The reverse mortgage business which was once owned by IndyMac Bancorp Inc. has been sold. The sale also involved servicing on assets.
On Monday, CIT Group Inc. said in an announcement that it has completed the sale of its Financial Freedom reverse mortgage unit.
Included in the sale of the business were mortgage-servicing rights on reverse mortgages and $879 million in revere mortgage whole loans.
The buyer in the transaction, which was first announced in October 2017 and closed on April 30, was not disclosed.
CIT picked up Financial Freedom with its 2015 acquisition of OneWest Bank FSB. OneWest was created to acquire the remnants of IndyMac, the parent of Financial Freedom that failed in July 2008.
At one point, Financial Freedom claimed to be the nation’s biggest reverse mortgage originator.
In addition to the reverse mortgage sale, CIT disclosed that it has outsourced the payment, servicing and administration of its ongoing mortgage portfolio to a “leading national” servicer..
As of March 31, CIT’s mortgage portfolio was $5.2 billion.
“CIT remains focused on growing our core commercial and consumer operations, and these actions allow us to apply greater focus in those areas of the business,” CIT Chair and Chief Executive Officer Ellen R. Alemany said in the press release.
Still, CIT will remain in the mortgage business offering single-family loans through its CIT Bank and OneWest Bank franchises as well as its correspondent acquisitions.
