CIT Group selling home lending business

Recently CIT Group announced that it is selling its manufactured housing division as well as home lending business.

The home lending business with total assets at $9.3 billion & its servicing operations will be taken over by Lone Star Funds for about $1.5 billion. Alongwith it they will also assume debts of CIT Group to the tune of $4.4 billion. The manufactured housing division will be acquired for about $300 million by Vanderbilt Mortgage & Finance, Inc.

From April CIT sold its assets in excess of $2 billion & also secured long term financing of $3 billion from Goldman Sachs. CIT Group also declared that it was expecting to report pretax losses of around $2.5 billion in the second quarter in its home lending business.

Chairman & CEO of CIT Group, Jeffrey Peek has said that -