Picatinny FCU Sues Fannie Mae

Dover, N.J.-based Picatinny Federal Credit Union has filed a lawsuit against Fannie Mae, claiming the government-sponsored enterprise bought 58 mortgages from the credit union's servicer, US Mortgage Corp., without Picatinny's knowledge or permission.

Picatinny's attorney, James Forte, told the Daily Record newspaper that servicer, US Mortgage, which is now in bankruptcy, made payments to Picatinny to make it appear as though the loans were still in the credit union's portfolio. In its lawsuit, filed in Morristown, N.J., Picatinny seeks more than $14 million from Fannie Mae, the Daily Record reports. Picatinny says it is working with Fannie Mae to ensure all the loans involved in the lawsuit are being serviced.

The lawsuit claims US Mortgage President and CEO Michael J. McGrath pretended to be an assistant vice president with the credit union in order to sell the loans to Fannie Mae, according to the Daily Record. Picatinny says McGrath never had the authority to make such a deal.

SOURCE: Daily Record


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