Three different sources confirmed that the two companies had been discussing combining, but it’s unclear exactly when the talks broke down.

Home-equity lending fell off sharply during the first quarter of 2014, but the sector may be poised for a rebound in the months ahead. Home-equity originations totaled an estimated $13 billion during the first three months of this year, down 18.8 percent from the previous quarter. That was up 8.3 percent from the first quarter of 2013, and a handful of lenders reported increased home-equity activity in early 2014. Most closed-end seconds and home-equity lines of credit are retained...[Includes three data charts]

He may know how to run a decent race, but does economics professor David Brat – the man who beat Rep. Eric Cantor in the GOP primary in Virginia – know the history of the mortgage meltdown?

SunTrust Mortgage has agreed to pay $968 million to the federal government and 49 state attorneys general to resolve allegations of improper FHA origination and servicing practices. The company will pay $418 million to resolve potential liability under the False Claims Act for flawed FHA loans made from January 2006 through March 2012. …

As one jumbo participant put it: “More is good.” Redwood Trust also is working on a deal, industry officials said.

The terms of the settlement include $500 million in consumer relief and a cash payment of $468 million.

“Right now there’s a large discrepancy between what the buyer wants to pay and what the seller wants to sell at,” said Chuck Klein, managing partner in Mortgage Banking Solutions.

One competitor to Prospect described Mike Williams as a “great technical guy.” He added that having Prospect go public is “the next step” in Sterling’s exit strategy.”

Norcom wants its wholesale account executives to be in the office, not traveling the roads.

Analysts point out that bank earnings have suffered less than revenues, and many institutions responded quickly by downsizing their mortgage operations, although these cost-cutting efforts won’t show up in expenses immediately.