First Horizon has agreed to pay $212.5 million to settle claims tied to the Memphis, Tenn., company's past underwriting and origination of certain loans.
The $25.7 billion-asset company said in a press release Thursday that it had reached a settlement with the Department of Housing and Urban Development and the Department of Justice tied to a key outstanding matter tied to a mortgage business it sold in 2008. The settlement is related to FHA-insured loans that the company originated in 2006, 2007 and 2008.
First Horizon, which had already reserved $50 million for the matter, said it expects to report a pretax expense of $162.5 million in its first-quarter results.
First Horizon built a big national mortgage platform prior to the financial crisis, which
The company last year