UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark one)
/X/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2007
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission file number: 333-141008-03
ACE Securities Corp. Home Equity Loan Trust, Series 2007-ASAP2
(exact name of issuing entity as specified in its charter)
ACE Securities Corp.
(exact name of the depositor (as registrant on behalf of the issuing
entity) as specified in its charter)
DB Structured Products, Inc.
(exact name of the sponsor as specified in its charter)
Delaware 06-1442101
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6525 Morrison Boulevard
Suite 318
Charlotte, NC 28211
(Address of principal executive (Zip Code)
offices)
Telephone number, including area code: (704) 365-0569
Securities registered pursuant to Section 12(b) of the Act:
NONE.
Securities registered pursuant to Section 12(g) of the Act:
NONE.
Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.
Yes ___ No X
Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act.
Yes ___ No X
Note - Checking the box above will not relieve any registrant required to
file reports pursuant to Section 13 or 15(d) of the Exchange Act from their
obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No ___
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K (Section 229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrant's knowledge, in
definitive proxy or information statements incorporated by reference in Part
III of this Form 10-K or any amendment to this Form 10-K.
Not applicable.
Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of "large accelerated filer", "accelerated
filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ___
Accelerated filer ___
Non-accelerated filer X (Do not check if a smaller reporting company)
Smaller reporting company ___
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Act).
Yes ___ No X
State the aggregate market value of the voting and non-voting common equity
held by non-affiliates computed by reference to the price at which the
common equity was last sold, or the average bid and asked price of such
common equity, as of the last business day of the registrant's most recently
completed second fiscal quarter.
Not applicable.
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court.
Not applicable.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
Not applicable.
DOCUMENTS INCORPORATED BY REFERENCE
List hereunder the following documents if incorporated by reference and the
Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document
is incorporated: (1)Any annual report to security holders; (2) Any proxy or
information statement; and (3)Any prospectus filed pursuant to Rule 424(b)
or (c) under the Securities Act of 1933. The listed documents should be
clearly described for identification purposes (e.g., annual report to
security holders for fiscal year ended December 24, 1980).
Not applicable.
PART I
Item 1. Business.
Omitted.
Item 1A. Risk Factors.
Omitted.
Item 1B. Unresolved Staff Comments.
Not applicable.
Item 2. Properties.
Omitted.
Item 3. Legal Proceedings.
Omitted.
Item 4. Submission of Matters to a Vote of Security Holders.
Omitted.
PART II
Item 5. Market for Registrant's Common Equity, Related Stockholder
Matters and Issuer Purchases of Equity Securities.
Omitted.
Item 6. Selected Financial Data.
Omitted.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operation.
Omitted.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Omitted.
Item 8. Financial Statements and Supplementary Data.
Omitted.
Item 9. Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure.
Omitted.
Item 9A. Controls and Procedures.
Omitted.
Item 9A(T). Controls and Procedures.
Omitted.
Item 9B. Other Information.
None.
PART III
Item 10. Directors, Executive Officers and Corporate Governance.
Omitted.
Item 11. Executive Compensation.
Omitted.
Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters.
Omitted.
Item 13. Certain Relationships and Related Transactions, and Director
Independence.
Omitted.
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).
Deutsche Bank AG, New York Branch provides an interest rate swap derivative
instrument and two separate interest rate cap derivative instruments for the
trust as disclosed in the 424(b)(5) Prospectus filed on May 25, 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.
Ocwen Loan Servicing, LLC
On February 9, 2006, a trial court in Galveston, Texas entered judgment in the
amount of $1.8 million in compensatory and statutory damages and attorneys' fees
against Ocwen Loan Servicing, LLC ("Ocwen") in favor of a plaintiff borrower
whose mortgage loan was serviced by Ocwen. The plaintiff brought the claims
under the Texas Deceptive Trade Practices Act and other state statutes and
common law generally alleging that Ocwen engaged in improper loan servicing
practices. Ocwen appealed the decision and the litigation concluded with a final
settlement on January 16, 2008.
Item 1119 of Regulation AB, Affiliations and Certain Relationships and Related
Transactions.
