{"id":1004193688,"date":"2017-10-12T04:43:33","date_gmt":"2017-10-12T12:43:33","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004193688"},"modified":"2022-12-08T17:42:00","modified_gmt":"2022-12-09T01:42:00","slug":"cit-to-leave-reverse-mortgage-business","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/","title":{"rendered":"CIT to Leave Reverse Mortgage Business"},"content":{"rendered":"<p><em>By Gail Kalinoski<\/em><\/p>\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004193709\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/financing-news-01\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"financing news 01\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png?w=800\" class=\"alignright wp-image-1004193709\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png\" alt=\"\" width=\"360\" height=\"279\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png?resize=768,595 768w\" sizes=\"auto, (max-width: 360px) 100vw, 360px\" \/><\/a>CIT Bank N.A., the bank subsidiary of CIT Group Inc., is exiting the reverse mortgage business with the planned sale of Financial Freedom and its reverse mortgage portfolio.<\/p>\n<p>The amount of the deal, expected to close in the second quarter of 2018, was not released but the Pasadena, Calif.-based firm noted the transaction includes the sale of mortgage servicing rights and approximately $900 million of reverse mortgage whole loans, including other real estate assets owned as of June 30.<\/p>\n<p>Financial Freedom, a reverse mortgage servicing business, was part of CIT\u2019s acquisition of OneWest Bank in August 2015. The $3.4 billion acquisition of OneWest, a Southern California regional bank, was called \u201ca <a href=\"https:\/\/www.commercialsearch.com\/news\/cit-to-buy-onewest-bank-for-3-4b\/\">transformational transaction<\/a>\u201d when it was announced in July 2014 by CIT Group\u2019s then-chairman &amp; CEO John Thain. OneWest was formed in 2009 after an investors\u2019 group led by Steven Mnuchin, the current U.S. Treasury Secretary and a former Goldman Sachs Group Inc. executive, acquired the banking operations of the failed IndyMac Federal Bank.<\/p>\n<p>Since that time, Financial Freedom was reported in CIT\u2019s discontinued operations while the reverse mortgage portfolio was reported in the company\u2019s continuing operations.<\/p>\n<h2><strong>CIT Simplifying Operations<\/strong><\/h2>\n<p><em>\u201cThis transaction marks another step in our plan to simplify CIT. 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,\u201d<\/em> Ellen Alemany, CIT\u2019s chairwoman &amp; CEO, said in a prepared statement. <em>\u201cWe are pleased to have reached this agreement, which will enable CIT to exit the reverse mortgage business.\u201d<\/em><\/p>\n<p>CIT\u2019s financial advisor was Houlihan Lokey and its legal advisor was Sidley Austin LLP. The Sidley team was led by Karen Dewis (M&amp;A, Washington, D.C.) with assistance from Matthew Stoker (M&amp;A, Chicago) and Frank Volpe (Litigation, Washington, D.C.)<\/p>\n<h2>An industry currently in balance<\/h2>\n<p>New home equity conversion mortgages have stayed roughly in the range of 50,000 to 60,000 annually for about the past half-dozen years, according to figures from the National Reverse Mortgage Lenders Association.<\/p>\n<p>The reverse mortgage industry has seen a relatively \u201cflat growth curve\u201d in recent years, Michael McCully, a founder and co-owner of New View Advisors, New York, told <em>Commercial Property Executive.<\/em><\/p>\n<p>By the preferred metric of HMBS (Home Mortgage-Backed Security) issuance, a New View blog post in September noted, the HMBS market is currently stuck around $55 billion, with new pool issuances roughly balanced by prepayments. There are a record 16 active HMBS issuers, a list topped by American Advisors Group, Finance of America Reverse, Reverse Mortgage Funding and Ocwen Loan Servicing, in that order.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The sale of Financial Freedom, CIT\u2019s reverse mortgage servicing business, and its $900 million portfolio is expected to close in the second quarter of 2018. <\/p>\n","protected":false},"author":1068,"featured_media":1004193709,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21825,23891,21742],"tags":[33365,37957,37956],"class_list":["post-1004193688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-finance","category-national","category-latest","tag-cit-group","tag-john-thain","tag-onewest-bank"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CIT to Leave Reverse Mortgage Business - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CIT to Leave Reverse Mortgage Business\" \/>\n<meta property=\"og:description\" content=\"The sale of Financial Freedom, CIT\u2019s reverse mortgage servicing business, and its $900 million portfolio is expected to close in the second quarter of 2018.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2017-10-12T12:43:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T01:42:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/\",\"name\":\"CIT to Leave Reverse Mortgage Business - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png\",\"datePublished\":\"2017-10-12T12:43:33+00:00\",\"dateModified\":\"2022-12-09T01:42:00+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png\",\"width\":800,\"height\":620},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"CIT to Leave Reverse Mortgage Business\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\",\"name\":\"Gail Kalinoski\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86\",\"caption\":\"Gail Kalinoski\"},\"description\":\"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"CIT to Leave Reverse Mortgage Business - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/","og_locale":"en_US","og_type":"article","og_title":"CIT to Leave Reverse Mortgage Business","og_description":"The sale of Financial Freedom, CIT\u2019s reverse mortgage servicing business, and its $900 million portfolio is expected to close in the second quarter of 2018.","og_url":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2017-10-12T12:43:33+00:00","article_modified_time":"2022-12-09T01:42:00+00:00","og_image":[{"width":800,"height":620,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png","type":"image\/png"}],"author":"Gail Kalinoski","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/","url":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/","name":"CIT to Leave Reverse Mortgage Business - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png","datePublished":"2017-10-12T12:43:33+00:00","dateModified":"2022-12-09T01:42:00+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png","width":800,"height":620},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/cit-to-leave-reverse-mortgage-business\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"CIT to Leave Reverse Mortgage Business"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57","name":"Gail Kalinoski","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/04\/Gail-Kalinoski-headshot.jpeg?w=86","caption":"Gail Kalinoski"},"description":"Kalinoski has been a contributing writer to Commercial Property Executive and Multi-Housing News since 2010 and previously wrote for three years for Commercial Property News. Gail has been a freelance writer and editor for more than 20 years, contributing to daily websites, magazines, weekly business newspapers, market intelligence newsletters, research reports, monthly B-to-B and consumer magazines. Earlier in her career, Gail worked for Gannett Corp. as an editor and reporter for 15 years. Gail has a bachelor\u2019s degree in journalism from Pace University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/gail-kalinoski\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/10\/financing-news-01.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004193688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1068"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004193688"}],"version-history":[{"count":6,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004193688\/revisions"}],"predecessor-version":[{"id":1004193876,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004193688\/revisions\/1004193876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004193709"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004193688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004193688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004193688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}