Wells Fargo paying $5M to resolve maternity leave discrimination allegations

LIVE NOW: Inman Connect San Francisco
Tune-in now to catch the livestream. Don't miss this chance to see real estate leaders tackle the industry's top problems.

In the biggest settlement of its kind to date, Wells Fargo Home Mortgage has agreed to pay $5 million to resolve allegations that it violated the Fair Housing Act by discriminating against women who were pregnant or had recently given birth and were on maternity leave.

In announcing the settlement, the Department of Housing and Urban Development said 190 maternity leave discrimination complaints have been filed with HUD since 2010. Not counting Wells Fargo, HUD said it had previously won 40 settlements totaling nearly $1.5 million.

A Department of Justice settlement with Mortgage Guarantee Insurance Corporation (MGIC) established a $511,250 fund to compensate 70 people. Bank of America agreed to a $45,000 settlement last year, and Cornerstone bank paid $750,000 in 2011. Source: hud.gov.