Mortgage Insurer MGIC Settles Maternity Leave Case

Law360, New York (April 30, 2012, 8:46 PM EDT) -- Mortgage Guaranty Insurance Corp. on Monday agreed to pay $550,000 to settle federal prosecutors' claims that the country's largest mortgage insurer violated the Fair Housing Act by refusing to insure mortgages for women on paid maternity leave.

U.S. Magistrate Judge Robert C. Mitchell in the Western District of Pennsylvania approved the settlement establishing a $511,250 fund to compensate 70 individuals whom the U.S. Department of Justice said were denied mortgage insurance between 2007 and 2010. Under the terms of the settlement, MGIC also will pay a...
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