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 withmortgage servicing rights.

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

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

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

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

A comment from CUSO Development was not available.

Founded in 2006, the Grand Rapids, Mich.-based CUSO Developmentprovides mortgages lending products, according to its website. Itspartnerships include six credit unions, Freddie Mac andMortgagebot.

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