Tutwiler served under Presidents Reagan, George H.W. Bush and George W. Bush. Most recently, she was senior vice president and head of global communications at Merrill Lynch.
Tutwiler will report to John Thain, CIT chief executive and former head of Merrill, which was acquired by Bank of America in 2008.
CIT Group went through bankruptcy in 2009.
"Margaret’s extensive governmental affairs and communications experience will play an important role as we look to strengthen CIT’s brand identity, which remains focused on supporting the small business and middle markets," Thain said in a statement.
Tutwiler was an under secretary for public diplomacy and public affairs at the State Department from 2003 to 2004.