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The Federal Housing Finance Agency (FHFA), serving as the conservator of Fannie Mae and Freddie Mac, announced a settlement for $110 million with First Horizon National Corporation. The settlement resolves alleged violations of securities laws in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac from 2005-2007.
The lawsuit, FHFA v. First Horizon National Corporation, et al. (S.D.N.Y.), alleged violations of federal law.
The legal document in the case noted, "This Agreement does not constitute an admission by any of the First Horizon Defendants of any liability or wrongdoing whatsoever, including, but not limited to, any liability or wrongdoing with respect to any of the allegations that were or could have been raised in the First Horizon Action."
Per the agreement, First Horizon will pay $61.6 million to Fannie Mae and $48.4 million to Freddie Mac.
As previously reported by DS News, FHFA most recently settled with Barclays Bank for $280 million. The government agency has previous settlements with Bank of America, Credit Suisse, Société Générale, and Morgan Stanley.
This settlement is the 14th settlement of its kind, stemming from 18 PLS lawsuits the FHFA filed in 2011. The government agency said, "FHFA remains committed to satisfactory resolution of the remaining actions."
