NEWARK, N.J. – The federal bankruptcy court has approved the hiring of a criminal attorney by CU National Mortgage, as a federal investigation into allegations made against the failed mortgage lender spreads.
The bankruptcy court, where CU National and its parent US Mortgage Corp., landed last week, has approved the hiring of Gibbons PC as special criminal counsel for the company, and the payment of a $21,178 retainer to the Newark firm.
The action comes as a federal grand jury is investigating allegations that the company defrauded dozens of credit unions by selling their mortgages to Fannie Mae without authorization and keeping the proceeds. As many as 30 credit unions in the mid-Atlantic region believe as much as $160 million of their loans may have been fraudulently sold to Fannie Mae.
A Fannie Mae spokesman declined to comment.
The bankruptcy court also approved the hiring by US Mortgage of NachmanHaysBrownstein, a New Jersey-based work-out firm, that has been retained to wind down the company’s business.
The court also approved the hiring of Lowenstein Sandler PC, a Roseland, N.J., law firm, as corporate counsel for the bankruptcy.
