Federal Home Loan Bank of Chicago: Illinois Action
Circuit Court of Cook County, Illinois, Chancery Division
Case No. 10-CH-45033
Keller Rohrback represents the Federal Home Loan Bank of Chicago in Federal Home Loan Bank of Chicago v. Banc of America Funding Corporation, et al., which was filed on October 15, 2010. The Federal Home Loan Bank of Chicago seeks, among other remedies, rescission of over $3.3 billion of mortgage-backed securities issued or underwritten by the defendants based on offering documents that misrepresented the risks of the securities and the quality of the mortgage loans backing the securities.
The Federal Home Loan Bank of Chicago’s complaint is based on Keller Rohrback’s extensive investigation of loan origination and mortgage-backed securitization practices, rating agency practices, and a detailed review and analysis of loan characteristics and performance. Plaintiff brings claims for violations of multiple state blue sky laws and negligent misrepresentation. In addition to rescission and/or damages, Plaintiff seeks interest, attorneys’ fees and costs.
On September 19, 2012, Cook County Circuit Court Judge Kathleen Pantle denied in their entirety motions to dismiss filed jointly by all defendants and individually by the following defendants: HSBC Securities (USA) Inc., First Horizon Asset Securities, Inc., Wells Fargo & Company, Wells Fargo Bank, N.A., Wells Fargo Asset Securities Corporation, Barclays Capital Inc., Securitized Asset Backed Receivables LLC, Sequoia Residential Funding, Inc., RWT Holdings, Inc. and Redwood Trust, Inc.