“Family Leave” For Mortgage Applicants
Mortgage Guaranty Insurance Corporation (MGIC), the nation’s largest private mortgage insurance company, recently settled a case brought by a homeowner claiming housing discrimination.
Click here to see today's mortgage rates
.
According to a report by Forbes, MGIC refused to provide mortgage insurance until the homeowner concluded her maternity leave and returned to work.
The homeowner’s housing discrimination complaint filed with the Department of Housing and Urban Development (HUD) was referred to the Department of Justice. MGIC and the Department of Justice reached a settlement establishing a fund for housing discrimination victims and reimbursing the plaintiff for pain and suffering related to maternity leave lost when she returned to work early to meet MGIC’s underwriting requirements.
Mortgages On Maternity Leave
MGIC has agreed to revise its mortgage insurance approval policies for applicants on or returning to work from leave related to adoption, birth or placement of a foster child. Employees will receive training on fair housing requirements and housing discrimination.
MGIC will also distribute non-discrimination notices to mortgage insurance applicants. These actions bring MGIC underwriting policies in line with fair housing policies used by mortgage underwriters.
With the change, mortgage applicants from San Diego, California to Long Island, New York and everywhere in between will find it easier to get mortgage financing on loans that require private mortgage insurance.
Typically, conforming loans with downpayments of less than 20% are subject to PMI.
Click here to see today's mortgage rates
.
Faster, Easier Loan Approvals For Families “On Leave”
Bringing mortgage insurance compliance requirements in line with fair housing requirements for mortgage lenders is expected to expedite loan approvals and prevent delays potentially causing sale contracts to expire before buyers’ mortgage financing is approved.
Getting mortgage lenders and insurers on the same page for all underwriting policies would save time while reducing delays and related expenses. Promoting fair housing and lending practices, being user-friendly and streamlining the mortgage application process is a win-win for everyone involved.
Time to make a move? Let us find the right mortgage for you
.
