Houston-based lender settles case with Seattle-area woman

SEATTLE, WA Seattlepi.com reports that under the settlement, announced Wednesday, Houston-based Cornerstone Mortgage Company admits no wrongdoing but agrees to create a $750,000 compensation fund for similar borrowers.

HUD says the company treated Dr. Elizabeth Budde as if she had no income and revoked its loan approval when it learned the Kenmore oncologist was on maternity leave. While she eventually persuaded the lender to approve her mortgage, HUD charged the company with a violation of federal housing law.

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