Good catch. It is a known glitch. From the wiki the rumor (not just by Raminus) is:
Kud-Ei runs a tight ship in Bruma [sic]. She may not always play by the rules, but I wouldn't want her on my bad side.
http://www.uesp.net/wiki/Oblivion:Kud-Ei
but Raminus should know better, given that he's a Master Wizard, and presumably on the Council.
There are lots of glitches like that. The most common is calling a lady NPC "he" instead of "she". Apparently due to Bethesda recording some of the voice acting before the game was fully completed.
One of my favorite little glitches is again from Raminus Polus. When you first enter the Arcane University he says:
As much as we try to hold mages to a higher standard, they are only human.
Only human? What about all the elves in the guild, not to mention the argonians and khajiits?