Financial services firm CIT Group Inc. decided on Thursday (Nov. 9) not to sell $490 million worth of RV retail loans on the U.S. asset backed securities (ABS) market.
The decision has no impact on the RV industry and was made because CIT found a better fund-raising alternative, said Jim Egan Jr., executive vice president.
Specifically, CIT was able to raise $1.3 billion on Monday from the sale of U.S. corporate debt on the global market, which made the RV loan ABS sale unnecessary, according to Reuters news service.
Meanwhile, Egan confirmed that CIT began informing RV dealers last summer that was it leaving the RV dealer inventory finance business.
Egan said CIT sold its RV wholesale loan business to other lenders who are involved in RV dealer inventory financing. The RV dealer floorplan loans that were sold included those CIT acquired a year-ago when it bought Newcourt Credit Group.
CIT continues to be a major source of loans for retail purchases of RVs, Egan added.
At least two other companies have left the RV wholesale loan arena so far this year. The others are Conseco and John Deere Credit.