Senate Banking Committee Chairman Christopher Dodd (D-CT) proposed the creation of a Bureau of Financial Protection as part of the US Treasury Department that would keep watch over the financial industry, according to a Sunday story in the Wall Street Journal. The report states that the new regulator clashes against recent pushes for an independent Consumer Financial Protection Agency. The new bureau would supervise larger financial institutions and support other regulators of smaller banks and credit unions with less than $10bn in assets. A bill could be introduced this month as both critics and proponents strive for a compromise. In January, home sales rose for the 17th straight month in Florida, according to Florida Realtors. Transactions increased 24% from December as a total of 10,465 homes closed statewide, compared to 8,444 in the previous month. Condo sales also showed improvements as sales rose 81% from December. All metropolitan statistical areas (MSAs) reported increased condo sales, and 16 MSAs had an increase in home sales overall. The median sales price for Florida homes dropped 6% in January to $130,900. Analysts point to foreclosure sales and other distressed properties for the downward pressure. The Federal Reserve Bank of New York purchased another $11bn in mortgage-backed securities (MBS) held by Freddie Mac (FRE), Fannie Mae (FNM) and Ginnie Mae through the week ending February 25, as the program reaches its end. The weekly purchase brings the total amount of purchases in the program to $1.2trn. Of the total, the Fed bought $679bn from Fannie, or 56.4%; $413bn from Freddie, 34.3%; and $113bn, or 9.4% from Ginnie Mae, according to data from Barclays Capital. The $11bn purchase is a drop down from the $11.3bn bought in the week ending February 17. Following a meeting in January, the Fed announced the purchase program was on track to expire at the end of Q110. Last week, spreads widened in commercial mortgage-backed securities (CMBS) as economic data came in weaker than expected, according to analysts from Barclays Capital. In the same week, Bank of America/Merrill Lynch reported stabilizing spreads on triple-A paper. BarCap analysts remain negative on most subordinate tranches of CMBS, and if there is no rebound in payrolls of the companies inhabiting the properties soon, they will re-assess potential losses. The real estate investment companies Kennedy Wilson, Urban Partners and Keller CMS, partnered in pursuit of new property management and construction business. The alliance joins the firms’ 60 years of experience in real estate planning, design, construction, sales, marketing and property management. Regulators shut down two depository institutions, naming as receiver the Federal Deposit Insurance Corp. (FDIC). The weekly closings are estimated to cost the FDIC $103.1m, bringing total bank failures so far in 2010 to 22. The Washington Department of Financial Institutions closed Rainier Pacific Bank over the weekend. Umpqua Bank will pay the FDIC a premium of 1.04% to assume the $446.2m in deposits, and it agreed to purchase $670.1m of the $717.8m in total assets. The failure is expected to cost the deposit insurance fund (DIF) $95.2m. The Nevada Department of Business and Industry closed Carson River Community Bank over the weekend. Heritage Bank of Nevada assumed the all $50m in deposits and purchased $38m of the $51.1m of the total assets. The closing is expected to cost the DIF $7.9m. Write to Jon Prior.

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