Securitization Research Commentary Smith

SECURITIZATION RESEARCH COMMENTARY
Non-Agency MBS Market Share – as of December 31, 2007

From: Inside MBS & ABS, January 11, 2008
Countrywide Financial 11.8%

Lehman Brothers 7.0%
Wells Fargo 6.6%
Washington Mutual 5.7%
Bear Stearns 5.4%
JP Morgan Chase 5.1%
Deutsche Bank 4.7%
GMAC-RFC 4.8%
Merrill Lynch 4.3%
Morgan Stanley 3.8%
Others 41.0%
Copyright © 2010-2011 by Luminaq

Securitization Research Commentary
TABLE OF CONTENTS
Homeowner Information ...............................................................................................................................................4
Transaction Parties ........................................................................................................................................................4
Current Events Commentary .........................................................................................................................................4
The Presence of MERS ...................................................................................................................................................5
The Non-Presence of MERS ...........................................................................................................................................5
Transaction Overview / Flow of Funds with Chain of Title ............................................................................................6
Offering proceeds ..........................................................................................................................................................7
Note Exchanged for a Bond ...........................................................................................................................................7
Payment Flow ................................................................................................................................................................8
Sources of Payment .......................................................................................................................................................9
Priority of Distributions .................................................................................................................................................9
Certificates – Application of Principal and Losses .......................................................................................................10
Forms of Credit and Cash Flow Enhancements ...........................................................................................................11
Subordination ..........................................................................................................................................................11
Overcollateralization ...............................................................................................................................................11
Reserve Fund ...........................................................................................................................................................11
Yield Supplement Account ......................................................................................................................................12
Negative Carry Account ...........................................................................................................................................12
Letters of Credit, Credit or Liquidity Facilities .........................................................................................................12
Surety Bonds ...........................................................................................................................................................12
Insurance Policies ....................................................................................................................................................12
Guaranteed Investment Contracts ..........................................................................................................................12
Interest Rate or Currency Swaps .............................................................................................................................13
2 December 29, 2010 Copyright © 2010-2011 Luminaq

Yield Supplement Agreements ................................................................................................................................13
Cash Deposits ..........................................................................................................................................................13
Advances......................................................................................................................................................................13
The Issuing Entity and Trusts .......................................................................................................................................14
Types of Trusts ........................................................................................................................................................15
Status of the Issuing Entity ......................................................................................................................................15
Sample Details from this deal ......................................................................................................................................16
word counts from the prospectus supplement.......................................................................................................16
Word Counts From The Trust Agreement ...............................................................................................................17
word counts from the Securitization servicing agreement .....................................................................................18
word counts from the Reconstituted Servicing agreement ....................................................................................18
What to Review First ...................................................................................................................................................19
The Trustee has no Right, Title, or Interest .............................................................................................................19
Defective Chain of Title: Recorded at County vs. PSA .............................................................................................19
Servicer Representations and Warranties ...............................................................................................................21
Certificates ..............................................................................................................................................................21
Transaction Participants ..........................................................................................................................................21
Risk Factors .............................................................................................................................................................22
Commentary ................................................................................................................................................................22
Supplemental commentary .........................................................................................................................................31
More Information ........................................................................................................................................................32

HOMEOWNER INFORMATION
Name: Regina Smith

Property Address: 123 Main Street, Inglewood, CA 90301
Loan Number: 12345
Loan Closing Date: 12/31/2006
TRANSACTION PARTIES
The transaction parties may be the following, based on the results in your Luminaq Reports
Issuing Entity: Structured Asset Securities Corp 2007-BC3

