The $247 million Picatinny Federal Credit Union is continuing to take the legal lead among credit unions victimized by vendor U.S. Mortage Corp. and its credit union division, CU National Mortgage.
According to court documents, the Dover, N.J.-based credit union filed suit yesterday against Fannie Mae over more than $14 million in disputed mortgages.
The suit singles out former U.S. Mortgage President and CEO Michael J. McGrath, who the suit alleges posed as a Picatinny vice president when he fraudulently sold 58 mortgages to Fannie Mae.
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McGrath, as U.S. Mortgage president, was appointed to Fannie Mae's customer advisory council in July 2007. Fannie Mae corporate spokesperson Brian Faith said McGrath is no longer associated with the group.
Picatinny attorney James Forte was not available for comment. The credit union had previously held out on attempts to sell U.S. Mortgage's servicing rights as a single unit, and was a factor in the company's bankruptcy filing late last month.
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