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Mortgage Guaranty Settles Allegations of Discrimination against Women

The Department of Justice has reached a settlement with Mortgage Guaranty Insurance Corporation, settling allegations that the company discriminated against women by violating their maternity leave rights. The lawsuit has alleged that that the company was in violation of the Fair Housing Act.

This is believed to be the first such discrimination case of its kind in the country. California employment lawyers also believe that this lawsuit is the first lawsuit involving discrimination against women and mortgage insurance filed by the Department Of Justice. The lawsuit only came to light, when a Pennsylvania woman, a new mother lodged a complaint with the Housing And Urban Development Department.

According to her lawsuit, which was filed in July 2011, Mortgage Guaranty Insurance Corporation required that women who were on maternity leave return to work before the company could insure their mortgages. These rules would apply even to women who had a right to return to work after their maternity leave.

The government quickly took note of this, and investigations revealed that the company had violated the provisions of the Fair Housing Act. These provisions protect women against discrimination.

Government attorneys found at least 70 women who are believed to have had dealings with Mortgage Guaranty Insurance Corporation, and had their rights compromised.

The woman who filed the complaint will now receive $42,500 in compensation for the maternity that she was forced to forfeit, when the company required the women to return to work. Additionally, the women who were informed by Mortgage Guaranty that they should return to work quickly after their maternity leave for the company to insure their mortgages, will also share in the settlement worth $511,250. These women are also eligible to share in the proceeds of a class-action lawsuit.