Stocks

Walter Investment Management Corp. lost $232.4 million in the second quarter as the company took $216 million in charges related to its mortgage servicing portfolio.

Redwood Trust reported higher net income during the second quarter from a year ago, thanks to an increase in net interest income and a decrease in operating expenses.

A federal appeals court has reversed a lower court decision that dismissed a lawsuit against Freddie Mac brought by a state pension fund.

The San Francisco bank reported a 17% drop in mortgage fee income during the second quarter as other lenders made inroads by refinancing its customers.

The government-sponsored enterprises' risk-sharing deals are being hailed as an innovative approach for Fannie Mae and Freddie Mac to offload credit exposure to private markets. But their growing popularity is raising questions about how these transactions should be reported in financial statements.

Lawyers for investors in Fannie Mae and Freddie Mac asked a federal appeals court to at least revive their claims that the U.S. stripped the companies of billions of dollars of profits, depriving shareholders of dividends, if not to go further and rule the transfer of profits to the government was unlawful.

The U.S. government's 2012 decision to take all the profits from Fannie Mae and Freddie Mac will get a federal appellate review Friday when investors argue the appropriation was illegal.

Fannie Mae and Freddie Mac surged to four-month highs on speculation lawsuits involving the mortgage giants have progressed in a way that favors shareholders.

The mortgage servicer said it has received a letter from the Securities and Exchange Commission regarding its fees for handling distressed loans and properties.