Some of the credit unions that lost money when US Mortgage CEO Michael McGrath fraudulently sold some of their loans to Fannie Mae have made progress in coming to a settlement with the mortgage giant and CUNA Mutual Insurance.
Sources close to the negotiations said a recent New York City meeting included a mediator and saw many of the credit unions with complaints against Fannie Mae settle those complaints. A committee of credit unions hurt by the fraud formed after Fannie Mae initially refused to return the stolen mortgages.
Sources said that not all the credit unions in disputes with Fannie Mae or CUNA Mutual were able to reach a settlement with one or both of them, but the sources said that many credit unions with smaller claims had been able to reach settlements.
