CIT Group to Quit Reverse Mortgage Space

October 9, 2017
The Royal Bank of Scotland Group (RBS) has agreed to a $4.9 billion settlement with the Department of Justice related to the company’s issuance and underwriting of residential mortgage-backed securities (RMBS) between 2005 and 2007
CIT Group Inc. is exiting the reverse mortgage market by selling its Financial Freedom unit and reverse mortgage portfolio to an undisclosed buyer.
Financial Freedom became part of CIT Group when the latter acquired OneWest Bank in August 2015. The deal covers Financial Freedom’s mortgage servicing rights and nearly $900 million worth of reverse mortgage loans originated as of June 30. The financial terms of the transaction were not revealed, and the deal is expected to close in the second quarter of next year.
"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," said CIT Chairwoman and CEO Ellen R. Alemany.