(Source: Housing Wire by KERRI PANCHUk) – The Department of Justice filed a lawsuit against Mortgage Guaranty Insurance Corp. (MTG: 6.53 +7.93%), 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.

The original complaint was filed with the Department of Housing and Urban Development. HUD investigated, issued a charge of discrimination and sent the case over to District Court.

Source: Housing Wire by KERRI PANCHUk

Wednesday, July 6th, 2011, 7:50 am

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