Fannie Mae Suing Insurers Over US Mortgage Losses
Secondary mortgage giant Fannie Mae is suing insurance companies in at attempt to collect money it said it is owed because of losses in the U.S. Mortgage fraud.
The case stems from a series of sales of credit union originated mortgages that US Mortgage sold to Fannie Mae after the servicing firm stole them. US Mortgage CEO Michael J. McGrath plead guilty to fraud.
Fannie Mae says it coverage with the firms, that include Lloyd's of London and The Travelers Group, covered its losses in the $131 million fraud. The insurers, Fannie Mae said, have claimed it did not.