CUNA Mutual Group Sues To Rescind RMBS Purchases

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.