BK Court Orders CU National to Turn Over Funds To Picatinny FCU

A federal bankruptcy court in Newark has ordered that CU National Mortgage/U.S. Mortgage of New Jersey turn over any and all funds belonging to Picatinny FCU that the $220 million credit union claims the failed mortgage servicer has been illegally withholding from it. The court also ordered that CU National transfer millions of dollars of Picatinny mortgages it has been servicing to a new servicer, CUMAnet. The ruling bodes well for more than two dozen credit unions that are also fighting for the return of funds they claim have been held by CU Mortgage without their authorization. However, an individual representing the credit unions said the Picatinny FCU order does not affect them and they are still fighting for their funds. The credit unions are all fighting for the return of as much as $160 million of their mortgages they claim CU National transferred to Fannie Mae without their authorization. Fannie Mae representatives declined to comment.