PASADENA, Calif., Oct. 6, 2017 /PRNewswire/ -- CIT Bank, N.A.,
the bank subsidiary of CIT Group Inc. (NYSE: CIT), today announced
that it has reached an agreement to sell its reverse mortgage
servicing business, Financial Freedom, and its reverse mortgage
portfolio to an undisclosed buyer. The transaction includes the
sale of mortgage servicing rights and approximately $900 million of reverse mortgage whole loans,
including other real estate owned assets as of June 30, 2017. The transaction is expected to
close in the second quarter of 2018 and is subject to certain
regulatory and investor approvals and other customary closing
conditions.
"This transaction marks another step in our plan to simplify
CIT," said Chairwoman and Chief Executive Officer of CIT Ellen R.
Alemany. "Throughout this year we have made continued progress in
transforming the company and applying our focus toward maximizing
the potential of our commercial banking and deposit franchises,
which are the core of our go-forward strategy. We are pleased to
have reached this agreement, which will enable CIT to exit the
reverse mortgage business."
Financial Freedom was part of CIT's acquisition of OneWest Bank
in August of 2015 and, since that time, was reported in CIT's
discontinued operations. The reverse mortgage portfolio is reported
as part of the company's continuing operations.
CIT was advised by Houlihan Lokey
as financial advisor and Sidley
Austin as legal advisor.
About CIT
Founded in 1908, CIT (NYSE: CIT) is a
financial holding company with more than $50
billion in assets as of June 30,
2017. Its principal bank subsidiary, CIT Bank, N.A., (Member
FDIC, Equal Housing Lender) has more than $30 billion of deposits and more than
$40 billion of assets. CIT provides
financing, leasing, and advisory services principally to
middle-market companies and small businesses across a wide variety
of industries. It also offers products and services to consumers
through its Internet bank franchise and a network of retail
branches in Southern California,
operating as OneWest Bank, a division of CIT Bank, N.A.
CIT MEDIA RELATIONS:
Gina Proia
212-771-6008
Gina.Proia@cit.com
CIT INVESTOR RELATIONS:
Barbara
Callahan
973-740-5058
Barbara.Callahan@cit.com
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SOURCE CIT Group Inc.