Secondary

Some investors apparently believe the Federal Reserve will pull back on the taper, and that drove the market higher.

Prepayment speeds fell to 12.4% from 13.7% on a consecutive-quarter basis, according to Sterne Agee analysts, who have raised their fiscal year 2015 estimate for Home Loan Servicing Solutions.

Freddie Mac plans this year to start regularly issuing the credit-linked notes it began using as a form of risk-sharing last year.

Fiserv's stock price declined nearly 2% as its earnings miss analysts' estimates.

Citigroup and Assurant have agreed to pay $110 million to settle charges that it forced thousands of homeowners to purchase expensive property insurance in order to profit from kickbacks and commissions.

Housing boom-era mortgage securitizations, written off as "toxic waste" during the financial crisis, are performing better than investors once expected, thanks to the rebound in home prices.

Mortgage rates for 30-year loans fell for a fifth week as stock market volatility and weaker-than-expected economic reports drove investors to the safety of the government bonds.

Job and income growth could pave the way for lenders to loosen guidelines late in the year. In the meantime, new regulations and repurchase risk are keeping the industry gun-shy.

Fannie Mae and Freddie Mac are not properly using a web portal developed to collect and screen appraisal information in order to minimize losses, according to an audit released Thursday.

Crossline Capital in Lake Forest, Calif., has completed its acquisition of Medallion Mortgage Co. in Agoura Hills for an undisclosed price.