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.