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Mortgage insurer MGIC settle class action suit

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Gavel & Stryker, made from Cherry & Ash, sold to Whitney Hoffman. By KeithBurtis (Flickr: Gavel & Stryker) [CC-BY-2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
Gavel & Stryker, made from Cherry & Ash, sold to Whitney Hoffman. By KeithBurtis (Flickr: Gavel & Stryker) [CC-BY-2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

MILWAUKEE (WTAQ) - A mortgage insurer from Milwaukee has settled a lawsuit filed by women who were denied coverage because they were pregnant, or on maternity leave from work.

The case is from Pittsburgh, where 34-year-old Cathy Neals sued Milwaukee’s MGIC. It was a class action suit – and 20 women will each get up to a half-million dollars after they were rejected for mortgage insurance.

The U.S. Justice Department brought a similar action against MGIC in May.

A federal judge in Pittsburgh has just approved the settlement.

MGIC vice president Dan Stilwell says the insurer is not admitting fault – but it promises to clarify its guidelines for underwriting mortgage insurance. 

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