In a suit filed against CUSO Development Co. LLC, Bellwether Community Credit Union said it is seeking more than $655,000 for what it claims are its units in the CUSO along with mortgage servicing rights.

However, the $385 million Bellwether in Manchester, N.H., recently lost a round in its legal battle when a federal court dismissed its suit, saying an operating agreement signed by the credit union 2008 to join CUSO Development did not provide details on the distribution of capital accounts. As a result, the court dismissed Bellwether's claim.

Meanwhile, Bellwether reportedly has filed a notice to appeal. A comment from the credit union was not immediately available.

In its suit filed in the U.S. District Court for the Western District of Michigan, Bellwether said it was entitled to $355,225 in a capital account for mortgage servicing rights with CUSO Development as well as $300,000 for its 50 Class A units in the CUSO.

The credit union claimed CUSO Development breached the operating agreement signed by both parties in 2008 and is seeking $655,233 including interest and attorney fees.

A comment from CUSO Development was not available.

Founded in 2006, the Grand Rapids, Mich.-based CUSO Development provides mortgages lending products, according to its website. Its partnerships include six credit unions, Freddie Mac and Mortgagebot.

The CUSO's subsidiaries include Member Advantage Mortgage and Member Advantage Title.

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Bellwether Community CU Suit Seeks Funds Tied to CUSO Exit

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