CIT Bank, Whistleblower Reach Deal to Settle Mortgage Suit (1)

CIT Bank NA and a whistleblower agreed to a settlement in principle that would end a False Claims Act suit accusing the bank of committing fraud under federal mortgage modification programs to address the 2008 housing crisis.

CIT Bank and Andrew Mitchell want the current June trial date vacated so they can focus on completing the settlement agreement, they told the U.S. District Court for the Eastern District of Texas in a Thursday filing.

They also asked the court to hold a status conference in about 45 days to report on their progress.

Counsel for Mitchell declined to comment. Counsel ...