Bellwether Community CU Suit Seeks Funds Tied to CUSO Exit
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.