Two new legal actions by federal fair lending regulators suggest the mortgage industry needs to address the issue of possible discrimination against women who are pregnant or on maternity leave.


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June 12, 2011
You might think not, but two new legal actions by federal fair lending regulators suggest that the mortgage industry — and even federally run financing giants Fannie Mae and Freddie Mac — may need to address the issue.
In the Cornerstone settlement, federal regulators alleged that the lender initially approved the applicant for a mortgage but later said that her income while on maternity leave could not be considered in qualifying for the loan. That, in turn, was a violation of the Fair Housing Act, regulators said, because it limited her ability to obtain financing based on her “sex and/or familial status.”
Cornerstone did not respond to a request for comment, but in the settlement agreement denied any wrongdoing and said the issue arose because the applicant “failed to disclose … that she would be on leave from her employment.”
As part of the settlement, Cornerstone agreed to pay the applicant $15,000 and to create a $750,000 escrow fund to pay potential claims from other women who may have been harmed by Cornerstone’s maternity-leave policies during the last two years.
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