First Catholic Federal Credit Union of Taylor, Mich., has sued to terminate CUSO Mortgage Inc.'s loan servicing contract.

The suit, filed Dec. 23 in U.S. District Court for the Eastern District of Michigan, says First Catholic should not have to pay a contractual termination fee of 2% of the mortgages' balance, because CUSO breached the contract. CUSO, a unit of Wescom Central Credit Union of Pasadena, Calif., services loans for as many as 100 credit unions.

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