Secondary

Citigroup Inc.'s $285 million mortgage-securities pact with the Securities and Exchange Commission was approved by a judge whose earlier rejection of the accord was assailed by a federal appeals court.

The proposed merger of the Home Loan banks in Seattle and Des Moines could spur massive consolidation among their sister banks, but only if the two show it's possible to overcome governance and other logistical challenges that have deterred similar deals.

Bond investors are demanding to be paid more to potentially bear losses on mortgages guaranteed by Freddie Mac as risk-sharing notes that were sold earlier by the firm and competitor Fannie Mae slump.

Unlike other regulatory agencies that in many cases looked at form over substance, the Consumer Financial Protection Bureau will ignore structures altogether when it perceives them to be "sham" transactions.

Mortgage-bond trustees rejected a part of JPMorgan Chase & Co.'s $4.5 billion settlement offer over investor claims of faulty mortgages while accepting the deal for most of the transactions.

Freddie Mac sold $659 million of "deeply" delinquent home loans in its first offering of such debt.

Investors have spent years seeking compensation for losses sustained during the housing bust from the firms that made mortgage loans and repackaged them into securities.

The regional banks are repurchasing excess stock and increasing dividends.

If finalized and then approved by regulators, the combination of the Des Moines and Seattle Home Loan banks would be the first voluntary merger in the system’s history.

Bank of America Corp. is nearing a settlement with the Justice Department after raising its proposed offer to resolve probes into its sale of mortgage-backed bonds in the run-up to the financial crisis.