CIT Group Quits Home Loan Business

Another lender decided to quit the home loan business all together, thus taking away another source of subprime funding.

“This is going to be a multiyear problem and not just for us but for the industry,” Jeffrey Peek, CEO of CIT Group Inc., said on a conference call last month. CIT decided to quit the home-loan business, which accounts for about 10 percent of its income, after losses rose more than expected. The unit focused on subprime borrowers.