The transaction will give the public mortgage shop a stronger foothold in the Midwest.

In a letter to the Federal Trade Commission, the California Democrat said assurances were needed from the potential combined company to ensure the buyer of divested assets would not be dependent on the "conglomerate" to offer fully functioning products.

The lender, which endured two difficult years of limbo before its listing, is touting a capital infusion of at least $550 million as a key to future growth.

The hedge fund accepted a $639 million offer from the mortgage REIT last month.

The job cuts come amid caution about the industry's growth potential in the second half of the year. Some 45,000 positions have been lost in banking and related industries over the last two-plus years.

Both Keefe, Bruyette & Woods and BTIG believe the transaction — key to spinout of the mortgage business — will be completed despite the opposition of Sculptor founder Dan Och.

The founder of the company formerly known as Och-Ziff is threatening to oppose the transaction unless material changes are made to the agreement.

The business combination is anticipated to occur on or about August 22, and trade under the symbols BETR and BETRW.

The privately held company added a retail branch network and a $10 billion servicing portfolio — and is looking for more.

The delivery of immediate cash value to WMC stockholders was one of two points that solidified the deal.