MGIC Settles Historic Mortgage Insurance Case Involving Maternity Leave
18.05.12
Carly Neals applied in May 2010 with PNC Mortgage (“PNC”) to refinance the mortgage loan on the home she owns jointly with her husband in Wexford, PA. Neals is the mother of three children, the youngest was born on June 21, 2010, and PNC determined, based on Fannie Mae’s underwriting guidelines, that her request to borrow 90% of the value of her home required private mortgage insurance. Mortgage lenders typically require applicants seeking to borrow more than 80 percent of their home’s value to obtain mortgage insurance.
Neals’s loan application documented her wage and bonus income from her full-time job for the previous two years. This documentation included pay stubs from April 29, 2010, and May 13, 2010, showing net pay of $2,148.98 in each two-week pay period. After giving birth to her youngest son on June 21, 2010, Neals began a period of fully paid maternity leave from her job.
PNC decided in early July 2010 to approve Neals’s mortgage loan application conditioned on its approval by a private mortgage insurer.Mortgage Guaranty Insurance Corporation ("MGIC"), the largest of the nation's mortgage insurance provider, has received a request to provide a mortgage Neals women July 12, 2010, which the company sent to its Newtown Square office, which manages the loans secured by property in the Northeast United States. In the process of purchasing insurance, MGIC requested bank statements updated to Neals, and because the method of his employer to file income maternity leave differs from his method of filing for regular wage income, such bank statements disclose that Neals was on maternity leave.
Source: Forbes
Top Freddie Mac Executive VP Renzi resigns
18.05.12
A top executive at government-controlled mortgage giant Freddie Mac is leaving the company about a year after he was promoted to oversee its single-family mortgage business.
Anthony Renzi resigned to accept a job with another financial company, Freddie CEO Edward Haldeman said Monday in an internal email. The other company wasn't named. Renzi's departure as executive vice president of single-family business and operations and technology takes effect next month.
The move is the latest in a series of departures of top executives from McLean, Va.-based Freddie and its larger sibling Fannie Mae, which were rescued by the government in September 2008 after massive losses on risky mortgages threatened to topple them. Taxpayers have spent about $170 billion to rescue the companies -- the most expensive bailout of the financial crisis. It could cost nearly $200 billion more to support the companies through 2014 after subtracting dividend payments, according to the government.
Source: BusinessWeek
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