Pool Group: SAS07BC3-3
Sponsor and Seller: Lehman Brothers Holdings Inc.
Primary Servicers: JP Morgan Chase Bank, N.A. and Wells Fargo Bank, N.A.
Master Servicer: Aurora Loan Services LLC
Depositor: Structured Asset Securities Corporation
Originators: Fieldstone Mortgage, BNC Mortgage LLC and People’s Choice Home Loan, Inc.
Trustee: U.S. Bank, N.A.
Securities Administrator: Wells Fargo Bank, N.A.
Credit Risk Manager: Clayton Fixed Income Services Inc.
Swap Counterparty: Swiss Re Financial Products Corporation
Cap Counterparty: Swiss Re Financial Products Corporation
Underwriters: Lehman Brothers
Custodian: U.S. Bank, N.A.
CURRENT EVENTS COMMENTARY
Remember that the securitization documents represent a CLAIM of ownership and are not evidence that
such ownership actually exists. To the contrary, it appears from recent testimony from witnesses
produced by Fieldstone Mortgage and other large would-be foreclosers all over the country that the
loans were never properly executed, documented, transferred or recorded. Thus the “lender of record”
is subject to a challenge in a Quiet Title action simply on the basis of lack of consideration or payment in
full, since the money that funded your loan came from third parties and would therefore be classified as
a table-funded loan under the Federal Truth in Lending Act. If the property is already subject to a
foreclosure process or claim, there is a high probability that a claim for Slander of Title would be
appropriate. If you obtain further notices or information concerning the presence of third parties in
connection with your loan, you should notify us and we can amend this analysis to include the new
information.

THE PRESENCE OF MERS
If MERS is present on this loan, the following applies:
REDACTED
THE NON-PRESENCE OF MERS
If MERS is not present on this loan, the following applies:
REDACTED

TRANSACTION OVERVIEW / FLOW OF FUNDS WITH CHAIN OF TITLE
The following diagram illustrates a generic example of the transaction overview
Diagram copyright © 2010-2011 by Luminaq. All Rights Reserved.

OFFERING PROCEEDS
The following diagram illustrates a simplified sample of the offering proceeds and how they are
distributed based on a sample Promissory Note and a Certificate. This is by way of an example and does
not necessarily signify your specific situation.
Offering Proceeds
Promissory Note Certificate

Loan: $500,000.00 Trust / Face Value: $1,000,000.00
Interest Rate: 10% Offering Proceeds Special Offering Proceeds Interest Rate: 5%
Annual Interest Charged: $500,000.00 Purpose $1,000,000.00 Annual Interest Income:
$50,000.00 Vehicle $50,000.00
Offering Proceeds
$500,000.00
Borrower Investor
Miscellaneous Proceeds
$500,000.00
NOTE EXCHANGED FOR A BOND
The following diagram represents a generic view of the note exchanged for a bond

PAYMENT FLOW
The following diagram illustrates a generic example of the flow of payments that applies to most
securitizations. Review the documentation to determine the actual payment flow.

SOURCES OF PAYMENT
There are numerous payment sources for proceeds that flow into the trust that are used for
distributions to the investors who purchased certificates issued from the trust. Additionally, some of
these proceeds are not directed to the investors but instead are redirected to other parties, such as the
servicer(s), trustee(s), depositor, sponsor, custodian, underwriters, rating agencies and numerous other
parties.
PRIORITY OF DISTRIBUTIONS
The distribution proceeds sent to the investors are prioritized and this priority does not match the
priority listed on the Deed of Trust.

CERTIFICATES – APPLICATION OF PRINCIPAL AND LOSSES
The following diagram illustrates a generic example of the application of principal and losses to the
certificateholders. This applies to most securitizations. Review the documentation to determine your
actual classes of offered and non-offered certificates, how the principal is applied and how losses are
applied.

