U.S. Bank Defeats Suit Over Residential Mortgage Trust Losses

U.S. Bank defeated a lawsuit by investors in a residential mortgage-backed securities trust that lost more than $100 million in the 2008 housing market collapse.

The investors said in the class suit U.S. Bank was required as trustee to take action against Wells Fargo, the master servicer that monitored the trust’s individual mortgage loan servicers, when Wells Fargo allegedly failed to make certain deposits in the trust.

The U.S. Court of Appeals for the Second Circuit disagreed Jan. 9 in an unpublished ruling. It found the investors failed to show that Wells Fargo committed a default that would obligate U.S. ...