The federal regulator for mortgage giants Fannie Mae and Freddie Mac is preparing to sue some of the nation's largest banks over soured mortgage bonds in a bid to recoup billions of dollars in losses from the failed investments, according to people familiar with the matter.

A national social network of babysitters and parents called SitterPals.com has signed up to use Square Inc.'s service to accept credit card payments for their services.

Fannie Mae bought $39.4 billion of home mortgages from its seller-servicers in July, a 5% decline from the previous month. But compared with the same month a year ago the government-sponsored enterprise's acquisitions fell 26%.

Mortgage rates in Freddie Mac's weekly survey came in at or near record lows again this week.

Icon Residential, a lender in Irvine, Calif., recently pulled the plug on its plans to enter the correspondent lending channel, laying off roughly 120 full-time employees at the unit and at a related division.

The Treasury Department said Thursday that it did not pay any incentives for foreclosure prevention efforts to Bank of America Corp. and JPMorgan Chase & Co. in the second quarter, as the two banks still need "substantial improvement" in their mortgage servicing operations. But Wells Fargo & Co. did make the cut.

TEMPE, Ariz. – TruWest CU has signed an ATM managed services deal with CO-OP Financial Services.

ANN ARBOR, Mich. – University of Michigan CU is renovating its new headquarters, a year after buying the 58,000-square-foot building that used to house the Ann Arbor News.

First Niagara Financial is expected to divest roughly a quarter of the 195 branches it's buying from HSBC. Industry observers have identified at least five community banks that may make bids.

In striking its deal for First Louisiana National Bank, MidSouth Bancorp Inc. structured the deal to include a set number of shares, rather than allow the deal to be at the whim of the stock market.

The Federal Reserve Board's decision to hold public hearings and extend the comment period on Capital One Financial Corp.'s planned acquisition of ING Direct has drawn the ire of House Financial Services Chairman Spencer Bachus.

Cullen/Frost Bankers Chief Executive Dick Evans says he's "not interested" in making acquisitions outside of Texas, and derides mounting competitive threats from community bank rivals by comparing them to the "juvenile delinquents down the street."

Banks of all sizes are tackling changes in regulations such as RESPA. Bank of Billings is using loan documentation compliance software to meet the challenge.

Banks are using technology developed by search engines to cheaply sort through vast amounts of consumer data to identify potential fraud.

Despite claims that free banking is in danger due to new regulatory measures, a new survey released Thursday by a banking industry trade group revealed that more than 70% of customers avoid paying any fees.

The Federal Reserve on Thursday announced two written agreements and three civil money penalties.

Weighed down by problem loans, Anchor Bancorp in Lacey, Wash., reported a loss of $4.7 million in the quarter that ended June 30, more than quadrupling its loss from the same period a year earlier.

Steven Goldman, a former banking commissioner of New Jersey, has been appointed to the board of North Jersey Community Bancorp in Englewood Cliffs, N.J.

The mortgage industry will take a step toward cleaning up some of its most controversial practices under a deal between a New York regulator and three financial firms, including Goldman Sachs Group Inc.

Cross-selling is a familiar concept for bankers. The chief revenue officer is not. Tower Bancorp Chairman and CEO Andrew Samuel is slated to become the chief risk officer at Susquehanna Bancshares in Litiz, Pa., which is buying Tower, in a deal expected to close in the first quarter of 2012.