FORMS OF CREDIT AND CASH FLOW ENHANCEMENTS
This section describes the various forms of credit enhancements that may be available as part of this
deal. Note that this list is not all inclusive. For specific information regarding the forms of credit and
cash flow enhancements that are part of your deal, you will need to review the Prospectus Supplement,
the Pooling and Servicing Agreement and/or the monthly certificateholder statements.
SUBORDINATION
One or more classes of securities of a series may be subordinated to one or more other classes of
securities of the same series, by providing that payments will be made on the senior classes of securities
prior to payments on the subordinated classes. Subordination enhances the likelihood of timely receipt
by the senior securityholders of the full amounts of principal and interest required to be paid to them
and affords holders of each senior class of securities limited protection against losses in respect of the
receivables and default by the issuing entity with respect to more senior classes of securities.
OVERCOLLATERALIZATION
Overcollateralization generally represents the difference between the aggregate principal amount of the
receivables (plus any pre-funding amounts) less the aggregate principal balance of the related series of
securities. The amount of overcollateralization is generally available to absorb losses on the receivables
not otherwise covered by collections, thereby providing additional funds to be paid to securityholders.
RESERVE FUND
A reserve fund will typically be funded by an initial deposit by the depositor on the Closing Date in the
amount set forth in the applicable prospectus supplement and, if the related issuing entity has a Pre-
Funding Period, will also be funded on each Subsequent Transfer Date to the extent described in the
applicable prospectus supplement. The amount on deposit in a reserve fund may also be increased on
each Distribution Date thereafter up to the specified reserve fund balance by the deposit of certain
excess interest collections in respect of the receivables collected during the related Collection Period
remaining after securityholders have been paid amounts owed to them and after the master servicer
has been reimbursed for any outstanding advances and paid all applicable servicing compensation with
respect to that Collection Period. The master servicer, however, will account to one or more of the
following: the trustee, the owner trustee, the indenture trustee, the noteholders and the
certificateholders, if any, with respect to the related issuing entity as if all deposits, distributions, and
transfers were made individually. The applicable prospectus supplement may also specify (1) a minimum
balance to be maintained in the reserve fund and what funds are available for deposit to reinstate that
balance and (2) when and to whom any amount will be distributed if the balance exceeds this minimum
amount. The amounts held in the reserve fund may be applied towards distributions required to be
made to securityholders on any Distribution Date, to the extent of a shortfall in collections with respect
to the related Collection Period.

YIELD SUPPLEMENT ACCOUNT
A yield supplement account is typically created with a deposit of cash by the depositor at the time of
offering of a series of securities by an issuing entity and intended to supplement the interest collections
on receivables with relatively low interest rates. Certain amounts on deposit in the yield supplement
account may be drawn on certain Distribution Dates to be applied in accordance with the priority of
distributions set forth in the applicable prospectus supplement.
NEGATIVE CARRY ACCOUNT
A negative carry account is typically created with an initial deposit of cash by the depositor at the time
of offering of a series of securities by an issuing entity and intended to supplement investment earnings
on any amounts deposited in a pre-funding account, to the extent such investment earnings are
expected to be less than the sum of the weighted average interest on the related securities. Certain
amounts on deposit in the negative carry account may be drawn on certain Distribution Dates to be
applied in accordance with the priority of distributions set forth in the applicable prospectus
supplement.
LETTERS OF CREDIT, CREDIT OR LIQUIDITY FACILITIES
Letters of credit, credit or liquidity facilities may be provided by the sponsor or a third-party and may be
drawn upon under specified terms and conditions, in the event that collections and other available
funds are insufficient to cover required payments of principal and/or interest on any Distribution Date,
with respect to one or more classes of a series of securities.
SURETY BONDS
The entity issuing the surety bond will agree to pay principal and/or interest generally up to a maximum,
to the extent the issuing entity does not have sufficient amounts available from collections and other
available funds to make such payments on any Distribution Date.
INSURANCE POLICIES
Pursuant to an insurance policy and subject to the conditions contained therein, the insurance provider
will agree to pay principal and/or interest to the holders of a particular class or classes of securities of a
series, to the extent that the issuing entity does not have sufficient amounts available from collections
and other available funds to make such payments on any Distribution Date.
GUARANTEED INVESTMENT CONTRACTS
In connection with a guaranteed investment contract, the issuer of the guaranteed investment contract
will receive a deposit in connection with the issuance of the securities of a series and will purchase
investments that are held in its general account. The issuer of the guaranteed investment contract is

