kristen Ann Cronin, Vice President (senior officer in charge of the servicing function of the master servicer)
Date: March 27, 2008
Exhibit Index
Exhibit No.
(31) Rule 13a-14(d)/15d-14(d) Certification.
(33) Reports on assessment of compliance with servicing criteria for asset-backed securities.
(34) Attestation reports on assessment of compliance with servicing criteria for asset-backed securities.
(35) Servicer compliance statement.