In a case that has ties to one of the industry's largest mortgage scams, Sperry Associates Federal Credit Union received a ruling in its favor over losses the financial institution said it suffered behind the scheme.
On March 1, Judge Dickinson Debevoise with the U.S. District Court of New Jersey said the $307 million credit union in Garden City Park, N.Y., was entitled to coverage from a fidelity bond that it purchased from CUMIS. Sperry claimed it lost $9.49 million through a mortgage scam instituted by CU National Mortgage.
The case goes back to 2006 when Sperry entered into a mortgage loan servicing agreement with CU National Mortgage, which also agreed to assist in selling its mortgages to the secondary market. The agreement did not authorize CUN or its parent company, U.S. Mortgage Corp., to indorse, assign or sell mortgages without Sperry's consent.
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