MGIC Denied Loans To Moms On Leave, DOJ Says

Law360, New York (July 5, 2011, 9:29 PM EDT) -- The U.S. Department of Justice sued Mortgage Guaranty Insurance Corp. in Pennsylvania on Tuesday, alleging that the country's largest mortgage insurance company violated the Fair Housing Act by refusing to insure mortgages for women on paid maternity leave.

Prosecutors say MGIC required that women on maternity leave to return to work before insuring their loans. The suit targets the company and two of its underwriters, Elgina Cunningham and Kelly Kane, according to the DOJ.

"No woman should be denied the opportunity to receive a mortgage loan...
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