My Real Estate Blog

Under the terms of the agreement, Cornerstone will create a $750,000 victims’ fund to compensate Cornerstone borrowers who experienced discrimination because they were on pregnancy or maternity leave at the time they applied for a loan; notify all borrowers who applied during a two-year time frame of their right to seek compensation if they experienced treatment that was discriminatory because a borrower or co-borrower was pregnant or on maternity leave; and; and pay as many as 100 successful claimants a lump sum payment of $7,500 each.

If there are more than 100 successful claimants, each will receive a prorated share of the compensation fund which will be administered by an independent third party administrator agency. 

Meanwhile, HUD is charging MGIC with discriminating against a Pennsylvania family by denying their application for mortgage insurance unless and until the wife returned to work from maternity leave. 

Reprinted From C.A.R.