CUNA Mutual Group Sues To Rescind RMBS Purchases

more+
less-
more+
less-

On August 16, several affiliates of CUNA Mutual Group (CUNA) filed six separate lawsuits in the United States District Court for the Western District of Wisconsin, seeking to rescind their purchases of RMBS from six different financial institutions. The complaints allege that the defendants made misrepresentations concerning the underwriting guidelines used to originate the mortgage loans backing the RMBS, loan-to-value ratios, and owner occupancy statistics. CUNA asserts three causes of action in each lawsuit: rescission on the ground of misrepresentation, rescission on the ground of mistake and unjust enrichment. Taken together the lawsuits seek to rescind roughly $280 million in RMBS purchases. Representative Complaint.

Topics:  Rescission, RMBS, Unjust Enrichment

Published In: Business Torts Updates, Civil Procedure Updates, General Business Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Orrick - Structured Finance Group | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »