A federal court agreed to consolidate suits brought by three credit unions asking for the return of more than $35 million of mortgages fraudulently sold to Fannie Mae by U.S. Mortgage and its subsidiary CU National Mortgage.

While several smaller credit unions have settled claims, the three plaintiffs — Picatinny Federal Credit Union, Proponent Federal Credit Union and Sperry Associates Federal Credit Union — are among the biggest victims in the fraud in which CU National sold almost $140 million of mortgages owned by 28 credit unions to Fannie without their knowledge and kept the funds.

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