CIT Group Inc. said Tuesday that it has closed its mortgage origination unit and expects to report a $35 million third-quarter charge related to severance and other costs.
The shuttering did not affect CIT's collections and customer service units, the New York finance company said.
This month CIT said it could take up to $100 million of charges related to its home lending business this year, and it warned that efforts to sell the unit had been thwarted by investors' diminished appetite for mortgage assets.
Last month, when CIT said it was quitting home lending, it reported a second-quarter charge of $495.3 million, or $2.58 a share, for revaluing about $10.6 billion of mortgage receivables. Additional charges of $14.6 million, or 4 cents a share, were tied to operating costs for the home lending business.
