Secondary

California Gov. Jerry Brown violated state law by diverting more than $331 million in mortgage settlement funds for uses unrelated to housing, a Superior Court judge ruled.

RealtyMogul.com said it reached agreements for a total of $250 million in capital, which it will use to offer new products.

Radian Group in Philadelphia began a sale of $300 million in senior notes.

Community West Bancshares in Goleta, Calif., said that a litigation settlement concerning its sale of residential-mortgage loans will reduce its second-quarter profit.

Transactions involving residential mortgage-backed securities should include a manager to improve accountability, Fitch Ratings has recommended.

Life insurers increased their rate of investment in mortgages in 2014, according to a Fitch Ratings report.

Private mortgage insurers see deeper coverage of GSE loans as a way to expand business, while lenders hope it could lead to a reduction to guarantee fees.

Redwood Trust's latest residential mortgage securitization, Sequoia Mortgage Trust 2015-3, is backed by a slightly larger percentage of loans that fall outside of new ability-to-repay rules.

Ocwen Financial's sale of mortgage-servicing rights should generate sufficient liquidity for the Atlanta company to meet its debt-payment obligations, Moody's Investors Service said.

Mortgage rates jumped to an eight-month high, making home purchases costlier as investors prepare for the Federal Reserve to raise interest rates.