First Horizon Settles With FHFA For $110 Million

Posted by Patrick Barnard on May 01, 2014 No Comments
Categories : Residential Mortgage

Mortgage lender First Horizon National Corp., along with related companies and specifically named individuals, will pay $110 million to resolve claims by the Federal Housing Finance Agency (FHFA) that First Horizon sold faulty mortgages to Fannie Mae and Freddie Mac in 2005-2007, during the run-up to the financial crisis.

As per the agreement, First Horizon will pay $61.6 million to Fannie Mae and $48.4 million to Freddie Mac.

This is the 14th settlement related to the 18 liability suits the FHFA filed in 2011. It is also the sixth such settlement to be announced so far this year – in other words, the FHFA has resolved one third of the 18 suits in less than six months.

Just last week, the FHFA announced that Barclays Bank, along with related companies and specifically named individuals, will pay $280 million to settle claims brought by the FHFA regarding faulty mortgages sold to Fannie and Freddie. As per that agreement, Barclays will pay $227 million to Freddie Mac and $53 million to Fannie Mae.

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