Fannie Mae has given more than three dozen credit unions until next week to accept an offer of pennies on the dollar for about $125 million of their mortgages that the defunct U.S. Mortgage fraudulently sold to Fannie.

So far, two credit unions have accepted the offer, outlined Monday in a letter to Fannie Mae's federal regulator from National Credit Union Administration Chairman Deborah Matz, who expressed concern at the losses faced by the affected credit unions.

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