then contractually obligated to repay the principal and/or specified interest to the holders of one or
more classes of securities of a series in an amount specified in the guaranteed investment contract.
INTEREST RATE OR CURRENCY SWAPS
Swaps are generally used in transactions in which the interest rate on the receivables is different from
the interest rate on the securities or the currency in which the receivables are denominated is different
from the currency in which the securities are denominated. Pursuant to a swap agreement, the related
swap counterparty will agree to make specified payments to the trustee (or the indenture trustee) for
payment to the holders of one or more classes of securities of a series in an amount designed to
mitigate the currency or interest rate risk related to that particular series.
YIELD SUPPLEMENT AGREEMENTS
A yield supplement agreement is a contractual agreement of a third party or the sponsor, pursuant to
which such person agrees to pay a sum to the trustee (or the indenture trustee) sufficient to increase
the effective yield on receivables that bear interest at relatively low interest rates as compared to the
weighted average interest rate on the securities of a series.
CASH DEPOSITS
Cash deposits generally are derived from funds loaned from the sponsor or a third-party that are
pledged to the trustee (or indenture trustee) to secure payments on the securities of a particular series.
Cash deposits are typically available to be drawn upon once all other available credit enhancement have
been exhausted.
ADVANCES
Generally in securitizations, the servicers are required and obligated to make advances of principal and
interest in order to maintain a regular flow of funds to investors. In nearly all cases, except where credit
lines are exhausted, the servicers are advancing principal and interest monthly on any loan where the
payments are not received from the homeowners. The main exception to this is for interest only loans.
The servicers are advancing only interest in these cases. Regardless, the homeowners payments are
being made to the trustee and on to the certificateholders (who are the investors). While the advance
mechanism is woven into the very fabric of the Prospectus Supplement and the Pooling and Servicing
Agreement, the underlying issue is the same. The receipt of payment by the trustee and/or the
certificateholders of the payment by or on behalf of a homeowner extinguishes the obligation to make
that payment. In other words, once the payment is made or advanced, no additional payment is due.
The note specifies who is obligated under the instrument (usually but not always in section #9). Any
party who acts as a guaranty or surety is obligated the same as the borrower.

THE ISSUING ENTITY AND TRUSTS
REDACTED

TYPES OF TRUSTS
In securitization, the most common trust types are:
 Common law trusts formed under the laws of the state of New York
 Delaware Trusts formed under the laws of the state of Delaware
Typically the issuing entity (a trust) is composed of numerous other trusts with a mixture of tax IDs. For
instance, the main trust is a common law trust, but other trusts may be included such as the following:
 Numerous REMIC trusts (the revenue passing through a REMIC trust is usually not taxed at the
trust level)
 One or more grantor trusts (the income in a grantor trust is taxed)
As an example, in one instance an Issuing Entity was composed of the following:
 The Issuing Entity itself (a common law trust) with a tax ID

 Twelve REMIC Trusts with the same tax ID as the issuing entity
 Two Grantor Trusts each with a unique tax ID
STATUS OF THE ISSUING ENTITY
It is my belief that if the Issuing Entity is considered as a trust, it was never formed properly because:
 The settlor never gave up control

o The settlor did not effectively dispose of the beneficial interest in the trust property –
this is a sham (an Illusory and/or Constructive Trust)
 Failure to constitute the trust and/or substantive sham
o Failure to effectively transfer property to a trust: most if not all of the loans (assets)
were not effectively conveyed into the trust
o The parties intentionally and knowingly failed to strictly follow the instructions for the
trust. Most, if not all of the legal opinions are given provided that all instructions were
followed correctly.
o To be more specific on this, the settlor failed to perfect title, gave representations and
warranties to the parties of the Trust (including the investors), and then instructed the
Trustee (and/or custodian of records) to inspect the mortgage loan files and insure
there were no deficiencies, irregularities or missing documents. Not only did the settlor
know the mortgage loan files were deficient, the Trustee (and/or custodian) was
intentionally negligent by failing to inspect the mortgage loan files. The Trustee (and/or
custodian of records) failed to notify the other parties of problems with the mortgage

