April 29, 2014 / 9:07 PM / 3 years ago

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

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)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below