First Horizon has been subpoenaed over government-sponsored enterprise mortgage-backed securities.
In a 10-Q filing Monday with the Securities and Exchange Commission, First Horizon National Corp. disclosed that it has been subpoenaed by the conservator for Fannie Mae and Freddie Mac.
The conservator of the two government-sponsored enterprises is their regulator, the Federal Housing Finance Agency.
The subpoena was filed for two GSE investors in six securitizations in connection with an ongoing investigation, according to the filing.
It is not clear yet whether the action will result in repurchase claims or how much those claims might be, First Horizon said.
The Memphis, Tenn.-based bank-holding company also disclosed that it is a defendant in lawsuits filed by three securitization investors. The plaintiffs allege a material deficiency in the offering documents of the certificates.
“Although these suits are in very early stages, First Horizon National intends to defend itself vigorously,” the filing stated. “These lawsuit matters have been analyzed and treated as litigation matters under applicable accounting standards.”
No reserve has been established for potential related repurchases because of the uncertainty of the issues.
First Horizon, which employs 5,500 people at around 180 bank locations, sold most of its mortgage operations to MetLife Bank, N.A., in 2008.