Three top executives, including CEO Kevin McMahon, left the company in the days following its sale to Constellation Software.

More than a week ago, the consortium of deep-pocketed investors offered a figure higher than an earlier bid of $12.76 a share, but the specific amount was unknown.

The company is in a bidding war for Sculptor Capital, which in turn is supposed to unlock a spin-out for the mortgage business that this transaction helps build.

MSP users who are not Encompass customers are a particular target and vice versa, ICE Mortgage Technology chair Ben Jackson said.

The nation's largest bank, which acquired the remains of San Francisco-based First Republic following its failure this spring, has completed its plans to close 21 offices this year. But the consolidation effort is likely to continue.

Executives were accused in a lawsuit of engineering a proposed $639 million acquisition of the fund by rival Rithm Capital Corp. in a way that is unfairly blocking a higher bid. 

Merchants Bancorp says it will sell a total of four branches to two buyers and focus more on its core residential mortgage lending business. Banks of all sizes have been pruning branch networks in recent years.

While the group's bid remains at $12.76 a share, it has beefed up its equity commitments, eliminated risks associated with debt financing and increased the damages it would pay if it fails to consummate the transaction, people familiar with the matter said. 

Interoperability does remain a potential issue, not just between the lenders and the merged technology companies, but with other vendors who do business with them as well.

The provider of home-equity loan products will partner with Cerberus Residential Opportunities, an affiliate of the capital management firm, with CEO Jerry Schiano at the helm.