MILWAUKEE MGIC Investment Corp., the parent of Mortgage Guaranty Insurance Corp.; PMI Mortgage Insurance Co.; and United Guaranty Residential Insurance Co. have agreed to settle separate lawsuits brought as nationwide class actions.
The suits charged that the mortgage insurers had violated the Real Estate Settlement Procedures Act of 1974 and overcharged customers. The companies have denied any violation of the law.
Under the agreement, the insurers will pay a combined, estimated $46 million to borrowers whose lenders obtained private mortgage insurance from May 19, 1997, to Nov. 30, 2000. MGIC is to pay up to $17.6 million.
The agreements are subject to approval by Federal District Court for the Southern District of Georgia, where the cases are pending.