loan files and failed to take any corrective action. As a result, the Pooling and Servicing
Agreements generally state that the investors will suffer any losses if the mortgage loan
files are not inspected and any problems corrected (within 90 days of the closing date of
the trust).
 The beneficiaries have no power to enforce the terms of the Trust (this is an Honorary Trust)
SAMPLE DETAILS FROM THIS DEAL
WORD COUNTS FROM THE PROSPECTUS SUPPLEMENT

Count pattern
21 perfect
22 convey
123 transfer
272 oblig
376 require
108 advance
9 pledge
Count pattern Word

11 perfect perfected
1 perfect perfecting
9 perfect perfection
15 convey conveyance
7 convey conveyed
1 transfer transferable
21 transfer transferee
35 transfer transferor
5 transfer transferors
27 transfer transferred
2 transfer transferring
32 transfer transfers
2 oblig obligate
59 oblig obligated
1 oblig obligates
1 oblig obligating
56 oblig obligation
146 oblig obligations
1 oblig obligatory
6 oblig obligor
285 require required

8 require requirement
56 require requirements
27 require requires
14 advance advanced
94 advance advances
9 pledge pledged
WORD COUNTS FROM THE TRUST AGREEMENT

Count pattern
5 perfect
13 convey
122 transfer
209 oblig
293 require
59 advance
5 pledge
Count pattern Word

1 perfect perfected
1 perfect perfecting
3 convey conveyed
1 transfer transferable
1 transfer transferees
49 transfer transferor
3 transfer transferors
1 oblig obligate
10 oblig obligated
56 oblig obligation
23 oblig obligor
3 oblig obligors
11 require requires
7 advance advanced
52 advance advances
3 pledge pledged
1 pledge pledgee

1 pledge pledges
WORD COUNTS FROM THE SECURITIZATION SERVICING AGREEMENT

Count pattern
9 convey
15 transfer
119 oblig
145 require
40 advance
3 pledge
Count pattern Word

5 convey conveyance
3 convey conveyed
1 convey conveying
11 oblig obligated
19 oblig obligation
14 oblig obligor
1 oblig obligors
4 require requires
4 advance advanced
36 advance advances
2 pledge pledged
1 pledge pledges
WORD COUNTS FROM THE RECONSTITUTED SERVICING AGREEMENT

Count pattern
2 perfect
28 convey
34 transfer
150 oblig
221 require
59 advance
21 pledge

Count pattern Word

1 perfect perfected
4 convey conveyed
11 oblig obligated
2 oblig obligates
29 oblig obligation
15 oblig obligor
1 oblig obligors
5 require requires
8 advance advanced
51 advance advances
19 pledge pledged
1 pledge pledgee
1 pledge pledges
WHAT TO REVIEW FIRST
The following sections generally apply to securitizations and may or may not apply to this particular
trust. You should review these concepts as even if they are changed or don’t exist, the information is
likely to be important anyway. These are included to help you understand the complexities of
securitization and how important wording of the documents becomes upon close examination.
THE TRUSTEE HAS NO R IGHT, TITLE, OR INTEREST
REDACTED

