In an effort to raise cash, CIT Group said that it has reached separate
agreements to sell its home-lending business and manufactured-housing business for a total $1.8 billion. “These sales complete
our exit from all home-lending business, removing the uncertainty surrounding this asset class and advances our strategic
transformation into a company focused entirely on commercial finance,” said CEO Jeffery Peek.
The commercial-finance company will sell its home-lending business to hedge fund Lone Star for $1.5 billion and its $470 million anufactured housing portfolio to Vanderbilt Mortgage & Finance (a Berkshire Hathaway (BRK.B) company) for $300 million.
Lone Star also agreed to assume $4.4 billion of debt and other liabilities in the sale, expected to close this month.