OneWest Bank will exit the reverse mortgage lending business, a spokesperson for the bank confirmed Tuesday.

The Financial Freedom department it purchased from the failed bank Indymac in 2009 originated a total of $1.4 billion, making it the third largest reverse-mortgage lender that year.

A reverse or Home Equity Conversion Mortgage allows the borrower, who must be at least 62 years old, to convert a portion of the equity in the home for cash.

No repayment is required until the borrower no longer uses the home as a principal residence or does not meet the obligations of the loan, often in the event of death.

OneWest isn't the only bank leaving the business.

In February, Bank of America ($7.95 -0.16%) ceased making these loans, and Wells Fargo ($30.59 -0.37%) moved its reverse lending away from its wholesale or broker channel.

Write to Jon Prior.

Follow him on Twitter @JonAPrior.