Case: United States v. Mortgage Guaranty Insurance Corp.

2:11-cv-00882 | U.S. District Court for the Western District of Pennsylvania

Filed Date: July 5, 2011

Closed Date: 2016

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Case Summary

On July 5, 2011, the Department of Justice (DOJ) filed suit in the United States District Court for the Western District of Pennsylvania against Mortgage Guaranty Insurance Corp. alleging violations of the Fair Housing Act. More specifically, DOJ alleged that Mortgage Guaranty Insurance Corp. discriminated against women on paid maternity leave by requiring the women to return to work before insuring their mortgages. This lawsuit originally arose after a loan applicant in Wexford, PA filed a co…

On July 5, 2011, the Department of Justice (DOJ) filed suit in the United States District Court for the Western District of Pennsylvania against Mortgage Guaranty Insurance Corp. alleging violations of the Fair Housing Act. More specifically, DOJ alleged that Mortgage Guaranty Insurance Corp. discriminated against women on paid maternity leave by requiring the women to return to work before insuring their mortgages.

This lawsuit originally arose after a loan applicant in Wexford, PA filed a complaint with the U.S. Department of Housing and Urban Development (HUD). HUD referred the case to the DOJ after completing a thorough investigation of the complaint.

In the months following the DOJ's initial filing of the suit's complaint, the two parties negotiated a settlement agreement. The settlement agreement provided $7500 in monetary damages to each woman impacted by Mortgage Guaranty Insurance Corp.'s previous policy as well as additional damages for the applicant in Wexford, PA who filed the initial complaint in Pennsylvania.

The settlement agreement also required Mortgage Guaranty Insurance Corp. to establish anti-discriminatory underwriting and practice policies. Mortgage Guaranty Insurance Corp. agreed to train its managers and employees who underwrite mortgage insurance. Mortgage Guaranty Insurance Corp. also agreed to a monitoring program designed to supervise compliance with the Order.

The court (Judge Robert Mitchell) approved the consent order on April 30, 2012. The consent order resolved all claims set forth in the United States’ Complaint against the Defendants in this matter. It required eight semiannual reports on compliance with its terms, beginning October 2012, and was set to terminate in July 2016 unless the United States demonstrated good cause for extension.

On March 14, 2013, the court approved the parties' joint motion for disbursement of funds. According to the consent order, defendant agreed to distribute any money remaining in the Settlement Fund to qualified organizations that conduct fair housing enforcement, fair lending enforcement, or educational activities addressing sex or familial status discrimination.

The parties informed the Court that $30,000.00 plus accumulated interest remained in the Settlement Fund after the payments to the aggrieved persons who returned a release. The court approved the defendant's choices of two organizations that would receive the funds: The National Community Reinvestment Coalition and The Metropolitan Milwaukee Fair Housing Council. The defendant was ordered to instruct each organization, as a condition of receiving the funds, that it must use the funds in a manner related to addressing sex and familial status discrimination in housing and lending. The terms also included that the organization submit a report to the defendant and the United States within one year after the funds are distributed detailing how it used the funds for such purposes.

The docket shows no further activity after entry of the consent order, so presumably it closed according to schedule in July 2016.

Summary Authors

Megan Richardson (11/20/2014)

Asma Husain (1/31/2016)

People


Judge(s)

Mitchell, Robert C. (Pennsylvania)

Attorney for Plaintiff

Bond, Rebecca B. (District of Columbia)

Hickton, David J. (Pennsylvania)

Holder, Eric H. Jr. (District of Columbia)

Mosteller, Daniel P. (District of Columbia)

Attorney for Defendant

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Documents in the Clearinghouse

Document

2:11-cv-00882

Docket

United States of America v. Mortgage Guarantee Insurance Corp.

March 15, 2013

March 15, 2013

Docket

2:11-cv-00882

Justice Department Sues Nation’s Largest Mortgage Insurance Provider for Discrimination Against Women on Paid Maternity Leave

No Court

July 5, 2011

July 5, 2011

Press Release
1

2:11-cv-00882

Complaint

United States of America v. Mortgage Guaranty Insurance Corp.

July 5, 2011

July 5, 2011

Complaint
22

2:11-cv-00882

Consent Order

United States of America v. Mortgage Guaranty Insurance Corp.

