First Horizon National Corp. disclosed it has been subpoenaed by "the conservator for two" government-sponsored enterprises related to six securitizations of loans as Fannie Mae and Freddie Mac continue to look for potential misdeeds in loans they bought.
The Memphis banking company said in its third-quarter report, filed Monday with the Securities and Exchange Commission, that the matter involves the securitizations' representations and warranties and whether they were breached.
More institutional investors are joining efforts to recover losses on mortgage portfolios amid concerns about sloppy mortgage servicing and underwriting practices.
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."