Credit Union Seeks Coverage Of Fannie Mae Loan Feud

Law360, New York (October 6, 2011, 1:25 PM EDT) -- Proponent Federal Credit Union on Tuesday launched a suit seeking coverage from Cumis Insurance Society Inc. for a legal battle that arose after a company allegedly sold Proponent's residential mortgage loans to Fannie Mae without the credit union's knowledge.

Proponent argues that Cumis Insurance has a duty under multiple policies to cover all of the defense costs and losses it racks up while fending off Fannie Mae's lawsuit in New Jersey federal court, the same court where the credit union filed its own complaint against the...
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