U.S. Bank Sued Over Management of 28 RMBS Trusts

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On May 24, several banks and asset management companies sued U.S. Bank in a Missouri state court over U.S. Bank’s alleged mismanagement of 28 RMBS trusts. Plaintiffs allege that U.S. Bank disregarded its duties as trustee by, among other things, ignoring master servicer Wells Fargo’s alleged misconduct related to its foreclosure practices in connection with loans owned by the trusts. Plaintiffs further allege that U.S. Bank’s inaction made it difficult and costly to pursue foreclosures on mortgages in the trusts, thus causing them substantial damage. Plaintiffs seek unspecified monetary and injunctive relief against U.S. Bank under claims for breach of contract, breach of the duty to avoid conflict of interest, breach of fiduciary duty, negligence and breach of express contract. Complaint.