Garden City Park-based Sperry Associates Federal Credit Union is among two Long Island credit unions that are seeking to recover $50 million in allegedly defrauded by a New Jersey mortgage servicing company.
According to a Newsday report:
CU National, now defunct according to court papers, defrauded the two credit unions and more than 20 others nationwide of $140 million by selling mortgages the credit unions owned and pocketing the proceeds.
Sperry and Medford-based Suffolk Federal Credit Union used CU National Mortgage to service their mortgages in 2006 and 2003, respectively, and have sued the Wisconsin insurance company that sold them surety bonds to protect against such losses.
In court papers, Sperry said that its losses totaled $9.5 million from the sale of 27 mortgages between 2004 and 2009. Sperry had only a $5-million bond and has received about a half-million dollars from Fannie Mae.