WASHINGTON-Talks appeared at a standstill over the New Year's holiday on the recovery of some $125 million of credit union mortgages fraudulently sold by U.S. Mortgage/CU National Mortgage to Fannie Mae.

The negotiations were being conducted on several fronts, with more than a dozen of the 26 credit union victims of the massive fraud continuing to lobby Congress to pressure Fannie Mae, which has been a ward of the federal government since September 2009. Meantime, secondary mortgage market giant continued to meet with lawyers for the credit unions in hopes of settling the claims, according to several sources.

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