First Horizon National Corp. (FHN) disclosed in a Securities and Exchange Commission 10-Q filing that it has been subpoenaed by the conservator for two GSE investors in six securitizations.
The said subpoenas are connected with an ongoing investigation that might or might not result in claims based on representations and warranties, the filing indicated.
Because the investigation is not a repurchase claim or a litigation, the associated loans are not seen as part of the repurchase pipeline. Thus FHN is unable to estimate any liability for this.
FHN is became a defendant in lawsuits by three investors in securitizations claiming that the offering documents under which certificates were sold to them were materially deficient.
Even though these suits are in very early stages, FHN will be defending itself vigorously, FHN said in the filing. The lawsuit matters have been analyzed and treated as litigation matters under applicable accounting standards.
At Sept. 30 and upon filing its report to the SEC, FHN was unable to determine a probable loss or estimate a range of loss resulting from the uncertainty arising from these matters and no reserve had been established. Similar claims may be pursued by other investors.