DEFECTIVE CHAIN OF TITLE: RECORDED AT COUNTY VS. PSA
REDACTED

SERVICER REPRESENTATIONS AND WARRANTIES
REDACTED
CERTIFICATES
REDACTED
TRANSACTION PARTICIPANTS
REDACTED

RISK FACTORS
REDACTED
COMMENTARY
DESCRIPTION: SECURITIZED TABLE FUNDED LOAN WITH DEFECT IN TITLE AND BREAKS IN CHAIN OF
TITLE. PROBABLE VIOLATIONS OF TILA. UNDISCLOSED YIELD SPREAD PREMIUMS AND PROFIT TO
ORIGINATING LENDER AT BORROWER LOAN CLOSING AND UNDISCLOSED PUTATIVE ASSIGNOR ON
“SALE” TO SPECIAL PURPOSE VEHICLE. LEGAL OWNER OF NOTE MOST LIKELY IS THE ORIGINATOR.
EQUITABLE OWNERS OF LOAN ARE UNDISCLOSED INVESTOR(S) WHO PURCHASED MORTGAGE-
BACKED SECURITY WHICH PROMISED AND CONVEYED PERCENTAGE OWNERSHIP OF NOTE. TRUE
BALANCE OF LOAN UNKOWN. DEFAULT MOST LIKELY DOES NOT EXIST BY VIRTUE OF ADVANCES AND
INSURANCE PAYMENTS. SCHEDULED PAYMENTS PAID AHEAD WITH NO PAYMENTS CURRENTLY DUE
AFTER ALLOCATION OF THIRD PARTY PAYMENTS.
YOU SHOULD HAVE ALREADY RECEIVED THE SECURITIZATION REASEARCH REPORT ON YOUR ORDER
CONFIRMATION. IF YOU HAVE NOT RECEIVED THIS, PLEASE CONTACT NEILFGARFIELD@HOTMAIL.COM
DO NOT TAKE ANY ACTION WITHOUT CONSULTING COMPETENT LICENSED LEGAL COUNSEL IN THE
COUNTY IN WHICH THE SUBJECT PROPERTY IS LOCATED. THE ATTORNEY SHOULD KNOW AND
UNDERSTAND THE SIGNIFICANCE OF SECURITIZATION OF LOANS AS WELL AS STANDARD KNOWLEDGE
OF CONTRACTS, REAL PROPERTY LAW, FORECLOSURES, ELEMENTS OF A CAUSE OF ACTION IN
FORECLOSURE (SEE BELOW), BURDEN OF PROOF AND PRIMA FACIE CASE. YOU SHOULD ALSO
CONSULT WITH A PROFESSIONAL EXPERIENCED IN FORENSIC ANALYSIS, EXPERT TESTIMONY AND THE
WRITING OF A QUALIFIED WRITTEN REQUEST UNDER RESPA, A DEBT VALIDATION LETTER UNDER
FDCPA, AND THE ALLOCATION OF THIRD PARTY PAYMENTS THAT SHOULD OR COULD BE APPLIED TO
YOUR PAST DUE PAYMENTS AND LOAN BALANCE.

I am not licensed to practice law EXCEPT in the State of Florida or any of the other states that are
mentioned here. Any opinion is as an expert in securitization and is not a complete opinion as I have
not researched your case to any extent except a basic review of the Securitization Research Report. I
note the following worthy of further inquiry and I strongly recommend that you seek the services of a
qualified forensic analyst and obtain an expert declaration from someone who can declare the status
of your loan, and be able to support said declaration with facts and methods that would be persuasive
in a court of law.
REDACTED

REDACTED

REDACTED

REDACTED

REDACTED

REDACTED

REDACTED
Sincerely
/s/ Neil Franklin Garfield

_____________________________________
Neil Franklin Garfield, Esq.

www.livinglies.wordpress.com
www.livinglies-store.com

SUPPLEMENTAL COMMENTARY
For a variety of reasons some of which include the fact that the lender is described as Fieldstone
Mortgage which was nothing more than a mortgage broker masquerading as the lender in a table
funded loan, we conclude as stated elsewhere herein that there was an intention to securitize this loan.
The fact that there was an intention to securitize the loan does not mean that in fact the documents
support it (see title report and commentary). But it does mean that the actual money that was used to
fund the alleged mortgage transaction was funneled through a long series of intermediaries acting in
their roles as “securitization parties.”
REDACTED

