As previously reported on GlobeSt.com, CIT has been working tocutexpenses and reduce staff due to recent market conditions.The company took a heavy hit through subprime losses and reported aloss of $130.7 million in the fourth quarter of 2007, primarilyrelated to charges on the home lending and student lendingbusinesses.

"Over the past several quarters, the senior management and theboard of CIT have been focused on ways to improve our performancein the current challenging environment," said Jeffrey Peek,chairman and CEO of CIT during an investor conference call. "Muchof this effort has been directed towards reducing the overhang ofour mortgage exposure."

According to Peek, CIT made the decision to divest its homelending business a year ago, and the company received severalinquiries about the portfolio. After a two-round bidding process,CIT decided to sell to Lone Star, due to the buyer's willingness tonegotiate on price and terms.