April 30, 2012

April 30, 2012

Order/Opinion

2012 WL 2012

24-1

2:11-cv-00882

Disbursement Order

March 15, 2013

March 15, 2013

Order/Opinion

Docket

Last updated Feb. 23, 2024, 3:02 a.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT against ELGINA CUNNINGHAM, KELLY KANE, MORTGAGE GUARANTY INSURANCE CORP., filed by UNITED STATES OF AMERICA. (Attachment: # 1 Civil Cover Sheet) (jsp) (Entered: 07/06/2011)

July 5, 2011

July 5, 2011

2

NOTICE of Appearance by Christy C. Wiegand on behalf of UNITED STATES OF AMERICA. (Wiegand, Christy) (Entered: 07/07/2011)

July 7, 2011

July 7, 2011

3

WAIVER OF SERVICE Returned Executed by UNITED STATES OF AMERICA. ELGINA CUNNINGHAM waiver sent on 7/6/2011, answer due 9/6/2011; KELLY KANE waiver sent on 7/6/2011, answer due 9/6/2011; MORTGAGE GUARANTY INSURANCE CORP. waiver sent on 7/6/2011, answer due 9/6/2011. (Mosteller, Daniel) Modified on 7/28/2011 to indicate waiver sent and answer due dates. (ept) (Entered: 07/27/2011)

July 27, 2011

July 27, 2011

4

STIPULATION For Enlargement Of Time by MORTGAGE GUARANTY INSURANCE CORP.. (Rende, Bruce) (Entered: 09/02/2011)

Sept. 2, 2011

Sept. 2, 2011

Update Answer Deadline: Answer due from All Defendants 9/12/2011. (mlb) (Entered: 09/06/2011)

Sept. 6, 2011

Sept. 6, 2011

5

ANSWER to 1 Complaint by MORTGAGE GUARANTY INSURANCE CORP.. (Rende, Bruce) (Entered: 09/12/2011)

Sept. 12, 2011

Sept. 12, 2011

6

INITIAL LOCAL RULE 16.1 SCHEDULING CONFERENCE: A Case Management Conference is set for 10/14/2011 at 9:30 AM before Robert C. Mitchell. Rule 26 Meeting to be conducted on or before 9/30/2011. Rule 26 Meeting Report due by 10/7/2011. Signed by Magistrate Judge Robert C. Mitchell on 9/13/2011. (mlb) (Entered: 09/13/2011)

Sept. 13, 2011

Sept. 13, 2011

7

CASE MANAGEMENT ORDER: Willingness to proceed before Magistrate Judge due by 9/30/2011. Signed by Magistrate Judge Robert C. Mitchell on 9/13/2011. (mlb) (Entered: 09/13/2011)

Sept. 13, 2011

Sept. 13, 2011

CLERK'S OFFICE QUALITY CONTROL MESSAGE re 5 Answer to Complaint. ERROR: Party did not file disclosure statement as required pursuant L.R. 7.1.1. CORRECTION: Attorney advised to file statement within 7 days. This message is for informational purposes only. Disclosure Statement due by 9/20/2011. (ksa) (Entered: 09/13/2011)

Sept. 13, 2011

Sept. 13, 2011

8

Disclosure Statement identifying MGIC Investment Corporation as corporate parent or other affiliate, by MORTGAGE GUARANTY INSURANCE CORP.. (Rende, Bruce) (Entered: 09/13/2011)

Sept. 13, 2011

Sept. 13, 2011

9

CONSENT to Trial/Jurisdiction by US Magistrate Judge by UNITED STATES OF AMERICA. (Wiegand, Christy) (Entered: 09/28/2011)

Sept. 28, 2011

Sept. 28, 2011

10

DISTRICT JUDGE OPTION by ELGINA CUNNINGHAM, KELLY KANE, MORTGAGE GUARANTY INSURANCE CORP. to have this case randomly assigned to a U.S. District Judge. (Rende, Bruce) (Entered: 09/29/2011)

Sept. 29, 2011

Sept. 29, 2011

Judge Robert C. Mitchell no longer presiding on this case. (slv) (Entered: 10/03/2011)

Oct. 3, 2011

Oct. 3, 2011

11

STIPULATION selecting ADR process by UNITED STATES OF AMERICA (Wiegand, Christy) (Entered: 10/07/2011)

Oct. 7, 2011

Oct. 7, 2011

12

PROPOSED DISCOVERY PLAN pursuant to Rule 26(f) by UNITED STATES OF AMERICA. (Wiegand, Christy) Wrong event selected. Document removed from public view and redocketed at 13 . Modified on 10/11/2011. (ept) (Entered: 10/07/2011)

Oct. 7, 2011

Oct. 7, 2011

CLERK'S OFFICE QUALITY CONTROL MESSAGE re 12 Proposed Discovery Plan. ERROR: Wrong event selected. CORRECTION: Re−docketed as Report of Rule 26(f) Planning Meeting. This message is for informational purposes only. (ept) (Entered: 10/11/2011)

Oct. 11, 2011

Oct. 11, 2011

14

STIPULATED PROTECTIVE ORDER by MORTGAGE GUARANTY INSURANCE CORP.. (Rende, Bruce) (Entered: 10/13/2011)

Oct. 13, 2011

Oct. 13, 2011

15

ORDER approving 14 Stipulated Protective Order. Signed by Magistrate Judge Robert C. Mitchell on 10/14/2011. (mlb) (Entered: 10/14/2011)

