First Horizon to pay $110 mln to settle U.S. agency's mortgage claims
NEW YORK, April 29
NEW YORK, April 29 (Reuters) - First Horizon National Corp will pay $110 million to resolve claims it misled Fannie Mae and Freddie Mac into buying mortgage-backed securities that later went sour, a U.S. regulator said on Tuesday.
The settlement resolves a lawsuit filed in New York federal court by the Federal Housing Finance Agency, the conservator since 2008 for the government-controlled mortgage companies. FHFA said in a statement that First Horizon will pay $61.6 million to Fannie Mae and $48.4 million to Freddie Mac.
The deal marked the 12th settlement the FHFA has reached in litigation the agency began in 2011 with 18 lawsuits over about $200 billion in mortgage-backed securities, an investment product at the center of the 2008 financial crisis.
First Horizon CEO Bryan Jordan said in a statement that the settlement was "another big step forward" in the Memphis, Tennessee-based bank's efforts to unwind from its former mortgage businesses. (Reporting by Nate Raymond; Editing by Grant McCool)
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