The defendants have collected and processed millions of dollars in payment for phantom debts, according to the Federal Trade Commission. Their practices generated almost 3,000 complaints to the FTC’s Consumer Sentinel.

Valley National Bancorp's (VLY) profit fell by nearly a third in the third quarter as the Wayne, N.J.-based company saw a substantial decrease in net gains on sales of residential mortgages.

Cascade Bancorp (CACB) in Bend, Ore., has outbid another company to snag Home Federal (HOME) in Nampa, Idaho.

Bank of America Corp.'s Countrywide unit was found liable for defrauding Fannie Mae (FNMA) and Freddie Mac by selling them thousands of defective loans.

MVB Financial (MVBF) in Fairmont, W.Va., has agreed to purchase certain assets and assume certain liabilities of CFG Community Bank in Lutherville, Md.

Heritage Financial (HFWA) in Olympia, Wash., has agreed to buy Washington Banking (WBCO) in Oak Harbor. Heritage will pay about $265 million in cash and stock for Washington Banking, the companies said Wednesday.

The $5.2 billion-asset company reported a profit of $9.4 million in the third quarter, down 18% from the same period a year earlier, it announced Wednesday.

Fulton Financial (FULT) tossed out a tempting tidbit to investors on Wednesday — it has found a new chief financial officer.

Higher interest income boosted quarterly earnings at Texas Capital Bancshares (TCBI) in Dallas, which also had to pay a special deposit-insurance assessment.

New York State has slapped Prospect Mortgage with a $3 million fine for misleading homeowners on their interest rates, and has cited the mortgage lender for several other violations of state law.

JPMorgan Chase's acquisitions of Bear Stearns and Washington Mutual during the meltdown were once seen as bargains and more recently second-guessed in light of the bank's $13 billion mortgage settlement. The pain will pay off in the long run, experts say.

Coming out of this refinance boom is going to be more challenging than any other cycle during the past 25 years, according to longtime industry executive Ben Cowen.

Hayward Bancshares in Eau Claire, Wis., is merging its two bank charters in a bid to cut regulatory costs.

First Midwest Bancorp (FMBI) offset insurance costs and the impact of shrinking margins with the sale of its stake in a software firm.

Members of the American Bankers Association have elected a new leadership team and voted in 10 new board members.

PacWest Bancorp (PACW) in Los Angeles doubled its profits in the third quarter thanks to its purchase of First California Financial Group (FCAL).

City Holding Co. (CHCO) in Charleston, W.Va., reported a 32% increase in quarterly profit as acquisitions helped boost its interest income.

The Salt Lake City company has long lagged in mortgages, and now is the time to get more aggressive as big rivals pull back and small competitors struggle with qualified-mortgage rules, CEO Harris Simmons says.

Hudson City Bancorp's (HCBK) profits fell in the third quarter as the $39 billion-asset company saw declines in revenue from first mortgages and other loans.

Prosperity Bancshares (PB) in Houston reported a 20% boost in profit after announcing two deals in the third quarter.