Some of the credit unions that lost money when US Mortgage CEO Michael McGrath fraudulently sold some of their loans to Fannie Mae have made progress in coming to a settlement with the mortgage giant and CUNA Mutual Insurance.
|Sources close to the negotiations said a recent New York City meeting included a mediator and saw many of the credit unions with complaints against Fannie Mae settle those complaints. A committee of credit unions hurt by the fraud formed after Fannie Mae initially refused to return the stolen mortgages.
|Sources said that not all the credit unions in disputes with Fannie Mae or CUNA Mutual were able to reach a settlement with one or both of them, but the sources said that many credit unions with smaller claims had been able to reach settlements.
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