Thursday, June 2, 2011

Settlement of Washington State Fair Housing Pregnancy Mortgage Lending Case; Private Mortgage Insurance [MGIC] Case Still Pending.

WaPo has story HERE. From the story:
Cornerstone agreed to pay $15,000 to Elizabeth Budde, an oncologist living in Washington state, based on her claims that she was initially denied a mortgage loan even though she was on paid maternity leave and planned to return to work.

Budde had been approved for a loan but ran into problems with Cornerstone after an e-mail to the doctor bounced back with information that she was on maternity leave, TrasviƱa said.

Cornerstone will also create a $750,000 victims’ fund to compensate other borrowers who allegedly experienced discrimination because they were on pregnancy or maternity leave at the time they were applying for a loan, according to HUD.

In a separate action, HUD is charging Mortgage Guaranty Insurance Corporation (MGIC) of Milwaukee, Wisconsin and others with engaging in pregnancy discrimination in issuing mortgage insurance in violation of the Fair Housing Act.

Originally created and posted on the Oregon Housing Blog.

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