United States Court of Appeals
For the Seventh Circuit
CMFG LIFE INSURANCE CO.,
CUMIS INSURANCE SOCIETY, INC., and
MEMBERS LIFE INSURANCE CO.,
RBS SECURITIES, INC.,
Between 2004 and 2007, CUNA
Mutual, an insurance company, purchased fifteen residential
mortgage-backed securities from RBS Securities, Inc. Then
the housing market crashed, and the securities with it.
CUNA now wants out of the deals. CUNA alleges that RBS
induced it to purchase the securities by materially misrepresenting
that the underlying mortgages complied with underwriting
guidelines. The district court granted summary
judgment on all but one of CUNA’s rescission claims, and
CUNA appealed. We reverse in part and affirm in part.