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.

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.

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.