Thursday, July 07, 2011

DOJ claims MGIC refused to insure mortgage for woman on maternity leave

The Department of Justice filed a lawsuit against Mortgage Guaranty Insurance Corp. (MTG: 6.78 +12.07%), alleging the mortgage insurer violated the Fair Housing Act by requiring a woman on paid maternity leave to return to work before insuring her mortgage.

The case, which was filed Tuesday in the U.S. District Court for the Western District of Pennsylvania, claims the move by MGIC could hurt the women's chances of obtaining a home loan in the future. The plaintiff claims MGIC discriminated on the basis of sex and familial status.

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