CMFG Life Insurance Co. vs RBS SECURITIES, INC. | 7th Cir. - CUNA’s claims against RBS sound in fraud rather than contract they are not time-barred | REVERSED

In the United States Court of Appeals For the Seventh Circuit ____________________ No. 14-2904 CMFG LIFE INSURANCE CO., CUMIS INSURANCE SOCIETY, INC., and MEMBERS LIFE INSURANCE CO., Plaintiffs-Appellants, v. RBS SECURITIES, INC., Defendant-Appellee. ____________________ 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. [..]