H&R Block has sold the mortgage loan-servicing business of its Option One Mortgage Corp. subsidiary to investor Wilbur Ross' private equity firm in a transaction valued at approximately $1.1 billion.

The troubled business has been on the block since last year in the midst of the turmoil in the mortgage market. Block shut down Option One's mortgage origination activities after a sale agreement with Cerberus Capital Management fell through in December. This time around, Block is being careful in case the latest deal also falls through as the mortgage market continues to decline.

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