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.

A group publicly identified as Bidder J, that reportedly includes big names in finance, is willing to pay $1.61 per share above the $11.15 Rithm Capital agreed to.

Intercontinental Exchange Inc. can move forward with its takeover of Black Knight Inc. after the U.S. Federal Trade Commission accepted a binding settlement that will see key mortgage software products sold to rival Constellation Software Inc.

Its Encompass Lending unit will move into Austin as well as add to its Dallas-Fort Worth presence.

The company claims its founder is acting out after he was removed from his positions due to a bribery scandal, in which substantial penalties nearly forced the business to close.

The mortgage technology companies finalized an agreement with the Federal Trade Commission that permits the controversial deal to proceed.