First Horizon National Corp. of Memphis late Monday disclosed that it has been subpoenaed by the Federal Housing Finance Agency because of six securitizations involving Fannie Mae and Freddie Mac.
In a new filing with the Securities and Exchange Commission, the bank said the matter involves the securitizations' representations and warranties and whether they were breached.
First Horizon said it "is unable to estimate any liability for this matter. At the time this report is filed, First Horizon was a defendant in lawsuits by three investors in securitizations which claim that the offering documents under which certificates were sold to them were materially deficient. Though these suits are in very early stages, First Horizon intends to defend itself vigorously."
Back in July FHFA said it had issued subpoenas to 64 companies seeking loan documents and other information related to private-label mortgage-backed securities that Fannie Mae and Freddie Mac invested in.
Although FHFA refused to divulge the names of those subpoenaed, the identity of several companies has come to light since then, including many of the largest investment banking firms, including Goldman Sachs & Co., JPMorgan Chase and others.
