Origination

New home sales fell 17% in February to the lowest level on record with cancellations ticking up again as buyers continue to deal with tighter mortgage underwriting standards.

A OneWest Bank spokeswoman has confirmed the company is exiting the reverse mortgage origination business it operated through Financial Freedom, once the dominant player in the industry.

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New, higher premiums on Federal Housing Administration-backed mortgages are meant to protect the government-backed program from the growing risk of losing money from loan defaults. But it will also make FHA mortgages more expensive, a key issue for homebuilders, where as many as 60% of new-home buyers use these types of loans to make their purchase.

Mortgage application volume increased by 2.7% on a seasonally adjusted basis for the week ended March 18, according to the Mortgage Bankers Association.

February brought no relief to the beleaguered home building business in California, where builders pulled fewer permits to start new houses than they did in January.

In a new forecast on the housing market Fannie Mae economists remain cautious about demand citing "consumer uncertainty" which will translate into declining originations.

The Consumer Financial Protection Bureau is going to allocate half its budget to supervision and enforcement of consumer protection laws with a strong emphasis on non-bank lenders.

Industry sources have confirmed that OneWest Bank is exiting the reverse mortgage origination business it operated through Financial Freedom, once the dominant player in the industry.

Commercial real estate services company Grubb & Ellis has hired JMP Securities as an advisor to explore strategic alternatives for the company, including a sale or merger.