The sponsor, the swap provider and Deutsche Bank National Trust Company as
custodian are affiliates.
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.
Assurant, Inc. disclosed the following material noncompliance with the
servicing criteria set forth in Item 1122(d)(4)(xii) of Regulation AB
applicable to the Company during the year ended December 31, 2007. As required
by Item 1122(d)(4)(xii) of Regulation AB, any late payment penalties in
connection with any payment to be made on behalf of an obligor are paid from
the servicer's funds are not charged to the obligor, unless the late payment
was due to the obligor's error or omission. Assurant, Inc. did not have, during
the Reporting Period (as defined in the assessment of compliance), sufficient
policies and procedures to capture the
information with respect to the Platform Transactions (as defined in the
assessment of compliance) necessary to determine
compliance with 1122(d)(4)(xii).
Item 1123 of Regulation AB, Servicer Compliance Statement.
The servicer compliance statements are attached hereto under Item 15.
Part IV
Item 15. Exhibits, Financial Statement Schedules.
(a) Exhibits.
(4) The Pooling and Servicing Agreement dated as of May 1, 2007 among ACE
Securities Corp. as Depositor, Ocwen Loan Servicing, LLC as Servicer, Wells
Fargo Bank, National Association 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.
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33.1 Assurant, Inc. as Sub-Contractor for Ocwen Loan Servicing, LLC
33.2 Deutsche Bank National Trust Company as Custodian
33.3 First American Real Estate Solutions of Texas, L.P. as Sub-Contractor for Ocwen
Loan Servicing, LLC
33.4 Ocwen Loan Servicing, LLC as Servicer
33.5 Regulus Group LLC as Sub-Contractor for Ocwen Loan Servicing, LLC
33.6 Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator
33.7 Wells Fargo Bank, N.A. as Paying Agent
33.8 Wells Fargo Bank, N.A. as Custodian
(34) Attestation reports on assessment of compliance with servicing criteria
for asset-backed securities.
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34.1 Assurant, Inc. as Sub-Contractor for Ocwen Loan Servicing, LLC
34.2 Deutsche Bank National Trust Company as Custodian
34.3 First American Real Estate Solutions of Texas, L.P. as Sub-Contractor for Ocwen
Loan Servicing, LLC
34.4 Ocwen Loan Servicing, LLC as Servicer
34.5 Regulus Group LLC as Sub-Contractor for Ocwen Loan Servicing, LLC
34.6 Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator
34.7 Wells Fargo Bank, N.A. as Paying Agent
34.8 Wells Fargo Bank, N.A. as Custodian
(35) Servicer compliance statement.
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35.1 Ocwen Loan Servicing, LLC as Servicer
35.2 Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator
(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-ASAP2
(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.
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33.1 Assurant, Inc. as Sub-Contractor for Ocwen Loan Servicing, LLC
33.2 Deutsche Bank National Trust Company as Custodian
33.3 First American Real Estate Solutions of Texas, L.P. as Sub-Contractor for Ocwen
Loan Servicing, LLC
33.4 Ocwen Loan Servicing, LLC as Servicer
33.5 Regulus Group LLC as Sub-Contractor for Ocwen Loan Servicing, LLC
33.6 Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator
33.7 Wells Fargo Bank, N.A. as Paying Agent
33.8 Wells Fargo Bank, N.A. as Custodian
(34) Attestation reports on assessment of compliance with servicing
criteria for asset-backed securities.
<s> <c>
34.1 Assurant, Inc. as Sub-Contractor for Ocwen Loan Servicing, LLC
34.2 Deutsche Bank National Trust Company as Custodian
34.3 First American Real Estate Solutions of Texas, L.P. as Sub-Contractor for Ocwen
Loan Servicing, LLC
34.4 Ocwen Loan Servicing, LLC as Servicer
34.5 Regulus Group LLC as Sub-Contractor for Ocwen Loan Servicing, LLC
34.6 Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator
34.7 Wells Fargo Bank, N.A. as Paying Agent
34.8 Wells Fargo Bank, N.A. as Custodian
(35) Servicer compliance statement.
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35.1 Ocwen Loan Servicing, LLC as Servicer
35.2 Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator