You don't have to give up spending time with your newborn in order to get a mortgage.
It may sound obvious but giant mortgage insurance company MGIC refused to insure Carly Neals' mortgage because she was on maternity leave.
Neals of Wexford, Pa. filed a complaint with the Department of Housing and Urban Development and her case resulted in a lawsuit filed by the Department of Justice.
The lawsuit, filed in the U.S. District Court, alleged that MGIC required women on maternity leave to return to work before the company would insure their mortgages even for women who had a guaranteed right to return to work after the leave.
Lenders require borrowers to obtain mortgage insurance when borrowers are getting a mortgage of more than 80 percent of their home's value.
The case was just settled. MGIC established a $511,250 fund to compensate 70 individuals who allegedly suffered this type of discrimination when trying to get a mortgage. Neals will get $45,500 from the fund to compensate for the "pain and suffering and compensate her for leave that she forfeited in response to MGIC’s requirement that she return to work," according to DOJ.
"No company involved in lending should force a parent to give up her or his legal right to take time off from work to care for a new child in order to obtain a mortgage loan," says Thomas E. Perez, assistant attorney general for the Justice Department’s Civil Rights Division.
Fair enough, no?
Follow me on Twitter @Polyanad