Federal Deposit Insurance v. Countrywide Financial Corp.

ORDER DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

I- INTRODUCTION

Defendant UBS Securities LLC (“UBS”) underwrote residential mortgage- *1038 backed securities (“RMBS”) that United Western Bank (“the Bank”) purchased. 1 The Bank subsequently failed and the Federal Deposit Insurance Corporation (“FDIC”) was appointed as receiver. The FDIC filed suit against Defendant on August 23, 2010. The FDIC has alleged that the “Offering Documents” used to create and market certain RMBS purchased by the Bank contained material misstatements about Loan-to-Value (“LTV”) ratios, appraisals, and other aspects of the mortgage loans that backed the securities. As a result of those misrepresentations, the RMBS were allegedly far riskier than stated in the Offering Documents. Following motion practice, the sole claim that remains against the Defendant is under Section 11 — 51—501 (1)(b) of the Colorado Securities Act (“CSA”).

UBS now moves for Summary Judgment on four grounds: (1) that the FDIC’s claim is time-barred under the CSA’s three year statute of limitations because the Bank knew or should have known that “something was amiss” by April 2007; (2) that the Bank had knowledge of alleged…