First Horizon Subject of Mortgage Probe

August 26, 2013
Memphis Business Journal  
mortgage lending news

Officials from the Justice Department and HUD are conducting an investigation into First Horizon National Corp. over certain FHA-insured mortgages it originated. First Horizon has met with officials over potential violations of the False Claims Act.

"The investigation could lead to a demand under the federal False Claims Act and the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which allow treble and other special damages substantially in excess of actual losses," the bank said in a regulatory filing. Preliminary findings of the investigation were based on a small sample of loans, but so far it remains incomplete. First Horizon, which has not been accused of any wrongdoing, has launched an internal analysis of the loans.

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