Charles Schwab Corp. will pay $200m to settle a suit over its YieldPlus bond fund. In agreeing to the settlement, the company is not admitting liability, but said it “allows the company to avoid the distraction and uncertainty of a trial and the further possibility of a protracted appeals process.” The YieldPlus fund had been designed to invest in a variety of fixed-income products, but the credit crisis, which froze lending, hammered the fund’s returns. The settlement has put a crimp in the company’s previously reported first-quarter results, reducing earnings by $105m, or 9 cents per share.
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Quicken Loans has become the largest mortgage lender in the country over the last few years due in large part to the growth of Rocket Mortgage, the company’s digital mortgage platform. As it turns out, Rocket Mortgage is becoming so big that it’s now consuming other parts of the Quicken Loans family of companies too, namely the company’s reverse mortgage lender.
U.S. home prices increased 5.1% in the fourth quarter from a year ago, matching the pace of the prior quarter, according to the Federal Housing Finance Agency.