Shortly after his birth the family moved to Detroit, where Lundy's father worked as an inspector for the Burroughs adding machine Company.
When Lundy was ten years old, his parents separated and he and his mother went to live in Port Huron north of Detroit.
In 1929, Lundy was employed by Walt Disney Productions, becoming the studio's dance specialist; animating many of the musical numbers in early Silly Symphony and Mickey Mouse shorts.
He directed shorts featuring Andy Panda, Woody Woodpecker, and the Swing Symphonies.
The character was created by Swiss-born designer Albert Hurter and animated by Art Babbitt and Dick Huemer for the short film The Wise Little Hen (1934).
In listening to voice actor Clarence Nash portray the Duck in Orphan's Benefit, Lundy said "[I] decided that [Donald] was an ego-show-off.
First marriage with Anne Lundy resulted in two biological children, after the divorce he moved to Toluca Lake California.