First Horizon to pay $110 mln to settle U.S. agency's mortgage claims

NEW YORK, April 29 Tue Apr 29, 2014 5:07pm EDT

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)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
lucky12345 wrote:
“…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….” Talk about a run oooonnnn sentence! Was the editor on a long break, do you call this English or Latin speck…

Apr 30, 2014 8:33am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.