From the Record:
CIT Group Inc., the nation’s largest independent commercial-finance company, said Tuesday it will close its Livingston-based home-lending unit and eliminate 550 jobs around the country within the next 30 to 60 days.
Company spokeswoman Mary Flynn said in a telephone interview that she did not have any information on how many, if any, of those jobs are in New Jersey.
“We are working with the affected employees to help ease the transition,” she wrote earlier in the day in an e-mail response to questions. “Severance will be provided.”
Like many mortgage lenders that serve high-risk borrowers, CIT’s home-loan division was clobbered this year by the investment community’s loss of appetite for such loans, amid rising defaults and concerns about the value of the homes that back the loans in a sluggish real estate market.
The company said in a statement it will take a $35 million third-quarter charge for severance and other exit costs.
CIT, which employed 7,354 people at the end of 2006, said this month it planned to close a business-finance office in Mahwah at the end of September and lay off the 137 employees who work there.