Moody's Eyes First Horizon Servicer Ratings

Moody's Investors Service has placed on review for possible downgrade the servicer quality ratings of First Horizon Home Loans as a primary servicer of prime and second-lien mortgage loans.Moody's said the action was prompted by the rating agency's recent placement of the long-term ratings of First Horizon National Corp. and its subsidiaries under review for possible downgrade. The rating agency said it "believes the most likely downside scenario would be a reduction in First Horizon's servicing stability assessment from strong to above average," which would drop its primary servicer ratings from SQ2-plus to SQ2 for prime loans and from SQ2 to SQ2-minus for second-lien loans.