On December 16, National Credit Union Administration filed a lawsuit in the United States District Court for the Southern District of New York against U.S. Bank N.A. and Bank of America N.A., in their capacity as trustees for 99 RMBS trusts. NCUA filed the suit as liquidating agent for five failed credit unions collectively alleged to have purchased certificates in the trusts at issue. NCUA alleges that U.S. Bank and Bank of America breached their duties under the governing trust agreements by failing to properly review and monitor the loans backing the RMBS, failing to notify the investors of deficiencies in the loans, failing to take action to address those alleged deficiencies, and failing to require the repurchase of defective loans. The complaint asserts causes of action under the Trust Indenture Act and the Streit Act, a New York statute that governs administration of mortgage trusts, and seeks compensatory damages and unspecified equitable relief. Complaint.
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