CUNA Mutual said other parties have responsibility and liability for the losses suffered by Educational Systems Federal Credit Union in the CU National Mortgage fraud and only went to court previously to establish that fact.

"We believe other entities have liability for the losses the credit unions have suffered and we are continuing to look for ways to assist the affected credit unions in seeking compensation for those losses," wrote a spokesman for CUNA Mutual in an e-mail.

"The declaratory judgment action we filed seeks only to have the court resolve the question around coverage. The action doesn't seek damages against the credit union.

We were hoping not to have to move forward with the litigation and have been working toward that end. However, in fairness to all of our policyholders, we need to abide by and defend the limits of our coverages to avoid having some credit unions subsidize the inactions of others."

CUNA Mutual had filed a case with a state court in Wisconsin seeking a declaration from the court that the bond did not cover losses from the fraud.

"We remain hopeful this can be resolved in a manner that is fair for everyone."