“Defendant's failures resulted in the trusts and certificate holders suffering losses rightfully borne by other parties,” the complaint said.

“Had Defendant adequately performed its contractual and statutory obligations, breaching loans would have been removed from the loan pools underlying the certificates and returned to the responsible party. Defendant's improper conduct directly caused losses to certificate holders like the Plaintiffs,” the complaint also said.

CUNA General Counsel Eric Richard said CUNA has been encouraging the NCUA to take all possible actions to maximize recoveries from the institutions responsible for events that contributed to the corporate failures.

“Ultimately, we are hopeful that credit unions will share in the fruits of these efforts when the liquidations of the corporates is complete and all funds owing to the Treasury have been repaid,” he said.

NAFCU Senior Vice President and General Counsel Carrie Hunt applauded the NCUA for “leaving no stone unturned” in pursuing legal remedies for losses incurred from the corporate crisis.

“We support NCUA's efforts to seek recoveries from the responsible entities and hope eventually to have these funds returned to the credit unions that paid hefty assessments to cover the costs of the corporate losses on the mortgage-backed securities,” she said.