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The full case caption appears at the end of this opinion.

The trial court certified this case as a nationwide class action without determining the force and effect of contractual agreementsthat, according to the defendant, would require the application of different states’ laws in the action. The Court of Appeal foundcertification was proper because the defendant had failed to show that the contractually selected laws would lead to differentresults. We conclude the certification order must be vacated, for it was based upon an incomplete and erroneous analysis offactors relevant to certification.

Factual and Procedural Background

American Savings Bank, now Washington Mutual Bank, FA (hereafter, ASB), originated home mortgage loans in California,Arizona, Colorado, and Texas, and purchased loans from other lenders throughout the United States. ASB’ s standard loandocuments included a deed of trust that requires the mortgagor to maintain hazard insurance on the secured property andprovides that if the mortgagor fails to do so, “then Lender may do and pay for whatever is necessary to protect the value of theProperty and Lender’ s rights in the property,” and “[a]ny amounts [so] disbursed . . . shall become additional debt” of themortgagor, secured by the deed of trust. The deed of trust also contained a clause stating: “This Security Instrument shall begoverned by federal law and the law of the jurisdiction in which the [secured property] is located.”

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