CIT GROUP INC. (NYSE:CIT) Files An 8-K Other Events
Item 8.01. Other Events.

HUD OIG Settlement

As previously disclosed, in 2009 OneWest Bank acquired the reverse mortgage loan portfolio and related servicing rights of Financial Freedom Senior Funding Corporation, including home equity conversion mortgage (“HECM”) loans, from the FDIC as Receiver for IndyMac Federal Bank. HECM loans are insured by the Federal Housing Administration (“FHA”), and administered by the Department of Housing and Urban Development (“HUD”). CIT Group Inc. acquired the parent company of OneWest Bank effective as of August 3, 2015. Subject to certain requirements, the loans acquired by OneWest Bank from the FDIC are covered by indemnification agreements. In addition, Financial Freedom is the servicer of HECM loans owned by third party investors. Beginning in the third quarter of 2015, the Office of the Inspector General for HUD (the “HUD OIG”), served a series of subpoenas on the Company regarding HECM loans. The subpoenas requested documents and other information related to Financial Freedom’s HECM loan origination and servicing business, including the curtailment of debenture interest payments on HECM insurance claims. The Company has cooperated with the investigation and engaged in discussions with the HUD OIG and Department of Justice and on May 16, 2017 agreed to a settlement of approximately $89 million to resolve the servicing related claims. The settlement is within the Company’s existing reserves and includes interest to be reimbursed to HUD. We do not currently expect the outcome of the remaining loan origination matter to have a material adverse effect on the Company’s financial condition or results of operations.

About CIT GROUP INC. (NYSE:CIT)

CIT Group Inc. (CIT) is a bank holding company. The Company, together with its subsidiaries, provides financing, leasing and advisory services to middle market companies in a range of industries in North America, and equipment financing and leasing solutions to the transportation industry around the world. The Company’s segments include North America Banking (NAB), including Commercial Real Estate, Commercial Banking and Consumer Banking divisions; Transportation & International Finance (TIF), including Aerospace, Rail, Maritime Finance and International Finance divisions, and Legacy Consumer Mortgages (LCM), which includes single-family residential mortgage (SFR) loans and reverse mortgage loans. CIT products and services include account receivables collection; equipment leases; acquisition and expansion financing; factoring services; financial risk management; asset management and servicing; asset-based loans; insurance services; credit protection; debt restructuring, and deposits.

CIT GROUP INC. (NYSE:CIT) Recent Trading Information

CIT GROUP INC. (NYSE:CIT) closed its last trading session down -0.13 at 47.16 with 2,619,446 shares trading hands.