Oct. 14, 2011

Oct. 14, 2011

16

Minute Entry for proceedings held before Magistrate Judge Robert C. Mitchell: Case Management Conference held on 10/14/2011. Rule 26 disclosures to be made by 10/21/2011. Defendants to provide results of data base search by 12/31/2011. A Status Conference is set for 1/9/2012 at 12:30 PM before Magistrate Judge Robert C. Mitchell. (Court Reporter: None) (mlb) (Entered: 10/14/2011)

Oct. 14, 2011

Oct. 14, 2011

17

MOTION for attorney Jay N. Varon to Appear Pro Hac Vice, (Filing fee $40, Receipt # 0315−2124876) by ELGINA CUNNINGHAM, KELLY KANE, MORTGAGE GUARANTY INSURANCE CORP.. (Attachments: # 1 Exhibit A, # 2 Proposed Order) (Rende, Bruce) (Entered: 10/14/2011)

Oct. 14, 2011

Oct. 14, 2011

ORDER granting 17 Motion for Jay N. Varon to Appear Pro Hac Vice. Signed by Magistrate Judge Robert C. Mitchell on 10/17/2011. Text−only entry; no PDF document will issue. This text−only entry constitutes the Order of the Court or Notice on the matter. (mlb) (Entered: 10/17/2011)

Oct. 17, 2011

Oct. 17, 2011

18

Minute Entry for proceedings held before Magistrate Judge Robert C. Mitchell: Status Conference held on 1/9/2012. All proceedings are stayed until 4/15/2012 so the parties can complete investigation and settlement discussions. A Status Conference is set for 4/30/2012 at 9:30 AM before Magistrate Judge Robert C. Mitchell. (Court Reporter: None) (mlb) (Entered: 01/09/2012)

Jan. 9, 2012

Jan. 9, 2012

19

NOTICE of Hearing: Status Conference set for 4/30/2012 at 01:30 PM before Magistrate Judge Robert C. Mitchell. (cms) (Entered: 04/23/2012)

April 23, 2012

April 23, 2012

20

Minute Entry for proceedings held before Magistrate Judge Robert C. Mitchell: Status Conference held on 4/30/2012. Parties consent to jurisdiction by U.S. Magistrate Judge. Consent Order to be entered. (Court Reporter: None) (mlb) (Entered: 04/30/2012)

April 30, 2012

April 30, 2012

21

ORDER GRANTING Consent to Proceed Before a US Magistrate Judge. Case reassigned to Magistrate Judge Robert C. Mitchell. Signed by Magistrate Judge Robert C. Mitchell on 4/30/2012. (mlb) (Entered: 04/30/2012)

April 30, 2012

April 30, 2012

22

ORDER approving parties' consent order. Signed by Magistrate Judge Robert C. Mitchell on 4/30/2012. (mlb) (Entered: 04/30/2012)

April 30, 2012

April 30, 2012

23

ORDER FOR STATISTICAL CLOSING. Signed by Magistrate Judge Robert C. Mitchell on 4/30/2012. (mlb) (Entered: 04/30/2012)

April 30, 2012

April 30, 2012

24

Joint MOTION for Disbursement of Funds by MORTGAGE GUARANTY INSURANCE CORP., UNITED STATES OF AMERICA. (Attachments: # 1 Proposed Order) (Mosteller, Daniel) (Entered: 03/14/2013)

March 14, 2013

March 14, 2013

25

ORDER granting 24 Motion for Disbursement of Funds. Signed by Magistrate Judge Robert C. Mitchell on 3/15/2013. (ajt) (Entered: 03/15/2013)

March 15, 2013

March 15, 2013

Case Details

State / Territory: Pennsylvania

Case Type(s):

Fair Housing/Lending/Insurance

Special Collection(s):

Multi-LexSum (in sample)

Key Dates

Filing Date: July 5, 2011

Closing Date: 2016

Case Ongoing: No

Plaintiffs

Plaintiff Description:

U.S. Department of Justice, Civil Rights Division on behalf of single mothers nationwide.

Plaintiff Type(s):

U.S. Dept of Justice plaintiff

Public Interest Lawyer: No

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

Mortgage Guaranty Insurance Corporation, Private Entity/Person

Defendant Type(s):

Bank or credit provider

Case Details

Causes of Action:

Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.

Available Documents:

Trial Court Docket

Complaint (any)

Monetary Relief

Injunctive (or Injunctive-like) Relief

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Source of Relief:

Settlement

Form of Settlement:

Court Approved Settlement or Consent Decree

Amount Defendant Pays: 511,250

Order Duration: 2012 - 2016

Content of Injunction:

Develop anti-discrimination policy

Provide antidiscrimination training

Monitoring

Issues

General:

Predatory lending

Discrimination-area:

Lending

Discrimination-basis:

Pregnancy discrimination

Affected Sex or Gender:

Female