REDACTED
MORE INFORMATION
Luminaq specializes in securitization audits. If you would like to find out more about securitization
audits for this securitization deal, please contact:
Neil Garfield
Luminaq
neilfgarfield@hotmail.com

Securitization Research Commentary Smith

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SECURITIZATION RESEARCH COMMENTARY

Non-Agency MBS Market Share – as of December 31, 2007

Countrywide Financial 11.8%

Copyright © 2010-2011 by Luminaq

Homeowner Information ...............................................................................................................................................4

Transaction Parties ........................................................................................................................................................4

Current Events Commentary .........................................................................................................................................4

The Presence of MERS ...................................................................................................................................................5

The Non-Presence of MERS ...........................................................................................................................................5

Transaction Overview / Flow of Funds with Chain of Title ............................................................................................6

Offering proceeds ..........................................................................................................................................................7

Note Exchanged for a Bond ...........................................................................................................................................7

Payment Flow ................................................................................................................................................................8

Sources of Payment .......................................................................................................................................................9

Priority of Distributions .................................................................................................................................................9

Certificates – Application of Principal and Losses .......................................................................................................10

Forms of Credit and Cash Flow Enhancements ...........................................................................................................11

Reserve Fund ...........................................................................................................................................................11

Yield Supplement Account ......................................................................................................................................12

Negative Carry Account ...........................................................................................................................................12

Letters of Credit, Credit or Liquidity Facilities .........................................................................................................12

Surety Bonds ...........................................................................................................................................................12

Insurance Policies ....................................................................................................................................................12

Guaranteed Investment Contracts ..........................................................................................................................12

Interest Rate or Currency Swaps .............................................................................................................................13

2 December 29, 2010 Copyright © 2010-2011 Luminaq

Yield Supplement Agreements ................................................................................................................................13

Cash Deposits ..........................................................................................................................................................13

The Issuing Entity and Trusts .......................................................................................................................................14

Types of Trusts ........................................................................................................................................................15

Status of the Issuing Entity ......................................................................................................................................15

Sample Details from this deal ......................................................................................................................................16

word counts from the prospectus supplement.......................................................................................................16

Word Counts From The Trust Agreement ...............................................................................................................17

word counts from the Securitization servicing agreement .....................................................................................18

word counts from the Reconstituted Servicing agreement ....................................................................................18

What to Review First ...................................................................................................................................................19

The Trustee has no Right, Title, or Interest .............................................................................................................19

Defective Chain of Title: Recorded at County vs. PSA .............................................................................................19

Servicer Representations and Warranties ...............................................................................................................21

Transaction Participants ..........................................................................................................................................21

Risk Factors .............................................................................................................................................................22

Supplemental commentary .........................................................................................................................................31

More Information ........................................................................................................................................................32

3 December 29, 2010 Copyright © 2010-2011 Luminaq

Name: Regina Smith

Issuing Entity: Structured Asset Securities Corp 2007-BC3

CURRENT EVENTS COMMENTARY

4 December 29, 2010 Copyright © 2010-2011 Luminaq

THE PRESENCE OF MERS

If MERS is present on this loan, the following applies:

THE NON-PRESENCE OF MERS

If MERS is not present on this loan, the following applies:

5 December 29, 2010 Copyright © 2010-2011 Luminaq

TRANSACTION OVERVIEW / FLOW OF FUNDS WITH CHAIN OF TITLE

The following diagram illustrates a generic example of the transaction overview

Diagram copyright © 2010-2011 by Luminaq. All Rights Reserved.

6 December 29, 2010 Copyright © 2010-2011 Luminaq

Promissory Note Certificate

Diagram copyright © 2010-2011 by Luminaq. All Rights Reserved.

NOTE EXCHANGED FOR A BOND

Diagram copyright © 2010-2011 by Luminaq. All Rights Reserved.

7 December 29, 2010 Copyright © 2010-2011 Luminaq

Diagram copyright © 2010-2011 by Luminaq. All Rights Reserved.