Secondary Market/Investors

CIT Takes $340 Million Hit on Mortgage Portfolio

By: PAUL JACKSON
January 11, 2008

The CIT Group said Friday morning that it will increase loan loss reserves by $300 million for the fourth quarter of 2007. The provision, based primarily on home loans held for investment, is expected to drag down net income by approximately $190 million, the company said.

CIT will also record a pre-tax loss of approximately $40 million on home lending receivables held-for-sale during the quarter. Home lending receivables held-for-sale at December 31, 2007 are expected to be approximately $350 million.

As a result, CIT said it anticipated reporting a net loss for the fourth quarter of $125 million to $135 million, or $0.65-$0.70 per share.

For more information, visit http://www.cit.com.

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